Foreign bank account –  an effective tool for business

Under the current market conditions, it is impossible to imagine an effective international business structure without a corporate account in a foreign banking institution. Moreover, the accounts in the foreign banks are of an interest not only for firms and for international companies. More and more private individuals use such accounts for keeping and accumulation of the financial assets. Such popularity is caused by the wish to protect one own assets under the conditions of economic and political instability.

The personal account in the foreign bank is, first of all, the reliable time-tested tool, and also the possibility of using a well-functioning system of protection and deposit assurance. That is why more and more international entrepreneurs and business people regard such an account as an effective tool for business and protection of the existing capitals.

The advantages of opening an account in the foreign banking institution:

• High level of security: the foreign bank account, due to the instability of the economic system and risks of changing political situation, can serve as an assurance of the safety of your financial assets. The depositor obtains a guaranteed possibility to save, accumulate and withdraw his own capital without limitations, provided that the bank account is opened in the territory of the country, where the national currency has stable rate of exchange;
• Privacy of information and confidentiality: if you are interested in the secrecy of information about the owners of the bank account and provision of the banking secrecy, the best solution is a foreign bank. The foreign banking institutions do not disclose the information related to their clients and maintaining bank accounts;
• Wide range of the financial tools: opening of the personal account in the foreign bank provides the additional opportunities for saving and growth of capital. Such accounts allow not only to maintain the assets and to receive a fixed deposit interest. You can purchase securities, real estate or be engaged in other investment plans.

The choice of a foreign bank – what to pay attention to

It is important to take into account a number of the key points, in order to make a right choice of the reliable banking institution that meets all the requirements and is able to provide a list of financial tools which are required for business, in particular:

• Reliability of the financial institution: you should pay attention to the international rating of reliability of a bank. According to the experts, all foreign banks with a rating of "A" category or higher, deserve attention.
• Requirements for opening an account: many foreign banks are very demanding to their future clients. Some banks, for example, may require from the potential depositor the documents, which confirm the origin of the capital, or work only with the large corporate clients;
• Minimal deposit for opening an account: the size of such deposit depends on the particular banking institution. You can find a foreign bank, where there is no minimal deposit, however, such accounts have the low interest rate;
• Tariff policy of the bank: the account maintenance fee, as well as the requirements for the potential client, may depend on the internal policy of the bank. In this relation it is more central to choose the bank with the minimal servicing fee;
• Convenience of working with a bank account: be sure to acquaint yourself with the terms of using the account and carrying out financial transactions.
• Interaction with clients: many foreign banks put into practice special loyalty programmes and programmes of rewarding their clients. Another important factor is the attitude of bank staff towards their clients, how far are they responsive and ready to help when you have difficulties;
• Minimal threshold of the minimum required balance is also an important factor when choosing a foreign bank. So, when in one bank the minimal threshold can amount to several thousand dollars, in another bank it can reach few hundred thousand.

Documentation for opening a foreign bank account

The procedure of opening an account in the foreign banking institution is preceded by preparation of the relevant documentation. The list of documents may be changed and supplemented in accordance with the requirements of the bank. However, there is a standard set of documents:

• The shareholders and beneficiaries of the company must submit the originals of the valid passports;
• All the incorporation documents of the company must be apostillized;
• The registration certificate must contain the exact legal address of the company.

It should be noted that the set of documents also depends on the chosen jurisdiction. For example, the applicant may be required to submit the documents, which confirm the place of actual residence of company owners (utility bills and etc.). Be ready that your personal presence may be required for opening a foreign bank account.

When taking into account the diversity of the modern international banking sector, it will be much more efficient to use the services of the qualified professionals. When applying to the professionals, you will save yourself and your business from the unpleasant surprises in the future. It is important to understand, that the choice of the foreign banking institution is not the case when you can make mistakes.