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The process of opening a business bank account in Estonia has become complicated and expensive due to a number of regulations. Fortunately, it is not mandatory to only have a business bank account at an Estonian bank. Moreover, the Estonian regulatory authorities accept all the European Economic Area (EEA) bank accounts and Payment Service Provider (PSP) bank accounts. This has relieved many e-residents from obtaining a business bank account and allowed them to manage their Estonian companies. This article discusses the conditions, documents required and the procedure for opening a business bank account in Estonia.
Many non-residents wish to get a business account opened in an Estonian bank. However, the procedure has become complicated due to strengthened client acceptance rules. The Estonian Know Your Customer (KYC) requirements require at least one face-to-face meeting with the non-resident client and the local Estonian bank. Additionally, the success of opening a business bank account depends on the data and information furnished by the applicant, as the bank has to check and verify the origins of the assets and the background of transactions of their non-resident customers.
For a non-resident to open a business account in Estonia, the client has to demonstrate that his company has direct ties with Estonia and explain further how the company’s management/ owners/ commercial activities are connected with Estonia. The bank wants to know a substantial reason for the company undertaking operations in Estonia and the need to have a bank account opened in Estonia.
Suppose the applicant successfully demonstrates that his company should have an Estonian bank account. In that case, the applicant can open a bank account at any local bank offering a business account. Some banks provide the facility for online submission of the application form and the relevant documents. In such cases, the applicant has to visit the bank only once to sign the agreement and within one month from the application’s approval date.
The EEA banks also provide an alternative to traditional banks where the applicant can create a business account. Additionally, the services offered by PSP accounts can be availed to create a business account.
Suppose the applicant has taken part in the e-residency programme and consequently has ties with Estonia or has become an Estonian resident. The chances of obtaining an Estonian business bank account number and International Bank Account Number (IBAN) are relatively high compared to that of a non-resident. An e-residency allows the making of applications online without any bureaucracy to obtain a business account from an Estonian bank.
The banks will seek the following documents at the time of opening a business account for a company registration in Estonia:
The following steps must be followed to open a business account at the desired Estonian bank:
There is a misconception that possessing an e-residency in Estonia entitles the residency holder to the right to open a business bank account in Estonia. It is not just the possession of an e-residency but also a demonstration of the company’s connection with Estonia required to open a business account. A business bank account is not provided to companies that have exclusively been carrying their business in their own country or outside the Europian Union. To know more about the ingenious ways of opening a business bank account in Estonia as a foreigner, get the consultation offered by global incorporation experts at Enterslice.
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