offshore company formation with bank account

[drillbill]

When your company is forming long-term offshore outsourcing relationships with another company, the foundation of the success of this venture should be laid during the negotiation period itself. The centerpiece of this negotiation period is the Service Level Agreement.


The aim of outsourcing is to gain value for the host organization. There are several contrasting views however regarding how to maximize value and minimize risk by outsourcing. The following best practices can serve as a guide when structuring your SLA, and then implementing and maintaining a relationship with the chosen provider.


Five Golden Rules For Offshore Outsourcing


1. Develop enduring relationships between key management personnel.


The usefulness of the relationship between the key management personnel of both teams depends on good understanding and strong working ties between them. Studies on outsourcing success stories have demonstrated that working chemistry in management and peer friendships among employees have proved to be important determinants in forming long-term relationships that yield real value.


2. Present a Quantifiable Objective.


A useful performance criterion includes quantifiable objectives and clarifies expectations of the quality of service. If you can get ahold of SLAs for comparable projects, they will serve as reasonable starting points?but remember, these are negotiable. In any event, ensure that exact objectives and expectations are included in the SLA and are understood by both organizations prior to implementation.


3. Pre-determine the Incentives and Penalties Schemes.


The provider should be driven to meet the established customer expectations or even exceed it by adopting the performance based pricing criteria. If performance of the service provider exceeds expectations, then incentives should be given; conversely, appropriate penalties should be imposed if objectives are consistently missed.


4. Review Periodically to Maintain Successful Relationships.Organize formal review meetings often. During the meetings, both sides can discuss the performance of both teams and determine the future objectives or goals of the company accordingly. They can also discuss product reviews and deliverables during these meetings. Keep in mind that performance objectives may need to be continually revised according to changing market conditions and the opportunity costs of both firms.


5. Communicate Well & Often to Bridge Cultural Differences.


The parties involved in an outsourcing relationship belong to distinct cultures, these differences have to be accepted and bridged. The cultural understanding between the two organizations can be enhanced by organizing social events, educating about company background, participating in each others? quality programs, etc. Communication really is the key to a healthy relationship. It may be helpful to send a loyal employee to the BPO site for a few months to facilitate understanding in the implementation phase.


Once you have established your offshore company you may wonder how to get your bank account and where does it have to be, some questions that may strive your mind are:

• - must the bank account be in the same country as my company
• - what requirements are there to get my account opened
• - will I have to visit the bank or the agent
• - does my bank account grant anonymity
• - will I have to pay tax on all incoming transfers
• - is the bank reliable
• - what bank shall I choose

All this we have covered already here on the , you may simply look at the thread available here, Admin was so friendly and share a good list of real and reliable offshore banks here.

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Good luck. Feel free to poste comments and suggestions in this thread, let's see where this will go

 

[JohnLocke]

1. Develop enduring relationships between key management personnel.
The usefulness of the relationship between the key management personnel of both teams depends on good understanding and strong working ties between them. Studies on outsourcing success stories have demonstrated that working chemistry in management and peer friendships among employees have proved to be important determinants in forming long-term relationships that yield real value.

Is this about outsourcing some business offshore? If so, I think you need to take care and consider all the problems and trap's you can enter when outsourcing your business and espacialy your ideas!

 

[suzy]

Yeah, to get an bank account for your offshore company (regardless where you set it up) isn't difficult. Search this forum I counted more than 120 different offshore banks are mentioned alone on this forum. You can find comments and stories about each of them.

 

[JohnLocke]

Once you have established your offshore company you may wonder how to get your bank account and where does it have to be, some questions that may strive your mind are:


- must the bank account be in the same country as my company


- what requirements are there to get my account opened


- will I have to visit the bank or the agent


- does my bank account grant anonymity


- will I have to pay tax on all incoming transfers


- is the bank reliable


- what bank shall I choose

To the above I want to add that you will need to make it clear for yourself if you want a offshore bank for anonymity and therefore aware of that it is not cheap to bank offshore or if you want some cheap banking fees and don't have any privacy or anonymity!

 

[lavel]

/IMG/offshore-company-offshore-bank.jpg​

How about the offshore company, how to you find the right jurisdiction for your business, I mean, with so many offshore jurisdictions available it may be difficult.

• belize
  
• bvi
  
• cyprus
  
• seychelles
  
• samoa
  
• isle of man
  
• dubai
  
• panama
  
• costa rica
  
• anguila
  
• cayman islands
  
• singapore
  
• hong kong
  
• maldives
  
• vanuatu
  
• turks & caicos islands
  

The list is almost endless, I find it difficult to know exactly what jurisdiction will fit best for my business. We all want 0% tax, full privacy and anonymity and we don't want any accounting or tax filing or submission of any tax reports to an tax office. Still we want guarantees that it is a stable jurisdiction without war and too much corruption.


/IMG/corruption-jurisdictions-offshore.jpg


Most often for internet based business I can see that a BVI, Hong Kong or Cyprus company is the best fit, not that I have any preferences, but simply because my customers don't look wrong at me when I tell or show them that my company is located in one of these jurisdictions.


The next problem I faced was that one with a offshore bank account for my company. When I found a reliable bank they didn't accepted the company because of it's jurisdiction and they don't want any trouble. What the banks want are transparance. Or they want a company from their own country / island. Means, a Seychelles Bank want's most often a Seychelles company and a Panama Bank wants most often a Panama company.


Anyway, there are thanksfully exceptions. Many of the major tax haven's don't look at it like that, they will accept companies from BVI in the Seychelles or they will accept companies from Samoa at the Cyprus banks. What I want to say is, do some good research on all this and you will be able to find a complete / total setup for your business for long lasting and perfect business activities.

 

[JohnLocke]

Thank you for your comprehensive explanation Curtlee.


I would like to add a few things as well. For the offshore bank accounts you will ned to be sure the bank accept your business before you apply, otherwise it will lead to a many questions if it is unaccetable business and you can't correct it in anyway so your application will be declined and you hav to go with another bank.


If you from the beginning know that the bank does not accept your business you can restructure your business so it fits into their requirements and accepted business policy. That's much easier than presenting them some funny business that get closed quickly again.

 

[lavel]

Thank you for your comprehensive explanation Curtlee.
I would like to add a few things as well. For the offshore bank accounts you will ned to be sure the bank accept your business before you apply, otherwise it will lead to a many questions if it is unaccetable business and you can't correct it in anyway so your application will be declined and you hav to go with another bank.


If you from the beginning know that the bank does not accept your business you can restructure your business so it fits into their requirements and accepted business policy. That's much easier than presenting them some funny business that get closed quickly again.

That's very true Admin. I would say that without an offshore bank account you can't use the company for much. Check your business against the banks accepted business policy and then incorporate your offshore company.

 

[drillbill]

That's very true Admin. I would say that without an offshore bank account you can't use the company for much. Check your business against the banks accepted business policy and then incorporate your offshore company.

I agree.. you want to open an bank account (onshore- or offshore) for your company to keep things seperated from each other.

 

[myhand]

To form a offshore company without to open a bank account makes no sense unless you only need it for property or intellectual protection! Even in that case I still would open an account with some offshore bank.