If your company does business only with domestic partners, having a corporate bank account in your home country is enough. However, if you have customers, suppliers, or business collaborates abroad, opening a foreign bank account for your company can bring a number of weighty advantages. The same is true if you are planning to expand your business to the international arena.
Why should you open a corporate account in a foreign bank?
You might think that trying to set up a corporate bank account abroad is going to be too time-consuming and too troublesome. Well we have to admit that it has become quite difficult to acquire banking services in the country that is not your country of residence. This is attributable to the fact that the international financial authorities are combating terrorism financing and money laundering. What instruments are they using to achieve the goal that is praiseworthy indeed? They are making banks take only reliable clients onboard and deny services to any suspicious-looking individuals.
The problem is that a foreign individual looks suspicious by default, which is understandable as xenophobia is a widespread unfair attitude. At the same time, you should not think that it is absolutely impossible to open an account for your company in a foreign bank. With our professional assistance, the goal is quite achievable! Here are five main opportunities that opening a corporate bank account in a foreign country will bring.
Foreign business partners
When you have a corporate bank account in a foreign state, you will find it much easier to find business partners who are stationed in that state. You will be able to make payments to their banks in the country and they will experience no problems when transferring money to your company bank account. So, this is an alternative route to conquering foreign markets: first set up a bank account in a foreign country and after that start looking for collaborators there.
If you would like to diversify your types of business activities and buy one more business venture, for example, you do not have to limit yourself to your home country alone. Look around the world and you may well find that there are promising investment projects in other countries. Possibly, you can make more money doing business abroad than doing business at home. Now, if you want to make a foreign investment, you will be much better off having a foreign bank account.
Capital protection and accumulation
Of course, money must make money and it is a good idea to reinvest the profits that you earn in order to generate more profits. But the day will come when you want to retire, will it not? You have to put something aside for your golden years if you want to enjoy life when you do not have to go to work any longer. If you have a bank account in a secure and sunny foreign country at the seaside, you will be able to relocate there at one point without any trouble.
The whole world is going through some serious hardships because of the coronavirus pandemic. We will get over it one sunny day but some countries are going to suffer more and some less. The Government of a particularly troubled state may want to expropriate wealthy people’s money to solve the financial problems. Can you put full trust into your home country Government? Unfortunately, none of us can, given the hard times. So, if you have part of your capital in a foreign bank account (or two), you will be better protected from potential troubles that might occur in your home country.
Some fifteen or twenty years ago, offshore jurisdictions were used to hide money from the tax authorities thus saving on taxes. Today, it is not possible any more: the offshores are monitored very closely by the international financial authorities and evading taxes has become impossible. At the same time, you can hide your wealth from some nosey competitors of yours. Foreign banks guard their clients’ financial information from anyone apart from tax officials. When you set up a foreign bank account, you do not have to inform your competitors about it, do you?
Account management flexibility
Modern banks offer various opportunities to manage your bank account without having to pay visits to the bank office. All the banks that we work with (and there are over 200 of them if we count the payment systems too) give access to Internet platforms that allow making and receiving transactions while sitting at your desk wherever you are. Many banks also have mobile applications so you do not even have to be at the office to make a payment if you have your smartphone with you. This holds for a personal bank account and a corporate bank account as well.
Professional assistance in opening a corporate bank account abroad
Offshore Pro Group has been opening foreign bank accounts for our clients for years. We have personal contacts in each bank and payment system that we collaborate with. We keep track of all the changes that occur in the banking industry in general and in each particular bank too. We know exactly what requirements every bank will put forward to a potential corporate client.
Setting up a corporate bank account in a foreign country is not an easy task to perform and we have to admit it. The benign goal of combatting terrorism is affecting law-abiding business people, which is regrettable. However, opening a corporate account in a foreign bank is still possible and we will be happy to provide assistance to you in this matter. Please contact us by email, live chat or WhatsApp and we will give you a personal consultation on how you should go about setting up a corporate bank account abroad.
Where should I open a foreign bank account?
If we are talking about a corporate bank account, much will depend on your business objectives. Besides, the country of your company domiciliation will play a role. If your company is registered in an offshore jurisdiction, you will have a smaller choice of banks but banks in Singapore, Hong Kong, Dominica, and some other countries are quite happy to service offshore companies.
How much does it cost to set up a foreign bank account?
It is impossible to give a precise figure here. The cost of establishing a corporate account in a foreign bank will depend on the jurisdiction where the bank is located, the country where your company is registered, the transaction types that you are planning to make, the expected account turnover, and a number of other factors.
Is it possible to open a corporate account in a reputable European bank?
Yes, it is quite possible to set up a foreign bank account in a reputable jurisdiction. We cooperate with banks in Switzerland, Luxembourg, Liechtenstein, Great Britain, Ireland, and other top-rated European countries.