Saturday, 19 August, 2017
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Opening bank accounts in the EU countries and other jurisdictions

The company owner needs to determine the objectives he has set for his non-resident company and the subsequent opening of an account for this entity. In order to choose the most suitable bank for opening an account, he needs to consider the following factors:

  1. Making regular transfers for trade or other commercial operations: In the event that the purpose of opening an account is standard commercial activity with a large number of incoming and outgoing transactions, the most important criteria for choosing a bank will be the efficiency of transfers carried out by the bank and the convenience of account management. Remote account management, namely the ease of the internet banking, as well as the average fee per transaction are likely to be the key issues.
  2. Long-term deposit of funds: In the case where the main objective of account opening by the entrepreneur is the safekeeping the funds already earned by him, then the rating of the bank stability will be a key factor in the decision making process. In highly reliable banks, which are rated AA and above, the deposit interest is likely to be relatively low due to the conservative investment policy of banks of this group.
  3. Opportunity to invest and to manage the invested funds independently: In the event that the entrepreneur wishes that his funds, which are not used in his core business, should continue to “work” and yield additional income, then he should consider the option of opening an account with one of investment banks. These banks professionally place client funds onto international capital markets and typically receive relatively higher interest income.

The main features of some countries that are generally accepted banking jurisdictions are as follows:

  1. Switzerland: This is a recognised European financial centre and an undisputed leader in terms of amount of capital placed there despite pressure from other jurisdictions. Banks are divided by specialization and between regional, private and foreign banks. Banking supervision in Switzerland is one of the most stringent. The banks are subject to strict requirements for equity capital and accordingly have high stability ratings. Swiss banks focus mainly on working with private capital and tend to provide a wide range of services in private banking.
  2. Luxembourg: This is a generally accepted banking jurisdiction. With a relatively small population, Luxembourg has over two hundred banks operating within it. Nearly all of the major banking corporations of the world are represented in this small country. Given that Luxembourg is a very favourable jurisdiction for the establishment of investment funds, most investment banks will offer their services from there.
  3. Austria: This is another jurisdiction which specializes in private banking services. The country has more than eight hundred banks. Austria is a favoured residence of wealthy entrepreneurs and their families from Central and Eastern Europe, and is often chosen as a safe destination for capital maintenance. However, it should be noted that Austrian banks frequently have relatively high requirements for the minimum account balance, which is typically at least EUR 100,000.
  4. Latvia: This jurisdiction presents opportunities for banking services that are frequently considered by entrepreneurs from Eastern Europe. The following benefits are taken into account:
    • The high level of supervision and regulation in the sphere of anti-money laundering serves as a basis of good ranking and the business reputation of Latvian banking institutions worldwide.
    • Latvian banks work with the currencies of most Eastern European countries.
    • Latvian banks provide a service that is almost unique in the world by the opening of accounts that operate in a multi-currency regime.
    • Latvian banks charge relatively low fees for account maintenance and servicing bank operations.
    • Fast execution of payment orders.
    • Latvian banking legislation makes no distinction between local and foreign companies - both local and foreign companies can access a full range of services at Latvian banks.
  5. Cyprus: This jurisdiction has developed close connections with entrepreneurs from Eastern Europe and other countries over the years. This is a positive factor for the development of the banking system of Cyprus and is accordingly a significant source of revenue for the budget of the republic. Following the banking crisis of 2013 Cyprus did lose a significant amount of customers. Nonetheless, the banking system generally preserved its functionality. Accordingly, the banks which have historically based their business on operational services as opposed to investment continue to provide an opportunity for account opening and efficient management of the business and commercial operations of the entrepreneur.
  6. Singapore: This economy is amongst the most rapidly growing in the world largely due to a well-developed financial sector. Banks in Singapore not only provide services for Eastern clients but also focus on entrepreneurs from Western and Eastern Europe in addition to other regions. In many cases, accounts with banks in Singapore are used to service the trading operations of entrepreneurs carrying on business with the countries of the Far East.

INTERNATIONAL OVERSEAS SERVICES will provide the necessary consultations in the execution of documents and account opening with banks of the above countries as well as other jurisdictions. The standards of corporate documents of companies registered by us will meet the most stringent requirements of the international banks in order that the documents may be submitted immediately to the bank chosen by the entrepreneur.