A business bank account is a must for an efficient fund transfer. Some people tend to mix things up
by using their personal bank account in place of a professional one. Since business means no joke, it’s
always sensible to be on the formal side while dealing with your clients.
As an EU citizen, you may need a business bank account to run your firm legitimately be it a sole
proprietor or an LLC. As most of the EU countries come with strict regulations to prevent unfair
activities such as money laundering and fraudulence, a business bank account is often essential.
Let’s find out what the basic requirements are asked generally from a business holder to open
an account within the European Union.
Things You Need to Set Up a Business Bank Account In the EU
First of all, you should know that several countries make up the EU. These countries have different
banking policies of their own. They modify and adjust the rules and regulations from time to time.
Sometimes these principles change within the same country according to specific states.
Hence, before you plan to open an account it will be smart to visit the nearest branch of the bank
and prepare your documents so that you don’t need to return empty. But let me tell you the most
common requirements that seem to be found within the majority of banks of the EU.
Well… initially, you need to come up with your physical business address. Unlike many other
countries around, the EU does 't let you open a business bank account unless it has an identity. So,
to get a dedicated business bank account you must provide documents to support its existence.
Secondly, your business must be registered within the EU community. Make sure it is listed within
the 27 EU countries. These registration papers may (and most probably will) vary from country to
country.
If you see the terms “Trade License,” don’t get startled. They are one and the same. Trade license is
simply the paper that permits you to trade.
Besides the papers, you need to provide documents of the articles of incorporation. You may ask
why this is important to the banking authority. Let me explain to you in brief.
The articles of incorporation generally contain the information of your business name, its nature as
well as functionality, its residing address and most importantly it outlines the personnel who can
interfere with the firm’s financial interests. This is why the bank might ask for it in some cases.
The last major document that you should arrange beforehand is the tax identification number.
Banks need the confidence that you are good at providing taxes and at the same time the
government does 't have any objection by your name.
Besides these papers, they will ask for a few copies of your photo to update your profile to the bank
database. To prove your identification, you might be required to provide a copy of your government-
issued driving license or any kind of utility bill that comes from a government agency.
These are the documental requirements to open a business bank account in the EU. Also, you should
keep in mind that most of the banks in the EU ask for initial deposits to activate the account. Though
this opening deposit is so low in most cases, still, don’t be surprised if you are told to make one.
What Are the Most Common Things EU Banks Have to Offer?
Like all other premium banks in the world, the EU also has banks that provide standard accessibility
for their customers. For example, most banks come with a widespread ATM network to withdraw
money anytime you want.
Besides, other services like online banking, electronic fund transfer, and debit, or credit card facilities are
also available at most EU banks. In addition to that, other basic banking amenities such as collecting
funds and making payments can be made using the account.
On top of that, you can minimize the exchange rate’s instability once you make a trade with a
business bank account. However, providing business loans happens to be one of the signified sides
of an EU bank. Since companies need loans most often, having a business bank account should assist
well.
If you have any query regarding the service fees of an EU bank, then I should say it really depends on
the particular bank that you are talking about. But to assume the standard fee of services, you can
consider a quarterly fee for instance.
Why is an Adequate Business Plan So Important for a Business Bank Account?
A business without a plan is like a boat without a radar. Plans help you to achieve goals quite easily
and it's regarded as one of the vital aspects of any business. Banks in the EU often ask for a
business plan to comprehend your strategy.
To be precise, a reasonable business plan will assist you to get loans or any kind of financial support
from the bank to flourish the business.
You may need to write down your plans in a well-organized way. Always make sure you sum things
up in English at first. Be aware of the native language of the bank as EU banks do function in the
native language in most cases. You can hire a translator to convert your plans into a native phrase.
A successful plan drafting should include the principal aspects of business such as initial set-up cost,
detailed financial strategy, marketing and selling scheme, institution’s governing body, and a brief
summary of the company itself.
You should know that the European Investment Fund or the EIF has been providing financial support
to the growing business all around the EU. It functions with different bodies to assist businesses
directly. EIF provides guarantees to banks for small businesses to get funds.
It's not like you can get credit checks from a bank merely depending on the business plans. Some
other factors such as your family background, financial reputation, income, and current debts will
play dominant roles to get loans from the bank.
What is SEPA and How Can It Give Advantage to Your Businesses?
SEPA is the acronym for the Single European Payment Area. It ensures a cashless payment system
throughout European countries using debit or credit cards. If you own any EU bank account you
can enjoy this service to make cross-border payments using a single account.
The goal of SEPA is to minimize the overall cost of the European countries in terms of exchanging
services. You can also receive payments and salaries from different countries within the eurozone.
However, creating and promoting open business as well as increasing efficiency happen to be its
characteristics.
Do I Need an Agent to Open a Business Bank Account in Europe?
If you reside outside your desired banking state, or in other words if you are a non-resident and
want to get a business bank account to run your business, it may get a little difficult for you to obtain
one. Since you can't go there in person and learn the details of the openings, it’s a good idea to hire
an agent.
There are a lot of agents that’ll come to your doorstep to assist you to establish a bank account
anywhere in Europe ensuring the easiest way. But remember that, if you don’t have any conclusive
reason to open an account overseas, your native banks are always the best option to go for.
Some Alternatives to Brick-and-Mortar Banking in Europe
In case it's hard for you to reach out to an in-person bank for a business account, you can try virtual
platforms that provide similar services. Here are a few online-based financial organizations that offer
business banking facilities to assist you with a simplified banking experience in Europe.
Wise Business Bank Account
Previously known as TransferWise, is one of the most popular banking organizations that provide
business bank accounts within Europe. You can open your account from anywhere in the world with
Wise. It requires a very easygoing procedure to apply and doesn’t ask for any physical business
address.
However, Wise is an authorized financial service provided and it has a good record at providing top-
class safety for any kind of business. You can open an account within a few minutes and enjoy offers
like 19 times cheaper invoicing, batch payment, and escape from hefty transaction charges.
N26 Business Standard
N26 has over 7 million customers around the world using its business banking solution. It doesn’t
require any in-person paper works. Perhaps, you can sign up for your account within 8 mins of their
website. This account comes with a free debit Mastercard to spend money in-store or online.
All you need to do is a photo ID to sign up, and once you get the approval, you are all set to hustle
up. There is no minimum deposit amount needed to open the account. N26 has a wide range of ATM
networks with no withdrawal fees at all. Besides, other basic banking facilities are found in it.
Revolut
Revolut is actually a good alternative to the traditional brick-and-mortar banks that offer cards by
which you can do any kind of transaction within Europe and beyond. This friendly banking service is
specially designed for people who don’t believe in cross-border trading barriers.
You can travel and spend money anywhere using this bank account. It offers prepaid Visa and
Mastercard for a better transaction experience. On top of that, you can receive and transfer funds
globally without any extra charges.
The Bottom Line
Since the Brexit issue, trades in Europe have seen different dimensions and challenges. Previously, it
was believed that any UK-based banking institution could be the best option for operating financial
activities. But now, it would be wise to not use a UK-based banking solution to do business in the EU.
However, as long as your country and bank are under SEPA, you can easily perform trades within and
outside your native region without any difficulties.
