Opening Bank Account for Business Europe

Currently, opening a business bank account in a European bank requires tremendous labor, as the beneficiaries and activities of the companies, along with the processing of applications, are becoming increasingly complex.

Our team at Regulated United Europe has eight years of experience in helping clients open business bank accounts across Europe. We use our wide network of trusted partners in the European banking industry to offer the most suitable and efficient options that improve the functioning of the companies we serve.

The benefits of a business bank account include the following:

• Professional image
• Ability to build credit history
• Better record-keeping of accounts
• Online invoicing and accounting
• Annual tax filing—separated business transactions from personal ones is highly recommended
• Business account allowance and benefits—banks offering discounted fees, free business advice, or competitive interest rates for new business account owners
• A European bank account enables easier management of your funds and settlements within the SEPA area.

You may open a business bank account if:

• The sum of the company’s transactions is large
• The revenues and expenses of the company have grown substantially, facilitating easier tax self-assessment
• You are planning to open a limited liability company
• Your company needs a business credit card
• Your company plans to accept card payments from clients
• There’s an intention to apply for a business loan

Things to consider in advance of choosing the bank:

• Whether it is friendly for your business area (e.g., crypto) and operational framework (e.g., connectivity with PayPal)
• Business bank account fees: administrative fees, various types of transactions, etc., which may not be immediately obvious
• Level of customer support: available communication channels and whether it can be tailored for you
• Interest fees
• Transfer limits
• Insurance of the deposited money
• Offshore banking

Overview of the European Banking Industry

Because they are strictly regulated, the European banks are very popular among international businesses and can afford an extra level of security to your company’s operations. The European Banking Authority is the EU’s regulatory agency whose role it is to impose transparency and integrity on the financial industry, and who can override national regulations in order to achieve its goals. The next influential institution is the European Investment Bank, whose function is to finance priority EU projects.

The headcount of the balance sheet is one of the main criteria of a bank’s performance. Though you can choose from a big amount of European banks, keep in mind, that the following banks are the biggest ones (and the most successful) according to the total assets headcount:

Requirements to Open a Business Bank Account

Generally speaking, the requirements depend on the type of legal business structure, the country where you want to open a business bank account, and also on your company’s residence status. Banks of different countries normally provide different services for various types of businesses: sole traders, limited liability companies, partnerships, etc.

The following requirements can be maintained for a limited liability company:

• At the time of establishment of the company, it is required to deposit a certain amount of capital in the newly opened business account. This would facilitate the process of registration of the business within the respective country (the amount varies in each bank).
• Registration of the company with the local authorities (usually in a national commercial register)
• The deposited capital is not accessible at all before the registration of the company with the local authorities.
• The head office should be located at the same place where the registered office is located

Though different countries require different sets of documents for resident and non-resident companies, the following documents generally will be required to open a bank account in Europe:

• Articles of Association, Memorandum of Association or other company documents – partnership agreement, etc.
• A certificate of company’s registration
• The company’s business plan
• Identity documents of the company’s shareholders and directors
• Proof of company’s registered address
• Samples of signatures by individuals to use the business account

Speaking of requirements per country, it is safe to say that Switzerland and Scandinavian banks are the most regulated in the global context. You will usually be required to go for a face-to-face meeting in the country where your bank of choice is resident, plus you will also have to get your background checked in order to open a corporate bank account. If you want to avoid the pain of having to prepare a mountain of paperwork, we strongly recommend exploring the possibilities available in Estonia, where the e-residency programme opens doors to foreign non-residents as long as they own an Estonian company.

How to Open a Business Bank Account in Europe

Normally, in the digitalized world, you can open a bank account for business from any corner of the world. The process can take anywhere from several weeks to several months depending on the selected country, bank, and how many such applications they receive.

To open a company bank account in one of the traditional European banks, the following steps should be taken:

• Ascertain your business requirements and what account types your business needs.
• Choose a European country and one of its banks to open a corporate account.
• Contact the chosen bank for detailed specifications.
• Collect required documents.
• File an application to the bank chosen by you.

To open a business bank account through a digital bank, you need to follow these steps:

• Identify your business needs and the account types that your company requires.
• Choose an online bank and open a corporate account using a corporate email address.
• Apply online by filling in the application form and providing details of your firm, including company name, legal form, incorporation number, address of registration, and actual place of business; information about the directors and ultimate owners, etc.
• Submit the application to the chosen digital bank.

Opening a company bank account, whether with a traditional or digital bank, involves careful preparation and understanding of the requirements. By observing these steps and ensuring that you have all necessary information and documents ready, you can avoid potential hassle when setting up a business bank account in Europe.

If you are planning to open a business bank account in one of the European countries, the highly experienced consultants of Regulated United Europe will be delighted to provide assistance. Over the last eight years, we have developed a wide network of trusted relationships across the European banking industry that will facilitate your application processing at the bank of your choice. Book a personalised consultation now to receive advice to accelerate your business success.