Banks are imposing strict rules for offshore companies worldwide. Due to recent changes in the course of banking solutions for offshore companies, it has become a challenge for businessmen to find alternative solutions. OECD recommendations in due course are now adopted by most of the international banks, which require a “substance” for offshore entities in their turn.

According to Marsel Shadmanov, Head Of Corporate Services at Garant Business Consultancy:

"Most jurisdictions contradict the nature of offshore business that can’t avail a substance while satisfying approved rules and regulations. Our opinion is that current offshore businesses require a change in the structure in order to comply with new requirements."

The most common solution would be shifting businesses to resident jurisdictions with a possibility to inquire about the said “substance”.

"Alternatively, businessmen may opt for a re-domiciliation of entities, specifically to the UAE, to have their banking solutions set in the local banks." - said Marsel Shadmanov.

MARSEL SHADMANOV

Head of Corporate Services of Garant Business Consultancy