Opening an overseas bank account

Mellius specializes in providing comprehensive solutions for companies conducting business outside Israel, and so we offer our clients assistance in opening a bank account in financial institutions uniquely suitable for their personal and business needs.

As bank accounts abroad need not be set up from the country in which the company is registered, the need to choose the best location is crucial. Several factors must be taken into consideration, including the political and economic stability of the state, its credit rating, regulations, measure of supervision and so forth.

After narrowing the list of potential countries, one should examine various financial institutions there according to the same criteria, and then locate the bank most suitable to your business activity and needs. Factors should include: client payments, operational costs, wages to employees, acquisition of assets, funds and collateral for large-scale projects, etc.

Not all companies need bank accounts in order to function, such as holding companies which usually do not conduct independent economic activities. However, the majority of legal entities established abroad do need a bank account to conduct business.

In recent years, and specifically following the 2008 economic crisis and the collapse of banks in the U.S. and Cyprus, stricter regulations have been enforced in matters of money laundering. As a result, opening a bank account abroad, while previously a relatively simple procedure, is now slightly more complicated one. Currently banks conduct due diligence before authorizing the opening of an account, examining account holders and those associated with them. In this preliminary process companies must submit personal information regarding the company, its beneficiaries and any other person(s) that may act on its behalf. Furthermore, companies are required to provide information regarding their area of business activity, principle place of business, source of financing and other details.

The main advantages of opening a bank account abroad, whether in an offshore branch of Israeli banks, or foreign banks:

• Consultation on transactions – In transactions and projects conducted vis-à-vis foreign agents there is often a requirement to provide representation by a reputable bank;
• The banks credit rating is particularly important in large-scale international transactions;
• Online payments – In many cases clearance agents demand that companies have an account in a certain bank or location as a condition for payment;
• Investment portfolio management – Large banks hold extensive asset portfolios and a range of financial products that are not available in local banks;
• In-depth familiarity of large banks with the international arena and the special needs of global companies;
• Risk decentralization for companies and their shareholders;
• Great savings in costs and commissions.

Mellius facilitates the process of opening a bank account in a wide range of states and banks, from Singapore to Hong Kong in the East, Switzerland, Lichtenstein and the UK in Europe, and all through to the U.S. in the West.

We would be happy to present you with all suitable options, within the framework of a personal meeting.