For big corporations and even small companies and individuals, it helps to have an offshore bank account to protect cash assets from taxes. An offshore bank account also brings great flexibility to businesses when it comes to fast cash mobility and transactions that usually happen in mergers and acquisitions. This type of setup is often restricted by rigid government controls over the currencies that are in the banks.

Often, the best offshore banking locations are small states that do not have strict guidelines on the flow of foreign currencies in and out of their countries and those that do not impose taxes on deposited cash. Some of these are Mauritius, Bahamas, and Antigua and Barbuda.

Business experts point out several advantages to having an offshore bank account. They say that many offshore banks charge inexpensive service fees from clients and return higher interest rates compared to most banks. These offshore banks provide their clients with the capability to transfer and move their funds anywhere in the globe at the push of the mouse button. Deposits and withdrawals can be done online and through debit-and-credit automated teller cards. Offshore banks also have strict policies when it comes to protecting the identities of their clients and accountholders. This can be beneficial for most companies that cannot be bothered by constant government and private scrutiny. Host countries of these offshore banks also provide tax shelter. Of course, it is a different scenario when you bring your money back to your country.

Offshore banking is regulated by international laws, but most often it is up to the host countries how rigidly they implement them. This is probably the reason why some people have misconceptions about offshore banking as a means used by corporations to defraud their governments. But the fact is that offshore banking is a common practice among the world's companies. And there is also no law restricting companies and even individuals from opening and maintaining offshore bank accounts.