The world is changing and it is changing rapidly. Who would have thought that the small Asian economies would be leading the way out of the worst recession in seventy-five years? Who would have thought that a country like Peru would be buying dollars to alter the exchange rate and help prop up the dollar? It’s a whole new world where perhaps the best place to set up a banking operation is New Zealand, although an NZOFC can’t really call itself a bank! Still, a tried and true solution for offshore asset management, such as a Panama Private Interest Foundation, is still a profitable and secure offshore solution alongside offshore banking and opening a Forex business.
More and more people are moving their assets, their talents and themselves out of their home countries to a busy, industrious and profitable offshore world. The very wealthy have been banking in tax-advantaged jurisdictions for years. They have still taken advantage of offshore asset protection and privacy vehicles such as trusts, international corporations and foundations to shield their wealth from prying eyes and reduce the tax consequence of inheritance. However, it is the tidal wave of expats from around the world moving and doing business across the globe that opens the doors to profitable overseas investment opportunities.
Three profitable offshore opportunities are starting a bank, forming an offshore Forex company, and using a Panama Private Interest Foundation as the holder of tangible assets, businesses, and bank accounts. There are many opportunities in today’s fast moving world. We chose these three for their combination of opportunity and security.
Offshore banking in the 21st century: a NZOFC
There are many offshore banking jurisdictions. There are also a number of jurisdictions where an individual or corporation can obtain a license and establish a business offering banking services. When choosing a jurisdiction to offer offshore banking services, the individual or corporation will want to look for a country that is democratic, politically and economically stable and business-friendly. A nation where English is spoken, which is still the universal language, is an advantage. The nation will need to have at least adequate infrastructure to support the business and, ideally, will have world-class telecommunications, transportation and support services.
One nation that offers a top-tier offshore banking opportunity and also meets the necessary criteria for a successful offshore operation is New Zealand. This former British crown colony is located in the southwestern Pacific east of Australia. Its population is mostly descended from British immigrants and is mostly English-speaking. The country is well governed with little or no corruption and its educational standards are as good as or better than those of the US, Canada and Great Britain. This is a business-friendly country known for its innovative spirit.
Of our three profitable offshore opportunities, we place New Zealand Offshore Financial Company (NZOFC) at the top of the list. This type of company is not governed by New Zealand banking law nor is it regulated by the Federal Reserve Bank of New Zealand. There are no capital reserve requirements to establish a NZOFC. The law in New Zealand is quite specific in that a NZOFC cannot call itself a bank or imply that it is a bank. However, said company can receive deposits from anywhere in the world outside of New Zealand. It can pay interest, make loans, market investments, manage trusts, and provide just about every service a bank could offer. Anyone from any country can apply for a license to operate a NZOFC.
A profitable foreign exchange opportunity
So the Chinese are exchanging the Yuan against the Malaysian Ringgit. The euro is periodically in freefall as Greece and the other PIIGS reveal more sovereign debt. A flight to quality sends people buying yen, US dollars and Swiss francs. So how do you trade forex in this hectic and uncertain world of international finance? Without a doubt, there is money to be made in Forex trading. However, money can be made consistently by running an offshore Forex brokerage.
There are still a number of jurisdictions where it is possible to obtain a Forex license. Due to the varying degrees of infrastructure development, business ease, and political stability in some offshore jurisdictions, it is advisable to consult someone with experience to help choose a jurisdiction, obtain a license, and start operations. There are a number of good places to do business from, depending on individual preferences. There are also some disadvantageous jurisdictions that should be avoided. Starting with good advice in this field is wise.
The set point of a Forex company is that fees and commissions are constant income. While trading can be profitable, it can also be a loss of capital. This is the old argument about selling picks and shovels when everyone else is looking for gold.
Managing offshore opportunities in the most advantageous way
The third offshore opportunity we mentioned is the Panama Private Interest Foundation. This is not directly a business opportunity, but can be a “owner” of businesses, bank accounts, and assets such as artwork, yachts, planes, jewelry, and more. A Panama Private Interest Foundation does not have an owner. It has beneficiaries. Such an entity is often used instead of a trust to pass on the estate with minimal tax consequences. The foundation is constituted in such a way and with instructions so that the beneficiaries change when the first beneficiary dies. Especially for those who are concerned about the privacy and security of assets, this type of foundation will allow people to benefit from assets, businesses and bank accounts without having their personal names or other details on any public record.
A common use of a Panama Private Interest Foundation is an integrated offshore asset protection solution containing offshore companies, bank accounts, and other assets. Typically, the foundation is the linchpin of this solution as the owner of the assets for the use and benefit of the designated persons, the beneficiaries.
These three profitable offshore opportunities are available to anyone interested in pursuing them. It only takes an email or phone call to an experienced person or company to get the ball rolling.