Open SEPA account remotely: who and why should do it in 2020?

SEPA is a single euro payment zone that unites 35 countries and makes bank transfers between them fast and inexpensive. Almost any company having partners in Europe or the CIS would not mind opening a SEPA account in the European Union countries remotely, especially since all you need for this is to become a client of the bank - member of the system and have a good business reputation.

Requirements for opening a SEPA account

When a company applies to the bank for opening a corporate account in a single payment zone, the conclusion of the compliance-control service is decisive. Along with the security service, it conducts a detailed analysis of the client and decides on whether the service is possible or impossible to give. Chances for success decrease if:

• the company is engaged in high-risk business (financial markets, gambling, bitcoin);
• the company is registered in an offshore zone or a country whose name appears on the FATF and EU black and grey lists;
• there are public persons among the company's founders;
• the name of the firm has been involved in major scandals and it has outstanding obligations or debts.

The list of documents required to open an account depends on the local requirements of the financial institution and most often includes the company's founding documents and the documents relating to its owners and employees who have the right to dispose of capital. All documents must be translated into the official language of the jurisdiction and certified by a notary. Unfortunately, not all European banks are ready for remote opening of SEPA accounts, and most of them would still like a personal interview with managers and beneficial owners.

The most loyal jurisdictions in this respect are Great Britain, Cyprus, Czech Republic and Poland. Of course, there are other options, but it is better to select them individually, in consultation with IT-OFFSHORE lawyers. We will help not only to choose the right jurisdiction and bank to open an account based on the financial needs of the company and the specifics of the business, but also to open an account SEPA 2020.

Advantages of opening a SEPA account in the European Union countries

Companies served by EU banks, along with the account, automatically receive an increased level of prestige and respect from customers and counterparties. It is easier for them to get additional support in the form of grants or collaborations with major international companies. In addition to the solid status, a SEPA account has other benefits for its holders:

• the absence of mandatory tax residency in one of the European Union countries among the requirements for the company;
• the ability to open in one or more currencies of your choice and automatically convert them at an advantageous rate;
• the absence of the requirement of mandatory presence of company representatives at the account opening procedure;
• simplified identification of clients by common IBAN and BIC codes;
• shortening the duration of interbank transactions to 1 day;
• reduced fees for money transfers (from EUR 5 to 8).

The only disadvantage of the SEPA account is the restriction of one-time transfers exceeding EUR 50,000.