Business Bank Account in Europe

How hard is it to open a corporate account in Europe?

It’s easy to open a bank account if you live in Europe. However, opening a bank account for non-residents in Europe can be challenging. It’s a very complex process that has many difficulties and requires a lot of effort. The problem is that many European banks consider non-residents as “high-risk” clients.

A bank requires non-residents to prepare certain documents for opening a bank account in Europe. Foreigners have to provide a bank with a valid identity document, proof of address, residency documents, and proof of employment or income. It’s necessary to prepare a full package of documents in advance.

From there, the difficulty of opening a business account depends a lot on the country. For example, it’s much easier for foreigners to open a bank account in countries like Estonia and Portugal. There, the process of opening a bank account is much easier compared to other European countries. Non-resident owners have to deal with the varying banking and regulatory requirements and the EU laws.

However, things will go easy if you choose the right jurisdiction and get the right assistance. At LegalBison, we are always ready to recommend the best European bank account options to help you pick a bank that meets your needs in the best possible way.

Banking networks in Europe

Banking networks play a very important role in the European banking system. They bring the banks together and organize a stable cooperation between them. SEPA (Single Euro Payments Area) and SWIFT are the most common banking networks used in Europe.

SEPA allows customers to make euro payments via credit transfer and direct debit. The network has members from the European Union and non-EU countries. Among the authorities that support the SEPA network are the European Commission and the Euro system.

SWIFT is the Society for Worldwide Interbank Financial Telecommunications. The banking network brings together banks and financial institutions from all over the world. SWIFT plays a very important role in international banking by making communication effective, and by facilitating the transfer of funds between banks. It serves as the global messaging network and financial communication platform. SWIFT has become popular among banks, corporations, regulatory authorities, and international entrepreneurs.

Getting a business loan for your project in Europe

Banks offer loans to fund new or existing businesses. There are different reasons why businesses may have to apply for a loan. Sometimes, businesses need to take loans to purchase equipment or to cover other operating expenses.

Loans provide businesses with the financing they need to invest in their marketing and advertising strategies, grow a business, and expand into new markets. There are different types of loans for businesses. Different types of business loans have different repayment terms. Each type of business needs a certain type of loan.

Business loans have lower interest rates compared to traditional loans (also known as personal loans). It’s more difficult to apply for a business loan and a pre-qualification process takes more time. A business has to meet certain criteria to get a loan approval. When a business owner applies for a loan, a lender checks their credit history as well as credit score.

Fees for opening and operating a bank account in Europe

Opening and operating a bank account in Europe involves some costs. European banks apply various fees for their services. Actually, you don’t have to pay any fees when opening a bank account in Europe. However, you have to pay fees for managing your bank account. It’s necessary to pay a so-called monthly maintenance fee, wire transfer fees, transaction fees, chargeback fees, overdraft and insufficient funds fees, account closing fees, fees for international payments, etc.

You don’t need to pay any ATM withdrawal fees if you use the ATMs of your bank. On the other hand, it’s necessary to pay ATM withdrawal fees only if you use ATMs of other banks in Europe. The fees that a person has to pay for a bank account depend on various factors such as the country of a bank, the bank, the type of bank account that you own, and others. For example, banks in such countries as Italy and Spain have higher fees compared to the fees that banks in other European countries apply. And of course, you have to know what fees a bank charges before opening a bank account.

Online banking services for professional accounts in Europe

Online banking has a fast-growing popularity among European banks and that’s why there is no shortage of digital banks in Europe. A lot of freelancers, entrepreneurs, and the owners of small businesses prefer to take advantage of online banking these days. Digital banks in Europe provide their customers with all the necessary services and offer effective online solutions for any financial needs.

It’s also important to note that the digital banking market in Europe constantly develops and expands its activities. That means that more and more banks in Europe allow their clients to use their services online. It’s easy to create an account in an online bank and this process doesn’t take too much time. Most importantly, online banking makes it possible to get access to an online business bank account in Europe and use its services flexibly at any time of the day.

Requirements to open a corporate account in Europe

When opening a bank account, you have to meet the basic requirements, which are specific to each European bank. The most basic list of possible requirements includes but is not limited to:

• Proof of identity of the business owner (passport or another form of government-issued photo ID);
• Personal and contact information of the business owner;
• Proof of address (a utility bill or a bank statement);
• Business registration documents as proof of the business activity;
• Minimum balance requirements, if applicable (a requirement to make a deposit when opening a bank account).

Corporate account in Germany

Germany is one of the best countries to open a bank account in Europe as a non-resident. Germany is the obvious choice if you are looking for stability. This country has a strong economy and offers stability to non-residents. Germany’s banking system is very convenient and secure, with multiple credible financial institutions to choose from. It is required for business owners in Germany to segregate their own funds from their corporate bank accounts.

Having the reputation of some of the safest banks in the world. Commerzbank, Finom, and Kontist are considered good choices for business accounts in Germany.

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Corporate account in Estonia

Estonia has established a reputation as an economically and politically stable country. It’s also important to note that Estonia has the reputation of the fastest-growing IT hub in the world. The country is well-known for its mode of advanced and remote banking system. Banks in Estonia allow non-residents to open a bank account and get access to their services online. It’s important to note that Estonia has recently renovated its e-residency program.

If you choose to open a business bank account in Estonia, you’ll have access to low-cost SEPA transfers. Estonia is one of the easiest countries in Europe where you can open a business bank account. It is also worth mentioning that banking fees in Estonia are higher compared to other European countries. You should know that Estonia banks have fewer branches and ATMs compared to banks in other European countries.

There are two types of bank accounts available for businesses in Estonia. These include: accounts at conventional commercial banks and accounts through online payment service providers. Among the best banks for business accounts in Estonia are SEB Bank and Nordea Bank.

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Corporate account in Jersey

Jersey is known for its renowned financial and banking sector. It’s one of the most stable banking sectors in Europe. Jersey offers an advantageous jurisdiction for tax and business. Banks in Jersey offer profitable solutions to businesses: for instance, non-residents who open business bank accounts in Jersey can decrease their taxes. Besides, having a bank account in Jersey allows businesses to avoid certain taxes, for example, the wealth tax.

There are many banks in Jersey that allow non-residents to open bank accounts. These include The Royal Bank of Scotland International Limited, Standard Bank, and others.

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Corporate account in Switzerland

A lot of people choose to open a business bank account in Switzerland and they do this for obvious reasons. The country has a well-developed banking sector and a streamlined process of opening a bank account. That’s why foreigners find it easy to open a bank account in the country. Swiss banks offer a wide range of financial services to locals and foreigners. It’s worth noting that banks in Switzerland have gained huge popularity among the high-net-worth individuals in the United States.

Switzerland has a sophisticated banking network. Swiss banks are known for their strictest privacy policy and a high level of asset protection. Neon and Migros Bank are worth considering if you are going to open a bank account for business in Switzerland.

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Corporate account in the United Kingdom

There is no doubt that the UK is one of the best countries to open a business bank account. According to UK laws, non-residents can open a business bank account in the United Kingdom. However, in reality, opening a bank account as a non-resident in the country can be challenging. Oftentimes, banks in the United Kingdom don’t accept applications from foreigners because of fraud concerns.

Nevertheless, there are several banks in the United Kingdom that offer good options to foreigners. It makes sense to try to open a business account in such banks as Monese and Monzo.

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