Before we can start the process of opening a suitable banking facility for your new venture the Company documents must be correctly formed and be 'application ready'. This process comes hand in hand with choosing the right offshore company formation agent. If they have done their job correctly you should have been furnished with a full complete set of documentation including the Certificate of Incorporation, Memorandums of articles and association along with Director and Shareholder registers.
Conventional Offshore Banking has been around years and offers many benefits such as privacy and competitive multi-currency exchange rates giving an edge to any international business. In recent years there has been a large influx of alternative banking services and these institutions are known as EMI's (Electronic Money Institutions) or Fintech Banks. These Companies are growing at an immense speed and can offer suitable alternative banking facilities than the large, retail conventional banks on the market. For example, some of the Companies offer simple account opening procedures allowing customers to upload documents and provide information online. One of the main players in the market can open accounts for individuals and offshore companies in as little as 20 minutes providing you with an instant IBAN number. International transfers are available meaning clients can receive and send money worldwide at competitive rates. Debit Cards are also available meaning you can get access to your funds almost anywhere.
As it has become harder in recent years to open an offshore bank account, these new organisations are changing the way we conduct business. Using simple mobile applications to send money virtually anywhere, in different currencies creates more time to focus on doing business. Gone are the days when you had to walk into your high street bank to send money abroad at a fee of £30. I remember it well.
However, changing people's concept and gaining trust is an ongoing issue. It is natural to feel secure when banking with the likes of HSBC, or Barclays however during lockdown in the last year we have seen these banks refuse so many new applications. Some have even given up offering business accounts altogether.
So long live the Fintech industry. Remember that these institutions also require government licensing giving you security. Customer service with some of the Fintech's may need to improve however there are some fantastic solutions out there for clients to take advantage. So, if you are thinking of forming an offshore company and opening an offshore bank account do your research and save time by trying an EMI.