Nikita Veremeev
19.07.2025 | 6 min read
Updated: 19.07.2025
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Introduction: Why It Is Important to Open a Bank Account Abroad for an International Company
Did you know that more than 60% of international companies face rejection on their first attempt to open a corporate account abroad? And this is not just bureaucracy; behind every rejection is a complex system of compliance checks, changing regulatory requirements, and increasing de-risking risks. Today, as business seeks globalization, opening a bank account for an international company is not just a formality, but a strategic step that determines scalability, financial flexibility, and business resilience.
Why are entrepreneurs from Europe, Asia, and the CIS increasingly choosing foreign banks? Because a corporate account abroad is not only access to multi-currency operations and international payments but also a tool for tax optimization, asset protection, and entering new markets. However, the path to such an account is fraught with pitfalls: from choosing a jurisdiction and bank to undergoing strict AML/KYC procedures and confirming economic substance.
If you are a business owner or manager planning to go beyond your home jurisdiction, this article is your practical guide. There are no common phrases or template advice here. Only specifics, verified cases from the COREDO team, and step-by-step instructions to help you not only open an account but do it as efficiently as possible, taking into account the latest trends of 2025.
Opening a Bank Account Abroad: Strategic Advantages for International Business
What Tasks Does a Corporate Account Abroad Solve?
A corporate account in a foreign bank is not just a “wallet” for international payments. It is a key element of corporate structuring that allows:
- Conducting multi-currency transactions without losses on conversion and currency control.
- Optimizing taxation by choosing a jurisdiction with a favorable tax regime and participating in international agreements (CRS, FATCA, BEPS).
- Increasing partner trust: an account in a respectable bank in the EU, Asia, or the Middle East enhances the company’s image.
- Streamlining the management of holding structures: centralizing group finances, minimizing transaction costs.
- Gaining access to modern financial services – corporate cards, payment gateways, integration with ERP systems, automation of cash management.
In practice, the COREDO team has repeatedly encountered situations where the absence of a foreign account became a barrier to entering global markets or participating in international tenders. For example, for an IT company from the Czech Republic, opening an account in Singapore allowed not only entry into the Asian market but also attracting investments from regional funds, the company’s banking history became part of the investors’ due diligence.
When and Who Needs an Account in a Foreign Bank
A corporate account abroad is not necessary for everyone, but there are situations when it is indispensable:
- International expansion: entering new markets, opening branches, working with foreign clients and suppliers.
- Tax burden optimization: using double taxation avoidance agreements, participating in IP-box and other preferential regimes.
- Asset protection, diversification of banking risks, minimizing the impact of local crises.
- Working with cryptocurrency, fintech, payment systems: many traditional banks do not work with such businesses, while specialized jurisdictions (Malta, Estonia, Singapore) offer licensed solutions.
- Complex ownership structure – holdings, SPVs, trusts require transparent banking support.
It is important to understand: the choice between offshore and onshore jurisdiction is not a matter of “where it is easier”, but a strategic decision that affects reputation, access to financing, and the long-term sustainability of the business. COREDO’s practice shows: even for companies from the CIS, opening an account in the EU or Asia today is not a luxury, but a necessity for business growth and protection.
Requirements for Opening an Account in a Foreign Bank: What to Know in 2025
Documents for Opening an Account for a Legal Entity
The standard document package includes:
- Incorporation documents: charter, certificate of registration, extract from the register (Certificate of Incorporation, Articles of Association, Certificate of Good Standing).
- Documents of beneficiaries and directors – passports, address verification, resumes, sometimes, recommendation letters.
- Business plan and proof of business reality – contracts, invoices, website, social media, business model description.
- Financial statements, balance sheet, income statement, tax returns.
- Legal address and substance requirements: confirmation of the presence of an office, employees, operational activity in the chosen jurisdiction.
Important: requirements vary greatly by country and bank. For example, in Singapore, a local director and legal address are mandatory, while in Germany a detailed business plan and proof of economic presence are required. COREDO’s team always prepares clients for the fact that the bank may request additional documents or conduct an interview with the management.
Beneficiary Verification and KYC: Modern Bank Requirements
Know Your Customer (KYC) and verification of beneficial owners are key stages. Banks use automated systems to screen against sanctions lists, check sources of funds, and assess reputational risks. Increasingly, e-KYC – digital identification and remote verification – is being applied.
Special attention to the ownership structure. Complex schemes with nominees, offshore companies, or opaque ownership chains are almost certain to lead to rejection. Banks expect a clear understanding of who actually controls the business and the willingness to provide supporting documents (e.g., trust declarations, shareholder agreements).
Economic Substance and Substance Requirements
The requirements for economic presence (substance requirements) are tightening worldwide. Banks and regulators want to see a real business: office, employees, operations, tax residency. “Paper” companies without substance face refusals or account blocks.
For example, in Singapore, having a local director and a registered address is mandatory for company registration. In the EU, confirmation of actual activity through contracts, payments, financial reporting.
COREDO’s practice confirms: preparation for a substance check is not a formality but a part of the company’s long-term strategy.
Step-by-Step Guide: How to Open a Corporate Account Abroad
Choosing a Jurisdiction and Bank for an International Company
Choosing a jurisdiction: the first and most important step. You need to consider:
- Country and bank reputation: affects partners’ trust and access to financing.
- Substance requirements, where it is easier to confirm the reality of the business.
- Tax regime – rates, double taxation avoidance agreements, CRS/FATCA participation.
- Loyalty to non-residents: in which countries it is easier to open an account for foreign owners.
- Licenses available for fintech, crypto, payment services.
COREDO’s team recommends starting with an analysis of the business model and long-term goals. For example, for an IT startup with global ambitions, Estonia or Singapore will be suitable, for a holding, Cyprus or the UAE, for e-commerce, EU payment institutions.
Preparation and Submission of Documents: Nuances for the EU, Asia, Africa
The account opening process usually includes:
- Selecting a bank and preliminary screening: evaluating the chances of success, preparing pre-approval.
- Collecting and preparing documents: translation, apostille, notarization, preparation of explanatory letters.
- Submitting the application, online or through a registration agent.
- Undergoing an interview – in person or via video call, questions about the business, sources of funds, plans.
- Making the minimum deposit – from $1,000 to $50,000 depending on the bank and country.
- Account activation and service connection – internet banking, corporate cards, API integration.
In Singapore, for example, the company registration process takes 1-3 days after documents are submitted to ACRA, and account opening, another 1-2 weeks. In the EU, the timeline may be longer due to stricter compliance.
Passing Compliance Checks and AML Business Support
AML (Anti-Money Laundering) and compliance: critically important stages. Banks check:
- Sources of funds – the origin of capital, the legality of operations.
- Business model – compliance with the declared activity, money laundering risks.
- Ownership structure – transparency, absence of PEP (politically exposed persons), sanctions risks.
- Transaction history: if the company was already operating, the bank will request statements from old accounts.
COREDO’s practice shows: preparation for a compliance check is not only about collecting documents but also preparing scenarios for answers to potential bank questions. Sometimes the assistance of an independent compliance officer or outsourcing AML support helps.
Remote Account Opening for Legal Entities: Pros and Cons
Remote account opening is a trend in recent years. Many banks and EMIs (electronic money institutions) offer a fully remote process with e-KYC and digital signature.
Pros – speed, convenience, availability for non-residents.
Cons: higher risks of refusal, less personalized support, sometimes limited account functionality. For complex cases (holdings, fintech, high-risk businesses), personal presence or working through a trusted partner is still required.
The solution developed at COREDO is to combine remote and in-person stages to maximize the chances of success.
Main Risks and Challenges of Opening an Account in a Foreign Bank
Reasons for Refusal and How to Minimize Them
The most common reasons for refusal:
- Opaque ownership structure – complex schemes, nominees, offshore.
- Lack of substance: “paper” company without real activity.
- Reputational risks – links with sanctioned individuals, countries, sectors.
- Insufficient documentation, lack of contracts, reporting, address confirmation.
- High-risk business model – crypto, gambling, adult, without a license.
How to minimize the risks:
- Prepare a complete set of documents: the more detailed, the better.
- Work out the ownership structure: minimal intermediaries, maximum transparency.
- Confirm the reality of the business – website, social media, contracts, payments.
- Bring in a professional consultant to prepare for due diligence and support at all stages.
Specifics for Offshore and Onshore Companies
Offshore companies face the most difficulties: many banks in the EU and Asia do not work with offshore or require enhanced due diligence. Onshore companies (EU, Singapore, UAE) have better chances, but it is still important to confirm substance and transaction transparency.
COREDO’s practice confirms: even for offshore structures, it is possible to find a banking solution if documents are prepared competently and the correct jurisdiction is chosen. However, in the long term, moving to an onshore model is a more sustainable solution.
Transaction Limits and Currency Control
After opening an account, it is important to understand the limitations:
- Operational limits, by amount, currency, payment purpose.
- Transaction monitoring, banks automatically track suspicious transactions, and may request explanations.
- Currency control – in some countries (e.g., China, India) there are strict controls on capital withdrawal.
- Fees – for opening, maintenance, transfers, conversion. For non-residents, tariffs are often higher.
Managing these risks is part of the comprehensive banking support that the COREDO team offers its clients.
Comparison of Popular Jurisdictions and Banks for Opening a Corporate Account
Table Comparing Account Opening Conditions in the EU, Asia, Africa
| Jurisdiction | Opening Timeframes | Substance Requirements | Minimum Deposit | Loyalty to Non-Residents | Compliance Features |
|---|---|---|---|---|---|
| Germany | 2-4 weeks | High | €10,000 | Medium | Strict AML/KYC, interview |
| Singapore | 1-3 weeks | Medium | $5,000 | High | Fast e-KYC, local director |
| UAE (Dubai) | 1-2 weeks | Medium | $10,000 | High | Flexible requirements, no tax |
| Hong Kong | 2-6 weeks | High | $1,000 | Medium | Careful due diligence |
| Cyprus | 1-2 weeks | Medium | €1,000 | High | Lenient compliance, EU standards |
Alternatives to Traditional Banks: EMI, PSP, Fintech Solutions
For some businesses (IT, e-commerce, fintech), traditional banks are not the only option. Electronic Money Institutions (EMI), Payment Service Providers (PSP), and neobanks offer:
- Fast account opening: sometimes in 1-2 days.
- Flexible fees – lower fees, multi-currency options.
- Integration with payment systems: acquiring, gateways, API.
- Specialization for niche businesses, crypto, SaaS, marketplaces.
But such solutions also have drawbacks: limited banking license, lower deposit protection, sometimes issues with conversion and fund transfers. The COREDO team always analyzes the risks and benefits of each option for the client’s specific task.
Practical Steps and Recommendations for Successful Account Opening
How to Prepare Your Business and Documents for Due Diligence
- Gather a complete set of corporate documents, charter, protocols, certificates, extracts.
- Prepare proof of business reality, contracts, invoices, website, social media.
- Work out the ownership structure, minimize chains, ensure transparency of beneficiaries.
- Prepare financial statements, balance sheet, P&L, tax returns.
- Ensure substance, office, employees, operations in the chosen jurisdiction.
- Conduct preliminary screening: check founders and beneficiaries against sanctions lists, PEP databases.
Selecting a Consulting Partner and Legal Support
Opening an account abroad is a complex process where every detail matters. Professional support is not a luxury but a necessity. The COREDO team offers:
- Business model analysis and jurisdiction selection: considering tax, regulatory, and reputational risks.
- Document preparation and due diligence passage: from document collection to bank interviews.
- AML support and compliance: assistance with building internal processes, staff training.
- Turnkey account opening, from bank selection to connecting all services.
- Post-opening support – assistance with reporting, audit, operation optimization.
Our experience at COREDO shows: even in the most complex cases (offshores, high-risk businesses, complex structures) a solution can be found if approached systematically and professionally.
Key Takeaways and Actionable Advice for Entrepreneurs
Opening a bank account abroad for an international company in 2025 is an achievable task, but it requires deep expertise, preparation, and a strategic approach.
Here are the key recommendations that the COREDO team gives to its clients:
- Choose your jurisdiction wisely: don’t chase “cheapness”, assess reputation, substance requirements, tax implications.
- Prepare for due diligence: transparency, documentation, proof of business reality do more than connections or intermediaries.
- Do not skimp on professional support – mistakes at the account opening stage can cost months of waiting and thousands of euros in lost profit.
- Build long-term relationships with the bank – regular operations, reporting, AML compliance reduce the risk of account blocking.
- Consider alternatives to traditional banks – EMI, PSP, fintech solutions may be optimal for niche businesses.
- Plan for structural development – as the business grows, possible transition to more reputable jurisdictions, opening accounts in multiple countries, optimizing taxes and cash flow.
COREDO: your reliable partner in international corporate structuring, account opening, licensing, and comprehensive business support. We know how to make the process as transparent, fast, and safe as possible because we have been through this path hundreds of times with our clients from Europe, Asia, and the CIS.
If you are ready to take your business to the next level – let’s discuss your needs. Together we will find the optimal solution that will work for years to come.
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