Five Things to Consider When Opening a Business Bank Account

Five Things to Consider When Opening a Business Bank Account

So you’ve decided to start your own business. The first thing to do is to open a business bank account. It will allow you to accept non-cash payments from customers, pay taxes and mandatory contributions, settle accounts with counterparties, and transfer salaries to employees. There are five steps to consider to open a business bank account.

Step 1. Choose a bank

To understand in which bank it is better to open a business account, it is recommended to evaluate all offers according to the following criteria.

  • Service cost. For small businesses, it must be affordable. When choosing a bank, pay attention to the sizes of limits and commissions and advantageous offers, for example, several months of free service.
  • Availability of valuable services. The bank can help you with company registration and business management: Online accounting, acquiring, payroll project, and online cash desk are just a part of the tools that can significantly simplify commercial activities.
  • Availability of a mobile application or Internet banking. These tools will allow you to freely manage your current account wherever there is an Internet connection, as well as draw up an act or issue an invoice in just a couple of clicks.
  • Participation in the deposit insurance program. This guarantees insurance coverage in the event of license revocation.

If you are establishing your new business in Hong Kong, for safe and successful banking transactions, you can choose one of the top banks in Hong Kong. The first and foremost advantage is the stability of the local banking system. Many of them have a long history and have been repeatedly recognized as one of the best in the world.

Step 2. Determine the tariff

Consider the size and needs of your business. For start-up entrepreneurs, a tariff with free service is suitable. For those who make a lot of transfers to individuals and legal entities every month, a tariff with an increased limit of external payments will be helpful. For companies conducting foreign economic activity, solutions are provided with an individual exchange rate. If you find it difficult to decide, consult with a bank employee.

Step 3. Apply

Apply now. After applying, a representative of the bank will contact you. They will tell you about the current tariff line and help you choose the most profitable option. As a rule, the application is submitted by the business owner. Still, after issuing a notarized power of attorney, this can be done by a third party (a relative of the owner, chief accountant, executive director, etc.)

Step 4. Collect documents

Each bank may have its requirements for the list of documents and their execution. Most often, the list of documents includes:

  • Identification documents of all persons who will have access to the account and all beneficiaries and shareholders (notarized copies of international passports, proof of residential addresses).
  • Evidence of the legal origin of funds.
  • All constituent documents of the company and other documents related to the business.
  • The document on the appointment of the manager of the company.
  • A letter of recommendation from a bank where the client already has an account.
  • Certificate of Good Standing (from companies that have been operating for more than a year).
  • Copies of company income statements.

Step 5. Meet with a bank representative

The time when it was possible to open a bank account in a few minutes without appearing at the bank is long gone. Over the past years, the procedure has become more and more difficult due to the global fight against money laundering. Today, banks require a personal meeting with the client. In some cases, only the company’s directors are required, while other banks may require that the beneficiaries and major shareholders also be present.

Meet the bank representative at the nearest bank office or in another convenient place by arranging a meeting with the manager. The specialist will bring the documents required to open a business account and help you fill them out. After that, you will be able to use the account. The whole procedure will take no more than one business day.

Final Words

Opening a business account is a critical decision, which considers many factors – from the choice of bank and range of services to the ability to open an account remotely (if any). At the same time, you have to think of another important point: is the bank ready to cooperate with you?! The requirements of many banks are not easy to comply with, given that most of them are wary of customers from third-world countries. Therefore, those who wish to open a bank account successfully cannot do without the help of experts.

So you’ve decided to start your own business. The first thing to do is to open a business bank account. It will allow you to accept non-cash payments from customers, pay taxes and mandatory contributions, settle accounts with counterparties, and transfer salaries to employees. There are five steps to consider to open a business bank account.

Step 1. Choose a bank

To understand in which bank it is better to open a business account, it is recommended to evaluate all offers according to the following criteria.

  • Service cost. For small businesses, it must be affordable. When choosing a bank, pay attention to the sizes of limits and commissions and advantageous offers, for example, several months of free service.
  • Availability of valuable services. The bank can help you with company registration and business management: Online accounting, acquiring, payroll project, and online cash desk are just a part of the tools that can significantly simplify commercial activities.
  • Availability of a mobile application or Internet banking. These tools will allow you to freely manage your current account wherever there is an Internet connection, as well as draw up an act or issue an invoice in just a couple of clicks.
  • Participation in the deposit insurance program. This guarantees insurance coverage in the event of license revocation.

If you are establishing your new business in Hong Kong, for safe and successful banking transactions, you can choose one of the top banks in Hong Kong. The first and foremost advantage is the stability of the local banking system. Many of them have a long history and have been repeatedly recognized as one of the best in the world.

Step 2. Determine the tariff

Consider the size and needs of your business. For start-up entrepreneurs, a tariff with free service is suitable. For those who make a lot of transfers to individuals and legal entities every month, a tariff with an increased limit of external payments will be helpful. For companies conducting foreign economic activity, solutions are provided with an individual exchange rate. If you find it difficult to decide, consult with a bank employee.

Step 3. Apply

Apply now. After applying, a representative of the bank will contact you. They will tell you about the current tariff line and help you choose the most profitable option. As a rule, the application is submitted by the business owner. Still, after issuing a notarized power of attorney, this can be done by a third party (a relative of the owner, chief accountant, executive director, etc.)

Step 4. Collect documents

Each bank may have its requirements for the list of documents and their execution. Most often, the list of documents includes:

  • Identification documents of all persons who will have access to the account and all beneficiaries and shareholders (notarized copies of international passports, proof of residential addresses).
  • Evidence of the legal origin of funds.
  • All constituent documents of the company and other documents related to the business.
  • The document on the appointment of the manager of the company.
  • A letter of recommendation from a bank where the client already has an account.
  • Certificate of Good Standing (from companies that have been operating for more than a year).
  • Copies of company income statements.

Step 5. Meet with a bank representative

The time when it was possible to open a bank account in a few minutes without appearing at the bank is long gone. Over the past years, the procedure has become more and more difficult due to the global fight against money laundering. Today, banks require a personal meeting with the client. In some cases, only the company’s directors are required, while other banks may require that the beneficiaries and major shareholders also be present.

Meet the bank representative at the nearest bank office or in another convenient place by arranging a meeting with the manager. The specialist will bring the documents required to open a business account and help you fill them out. After that, you will be able to use the account. The whole procedure will take no more than one business day.

Final Words

Opening a business account is a critical decision, which considers many factors – from the choice of bank and range of services to the ability to open an account remotely (if any). At the same time, you have to think of another important point: is the bank ready to cooperate with you?! The requirements of many banks are not easy to comply with, given that most of them are wary of customers from third-world countries. Therefore, those who wish to open a bank account successfully cannot do without the help of experts.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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