Opening a foreign bank account requires careful preparation and compliance with international customer due diligence standards. Learn about the main requirements of banks, KYC and AML procedures, and get step-by-step instructions for successfully opening an account for business abroad

Legal assistance in starting, running and relocating a business abroad

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In the context of globalization and the expansion of international trade, more and more Ukrainian entrepreneurs are seeking to enter foreign markets. Opening an account with a foreign bank is becoming a necessary step to effectively conduct international business, make cross-border payments, and ensure the financial stability of the company.

However, this process requires careful preparation and understanding of international banking standards. After all, foreign financial institutions apply strict procedures for verifying potential clients. How to pass the checks and successfully open an account in a foreign bank is described in the article below.

To find out in which countries Ukrainians most often open a business abroad, please follow the link.

Preparing to open a bank account abroad for business

To successfully conduct business abroad, an entrepreneur may need different types of accounts. This must be taken into account before directly contacting the bank. After all, a single account is often not enough for legal business activities. Therefore, in addition to a corporate account, it is often necessary to open a personal account in the country of tax residence or investment accounts in third countries.

Requirements for opening a corporate account in Europe

To open a corporate account in Europe, you must have the legal status of a company registered in one of the countries of the European Union or the European Economic Area. Additionally, you must provide documents confirming the identity and address of the company's directors and beneficial owners, as well as evidence of its activities and financial condition.

Account opening requirements may vary from country to country. However, in general, a company must meet the following criteria:

● Have a legal address in the country of account opening (mandatory for the UK and Poland);

● Have registered legal capital (the amount depends on the country and type of company);

● Provide constituent documents in accordance with local law;

Have a director or manager with the citizenship or residence of the country of account opening.

Note: Some countries, such as Germany, may require proof of in-country credit history.

What you need to open a business account abroad: a step-by-step algorithm of actions

1. Choosing a bank and jurisdiction

Key factors:

– Assessment of regulatory requirements

– Analysis of the tax system

– Calculation of the cost of service

– Study of additional conditions (minimum balance, fees, limits)

2. Preparation of documentation

This is one of the most important stages, as you may not get a second chance to open a bank account. This is due to the fact that banks rarely spend time reviewing repeated applications, especially for foreigners. It is important to prepare a full package of documents (in accordance with the requirements of the bank and local legislation) and to notarize the documents. The list may vary, but as a rule, the required documents will include:

– Constituent documents (company's charter, registration number, confirmation of the type of activity, registration certificate, etc.)

– Passports of directors and beneficiaries and additional information about them

– A package of documents containing evidence of the legality of income sources, turnover and reporting, as well as other financial transactions.

In addition, banks may ask for proof of residence (e.g., a lease agreement or utility bills), Curriculum vitae (CV), bank statements from other banks, police clearance certificates, documents confirming the company's business reputation, etc.

3. Registration procedures

In some countries, you may need to register your company in order to open an account. This stage may also include obtaining the necessary permits and registering a legal address.

4. Interaction with the bank

In addition to opening an account and signing documents, you may need to

– arranging a personal meeting,

– an interview.

At the final stage, before opening an account, the applicant will be subject to a financial stability check.

Please note! Today, it may be more difficult for Ukrainians to open a corporate account, as Ukraine is currently classified as a high-risk country.

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What are KYC and AML checks and why are they needed?

KYC (Know Your Customer) and AML (Anti-Money Laundering) are mandatory procedures that banks use to:

● Verify the identity of a new customer

● Monitoring the activity of existing users

● Protect against potential fraud

These measures not only protect banks from illegal transactions, but also ensure the safety of customer funds.

To pass the KYC check, you will need to fill out a questionnaire and provide the bank with the following information

– residence

– sources of income;

– information about business and counterparties;

– assets owned;

– address of registration and residence;

– political activity (if any);

– ties to companies and individuals under sanctions;

– ties to Ukraine, russia and the United States.

Tips to help you open a business account abroad

In reality, unfortunately, the chances of failing an interview with a bank or making a mistake when submitting documents are very high. That's why it's important to have qualified legal support and to be very careful in preparing the package of documents.

A qualified intermediary is a person who understands the internal procedures of the institution and the legislative nuances of the country, and can provide recommendations and certain guarantees. In addition, a specialist can help prepare personal and constituent documents, the client's business history, documentary evidence of sources of income and justification of the origin of funds.

Visit Ukraine's lawyers specialize in international law and have experience in supporting the opening and relocation of businesses abroad. Contact us for a consultation to increase your chances of opening a foreign bank account.

We remind you! Modern conditions make Ukrainians think more and more often about relocating their business abroad. And often this is one of the most profitable solutions, but such a step requires careful analysis. Read what factors should be considered when choosing a country for a successful business relocation and what else influences success in our previous article.

Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.

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