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Cyprus LTD |
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 £ 1250.00 | Annual Maintenance Fee £456.00 | | |
 This is our most popular package with worldwide customers, and includes: -
 The registration your private limited company in Cyprus from scratch using our registered agent & registered office address, and appoint your own candidates to the roles of director, secretary, and shareholder;
The standard capital on formation is €1,000 divided into 1,000 shares valued at no par value or €1.00 each (it is not required to have all of the shares issued, but a minimum of one share must be issued);
The government and initiation fees for incorporation are included in the price of this package;
The search for limited company name availability, confirmation, and reservation, which usually takes as little as five to seven days;
The preparation and submission of the memorandum and articles of association of your company (in English & Greek languages);
A local registered office address in Nicossia (which is statutory requirement in Cyprus) for 12 months is included in the price of this package (our registered office address service is charged annually);
The formation of a private company limited by shares usually takes as little as fifteen to twenty days from the time that your application and payment are received by Coddan;
To receive an original of the certificate of incorporation from the companies registrar usually takes as little as one to two days from the time of incorporation.
The following hard bound copy legalised with an official apostille of corporate documents, will be posted to you upon formation of your company: - The original xertificate of incorporation (both in English & Greek);
A bound copy of the memorandum and articles of association of your company (both in English & Greek);
The minutes of the first meeting of the board of directors (both in English & Greek);
A completed register of directors and shareholders (both in English & Greek);
Share certificates;
Company seal.
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Hong Kong LTD |
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| £ 660.00 | Annual Maintenance Fee £500.00 | | |
This is our most popular package with worldwide customers, and includes: - The registration of your private company limited by shares from scratch using our own registered office address, our local nominee secretary, and appoint your own candidates to the roles of directors, and shareholder;
The standard capital on formation is HK$10,000, this is divided into 10,000 ordinary shares valued at HK$1.00 each (it is not required to have all of the shares issued, but a minimum of one share must be issued);
The formation of a private limited company usually takes as little as seven to ten business days from the time that your application and payment are received by Coddan;
The government fee for incorporation is included in the price of this package;
The provision of a registered office address in Hong Kong for 12 months is also included in the price of this package (our registered office address service is charged annually);
The provision of a nominee secretary for 12 months as well is included in the price of this package (our nominee secretary service is charged annually);
The following hard bound copy of corporate documents, will be posted to you upon formation of your company: - An original of the certificate of incorporation of your company (in English & Chinese);
Six hard bound copies of the memorandum and articles of association (both in English & Chinese);
A hard bound copy of the minutes of the first meeting of directors (in English only);
Share certificates, and your company register of directors, secretary and shareholders (in English only);
One rubber stamp & one plier seal of your company are moreover included into the price of this package.
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Panamanian Corporation |
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| £ 650.00 | Annual Maintenance Fee £370.00 | | |
This is our most popular package with international customers, and includes: - The search for corporate name availability, confirmation, and reservation;
The payment of initiation fees and government fee for incorporation are included in the price of this package;
 The provision of a registered agent and registered office address in Panama for 12 months are also included in the price of this package (our registered agent and provision of a registered office address service are charged annually);
The registration of your corporation from scratch using our own registered agent and registered office address, and appoint your own candidates to the role of directors and shareholders;
The preparation and filing of the by-laws (company's constitution) and articles of incorporation of your corporation;
The standard capital on formation is US$10,000, this is divided into 10,000 ordinary shares valued at US$1.00 each (it is not required to have all of the shares issued, but a minimum of one share must be issued). Contributions may include any type of asset - cash, property, services rendered, or a promissory note or other obligation;
The formation of a corporation usually takes as little as three to five working days from the time that your application and payment are received by Coddan;
To receive a recorded copy of the articles of incorporation and by-laws usually takes as little as one to two days from the time of incorporation;
The following documents will be posted to you upon formation of your corporation: - The original articles of incorporation (in English & Spanish);
A bound copy of the by-laws of your corporation (in English only);
The minutes of the first meeting of the board of directors (in English only);
A completed register of directors and shareholders (in English only);
Share certificates.
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(click here for other packages)
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| 1. An International Business Company is completely private.
2. Offshore IBC is TAX EXEMPT on all income earned worldwide.
3. Tax-Haven IBC DOES NOT file an Annual Return.
4. Off-Shore IBC's Corporate Records may be kept anywhere.
5. An IBC's Annual Meetings may be held anywhere in the world.
6. An IBC's Board of Directors Meetings may be held anywhere in the world.
7. The same person may act as the Shareholder, Board of Directors, President, and Agent or as any other Officer within the Company.
8. The Founder may appoint Officers and Directors for the IBC, but only the Founder will know their identities.
9. An IBC's Shareholders remain Confidential through the use of Bearer Shares.
10. A Director can be of any nationality.
 +44 (0) 207.060.0382
+44 (0) 800.081.1510
 info@incorporate-uk-company.co.uk |
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Please note » The prices payable for the items that you order are clearly set out in the web site. There will be no contract of any kind between you and us unless and until we receive payment from you. We act as your agent in the incorporation of offshore companies and filing of government forms. We are not able to guarantee that any such filing will be acceptable to Companies Registrar, nor are there any contractual obligation upon us to do so. If Companies Registrar rejects incorporation or other filing, we will credit your account with a full refund and the contract between us will be made void. Companies Registrar does not offer a cancellation facility for the registration of companies or the electronic filing of documents. We will be unable to cancel any such submission on your behalf and will not refund any payment you have made. All prices shown at Coddan Web Site (www.incorporate-uk-company.co.uk) are in Great British pounds. Here are some reasons to do it: to place your assets out of reach of greedy tax collectors and governments, vicious relatives or anyone wishing you bad. Your offshore company may own an overseas property or just hold a bank account maintaining your anonymity. To make profit just keeping your money in an offshore bank. Interest rates there can be much higher than in any European or American onshore bank. To plan your business tax burden. You may direct your taxable income to your offshore company, thus reducing tax substantially. To protect yourself. Your offshore haven may be of vital importance if a disaster strikes. Personal problems or a national catastrophe will be less painful for the prepared.
Live Help » Live Help is a real time "chat" feature which enables you to interact with a customer service representative without a phone call. Get answers to your questions while using our website. Clicking the "Live Help" button will start an on-line session with one of our representatives. Live Help is currently available during normal business hours. Outside of the above opening hours our business center will be closed. When you click on the button you will see an e-mail form that will allow you to send us a mail with your questions. Live Help is absolutely free! There are no hidden fees. We offer the service as a courtesy to our website visitors.
 Offshore Company Formation From £500.00. Incorporate an Off-shore Company in a Tax Haven in BVI, Seychelles, Cyprus, Hong Kong, Gibraltar and Panama:
Are you looking for a safe tax haven for your investments offshore? Do you consider going off-shore for the first time? Are you planning to incorporate an offshore corporation (IBC) together with offshore bank account? Do you wonder how to reduce capital gain tax with the help of offshore havens? We are providing direct low cost offshore IBC formation services with possibility to check company name availability online and offshore companies' incorporation in real time mode! An International Business Corporation or IBC is a corporation that is registered in an offshore tax haven and is typically authorized to do business anywhere in the world except its home country (i.e. if your IBC is formed in BVI you may do business anywhere in the world except BVI).
Cheap and fast offshore business formation in tax havens and online offshore bank accounts opening services in different tax havens are our specialty. Coddan specialises in all legal ways in arranging suitable and lawful offshore structuring both for your business and private deals. Coddan specialises in incorporating of offshore companies, trusts, establishing offshore bank accounts etc. Coddan grants your privacy, security and confidentiality. To do business today it is difficult to make a profit. You must constantly be aware of the best ways to run your business, so that the profits end up in your pocket and not in the vaults of the banks, tax department or with your competitors. The strong financial and professional backgrounds, including the availability of the offer of an integral package of services, represent currently one of the preferred reasons for which clients contact just Coddan. We have established business relationships with our customers that are based on trust and mutual benefit which we hope to enjoy for years to come. In return our customers get committed offshore banking and professional offshore service. We have many optional services from which a client may choose. Among the options, we have available for immediate use, offshore shelf companies and off the shelf vintage companies; these ready made offshore IBCs are the same except that the offshore vintage companies are older. None of the shelf offshore corporations have ever been in use or ever held a bank account. In other words these companies are all 100% tax-free and clean. We also offer offshore nominee director and/or shareholder services.
Offshore locations have a great attraction for companies of all forms from all countries of the world. Coddan gives you the ideal opportunity to set up your own company without the need for being physically present. You are not restricted based on domicile or origin and you may control your company or an agent located on the offshore territory. The virtual certainty that 65% of the world's hard currency is held in offshore banks and that around 40% of the world's trade in goods, especially services such as consulting which are transacted through offshore international finance centres, proves that in spite of the problems with the Organisation for Economic Co-operation and Development (OECD), this is an area of massive growth and potential for both individuals and companies. Regardless of changes that occur due to OECD pressure or a particular finance centres government, the question will always remain "which is the best jurisdiction to establish my offshore structure?" In actual fact the products offered by most Tax Havens are virtually mirror images of each other. The decision will largely depend on the quality of after sales service, objectives and goals of the purposed corporation or trust and the clients own personal and business circumstances.
The word "offshore" has often been linked to crime. This is a deliberate strategy of government and other vested interests. Sure, some criminals may bank their ill-got gains in an offshore account - but that doesn't negate the benefit of being offshore as a law-abiding citizen. And what they forget to tell you is that many offshore banks have quite stringent controls on who banks with them - and have their own reputation to protect. It's not in any bank's interest to be known as a haven for criminals. A great number of people use offshore structures for money laundering as well. Nevertheless all these matters the main purpose of going offshore is the privacy it affords you. Our company is interested only in the main feature of offshore using. Well, it can be a means to legally decrease your tax burden. You may be able to defer, reduce and even eliminate taxes by following a carefully thought out strategy. You may want to do it for retirement planning - in this way your nest egg will grow without being continually "trimmed" back by various withholding taxes. The power of compound interest works much better when you're not getting tax deductions!
- Forming Company in Tax Haven. Is it Legal?
YES. It is absolutely legal to incorporate a company in offshore jurisdiction, establish a trust, open a bank account and conduct other business in a offshore tax haven. However, you should check with a lawyer in your country to confirm these legalities. Each country has it's own policy. There are however a number of factors that must be considered, these are the principal indicators that determine the merits of a good offshore centre:
Political and Economic Stability. The offshore jurisdictions should not be subject to violent political factions, civil unrest, poor economic performance or the likelihood of invasion or military coup.
Quality of Communication. Good telecommunications capabilities are more important than the location of the Tax Haven. By using state-of-the-art communications your chosen jurisdiction must be able send and receive electronic transfers, and your representative must be able to receive instructions by letter, telephone, fax, or telex or any other means.
Language. It is essential that you are able to have your instructions understood by your representatives, nothing is worse than going through two or three different members of staff, none of whom understand what you want.
Legal System. Good legal foundation with modern corporation laws is essential. Jurisdictions who base their legal system on English common law, with local modifications, are very popular and this applies to any offshore centre, which was or still is under British control.
Confidentiality and Secrecy. Acceptable levels of privacy are important and valuable when conducting business offshore. The offshore centre must have the ability to control and sanction unauthorised disclosure of information relating to its offshore clientele and their financial affairs.
Exchange Controls. It is important that you can freely move your money in and out of the country. The best situation is to bank in a country with no exchange controls. Money that is restricted from movement can be easily subject to possible seizure. It is important to keep in mind that companies may open bank accounts in jurisdictions other than the jurisdiction of the corporation.
Banking and Professional Services. Selecting a bank for the corporate account is equally as important as selecting the jurisdiction for the incorporation. The jurisdiction should offer superior and state-of-the-art banking, as well as professional services such as accounting, legal, management and trust services, these should all be readily available if required.
Taxation. Jurisdictions that have no tax treaties with other countries are often the best choice unless the tax treaty fulfils a function in your tax planning.
Restrictions Imposed On IBC's. You should be able to conduct your business legally without unnecessary restrictions.
Cost of Formation, Annual Fees & Services. These should be realistic and fulfil your requirements to an acceptable degree.
Location. Although not of such great importance today as in the past, certain ingredients may be vital e.g. time zone, banking hours etc. The reason they are vital is because a 10-hour time difference means you are never open at the same time.
Government Attitude. A government that welcomes offshore business and possibly offers financial incentives sends a positive message to offshore investors. Many jurisdictions actively promote themselves as a tax haven and welcome offshore business and investment capital, while others just tolerate it. A government that does not completely support the activities of their offshore industry can adversely change their policy overnight. There are currently just fewer than 40 major offshore finance centres in the world. Offshore finance centres were formerly known as tax havens, but just like the Golliwog on the Robertson's Marmalade jar some things just don't quite fit into today's world! Especially with the OECD, FATF, IRS, EU, SEC and any number of other government bodies snapping at their heels. A partial list of havens, sorry finance centres, is listed below. What is very clear is that if any country complies sufficiently with OECD requests for exchange of information and tax changes, one thing is certain with nearly 40 major offshore centres and in excess of 30 minor players who would be keen to fill the gap, if the business was there, Offshore Finance Centres are not likely to become extinct for some time, the only thing that limits the number is the amount of clients who use their services, as with everything supply and demand dictates that not every country can be a tax haven! If you are a citizen of a country that does not tax income earned outside of its borders, an offshore company can be most advantageous - your money can grow tax-free (and therefore a lot faster!) until it is repatriated. Some countries have tax systems like the UK and US - "global" taxation where all income is taxed regardless of where it is earned. If this is the case, you must declare any income earned when you file your return so there are few tax advantages.
However, many UK, EU and US citizens find another legitimate advantage to offshore companies - asset protection. In our increasingly litigious society, many people keep their nest egg offshore. It's much more private (the confidentiality laws of these jurisdictions are usually very strong) and it's much harder for potential creditors in a frivolous lawsuit to get at your money. Where there is a need, we can also provide management and administration capabilities for each company. This may include the provision of nominee shareholders, nominee directors and company secretary, day-to-day management and administration, secretarial services, accounting and audit, invoicing or establishing a "virtual office". Our business services department deals with two main areas of service. Offshore and administration services are a significant part of the department's activity. A broad range of financial advice and assistance is provided in the day-to-day administration of offshore businesses through qualified professionals who are fully conversant with commercial and banking practices.
Offshore business and administration services are geared towards providing support to offshore clients to enable them to become and continue to be operational. Computerized accounting and VAT services are another important function offered to all types of clients. Through the use of latest technology computer equipment and accounting software the department can handle complex and voluminous transaction processing for both local and offshore clients. Let's start with the decrease of liability. A big problem that goes along with opening a business is the high risk. One single mistake can mean the loss of all your property. However, there is no need to risk your home or personal finances. You can register a company in England, in the USA or in one of the offshore places and completely forget about liability. In the worst case, the company itself loses all its assets but you, your family, your bank account, your car, your house and whatever else there is to be protected, will be protected. The registration fees already include necessary deposits so that the company has its limited liability status right from the start. Of course there are also types of companies that limit the liability in all European Countries, but in most of them you have to deposit a very large amount of money to register such a company, even though somebody starting a new business needs every single cent to survive and succeed. Worst of all - the laws in the countries that require the highest deposit for a limited liability company, e.g. Germany, also can easily make you personally responsible with your own private assets in case the company goes bankrupt. Of course you do not have to live in England or the USA to register your business there and profit from the less restrictive company acts available in these countries.
The second reason to register with us is the obvious tax advantages. To avoid or reduce taxes you can either form an offshore IBC (International Business Company) in one out of more than 20 countries or register a corporation, LLC or partnership in one of the three US-states Delaware, Nevada or Wyoming. For non-US residents we recommend Delaware as it has the lowest annual fees and offers a very good companies act. For U.S. residents we recommend the registration on an offshore island like British Virgin Islands, Nevis, Seychelles or Hong Kong. Forming an offshore company means that you only pay a fixed annual amount. The third reason for incorporation is that your business suffers less legal constraints due to other countries jurisdictions. Of course that doesn't mean that you have to move your home to another country! It is sufficient just to register the company in another country. For example a company registered in the USA can easily do business in Europe. But it will enjoy more favorable conditions. The usual registration of a company in a European state like Germany or Austria takes several weeks, sometimes even several months. The registration of a company in the USA can be achieved within hours, and you do not even have to assign in person. You do not have to show any references nor have to prove your ability to run your business or have knowledge of legal procedures.
You also do not have to limit your company to certain fields of business. We can register your offshore company for the widest range of services you can imagine. So if you want to expand and offer new services to your customers you do not have to apply for an enlargement of your existing company. You just do it.
- Introduction to Offshore Corporations:
First, you must understand the CFC rules. If an offshore corporation has any US shareholders who own 10% or more of the company's stock (or if U.S. shareholders in the aggregate own 50% or more of the stock), then it is considered under U.S. law to be a "Controlled Foreign Corporation," or "CFC", and the person who owns the stock must file an informational return as to the company and report (and depending on how it is set up, pay tax on) the company's income, etc., pretty much as if it were a US S-corporation. Additionally, there are "attribution" rules which has the effect of greatly expanding this basic rule. For this reason, at least for US citizens there are absolutely no income tax advantages, and very few other tax advantages, to using an offshore corporation. Offshore corporations are great for facilitating international trade and for protection against creditors, but they are more or less "tax neutral." Offshore corporations are similar to domestic corporations, but they are incorporated in an offshore jurisdiction and are subject to the offshore jurisdiction's laws. The offshore corporations which we are concerned about typically cannot do business within the jurisdiction of their incorporation, except for investment purposes, etc. Such corporations are often referred to as "exempt companies" or more commonly "International Business Companies" or "IBCs".
Clients establish offshore trusts, corporations, LLCs and LLPs relying, quite reasonably, on their advisor's recommendations. But clients often consider 'offshore' only in a general sense, sometimes without having much comfort in what it is they do know. In our experience, many clients initially know little about the day-to-day operation of the offshore corporate or trust structure put in place and the asset placement options, including banking. They can be unsure as to how a trustee operates a structure and deals with assets and what part, if any; they play in the process of investing them safely and productively. Despite the best marketing efforts to distinguish finely wrought legal advantages in one type or in one jurisdiction as opposed to another, corporations are, or are on the way to becoming, commodities. With some exceptions at both the bottom (Panama?) and the top (Bahamas?) of the price scale, they are, like all commodities, sold essentially on the basis of price as opposed to content or quality.
Their price is determined on a large scale where the particular jurisdiction or features of the corporation are not particularly important to the purchaser. As with other commodities, like wheat or money, profitability is determined by price, volume and convenience; one reason why successful 'corporation' jurisdictions like the BVI have upgraded their registry facilities to provide for electronic everything. Corporations in the offshore world exist by virtue of their registration, requiring the payment of annual fees both to the government and the administrator. Depending on the underlying system used in a particular jurisdiction they are special corporations available only to non-resident use, or as a special category of domestic corporation exempt local taxes. It is self evident that without payment of the required fees, a client's corporation can be entangled in complications unwanted by the client or the offshore jurisdiction.
The next thing to deal with is the common conceptual error made by many clients and even by some advisors. Who owns the company? While Coddan can provide a shareholder and director, it does so only as nominee for the client. A declaration of some sort is made by Coddan to this effect. To go further would involve Coddan as a participant in the client's actual affairs. Some jurisdictions permit companies to own their own shares and this process can be useful, though while it shields the client from legal or beneficial ownership it also means he may have a perception of having a tenuous link on the whole. He usually wants more. Very convoluted structures with other corporations formed to be shareholders, directors, or advisors, to the first can result. There are other control or ownership options such as bearer shares, or bearer debentures, (the existence of which suspends the normal control and management functions and rights of the directors) and most rely on related privacy regulation for their appeal to clients, rather than legal efficacy. Once established, how is the offshore company operated? Options range from full service administration and operation by the trust company, through to operation entirely by the client and his nominees, with minimum passive administration carried out by Coddan. The client can be as close to or as far away from actual operation of the corporation as he wishes.
Proper maintenance of transaction records is what the trust company must do. A director's decision to have the company enter into a binding contract requires evidencing in the form of a resolution authorising him, (or it, if a corporate nominee director is used) to do so. The contract is then executed. Copies are kept on the file. The client may require notarised, or otherwise verified copies. Sometimes, clients simply abandon corporations, and fail to respond to the trust company's communications. Most good offshore corporate legislation contemplates this, and includes provisions that permit these corporations to be struck off the register without fuss, but at the same time permits their being reinstated if creditors, assets, or transactions, hitherto unknown to the trust company belatedly appear. Liquidation is the proper and best way of ending a corporation's existence without comeback. A client should contemplate termination at the outset, and set aside funds to have this completed.
Companies Limited by Guarantee. This is a form of corporation which has existed for hundreds of years, but has only recently resurfaced because in theory it avoids the U.S. controlled foreign corporation rules. A company limited by guarantee is a company which does not issue shares. Instead, you "pledge" that if the company gets sued that you will then contribute (this is the "guarantee") X dollars to the corporation. The amount of your guarantee relative to all guarantees determines the percentage of your equity, and the return you willl receive. For instance, assume that a company limited by guarantee is formed, and Joe guarantees the company for $300 and Fred guarantees the company for $700. If the company makes $20,000 dollars in a give year, Joe will receive $6,000 and Fred will receive $14,000. But, let's say the company gets sued for $15,000. In that case, Joe will be liable to the company for $300 (the full amount of his guarantee) and Fred for $700 - and the creditor is SOL for the other $14,000 (assuming the creditor doesn't sue Joe and Fred in their individual capacities). Now, from an asset protection standpoint, these companies raise some interesting possibilities since the creditor is at least theoretically limited to the amount of the guarantee. So, we'll throw them in our toolbox and await an opportunity to use them.
- Bank Accounts - Asset Placement:
Access And Due Diligence. Any one can open an account with a domestic bank, usually on production of conventional identification like a driving license. Not so in the offshore world. The very accessing of a bank willing to handle an account is a valuable service. Offshore service providers conventionally make their banking relationships available to clients. They are the ones with the relationships that make conduct of a client's offshore business possible. While they certainly earn fees for this, they are not going to use up, rather than add to, their own credibility in these relationships unless they know the clients and understand their business, and that the bank will accept the client. All banks today practice forms of due diligence that were thought unnecessary in past years. Banking scandals in the 1980's led to new codes of conduct being adopted by most international organisations such as the OECD. Thus a trust company asked to open a bank account will make inquiries to satisfy themselves as to the client's bona fides, knowing that more than likely they in turn will be asked to provide this information to the bank where the account is to be opened.
What Documentation Is Required? Evidence of identity is required, usually in the form of a copy of the beneficial owner's passport. References may be required. Generally, the less well the trust company knows the client, the more they will want in the way of verification as to the identity, bona fides, business, source and ownership of the funds in question, and the purpose the account is to be used for. Advisors should be prepared to provide this material. Where the advisor has a relationship with the bank in question, the due diligence and documentation process is usually simplified.
Who Owns The Account? Whatever the beneficial relationship between say trustee and client, the trust company will be owner of the account in the case of an account for a particular trust. A corporation may have an account in its own name. In each case, there will likely be underlying beneficial relationships. In most cases these underlying relationships will need to be disclosed to the bank holding the account.
Who Will Be The Signatory? Where it is the legal owner of an account, the trust company will provide a signatory. There may be other signatories, depending on the level of comfort the client has in the process, and the level of involvement required. Some account mandates require that multiple signatories be obtained before acceptance. This can be an effective safeguard against fraud. With investment accounts, a client may be appointed as an investment advisor to the trust company with certain defined powers to direct investments.
What Records Are Kept? Obviously account opening documentation and normal transactional records are maintained, both by the trust company and the bank.
Privacy. Many if not most (but not all) offshore finance centers have laws intended to keep records private as between the client, trust company and bank concerned. It is usually difficult to access records through the local regulatory process. This aspect of the business has been the subject of considerable criticism by organisations representing economically powerful domestic jurisdictions, fearing at least publicly, that privacy laws in offshore jurisdictions necessarily facilitates the conduct of illegal activities there by citizens of those domestic jurisdictions. But any reasonable comparison of privacy laws in representative offshore and domestic jurisdictions reveals that, if anything, privacy laws are more not less, highly developed in the domestic rather than in the offshore jurisdictions. One suspects that the domestic jurisdictions are frustrated on two counts; that their status as nations does not afford them greater rights in regard to accessing information than individuals in generally small offshore jurisdictions, and that the arguments put to persuade small offshore nations to 'harmonise' their tax regimes with those of the bigger nations have thus far met with little success.
Correspondents - Currencies Don't Leave Home. A simple but fascinating aspect of banking between different countries is that currencies do not leave home. This means that a USD deposit accepted from a trustee by bank A in a country other than the US is not held in that country. Rather, it is held by bank A's correspondent in the US. In other words bank A has an account at the US bank where its USD deposits are held. There are separate independent contractual relationships between client and trust company, between trust company and bank A, and between bank A and it's US correspondent. Neither client nor trust company has access too or legal rights in relation to the correspondent account. The same holds true of all currencies.
Delays - Wire Transfers. Wire transfers generally take between three and five business days to take effect, the latter usually caused by the intervention of a weekend. Remember that even in a simple case, the trust company must give instructions to its bank which then instructs its correspondent, which transfers funds to the intended destination bank. A trust company will require written instructions to move money. Given the room for human error, advisors are cautioned to check routing, and account numbers very carefully. A receiving bank will not place funds with an account unless both number and name details match. They will then either return them to the sending bank, or await a further correct instruction. Where significant amounts are being transferred, the trust company will monitor progress – from the time the first bank in the chain deducts the amount from the trust company's account, until it is received at the destination account, no interest is earned. An undue delay might then be the subject of a so-called value claim for lost interest.
Trails. With the possible exception of actual bank notes, transfers of funds whether by wire, money order, or personal or cashier's check leave an obvious trail in the form of bank records somewhere. Quite apart from the alarm their appearance in quantity causes, bank notes are troublesome in this paperless electronic age. Banks must pay for transport, insurance, security, and storage of large sums and these are real costs. Thus wire represents the only practical manner of transferring funds. Advisors are aware of course of the dangers presented by clients who demand privacy for anything other than what might be called ideological reasons. A graphic description of how banking actually works usually deters such prospective clients from a second visit.
Ethical Considerations. 'Money makes the world go round'. That simple, if sometimes cynical proposition, is not often dealt with in discussions of offshore dealings. Banks and other financial institutions frequently pay referral fees in the normal course of business and disclosure is made to clients. Clients are of course entitled to know whether referral fees are paid to or by their advisors, and institutions where funds are being placed. Some advisors groups are prohibited from demanding or accepted referral fees even with disclosure. But generally, such fees are conventional and their disclosure at least then puts a client in the position of being able to make a fully informed decision whether or not to accept a recommendation in regard to a particular service.
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