What is an offshore account
The offshore account is also called OSA account. The account opened by an overseas institution in the offshore business department of a domestic bank that has obtained the offshore banking business qualification according to law belongs to an overseas account. For example, a British company opens an account with HSBC in Hong Kong or a Hong Kong company opens an account with Ping An Bank on the mainland, which is an offshore account.
In finance, offshore account refers to the bank where the depositor opens an account outside his country of residence. On the contrary, a bank located in the country where the depositor lives is called an onshore bank or a domestic bank. Offshore accounts are only for company accounts, and individual accounts are not supported. Offshore accounts are less subject to foreign exchange control than NRA accounts. From the perspective of capital security, offshore accounts are safer and less strictly regulated by the State Administration of foreign exchange.
What documents are needed to open an offshore account?
The bank generally requires the company to provide the following documents:
Original minutes of meeting approving account opening
Certificate of incorporation
Business registration certificate
Notice of appointment of directors and Secretary
Articles of Association
Copy of each director's passport / ID card
Proof of personal address of each director
Note: different banks have different specific requirements for the information required for opening an account. You can consult the relevant banks directly or find the business manager.
Advantages of offshore accounts
1. Freedom of fund allocation
An offshore account is equivalent to a bank account opened abroad. Funds can be freely transferred from the offshore account and are not subject to domestic foreign exchange control.
2. Deposit interest rates and varieties are not restricted
Compared with similar deposits in domestic and foreign banks, the interest rate is preferential and the deposit and withdrawal is flexible, especially for large deposits.
3. Exemption from deposit interest tax
The Chinese government is exempt from deposit interest tax on the interest of deposits and withdrawals from offshore accounts.
4. Improve the efficiency of domestic and foreign capital operation
Provide all-round services with onshore business and overseas banking function, reduce the comprehensive cost of capital, accelerate the capital turnover at home and abroad, and improve the efficiency of capital use.
5. Domestic control, overseas operation
No cash can be deposited in the offshore account, and the foreign exchange received in the offshore account belongs to the income of the overseas company rather than your domestic company.
International commonly used place of opening offshore account
1. Many famous wealth management companies and fund accounts are stationed here.
2. Similar to London, many Chinese enterprises set up offshore companies to open accounts there. Recently, it has been highly praised by European and American companies, because Hong Kong has better confidentiality than London.
3. The oldest and most developed capital market, offshore accounts and onshore accounts are combined. Many Chinese enterprises set up offshore companies and opened accounts there, which is especially respected by European and American companies.
4. A pure offshore port type financial center has good confidentiality, but it does not necessarily have services under the letter of credit.
5. The oldest and most developed capital market, offshore accounts and onshore accounts are combined.
6. Located in the European continent, large countries are small and have few resources. Attracting hot money is a main way for them to make profits.
Knowledge of offshore accounts
The differences between Hong Kong local and mainland offshore accounts are as follows:
The import and export of funds in Hong Kong are not controlled, and offshore accounts are accounts opened by foreign banks in China, which are regulated by China's financial regulatory institutions. Offshore accounts cannot deposit cash. Different opening certificates, offshore accounts can accept mainland ID card holders to open accounts, while opening local accounts in Hong Kong requires that the account holder must hold a passport or pass. Hong Kong's local accounts are fully functional, while offshore accounts are limited in some functions.
How to open a bank account after the company is registered?
All shareholders and directors must attend the bank account opening procedures, but some banks have different requirements for shareholders' attendance. The company needs to bring the company registration documents and go through the account opening procedures at the bank. You can also choose to open an account in Hong Kong or a foreign bank in China.
