How to Open a Business Bank Account for a Dormant Company Being Reactivated

A dormant company is a legal business entity that has stopped trading or conducting financial transactions but remains officially registered. When you're ready to reactivate such a company, one of the most important steps is opening (or reopening) a business bank account to resume financial operations.

What Is a Dormant Company?

A dormant company is a registered legal entity that has not conducted any active business or financial transactions for a period of time. This status may be used by:

• Entrepreneurs not yet ready to launch

• Investors holding assets or intellectual property

• Businesses taking a temporary pause

• Entities formed for future expansion plans

Dormant companies typically don’t file full financial reports, conduct payroll, or carry out transactions, but they must still comply with the basic legal framework of their jurisdiction.

When Is a Company Considered Active Again?

A dormant company is considered reactivated when it begins:

• Trading or selling goods/services

• Receiving payments or revenue

• Paying employees, suppliers, or taxes

• Entering into new contracts or investments

This shift from “dormant” to “active” must be reported to the relevant corporate registry or tax authority in your jurisdiction.

Steps to Reactivate a Dormant Company Before Opening a Bank Account

Before applying for a bank account, make sure your company is officially back in active status:

1. 📣 Notify Government Authorities

• Inform your local business registry (e.g., Companies House, Secretary of State, etc.)

• Submit updated financial and compliance reports if required

• Update your status with the tax authority and request a reactivation of your taxpayer account

2. 🧾 Settle Outstanding Obligations

Clear any overdue filings, penalties, or registration updates. These can block your bank account approval.

3. 🆙 Update Company Details

Ensure all your shareholder, director, and registered address information is current in your public record.

How to Open a Business Bank Account for a Reactivated Dormant Company

1. 💼 Choose the Right Bank or Fintech Provider

You can choose between:

• Traditional banks – Ideal for companies with local presence and complex needs

• Digital/Fintech platforms – Often more flexible, faster onboarding, and global-friendly

Examples:

• ✅ For global entrepreneurs: Traditional international banks or Fintehcs.

• ✅ For local businesses: Regional or national banks in your jurisdiction.

• ✅ For high-risk or multi-currency businesses: EMIs or cross-border fintechs.

If you would like to get an up to date list of banks or Fintechs that fits your business profile, fill out our contact form and we will send it to you by email.

2. 📑 Gather the Required Documents

Most banks will ask for:

• Certificate of incorporation

• Proof of reactivation or updated registry filings

• Identification documents for all directors/owners

• Description of planned business activities

• Proof of business address (utility bill, lease, etc.)

• Projected turnover and source of funds

Include a brief business plan or summary to demonstrate that the company is ready to trade.

3. 💬 Explain Your Dormant Period Clearly

Most banks will ask about your company’s inactivity. Be prepared to explain:

• Why the company was dormant

• What’s changing now

• What activities you plan to carry out

Transparency improves your chances of approval, especially if the bank sees your reactivation as part of a stable business plan.

Common Challenges & How to Overcome Them

Challenge	Solution
No recent transactions or history	Provide projected financials or contracts/invoices
Unfamiliar industry or niche	Include details about the market and compliance
Rejected by traditional banks	Try online banks, EMIs, or jurisdiction-specific fintechs
Delayed due to missing filings	Ensure all registry and tax documents are current

Reopening a Closed Business Bank Account

If your dormant company previously had a bank account that was closed:

• Contact your previous provider with proof of reactivation

• Request to open a new account under the same company name

• Be prepared for a full re-onboarding with new KYC checks

In many cases, it's faster to open a new account from scratch.

Pro Tips for Easier Bank Account Opening

• Use a business email with your own domain name

• Prepare a short explanation of your business model

• Be responsive and transparent during compliance reviews

• Use a local address or representative if required

• Choose fintechs if traditional banks are slow or strict

Popular Jurisdictions and Bank Trends

Region	Common Requirements	Bank Type Trends
Europe	Local address, UBO KYC, registry filings	Fintechs like N26, Wise, Revolut
US	EIN, Operating Agreement, registered address	Mercury, Relay, Bluevine are fast options
Asia	Local director often required	Traditional banks dominate, fintechs emerging

Conclusion

Reactivating a dormant company is a smart way to resume business without starting from scratch. But before you can operate financially, opening a business bank account is essential. With the right documentation, a clear business case, and a reliable provider, your account can be live in a matter of days or weeks.