The idea of opening a bank account in another country may appear to be a complex and exasperating procedure. It is delayed due to unfamiliar regulations, language barrier and paperwork involved which leaves many people delaying it well past its due date. However, regardless of whether you are intending to invest, study, live or take your business to another country, more often than not, you are required to open a bank account in that country.
Thankfully, it does not have to be as hard as plenty of things, as long as you know what to do and how to do it, and what financial resources you can utilize to do so, like, SBLC (Standby Letter of Credit) or a proof of funds provider.
In this article, we shall guide you through the procedure step by step on how you can open a bank account in a foreign country confidently without the hustle that comes with it.
Reasons Why You May need Foreign Bank Account
Some of the typical reasons why people open an international bank account are as follows before pulling into the process:
- You are moving or changing of job, school or retirement.
- You are willing to invest or even acquire property in a foreign country
- Your company is now going global
- You would like to have an asset diversification strategy or have less exposure to currency risk
- A local account is required in order to meet immigration or a visa requirement
No matter why you need it, the process can be still smooth in case you are guided by the appropriate measures and cooperate with the proven providers of the proofs of funds.
Step 1: Elect the appropriate country and bank.
Foreigners do not get equal accessibility in every country. Others are rigorous with rules, and others are very much welcoming to foreign account holders.
Factors of consideration
- Stability and reputation of a bank
- English speaking service
- Online bank characteristics
- Banking legislations (both locally and in international cases)
- Minimal deposit/ balance requirements
There are popular expat and investor destinations such as:
- Switzerland
- Singapore
- Germany
- Canada
- UAE
- United Kingdom
Undertake your research or even get down to individuals or firms that deal with international banks services.
Step 2: Readiness of your Documents
Depending on the country and the institution, documentation differs, but in general this is what you will require:
- Legal passport or national id
- Photo-id, Proof of address (utility bill or lease agreement)
- Home countries tax identification ( home tax identification)
- Immigration on visa documents
- Job or pay information
In case you are opening a business account, you will also require:
- Registration forms of business
- Certificate of incorporation
- The structure of ownership
- Company tax ID
Banks would require some documentation of funds; Say they are large accounts or property related purchases. That is as far as the proof of funds providers or financial mechanism such as an SBLC kicks in.
Step 3: Boost Your Compliance with an SBLC or Proof of Funds
Standby Letter of Credit (SBLC) is a type of guarantee that is issued by a bank to show that the account holder is able to hold some financial obligations. It is a very respected instrument, particularly in real estate, commerce and the banking industry. Similarly, the proof of funds issuers provides formal statements that certify you to possess adequate funds towards a given cause (e.g. purchasing property, visa process or high-level account opening).
Advantages of SBLC or proof of funds providers’ usage
- Increase your authentication with global banks
- Requirements of immigration or investment
- Streamline the authorization of large value transactions
- Prevent failing to freeze or delays that come with poor documentation
Such tools will be practical in case you are not transferring a huge sum of money immediately but still have to demonstrate financial potential.
Step 4: Deposit Money in an Account and Use it.
After the approval and opening of the account, you will have to deposit the first funds. This could be a matter of some hundreds to thousands of dollars depending on the bank and type of account.
These are things to put in check prior to using your account:
- Exchange rates and exchange fee of currencies
- Everyday limits on transactions
- Foreign wire transfer
- Access of online banking and apps features
Monitor any continuous fees or minimum balance requirements so that they do not take you off by surprise.
Final Thoughts
There is no need to stress out over the process of opening a bank account in a different country. Knowing the requirements, preparing suitable documentation, and using such tools as SBLCs and proof of funds, you can make a great case before any bank and obtain your account in a short period of time and without difficulties.
As a global entrepreneur, investor, or any person preparing to move to a new country, you can access international banking, but it must be correctly guided and you will be prepared.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
