At times the opening of offshore bank accounts proves to be more complicated than people initially think it would be. Many banks are uncomfortable about opening accounts for offshore companies. Some banks would be ready to open accounts of an offshore company only on the introduction and recommendation of the same by a trusted and licensed service provider. All banks now recognize the need for increased due-diligence when opening accounts and operating them.

Before opening the accounts the bank will want certain documents. These documents may vary from bank to bank. Mostly these documents are very lengthy and complex. Most of these documents don’t just want the certification of the secretary of the offshore company but also it wants the attestation of the notary of the jurisdiction in which the offshore company is incorporated.

Followings are the advantages of having an offshore bank account:

• Gradual familiarity with international and offshore business.
• Global investment and getting a business perspective.
• Efficiency in Tax.
• Confidentiality.
• Lack of controls in foreign exchange.
• Special investment opportunities.

Followings are the factors which need to be considered for selecting an offshore bank:

• The economic and political stability of the jurisdiction(s) in which the head- quarter of the bank is situated and regulated.
• The substance and reputation of the bank is also very important - Moody's and Fitch, and Standard & Poor's rating reports are helpful.
• Access to deposit, quality of regulation, insurance schemes, and investor protection must be kept in mind.
• The parent company and similar guarantees need to be considered.