Opening a Bank Account for an Offshore Company

An account for an offshore company is needed to receive payments, settle with counterparties, finance activities and manage corporate funds. The possibility of opening one depends on the country of registration, ownership structure, company activities and the requirements of the selected financial institution.

Company registration does not guarantee the opening of a bank account. Before submitting an application, it is necessary to check whether the bank considers the relevant jurisdiction, business model and planned payments.

Prikhodko & Partners helps assess available options, prepare documents and support the application. If the business is only being established, banking requirements should be taken into account at the stage of offshore company registration.

Can an account be opened for an offshore company?

Yes, some banks provide services to companies registered outside the bank’s country. For example, DBS in Singapore has a procedure for foreign companies, while MCB in Mauritius publishes a separate document package for Foreign Companies. This confirms the possibility of applying, but not the acceptability of every offshore structure.

The term “offshore” alone is not sufficient for selecting an account. The exact jurisdiction, legal form, tax status and place where the business is actually conducted must be established. A trading company, a holding company and a company holding investment assets require different banking solutions.

Foreign registration also does not automatically mean offshore status. The bank assesses the specific legal entity and its transactions, so the conditions applicable to an ordinary foreign company cannot be applied to any offshore jurisdiction without verification.

What does the bank review before opening an account?

Preparation begins with an explanation of how the company earns money, who manages it and where the funds will come from. Registration documents should be supplemented with information about the actual operation of the business.

The preliminary analysis should include:

• the country of registration, current company status and required licences;
• the ownership structure through to the ultimate individual owners;
• the place of management and actual business operations;
• sources of funding, income and initial funding;
• key counterparties, payment countries and expected turnover.

For example, MCB includes a business plan, beneficial owner declaration and tax self-certification documents in its account-opening package. DBS requests confirmation of the ownership structure and place of business.

The information in the questionnaire must correspond to the agreements, statements and corporate documents. If the company declares trading activities, it is necessary to explain the goods, suppliers, buyers and settlement procedure. For a holding company, the origin of the assets and the economic substance of incoming funds should be explained.

Where can an account be opened for an offshore company?

A bank is selected taking into account the company’s jurisdiction, the owners’ residence and the direction of payments. The availability of international banking services does not in itself mean that the bank is prepared to work with every structure.

These are options for preliminary consideration, not a list of banks that guarantee account opening. DBS expressly places foreign companies in categories requiring support from a bank relationship manager; MCB differentiates packages according to the type of structure.

When comparing options, it is important to consider document review fees, monthly servicing, minimum balance requirements and international transfers. The conditions for refunding paid fees in the event of refusal should be clarified before payment.

Documents for opening a corporate account

The final package is determined by the bank. To prepare an application, the following groups of documents usually need to be reviewed:

• certificate of incorporation, articles of association and a current extract or equivalent document;
• registers of directors and members and an ownership chart;
• documents of beneficial owners, directors and authorised signatories;
• a resolution to open the account and authority of representatives;
• agreements, invoices, financial statements or a business plan;
• source-of-funds evidence and tax questionnaires.

In particular, the DBS list for foreign companies includes a certificate of incorporation, register of directors or Certificate of Incumbency, beneficial ownership documents and a reference letter from the relevant bank. Documents must be in English; additional requests are possible.

A Certificate of Good Standing, apostille or notarised copies should not be ordered automatically for every application. The list, validity period and acceptable certification method should first be agreed.

Can an account for an offshore company be opened online?

The remote procedure depends on the bank and the company’s profile. Sending documents through a website may only be the beginning of the review. Identification of representatives, verification of beneficial owners and signing of the agreement are agreed separately.

For example, DBS provides for foreign companies to apply through a relationship manager. This does not confirm automatic opening through the standard online form and does not determine in advance whether an in-person meeting will be required.

If opening an account without travel is essential, this should be stated when selecting the bank. A power of attorney should also be agreed in advance: it confirms the representative’s authority but does not eliminate checks of the company and its owners.

Foreign currency account and international payments

The account should be selected based on the currencies of the agreements and the actual settlement routes. For example, DBS offers a Business Multi-Currency Account with transactions in 13 currencies for eligible corporate clients.

Before opening the account, it is advisable to check whether payments can be received from key counterparties, transfers can be made to the required countries and funds can be held without unwanted conversion. Correspondent bank fees should be assessed separately.

If opening an account with a payment institution is considered as an alternative, its licence, accepted jurisdictions, account details and safeguarding mechanism should be reviewed. The terms of a payment account may differ from those of a bank account.

Confidentiality and tax transparency

An offshore account does not provide anonymity from the bank. Account-opening documents require disclosure of owners and controlling persons, and the use of a representative does not eliminate this review.

Under the CRS standard, financial institutions determine the tax residence of their clients. For passive non-financial entities, controlling persons are also reviewed; where the relevant conditions are met, the account is subject to reporting. Therefore, it is incorrect to promise an absence of information exchange solely because of offshore registration.

The tax consequences of company ownership and receipt of income should be assessed separately from the banking arrangements.

What is included in legal support?

Prikhodko & Partners helps prepare the application taking into account the company structure and the requirements of the selected bank. Support may include:

• preliminary analysis of the company, owners and planned payments;
• selection of institutions to check the possibility of servicing;
• review of the corporate package and questionnaires;
• preparation of explanations regarding activities and sources of funds;
• assistance with additional requests during the review.

The lawyers’ task is to ensure the completeness and consistency of the information. The decision on account opening and servicing conditions remains with the financial institution.

Stages of opening an account

1. We analyse the situation. We determine the jurisdiction, owners, activities, currencies and payment directions.
2. We review the options. We clarify the company’s acceptability and application requirements.
3. We prepare the documents. We work through the corporate package, questionnaires and supporting evidence.
4. We support the review. We help respond to requests and clarify servicing conditions.

The timeframes depend on the complexity of the structure and the scope of the review. The cost of legal support is determined after analysis; bank fees and document-related expenses are agreed separately.

Advantages of legal support

• Bank requirements are taken into account before the application is submitted.
• Documents are reviewed for validity and inconsistencies.
• The account is selected based on the actual business transactions.
• Responses to requests are prepared with the relevant supporting evidence.

Do you need an account for an offshore company? Contact Prikhodko & Partners to assess the available options and prepare documents taking into account the jurisdiction, ownership structure and activities of your business.