Opening a Corporate Bank Account in Ireland
Ireland is known for its business-friendly environment, ease of doing business, skilled workforce, straightforward business setup process, and a country with strong global links. Now, once you have incorporated your business in Ireland, the next ideal step to be followed is opening a business bank account.
Every business needs a bank account. It will help you in keeping your financial records up-to-date so that you can have a clear picture of your business’s financial position. Not just this, all businesses, even cash-based ones, will need a current bank account to receive payments from the customers and also pay to the suppliers.
Now, there are three main types of business entities in Ireland. They are:
- Sole Trader
- Partnership Firm
- Limited Company
The process of opening a bank account depends upon the type of business entity you choose. Let us understand how opening a bank account differs with each business entity.
Sole Trader/Partnership Firm
Opening a bank account for a sole trader is relatively simple if they are operating under their own name, but if a sole trader or a firm operates their business under a name that is not their true name(s), they have to provide an evidence of a Registration Certificate of the Business Name to the bank officials while opening the account. Partnership firm must also include the details on the partners and the partnership, including the partnership agreement.
A Limited Company, while opening its bank account, must pass a resolution of the Board of Directors to open a bank account. Every bank has its own mandate, which states the authorized person of the company, who has to look after all the banking transactions. The bank shall also need Memorandum and Articles of Association and other such details of the Limited Company while opening the account.
Banks will also seek information on the beneficial owners of the company, i.e. those who own or control 25% or more of the shares or voting rights of the company. Information required will include proofs of identification and proofs of address for all relevant parties.
Types of Banks in Ireland
Ireland gives you plenty of choices when it comes to business accounts. If you have a bank account with an international bank, then they might have its subsidiary in Ireland. This could make it easier to open a business bank account. Some of the established banks in Ireland are:
- Bank of Ireland
- Allied Irish Banks
- Ulster Bank
- Permanent TSB
How to Open a Bank Account Ireland?
The steps for opening an Irish Bank Account are as follows.
- First, you need to decide the type of bank account you want to open, and as mentioned earlier, the type of bank account depends on the business entity your business is operating as in Ireland
For example, if you are operating as a partnership firm, you will need to provide details regarding the beneficial owners or those with a 25% share or more.
If you are a limited company then you need a mandate form signed by all the directors to confirm that they agree to open an account
- The next step is to sign the mandate given by the bank once you fill an application for opening the bank account. The mandate form should be signed by each person authorized to carry out transactions, then returned to the bank with specimen signatures from each of the people authorized to make payments on behalf of the company
- The bank will also ask you to provide supporting documents
- Once all the documents are submitted and approved, your business bank account in Ireland is started with.
What Do You Need to Open a Bank Account in Ireland?
The documents needed to open a bank account for your company in Ireland are:
- ID proof including a passport size photo (for an individual bank account)
- Details of the beneficial owners of the business – i.e. those who own or control 25% or more of the shares or voting rights of the business
- A completed bank mandate form
- Specimen signatures for all those who will authorize transactions on the company’s bank account
- The Memorandum and Articles of Association (the limited company only)
- Certificate of Incorporation (the limited company only)
- Certificate of Business Name (if the business is trading under any name other than its true name/s)
- Cash or cheques to lodge to the new account
- Proofs of identification and proofs of address for all relevant parties
- Opening deposit
In a few cases, you are required to bring all the original copy of the aforementioned documents to the bank.
Before you open a bank account in Ireland, read all the terms and conditions carefully-especially the section on banking fees and charges. If you need help in setting up a bank account in Ireland, we at Business Setup Worldwide can help you with it. Our advisors in Ireland are well versed with the legal proceedings and shall open a bank account in a nick of time. Feel free to contact us for more information.