Almost anyone can open an account or deposit with a foreign bank, but in reality this procedure is not as simple as it might seem at first glance. You will learn the intricacies of the work of foreign organizations with the right to conduct banking operations, as well as a step-by-step guide on opening an offshore account in them, if you read this article.
For a Russian businessman, an account abroad can bring a lot of advantages. This means opening a bank account in another country, and not just an account of a foreign credit institution that has a representative office in our country. In essence, even the European banks that operate in our country are Russian, and even they are based on foreign capital. It follows that they are subject to exactly the same risks.
Why and who may need a foreign bank account?
An account with a foreign bank may become necessary for those who intend to conduct their business abroad, open a special merchant account for the development of their online business, and simply for those who want to increase their money. The reason is simple - some banking organizations may offer higher than in Russia, interest on deposits in foreign banks.
It is also worth considering that the accounts in a foreign bank are private. Bankers in Western countries are really worried about confidentiality, and the concept of “bank secrecy” for them is not just an empty phrase. In almost all respects, we have profitable deposits in foreign banks.
Step-by-step instructions on how to make a deposit in a foreign bank
In fact, this process is somewhat complicated, and without knowledge of certain nuances it is almost impossible to achieve the goal. Let's try to understand the intricacies at each stage of opening a deposit in a foreign bank.
The choice of the country in which to contribute
The country for placing its funds should be selected depending on the nature of the goals for which you need a similar account. Banks of Western Europe are considered to be very prestigious, but the vast majority of them are not interested in the settlement and cash services of non-residents, for this reason they are not suitable for such goals, since it is at least unprofitable for the client. Such financial transactions are best carried out through banking institutions in Estonia and Latvia. Banks in Hong Kong and Singapore will be glad to foreigners who conduct their business in Southeast Asia, but are reluctant to accept deposits - only if the size of the investment is very substantial. Those who want to keep their funds, but refuse to participate in international trade, can open a deposit in a foreign bank, for example, in Swiss, because there are very high requirements for the minimum balance indicator, and also, as a rule, the number of operations is somewhat limited. When choosing a suitable country, one should take into account the political and economic situation in the region, and it is better to analyze the future perspective - the more stable, the better.
Registration of a new or purchase of a "ready" company
To open such a deposit, you need a company that is registered in a country with preferential taxation. Offshore companies are not necessarily used for doing business, for example, some of them are created only for the purpose of owning foreign assets and opening a bank account. Today it is not so difficult to acquire an offshore company, and both the purchase and the annual commission will not be so expensive.In order to acquire a company registered abroad, you must contact the appropriate specialized company. The procedure can be carried out in just one day. Another option is to register your LLC in another country. This path is suitable for those who really seriously intend to conduct their business abroad. A foreign company that owns a Russian LLC can provide a solution to many property disputes regarding a zone of international law and in case of bankruptcy protects the current owner from subsidiary liability.
Choose a bank
Today, Baltic banking institutions that can serve in Russian are becoming more common, and the cost of banking products is quite low. Also very reliable are the banks of Germany, Denmark and Austria. When choosing an institution to open a deposit in a foreign bank, it is necessary to analyze the reliability rating of a banking institution, the minimum deposit amount (for example, in Switzerland the size is very large), requirements for customers of other countries, since not every bank is ready to do business with foreign citizens, the opportunity prompt and convenient deposit replenishment. The most famous foreign banks for deposits:
- In Germany - KfW.
- In France - Caisse des Depots et Consignatioms.
- In the Netherlands - Bank Nederlandse Gemeenten.
- In Switzerland - Zurcher Kantonalbank, CIM Banque.
- In Saint Lucia - Hermes.
- In Latvia - Rietumu.
- In Austria - Meinl Bank.
Filing an application for opening a bank account
To open an offshore account in a banking institution, the following documents are required:
- A completed application form for opening a bank account with an original painting of the future owner of the deposit or director of the enterprise.
- A copy of a package of documents that certify information about the identity of the client (usually a passport or driver’s license).
- It is advisable to have a letter of recommendation from other banks.
- Constituent documentation of the enterprise.
Sometimes a banking institution requires the personal presence of a potential investor. The term for opening a deposit in a foreign bank directly depends on the chosen country and the internal regulations of the banking institution - sometimes this procedure lasts one day, and sometimes at least several months.
Pros of the main types of foreign bank deposits
Also of great importance is the type of account. A current account is opened in order to maintain current expenses. In such cases, as a rule, interest rates on deposits in foreign banks are very low, and sometimes even absent. Investment accounts are created for the purpose of continued investment in securities or stocks. A deposit account is suitable not only for saving money, but also for multiplying it due to the high interest rate. But do not forget that in this case you cannot withdraw money before the end of the period specified in the contract.
Offshore company "without an account"
The myth that European banks are very accessible and ready to fight for each of their customers is very firmly rooted in the minds of Russian citizens. But, unfortunately, this is completely untrue. Foreign banking institutions do not lack potential clients at all and carry out the selection very strictly, for this reason a person who decides to open an account abroad may encounter certain difficulties, especially when he wants to conduct this operation on his own. It is necessary to prepare for possible long conversations with representatives of a banking institution, in addition, negotiations will most likely take place in English.
You can open a bank account with a foreign bank using a special company that specializes in such services.Such firms have established contacts with banks, they will assist in the selection of a particular bank and negotiations, as well as in the proper execution of all necessary documents.
This method of opening a bank account abroad is the simplest, but it is very important to choose the right company, since there is a risk of collision with fraudsters who need only a personal account number and a sample of a person’s signature.
It is necessary to pay attention to the fact that some intermediaries who register offshore companies and promise to open a bank account in the chosen legal sphere, in fact, cannot carry out the latter. Typically, these companies can offer lower cost services. The result of cooperation with such a "grief-firm" will manifest itself in the form of an irrevocable loss of funds that were paid for opening an account, and a useless offshore company. The thing is that real reputable companies that are truly capable of opening a bank account will not cooperate with other people's offshore. And, in the end, such ill-conceived savings on the intermediary can lead to increased spending, and then the proverb is confirmed once again: "Avaricious pays twice."
What does the law on opening deposits abroad say?
We mention one feature of owning a bank account abroad. About it speaks the second paragraph of article 12 of the Federal Law "On Currency Regulation and Currency Control". On deposits in foreign banks, the law says that absolutely every Russian citizen is obliged to warn the territorial tax authorities about opening an account with a bank located outside the territory of the Russian Federation for a month. At the end of each year, it will be necessary to provide information to the tax office about the balance in such an account. Violation of this law is punishable by a fine of 5 thousand rubles.
Conclusion
As a rule, an account with a foreign bank is very rarely opened to receive increased income or a better level of service. Most often this is done in order to confidentiality and a kind of independence from the banking system of our country. For example, many decided to open such an account for fear that the authorities may introduce various restrictions on currency conversion and cross-border transfers. In addition, foreign bank accounts may open access to international investment products.