Understanding the Obligation to Open a Corporate Bank Account: Best Options Available
Once your business is registered in Estonia, you need to open a bank account to invoice your customers, pay suppliers and distribute profits.
In Estonia, unlike in countries such as Spain, it's not permissible to use your personal bank account for business purposes. This is due to the legal distinction where you and your company are recognized as separate entities.
Unless you have a good reason to opt for a traditional bank account, online solutions such as Revolut Business or Paysera are perfectly valid alternatives for your business, and they have many advantages, such as:
You save money and time since everything is online so you don't have to visit offices.
You can transfer money for free to other countries that are in the SEPA (Single Euro Payment Area).
However, if you decide to choose a traditional bank keep this in mind:
You will have to travel to Tallinn, the capital of Estonia. This is because traditional banks have a KYC (Know Your Customer) policy, which requires them to meet their customers face to face to open a bank account for them.
Most Estonian banks will ask you to prove a certain link with Estonia, in addition to proving that you are an e-resident. This is quite subjective, and proving it may not be that easy.
Ready to dive into digital banking? As a valued Companio client, we're excited to offer you an exclusive perk: a free month with Revolut Business! This offer applies to any plan beyond the Basic. However, please note that at least one partner must be a resident in the European Union, the United Kingdom, or Switzerland.
Get started and enjoy your bonus month by easily booking a complimentary video call with a Revolut expert. Click this link to unlock your digital banking journey with Revolut.
In Estonia, unlike in countries such as Spain, it's not permissible to use your personal bank account for business purposes. This is due to the legal distinction where you and your company are recognized as separate entities.
Unless you have a good reason to opt for a traditional bank account, online solutions such as Revolut Business or Paysera are perfectly valid alternatives for your business, and they have many advantages, such as:
You save money and time since everything is online so you don't have to visit offices.
You can transfer money for free to other countries that are in the SEPA (Single Euro Payment Area).
However, if you decide to choose a traditional bank keep this in mind:
You will have to travel to Tallinn, the capital of Estonia. This is because traditional banks have a KYC (Know Your Customer) policy, which requires them to meet their customers face to face to open a bank account for them.
Most Estonian banks will ask you to prove a certain link with Estonia, in addition to proving that you are an e-resident. This is quite subjective, and proving it may not be that easy.
Ready to dive into digital banking? As a valued Companio client, we're excited to offer you an exclusive perk: a free month with Revolut Business! This offer applies to any plan beyond the Basic. However, please note that at least one partner must be a resident in the European Union, the United Kingdom, or Switzerland.
Get started and enjoy your bonus month by easily booking a complimentary video call with a Revolut expert. Click this link to unlock your digital banking journey with Revolut.
Updated on: 27/12/2023
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