Top 10 offshore bank accounts for startups

offshore bank accounts

The global business ecosystem includes startups as a critical component. They work to draw attention from the regulatory community, find answers to various issues in various markets, and support the growth of various corporate operations. Finding a flexible financing option is crucial if you want your project to succeed. We’ll examine in this article how a small startup can choose an overseas bank account.

One of the most crucial decisions you’ll make for your firm is selecting a bank account. However, what qualities should you seek in a startup bank account, and which banks provide the greatest deals?

Businesses rarely move banks, unlike personal accounts, which frequently results in them missing out on money-saving opportunities. When starting a business, you’ll be eager to open a bank account, but what elements should you take into mind?

What is an offshore bank account?

A bank account that you have outside of your country of residence is referred to as an offshore or overseas account.

You can hold money, make and receive payments, and open savings and investment accounts in several currencies thanks to them.

Why do people use offshore accounts?

Managing your financial obligations across different nations and regions can be made easier using offshore accounts, commonly known as offshore bank accounts or offshore savings accounts. If you need to send or receive regular overseas payments and transfers, they might be helpful.

Most expats have two bank accounts: one in their home country and one in the nation where they are currently residing. Many people also think about opening an offshore account because it might be a good method to manage, invest, and save money while traveling.

Open an offshore account for the following reasons:

• You already reside or are employed overseas.
• Suppose, for instance, that you intend to retire or travel overseas.
• You frequently travel for work and are an international assignee.
• You travel internationally frequently on work
• For instance, when you work as a freelancer, you are paid in a foreign currency.
• You possess property or other assets abroad.
• You provide financial support for family members who reside overseas, such as paying a child’s education costs.

Advantages or Benefits of using offshore bank accounts.

While each offshore account will have unique features and advantages, the following are some of the more typical ones:

• Savings and investments that could be tax-efficient in a variety of currencies, though any tax advantages would depend on your circumstances
• Maintain funds, send and receive payments in several currencies
• control foreign currency and have access to global expertise and investment guidance
• Keep your funds tied to your local accounts in a safe, central location.
• Every time you relocate, maintain the same bank account.

Things to consider when opening an offshore account

The following factors should be considered when opening an offshore account:

• Tax: While investing and saving with offshore accounts may be tax-efficient, you must report your income to any applicable taxing authorities and declare any interest from such accounts.
• Cost: Some offshore accounts could charge for international transfers or have a monthly fee. Some don’t. For instance, there is no monthly fee for the HSBC Expat Bank Account, and there is no charge for transfers between HSBC accounts.

Before opening an offshore account, you should review the terms and conditions as additional fees and charges can be applicable.

• Security: The Financial Services Compensation Scheme (FSCS), which covers savings kept with authorized UK banks and building societies up to £85,000 per person, does not apply to offshore accounts.

Some offshore accounts, nevertheless, are protected by other programs. The Jersey Bank Depositor Compensation Scheme, for instance, provides security for qualified deposits up to £50,000 in the HSBC Expat Bank Account.

• Jurisdiction: Some nations don’t have stable currencies. This makes it hazardous to possess local currency and raises the possibility that the government will confiscate your money. That actually did take place in Cyprus a few years ago.

With all this information being given out, it is time for us to go through the top 10 offshore accounts for startups.  In this list we are going to be counting down from the 10th to the first.

10. NatWest

NatWest, or National Westminster Bank, is a major retail and commercial bank in the United Kingdom headquartered in London, England. It was formed by the merger of National Provincial Bank and Westminster Bank in 1968. It became a subsidiary of The Royal Bank of Scotland Group in 2000, which was renamed NatWest Group in 2020. The bank became a direct subsidiary of NatWest Holdings after the group’s core domestic business was ringfenced; NatWest Markets is the non-ring fenced investment banking arm. After spending 45 billion pounds ($61.87 billion) bailing out NatWest Group in 2008, the British government now owns approximately 48.1%, previously 54.7% of the lender.

Reasons for being on this list.

There is no monthly fee with the NatWest Select Account, and it comes with a contactless debit card. To be eligible for this account, you must be over the age of 18 and earn at least £40,000 per year. However, some fees for transactions or transfers may apply. There is also online and mobile banking.

9.  Moneycorp

Moneycorp is a global payments fintech company that offers payment products and services. In 1979, the company was founded in London. It serves corporations, financial institutions, and individuals worldwide, with offices in the United Kingdom, North America, Europe, Brazil, Hong Kong, and the United Arab Emirates.

Moneycorp accepts payments in over 120 currencies through a variety of services such as foreign exchange spot, forward contracts, and option contracts. Moneycorp’s payments technology includes liquidity providers, API integrations for mass payments, and a self-service platform with a dedicated account manager.

Reasons for being on this list.

The Moneycorp Personal Account can assist you in setting up a recurring international transfer. Pensions, sending money home, receiving a salary, and paying bills can all be done using this method. Overseas payments are available in 120 currencies to 190 countries, with online transactions available in 33 of them. Moneycorp has a long and reputable track record in foreign currency transactions. They also have a personal account manager and no transfer fees. The best part? There is no minimum balance.

8. TD Bank

TD Bank is a multinational Canadian banking and financial services corporation based in Toronto, Ontario. The bank and its subsidiaries are commonly referred to as TD and do business as Toronto-Dominion Bank. On February 1, 1955, the Bank of Toronto and The Dominion Bank merged to form the bank, which was founded in 1855 and 1869, respectively. It is one of two Canadian Big Five banks founded in Toronto, the other being the Canadian Imperial Bank of Commerce.

Reasons for being on this list.

If you’re just starting out on your offshore journey, you might not feel comfortable banking in places like Georgia or even Singapore.

If that’s the case, you can easily get started at TD Bank in Canada.

For those looking to start their offshore banking journey close to home, TD Bank in Canada is an excellent choice. You won’t find sky-high interest rates or exciting investment banking options at TD Bank, but you will find stable banking and excellent customer service.

Furthermore, the bank allows you to hold either US or Canadian dollars, providing a small degree of diversification.

If you’re not quite ready to take a long-haul flight to Armenia or other parts of the world, TD Bank can be a good place to start. You can easily travel to a major city such as Toronto or Vancouver, open an account with a low minimum deposit, and begin to learn about offshore banking.

7. Chase Bank

JPMorgan Chase Bank, N.A., also known as Chase Bank or simply Chase, is an American national bank headquartered in New York City that serves as the consumer and commercial banking subsidiary of JPMorgan Chase, a multinational banking and financial services holding company based in the United States. Until it merged with J.P. Morgan & Co. in 2000, the bank was known as Chase Manhattan Bank. In 1955, the Chase National Bank and the Manhattan Company merged to form Chase Manhattan Bank.

Reasons for being on this list.

If you are not a US citizen, banking in the US is surprisingly appealing. Although the United States does not have the world’s safest banks, it is well-connected to the global financial system. Naturally, opening an account there is also quite simple.

As an added bonus, the FDIC insures deposits up to $250,000 per account in the United States. This is by far the most deposit insurance available anywhere in the world.

Chase is the best bank to open a bank account in the United States as a non-resident.

6. Neat

Neat is a Hong Kong-based neobank that provides Business accounts as well as a debit card, with all transactions managed via an iPhone or Android app. Neat currently accepts residents from Andorra, Anguilla, Argentina, Australia, Austria, Bangladesh, Belgium, Brazil, British Virgin Islands, Canada, Cayman Islands, Chile, China, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Guernsey, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Liechtenstein, Lithuania, Luxembourg, Macau, Malaysia, Mexico, Monaco.

Reasons for being on this list.

Neat is based in Hong Kong, as opposed to European fintech banks, which frequently involve a lot of bureaucratic nonsense. It’s also much more efficient than its European counterparts, as are most Asian tech and financial products.

Neat allows you to set up accounts entirely online and to bank in multiple currencies with ease. Furthermore, if you work in e-commerce, you can easily connect your Stripe, Amazon, PayPal, and other similar accounts to your Neat account.

Although fintech banks may not meet all of your needs, certain products for transactional accounts can be excellent.

5. Capital security bank

CSB has been in business for over 25 years, starting with personal family trusts managed by professional trustees.

This is still an important aspect of their service, but they have expanded to include personal corporate accounts with Capital Security Bank.

Today, their mission is to provide their clients with high-quality Private Banking.

Reasons for being on this list

Banks rarely keep all of their deposits on hand because they will make loans and investments, and a bank’s liquidity ratio indicates how much of your money they may use to do so.

However, a few banks do not make any loans at all, implying that they are completely liquid.

Capital Security Bank is also one of the best offshore banks in terms of 100% liquidity. Rather than acting as a traditional bank, CSB holds your money in trust, providing you with the peace of mind that your bank will not lose your money.

4.TBC Bank

TBC Bank is a Georgian bank with its headquarters in Tbilisi. TBC Bank derives its name from its original name, Tbilisi Business Centre, which dates back to 1992. TBC is now registered as the bank’s official name, not just an abbreviation of the original name.

Reasons for being on this list

One of the most important aspects of an offshore bank is its ease of use, and TBC Bank in Georgia is possibly the easiest bank in the world to work with.

Georgia is simply an easy place to do business in general. The country wants your capital as an emerging market, and most Georgian businesses and banks will gladly do business with you.

TBC Bank reflects Georgia’s business-friendly attitude, as opening an account in-person can take as little as ten minutes.

The bank also accepts remote openings via Power of Attorney granted to a Georgian lawyer, which typically takes one to two weeks.

3. DBS treasure

DBS Bank Limited, abbreviated DBS, is a Singaporean multinational banking and financial services corporation headquartered at the Marina Bay Financial Centre in Singapore’s Marina Bay district. The bank was previously known as The Development Bank of Singapore Limited, from which the abbreviation “DBS” was derived, before adopting the current abbreviated name on 21 July 2003 to reflect its role as a global bank.

Reasons for being on this list

DBS is relatively easy to work with, and it offers a wide range of interesting investment banking services, including next-generation robo-investing. You’ll need to invest at least 350,000 Singapore dollars, but you’ll get a reasonably robust level of service for that sum.

Because of these advantages, we recommend DBS Treasures to wealthy entrepreneurs and investors who keep cash on hand.

Singapore is also an excellent wealth jurisdiction. It’s our favorite place in the world to store gold and preserve wealth, as we mentioned in the video above.

2. Lloyds Bank

Lloyds Bank plc is a retail and commercial bank based in the United Kingdom with branches throughout England and Wales. It has long been regarded as one of the “Big Four” clearing banks. Lloyds Bank is the largest retail bank in the United Kingdom, with a large network of branches and ATMs throughout England and Wales (as well as an arrangement for its customers to be serviced by Bank of Scotland branches in Scotland, Halifax branches in Northern Ireland, and vice versa), as well as 24-hour telephone and online banking services. It had 16 million personal customers and small business accounts as of 2012.

Reasons for being on this list

Lloyds’ international account is appropriate for those who do not have significant savings because you can save and invest with £25,000 or a £50,000 annual salary. While there is no fee for the first three months, there is a £7.50 fee after that. If you have accounts in multiple currencies, there is only one fee. At the same time, international payments can be made without incurring any fees. Visa debit cards are available in the GBP, USD, and EUR currencies, allowing you to access your money at any time of day.

1.  HSBC

HSBC Holdings plc is a multinational universal bank and financial services holding company based in the United Kingdom. With US$2.953 trillion in assets as of December 2021, it is Europe’s largest bank by total assets, surpassing BNP Paribas. HSBC will have $10.8 trillion in assets under custody (AUC) and $4.9 trillion in assets under administration (AUA) in 2021. HSBC’s origins can be traced back to an hong in British Hong Kong, and its current form was established in London in 1991 by the Hongkong and Shanghai Banking Corporation to act as a new group holding company; its name is derived from the initials of that company. The Hongkong and Shanghai Banking Corporation first established branches in Shanghai in 1865 and was formally established in 1866.
Reasons for being on this list

The HSBC Expat Premier Account provides a single central location for your bank account, allowing you to freely move countries as an expat. The savings tax rate is competitive with those of several other countries. Foreign exchange services and tax resources are also available both locally and globally.

You must be at least 18 years old, have a minimum balance of £50,000, a salary of £100,000, or be already eligible for HSBC Premier in another country to open an account with them. You must also reside in a country that is eligible for these services. This bank may be useful for those who have a family and frequently travel to different countries, requiring access to different currencies.

The HSBC Expat Premier Account provides a single central location for your bank account, allowing you to freely move countries as an expat. The savings tax rate is competitive with those of several other countries. Foreign exchange services and tax resources are also available both locally and globally.

You must be at least 18 years old, have a minimum balance of £50,000, a salary of £100,000, or be already eligible for HSBC Premier in another country to open an account with them. You must also reside in a country that is eligible for these services. This bank may be useful for those who have a family and frequently travel to different countries, requiring access to different currencies.

Conclusion

Those are the best banks with policies that will best support your start up businesses. Before choosing one of the banks make sure to do your own research concerning things you want and your preferences in the banking system.