Offshore Bank Accounts: A Comprehensive Guide for Indian Residents
When it comes to offshore banking for business purposes, it may be necessary to open a foreign bank account. Despite common myths that foreign bank accounts are only for the rich or that Swiss bank accounts are unreliable, anyone can open an offshore bank account. The Reserve Bank of India (RBI) permits Indian residents to open and maintain a bank account overseas under the Liberalized Remittance Scheme (LRS) purpose code S0023.
Traditional offshore bank accounts require extensive documentation, including notarized copies of identification and address verification documents. Additionally, some banks may require financial reference documents and proof of the source of funds, employment or business records. Such requirements are put in place to discourage money laundering, tax fraud, and other illegal activities often associated with offshore banking.
Offshore bank accounts can be opened in several countries, including the Cayman Islands, Switzerland, Singapore, Germany, and Belize. Depositing funds is usually done through international wire transfers, while withdrawing funds can be done through debit cards issued by offshore banks or local transfers.
In conclusion, offshore bank accounts are legal and accessible to anyone. Traditional banks require extensive documentation, and offshore bank accounts can be opened in several countries. Depositing and withdrawing funds can be done through wire transfers or debit cards issued by offshore banks or local transfers.