Aspects to consider, when opening a foreign bank account
When planning to open a private or corporate account, the following tasks should be accomplished:
- determine the nature and priority of the company’s business activities, and then select the best jurisdiction to implement the plan (e.g., Cyprus, UK, Serbia or Switzerland);
- familiarize yourself with the main types of accounts offered by foreign banking institutions: operational (current transactions and transactions with trading counterparties), investment or savings (capital storage);
- confirm the legality of the origin of the company’s capital, as well as fulfill financial monitoring requirements;
- study the current conditions of the bank for applicants to open an account and complete the dossier with documents according to the required list;
- obtain documents confirming successful account registration for the legal entity, including a debit and/or credit card.
Each specific process of opening a bank account differs depending on the initial data, the specifics of the company’s activity and the set of required financial services. Alt-industry lawyers guarantee support at all stages of the procedure, legal mediation and further support of business activities abroad.
Peculiarities of opening foreign accounts
Account registration with financial institutions for individuals and legal entities is possible with the help of an authorized agent or online. In the first case, a specialist by power of attorney performs the initiation of the process, collects the required documents and signs the application on behalf of the client. Some foreign banks also support the remote option of opening an account by sending a dossier for consideration by post. The details are coordinated by video conference, during which the employees of the financial institution ask clarifying questions and confirm the applicant’s identity.
To open an individual or corporate account, you will need to provide identification data and personal identity card (passport). Information on the type of employment, the legality of the source of income and the origin of capital will also be required. In case of opening an individual account, the applicant will need to confirm the place of residence with utility receipts.
For corporate clients, the bank also imposes additional requirements. Lawyers will need to collect data on the registration of the legal entity, a copy of the memorandum of association, and information on the company’s beneficiaries. Each financial institution reserves the right to increase the list of documents, according to local requirements and local legislation. Also, registration forms may differ for new clients.
In addition to the standard set of documents, for a corporate account you will need to specify the number and specifics of planned transactions. What amounts the company plans to receive and send per year (turnover). The owners of the company confirm their identity with identification documents, specify contact details, and also provide data on the legality of the origin of equity capital.
In the case of opening a corporate account abroad, you should not limit yourself to one bank. Lawyers recommend submitting applications for consideration to 2-3 foreign financial institutions. The total period of account registration depends on the specifics of the bank, completeness of the provided data and usually ranges from 14 days to 2 months.
An alternative to banking institutions in the form of a payment system
When registering an account with a foreign bank, difficulties may arise due to local legislation or restrictions for non-residents. For example, some countries provide financial services only to citizens or residents of the state. In such a case, an account with Electronic Money Institution (EMI) can be an alternative. This financial institution provides a number of advantages to corporate clients:
- no minimum deposit threshold for opening an account;
- more loyal rules of reconciliation, compared to banks;
- no restrictions on closing transactions with the account;
- confidentiality due to the absence of tax declaration;
- additional guarantees of capital safety in case of large deposits.
Role of Alt-industry lawyers in the account registration process
If you are planning to register a foreign account, Alt-industry specialists will review your application and answer the question whether it is possible to open an account in a foreign bank in your case. At the same time, they will choose the jurisdiction where it will be most profitable to do it, according to the peculiarities of the business case. For example, financial institutions in Hong Kong and Singapore often refuse to register an account for foreign citizens of some Eastern European and Asian countries. Alt industry lawyers are aware of such nuances, so they will help to avoid the risks of refusal by selecting the most promising and favorable options for a corporate account.
Specialists will help to implement the business plan, by undertaking part of the tasks, in particular:
- study the background of the case in detail and form several proposals according to the individual request;
- draw up an action plan on the way to registering a foreign bank account for a specific business;
- assist in remote registration, if this option is available in the selected financial institution;
- support the account opening procedure, including coordination and negotiations (correspondence) with the bank representatives;
- provide comprehensive support at all stages of the corporate account existence and prompt elimination of difficulties in case of their occurrence.
The lawyers also select low-tax jurisdictions and current preferential programs for foreign entrepreneurs. After studying the case and peculiarities of the proposed activity, specialists will offer a suitable option for optimizing tax payment. Alt-industry also provides legal support and assistance in obtaining a residence permit in the chosen country. Specialists guarantee support in opening a personal account in a banking institution for current expenses, investing or storing capital in a foreign jurisdiction. Leave your contact details to receive a personalized offer for your business project.
