The most natural and obvious question would be “Why Offshore Banking?”
The local bank is a place one considers the safest and best custodian for one’s wealth. The bank is also a natural advisor for one’s financial moves. Fair enough, one would say. Yet another facet is that the bank is governed by the law and policy of the land where it is operational. This is exactly where the concept of Offshore Banking Services is catching on. The very fact that these banks that are located Offshore are governed by the laws of the land where they are geographically and physically located accounts for the scales tipping heavily in their favor because of less stringent, more business friendly and thus more favorable laws and taxation procedures.
Running a business, making a success of it and maintaining that winning position is no more the easiest of situations to be in.
A whole number of Government bodies, Financial and other Institutions, Creditors, and individuals have the RTI [right to information] on an individual on a need to know basis.
So, one’s own privacy is perhaps an obsolete and not so private concept anymore.
By the very virtue of being successful one may become a sitting and easy target for unwanted and money sucking lawsuits which may well take one to the edge of penury.
The onus and punishment for deviously applied laws are not limited to Business owners alone. Even if one has been a long standing officer in a company or a corporation one is as much the target for punishment by law as the Corporate.
The law suffers from hindsight too. At times the long arm of the law comes to grab one several years later if the application of that particular law is still in force. One may have worked hard to save funds for one’s retirement but some stipulations of law allow the seizure of those too, which is a pity.
One’s financial wealth may come down, one’s assets may shrink but one thing that will always go up is taxes. The wealthy are always liable for punishment through heavy taxation.
A businessman or a business house that opts for Offshore Banking and Business structuring with the help of offshore banks is in an enviable position as he can protect his assets, maintain his wealth, ensure his privacy as far as his financial health is concerned and avoid unnecessary litigation and wealth depleting taxation.