How to choose the right bank for your company and tips on what to consider in making the choice

October 24, 2014 - by Nida U.

How to choose the right bank for your company and tips on what to consider in making the choice

There are many pros, who have gone through the process of incorporating their offshore companies, as well as established several bank accounts offshore, so are there many newbies, those who worry and wonder: „If I pay for the company, will it be established? Will it be real? If I open offshore account, will I be able to access the funds? Will I get my money? How will I get it?” Ther are many options and many choices of banks all around the world, in the same time, there are many considerations that each has to look into before starting the process.

I decided to write this blog, as I believe it may come handy. I will outline some key points that need to be considered before opening bank account and I am more than sure that this will help you when making the decision. Nevertheless, as always we only give supportive advise, and each client has to turn to local, legal advisors for professional advise.

1. Jusrisdiction, where you want the bank to be?

Chosing the location is important, you need to consider languague, history, infrostructure, currency. Why? Language, well I guess this speaks for itself, you need to make sure you will be able to communicate. History – most importantly political and economincal history has to be taken into account. Infrastructure, this is also somewhat important, make sure the jurisdiction you choose has a good electrical, internet services, not all jurisdictions have greatest communications, someplace it is possible to get delayed answer due to power failures, which subsiquently lead to internet problems. Another imortant aspect to look at is currency in that country, what curency accounts are offered, so thet you would not end up paying exchange fees and loosing on the exchange rates. Most of the banks however offer multi currency accounts, which are not several accounts but one account number, those alow you to receive and make payments in several currencies and offer favourable exchange rates, giving you chance to earn on foreign currency savings.

Once you have decided where you want your bank, you may look into:

2. Bank – what type of bank you need?

Look into banks offered services, what type of accounts they offer, what type of cards, and what type of services. For example, make sure they offer the type of currency you need, the type of accounts you are seeking, e.g., current, savings, brokerage, trust etc. Very important is to find out what type of customer support bank offers, is it business hours only or 24/7? Also important is to understand if you want a big, world know bank or a smaller bank.

3. Bank – research the bank you have chosen, to make sure it is a real bank, and it offers your needed services!

First things first, make sure the bank is real, check the licenses, usually banks are licensed by central bank of the country where the bank is. If the bank is International bank, then you may check with the FSC - financial services commission, FSA - financial services authority, or similar bodies. Checking financial statements is also suggestible, if you need to understand deeper the bank. Public banks are required to file public annual returns, so it may be easy to check the statements for public banks, while private banks are not required, however these banks usually post the statements on their websites.

When you have made sure that the bank is safe, you need to consider few other aspects before you know this is the bank for you, like – what are the fees for services, what type of accounts they offer for foreign clients, usually banks website is more or less focused on local clients and not all services are offered to foreign clients. Also important is to check how the transactions are made with bank, via phone, internet banking, fax, e-mail etc? How safe it is, how safe is the internet banking interface, is it in English or language you know?

These are certainly not all consideration one should look at but in my opinion the main and the ones to start with. If you have incorporated company with us, you can open bank account for it yourself, or do it through us, as we offer bank account introduction services.

If you choose to open the account yourself, make sure you do your research, also it is certainly advisable to visit the bank in person, to make sure it actually exists.

If you choose to opt for our assistance then some of the research you don’t necessarily need to do, as we for one work only with licensed banks, and we have visited these banks in person, in order to become professional introducers for the banks, and most of the banks we work with does not require beneficial owner, directors or shareholders to visit the bank in person, in some cases, video conference is required with the bank.

P.S.: Each account opening is subject to client status. The introduction fee, as charged by Fidelity, is a service fee. For this fee, we will do our best to suggest the most suitable bank, provide guidance to you while you complete the bank forms, and prepare the due diligence required. We will also communicate with the bank on your behalf. However, the bank introduction fee does not guarantee the actual opening of the account, decision is in the hands of the banks compliance.

Thank you for reading my post.

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