A corporate bank account is an account that companies use to carry out transactions and the unique differentiation is that, unlike a business bank account, a corporate bank account cannot be used as an asset by shareholders or company owners as a medium for personal use or asset reconciliation.
A corporate bank account can be used as a helpful tool for doing business in a market such as Ireland wherein the business environment is changing at a hasty pace.
The Irish business environment is extremely supportive of flexible business operations being the reason why the Republic of Ireland is soon becoming a famous region for registering businesses and setting up offshore companies. Here’s a guide on registering a business in Ireland which is a must-read before you
Offshore companies have different traits in comparison to other companies, the major one being that offshore companies do not need a tangible office for conducting business activities.
This enhances business flexibilities for trade companies, advisory firms and analytical firms as they do not require a physical office for carrying out business and can run their operations from connectivity mediums like the internet, databases and so on.
In the case of such companies, the availability of a corporate bank account will act as a medium for conducting quick transactions without the issue of having a bank account linked for purposes other than core business activities.
Offshore Banking Services in Ireland
Recently the Irish banking sector has evolved to support the formation of Offshore Companies contributing majorly towards influencing businesses to their convenience and developing a strong economy. Many Offshore Banking service providers commercialize different packages with offshore corporate bank accounts. Through these packages, companies based on their affordability and convenience can choose the deposit amounts and interest rates from the listing of packages provided by banks. The different services comprise of –
- Money transfer services
- Deposit services
- Short term loans
- Long term loans
Document Submissions for Opening Corporate Bank Account
These banks request client companies to produce various documents to ensure the completion of the account opening process. The documents required are –
- Certificate of Incorporation of Business
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Appointment letter and supporting documents of company directors and company secretary (if any)
- Confirmation of the location of the registered office from where the business is being run
- Share Certificates
- Certificate of Good Standing (only for companies over 12 months old)
Advantages of Offshore Banking Services in Ireland
The banks in Ireland that provide offshore corporate banking services have throughout the times maintained positive relationships with their clients to ensure the development of a holistic and healthy business environment. These healthy bonds attracted many offshore companies to opt for banking services in Ireland. Moreover, the developing business environment encouraged the emergence of new banking services for corporate bank account holders, thereby providing an overall banking experience without having to be present at premises physically. Therefore, the primary advantages are –
- Assured client satisfaction for new and existing businesses
- Custom packages of services for large and small enterprises
- Varying interest rates to suit affordability standards of companies
- Faster processing and approval of loans
How to Open an Offshore Corporate Bank Account?
1. Select an appropriate bank
Many banks offer similar services for opening corporate bank accounts for offshore companies, but it is essential to observe the uniqueness of each bank in the variability of interest rates, deposit thresholds and credit providing facility. Thus, depending on the scale of the business, it is crucial to avail the services of banks that can financially support the growth ambitions of the company through their services.
2. Timely submission of documents
Banks often offer a probation period for clients to submit the required documents mentioned earlier. This probation period is provided so that companies may complete their incorporation procedures and tax registration obligations before submitting the documents to banks for opening a bank account.
3. Make preliminary payments
Preliminary payments often refer to the depositing of a certain amount required to commence the recording of transactions from the bank account officially. Further payments will be subtracted from this amount and gains will be added to this amount. Post making deposit payments, clients can also avail credit services from the bank, but this requires a credit rating to be submitted to the first.
Importance of Corporate Bank Accounts for Offshore Companies in Ireland
- Since there are the least tangible links in Ireland for Offshore companies, they do not incur intensive tax impositions. Considering the simplification and regularity of tax payments for offshore companies, it is only feasible for using a medium that facilitates consecutive monetary transferring services such as a corporate bank account.
- Corporate bank accounts facilitate quick money transfers from the buyer to the vendor to ensure that no delays occur while doing business.
- In case of any credit borrowings such as loans, corporate banks provide flexible loans to their clients that possess good credit ratings through potential analysis of regular banking data.
- Since corporate banks deal with large sums of money, corporate bank accounts will always have a constant cash flow allowing clients to access their deposited funds at any point of time as per their convenience.
Whether it be a large corporation or a small enterprise, the requirement for a corporate bank account remains the same for all business entities. If a company wishes to achieve maximum results by utilizing its tenure in the Irish market, then it must function rapidly without having to face multiple hurdles in its business life cycle. With the help of a corporate bank account, the company operations can become more flexible in terms of making payments and receiving funds, thus assisting in the rapid growth of the business.
Another hurdle for setting up a business in Ireland is the company incorporation process and further administrative tasks. Let us support your business on its journey to conquer the Irish market. Contact us to know more about how to set up a business in Ireland.