Advanced Legal Consulting for Obtaining Business Bank Account

What is the right banking offer for your business?

Not all banks are ideal for each business model. Depending on the activity, different banks or types of banks will be better suited to your case. And one shouldn’t close the door to so-called online banks and EMIs. The wild years of fleeting digital banks with low safety and poorly designed regulation are thankfully over thanks to the increase in strong frameworks. LegalBison experts are noticeably familiar with these frameworks for banking institutions, EMI, PSP, and other FinTech companies, as we provide guidance on licensing such companies.

First, your business must know its needs in terms of banking services (accounts, currencies, payment cards, loans, applications…). The bank that looks the shiniest may not be the one that will provide you with all these necessary services. You want to avoid bad surprises down the road by opening an account in a banking institution that will eventually not be able to provide you with a USD account, whereas all of your clients are located in the USA!

Second, there are cases in which the client doesn’t pick the bank. The bank will pick its clients. This is notably true in certain industries and for companies established in certain given jurisdictions. It can mean that you will hear no from certain banks, or that you will have to provide extra clarification on the source of your funds and the identity of your board members.

Being flexible, well prepared, and having a very clear idea of the right services to be provided are a necessary first step to opening the right business bank account.

Business bank account for FinTech companies: crypto, gambling, Forex, etc

If your company is engaged in a so-called high-risk business such as cryptocurrency, gambling or else, it may be harder for you to open a bank account. New industries, especially the ones directly in touch with money. This remains true even as the general public is becoming aware and knowledgeable about cryptocurrency, for example.

The best thing to do if you are willing to open a business bank account for your crypto company is to apply for a crypto license. A crypto license is a document stating that your operations have been scrutinized and validated by a recognized competent regulatory authority. In exchange for complying with certain rules, and usually for reporting about potential financial crime, your company will be granted a crypto license. Crypto amateurs are increasingly aware of the existence of such licenses and the stakes behind them. It is more often getting known which project has or hasn’t applied for a license for its operations. This can make or break the trust of a project’s community.

For gambling companies, it is no different. A gambling license, granted by a recognized authority in a reputable jurisdiction such as Curaçao or Malta will significantly increase your chance to be welcomed by banking institutions. The amount of internet scams in the sphere of gambling and trading in the 2010s has made the general public pay attention to these details. If your company has a gambling license and is demonstrating trustworthiness, then not just your potential clients, but your potential banking partners will be more favorable in starting a business relationship with you.

How much costs a business bank account

As you open a business bank account, you certainly have the cost in mind. The fees can vary significantly from one bank to another.

Very often, our clients ask “how much” as the very first question, and we understand perfectly. We would want to answer straight away, but the truth is that depending on your business activity, the necessary services, the jurisdiction and bank where the opening will be proposed, and the offer that this bank will make to your company, the fees can vary significantly.

Should you open a business bank account in the same country as your company?

Is it important to have a bank account in the same country as the company is registered? Not necessarily, but sometimes it can help.

Banks might be more inclined to work with companies registered in the same place as they are. This is especially true for traditional banks, where the clerk will usually want to look into your company in detail before agreeing to open an account.

This is why we offer packages of company registration with a bank account, in certain jurisdictions.

But sometimes, it’s not about being incorporated in the same country but having a legal entity registered in the same region of the world. Or having a company registered in a jurisdiction that is considered more business-friendly than your home country by the bank clerks.

The process of opening a business bank account is usually simpler when it comes to a new company. The project is fresh, it can be simply described to the bank and LegalBison has experience in finding the banking institutions that accept companies registered in a given country.

What type of banking solution to choose for your business account

Are you struggling to choose between traditional and online banks? Are you attracted by the safety of a classical bank? Do you prefer the swiftness and innovative services of an online bank? What about payment institutions and other FinTech companies able to provide you with an IBAN account?

To gain a better understanding of the variations, let’s have a look at Barclays and Revolut, both based in the UK. Barclays is a traditional financial institution and Revolut is a FinTech company, a so-called EMI. Both banks provide international services, however, each has its unique benefits and drawbacks.

As we said previously, it’s important nowadays to not be closed to options outside of traditional banks. FinTech alternatives have more than proven their reliability and solidity, thanks to increasingly solid frameworks on the regulatory side.