Best Business Bank Accounts for Online Business 2024

Many online companies may find the process of an offshore high-risk merchant account a sensitive issue, but thanks to our well-established relationships with the banks, the process is smooth and painless. The banks we work with all have experience working with online companies.

The process of opening an online corporate bank account is more complicated than opening a regular bank account as it is more challenging for the bank to properly understand the nature of your business and your online company. There are so many types of online businesses today that sometimes the model of the company can be very complicated. As a result the compliance department at the bank finds it difficult to fully understand the structure of the company and as a result does not approve the opening of the bank account.

It is important to note that all services offered by GBO, including opening bank accounts, can be done remotely so that the beneficial owners/signatories of the company do not physically need to be present at the branch to sign the papers. This service is unique, adding another level to the complexity of the procedure in opening a business bank account in 2021.

It is essential that when you apply for a business bank account 2021, all information regarding your business activity is disclosed to the bank so that they understand exactly what it is that you do, and that they know where to expect the funds to be coming from and where they are going to. It is important to take into consideration that banks may ask for invoices for any income they see in your account or agreements for any funds they see going out of the account.

In order to retain a good name with the bank, you should manage your bank account in a responsible manner. You should make an effort to maintain an adequate balance in your account, don’t write bad cheques so that in the long run when you may need a loan from the bank you will be more likely to receive it.

When opening a corporate account, the bank requires a list of corporate documents as well as scanned copies of the relevant passports. Depending on the bank, these documents may be required to be apostilled.

While it may be extremely convenient and much less expensive to use your own personal bank account, mixing your personal finances with your business finances may raise many obstacles for you in the future. Even if your company is new and is more part-time, it should still be a completely separate entity from anything in your personal life.

Offshore business bank accounts are a key element of many e-commerce business banking solutions. While it might seem easy to open a business bank account offshore, it is subsequently a difficult and frustrating process for the business owner. Whilst banks are responding to the more frequent ‘offshore company with a bank account’ situation, it is the fine tailoring of the account to the business model that is the challenge, often leaving the unprepared business owner with a poor solution.

Simply put, this is a business or corporate bank account in a location other than where the company is incorporated. This is distinct from an offshore business, which is when a business is incorporated in a country outside where the business operates or where the business owners are domiciled.

Sometimes, your local banking services just don’t offer the services you need, or are difficult and slow to deal with. In other casestimes, your clients may require their own local banking solution due to regulatory reasons (such as with forex regulations like ASIC), for ease of use (such as in countries with poor access to internet or more extensive banking services), or simply because your local affiliations necessitate a local bank account. Often, you will find that clients just feel more comfortable with a business that uses their local banking system. It is not uncommon for taxation, fees or other issues that play a part.

With GBO, the question of how to open business bank accounts are kept simple. GBO will guide you through the process, provide expert advice on incorporating the business structure for offshore needs, as well as handling interaction with the banks. For an offshore company already with a bank account, GBO can provide the best corporate offshore bank accounts and solutions to help you maximise the efficiency and cost of your banking needs.

Online business is experiencing rapid growth – there are billions of Google searches daily for online services, e-commerce and basically almost everything else, making it a very competitive marketplace.

This has led to many entrepreneurs setting up new websites and for that they need to register a company, open a company bank account, and sometimes they also need additional services such as payment processors, debit cards, using nominee directors or shareholders for the company, virtual offices etc.

GBO will assist you to incorporate your company and open a company bank account. We work with top banks in the EU helping us achieve the best service, rates and operational plans for our international clients.

Personal Identification – You will need the personal details of those involved in the business. Generally, this includes owners, shareholders, partners, authorized signers, beneficial owners and directors. Each of these people will need to supply proof of identity, usually in the form of a passport with notarised or apostille.

Letter of Referral – If you are the owner of an existing business then bring a letter of referral or bank statement from the financial institution where you have an existing business bank account. You should have held the exiting account for at least the last 3 months.

Proof of Address – A utility bill bearing your company name and address and dated within the last 3 months should be sufficient. A municipal rates bill for the business premises dated within the last 12 months is also acceptable.

Account Signatures’ Right – If you are one of several owners you will need to show a resolution from your co-owners or board granting you the right to handle the finances of the company/open an account/control the account. If several individuals will be operating the business account then you will need to show proof of their identity. Any individual who is to have access to the account and be an authorized signatory must show proof of identity.

Certificate of Incorporation – If your company is a Limited Liability Partnership or Limited Company you will need to provide a Certificate of Incorporation verifying that your company is licensed and registered.

Certificate of Incumbency – This document lists the names of all individuals (directors, shareholders, officers etc.) involved in the company and states their role in the company, corporate office and obligation (incumbency) to the company.

Memorandum of Association – If your company is a Limited Liability Company you will need to show the bank a Memorandum of Association (MOA) which you would have received during the registration when establishing your company. The memorandum defines the relationship between the shareholders and the company setting out the Articles of Association that state how the company is to be run and owned.

Articles of Association – You will need to show the bank the documents used to register and form your company. The bank will require the Articles of Incorporation that were filed in the jurisdiction where your company was registered. This document states the purpose of your company and the role of its members.

Possible additional requirements when opening a Corporate Bank Account in 2021

Business plan – Some banks may ask to see your business plan that sets out the company’s purpose and strategy.

List of customers – Occasionally the bank will ask to see a list of your company’s clients.

List of main suppliers – You may be asked to provide a list of suppliers or an invoice from a supplier dated within the last 3 months.

Employer Identification Number – In the USA, depending on where and how your company was registered the bank may ask for proof of your Employer Identification Number (EIN) or Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). This is a number issued by the IRS to businesses established in the US, for the purpose of identification. If your company is registered outside the US then you may be asked for a tax number from your jurisdiction.

DBA Certificate – If your business will be operating under a name other than its legal registered name then you may need a “Fictitious Business Name Certificate” also known as a “Doing Business As Certificate” or DBA.

Expected cash-flow – When opening a corporate account the bank may ask for a projection of anticipated transactions. This should give the bank a better idea of the expected monthly cash flow and credit you may need.

Business Certification – If your business deals in a field that requires specific licensing like healthcare or the food industry you will need to show the appropriate business licenses.

Take into account that the bank has the right to ask for any documents it wishes. If you choose not to supply the required documents the bank is likely to reject your application for a business account. It is best to approach the bank with as much information about your business as they may require. A corporate bank account at a respected financial institution is essential for running a successful business.

Comparing the advantages and disadvantages of the best Business Bank Account.

There are many business bank accounts available that are well-suited for online businesses. Some factors to consider when choosing a business bank account for your online business include:

1. Fees: Look for a bank that charges reasonable fees for account maintenance and transactions.
2. Payment processing: If your online business involves taking payments online, look for a bank that offers easy payment processing options, such as a merchant account or integrations with popular payment gateways.
3. Mobile banking: As an online business, you may need to access your business bank account on the go. Look for a bank that offers a robust mobile banking app.
4. Customer support: Choose a bank that offers excellent customer support, so you can get help when you need it.