In this article we will talk about how Crypto VASP entity can open a bank account for own operational purposes and also client funds account. Crypto license in Europe or otherwise know as VASP license (Virtual Asset Services Provider) has become a very popular options for companies looking to provide crypto related services to end clients. VASP companies have permission to provide exchange services for various virtual assets, such as utility tokens and coins. However, they are not permitted to trade security tokens, as this requires an additional license as an investment firm. They can facilitate the conversion of cryptocurrency to traditional fiat currency and vice versa. Often, VASP license is combined together with EMI license to have a broader addressable market by unifying both fiat and crypto offerings. Most popular countries (as of end of 2023) for VASP licensing are: 1) Lithuania with 473 license holders 2) Estonia with 86 license holders 3) France with 73 license holders 4) Spain with 57 license holders 5) United Kingdom with 41 license holders Opening Operational Bank Account For Crypto VASP Entity An operational bank account owned by a VASP entity, often referred to as a "corporate bank account," serves as a crucial financial tool for various purposes. In general, financial licensed institutions, such as banks, Fintechs, Crypto VASPs, maintain these accounts for several reasons: managing liquidity, covering operational expenses, meeting regulatory requirements, holding mandatory reserves as per regulations, securities settlements and clearing, risk management, capital adequacy, financial reporting purposes, etc. Essentially, operational bank accounts owned by financial institutions and Crypto VASPs are essential tools for managing their day-to-day operations. Opening operational bank account or corporate bank account for any financial institution or Crypto VASP entity is as straight forward process as opening regular corporate bank account. We have covered this extensively in this article . If you would like to get an up to date list of VASP friendly banks, do not hesitate to contact us . Opening Client Funds Account For Crypto VASP Entity A client funds account, also known as a segregated client account, is a specialised type of bank account owned by financial institutions for the purpose of holding and managing funds that belong to their clients. These accounts are typically used by financial institutions such as brokerage firms, investment companies, Fintechs and also Crypto VASPs. There are several reasons why a crypto VASP needs client funds account: For clients deposits and withdrawals (C2B and B2C flows) : client funds accounts are essential for managing client deposits and withdrawals in both customer-to-business (C2B) and business-to-customer (B2C) financial flows. Segregated client fund accounts are obviously segregated from VASP own operational funds account, in order to protect client funds and mitigate risk. Also it is easier to track and account for client fund movements. Moreover, once the interest rates started going up, in some cases, client funds accounts may earn interest on client deposits. This interest can be accrued and paid out to clients, providing them with a return on their deposited funds. Additionally, regulators often require financial institutions to maintain detailed records of client deposits and withdrawals. Client funds accounts help in generating the necessary reports and audit trails to demonstrate compliance with these requirements. From the clients perspective, knowing that their deposits are held in a segregated client funds account can instill confidence. They have assurance that their money is being handled responsibly and securely. Client Money Protection: client funds accounts provide a layer of protection for client assets. In the event of financial institution insolvency or bankruptcy, client funds are typically shielded from the institution's creditors, ensuring that clients can recover their funds. Settlement and Transaction Processing: VASPs are the transaction based businesses and client funds accounts are essential for the settlement and processing of these transactions. They serve as a temporary holding place for funds until the transaction is completed. Moving forward, the process of opening a client funds account can vary. However, here are the general steps typically involved in opening a client funds account: Choosing the bank: he first step is to select a reputable banking provider that offers the type of client funds account you need. We have covered this topic extensively in this article . Submit the application : selected banking provider will ask you to prepare application forms for opening a client funds account. You will need to fill out these forms with accurate information: company information form, Wolfsbergs Questionnaire, AML/KYC procedures forms, country risk matrix, volume forecasts, and similar. Provide documentation: f inancial institutions typically require certain documentation to verify they UBOs and the entity itself . These documents may include: For individuals: a government-issued photo ID (e.g., driver's license, passport), proof of address (e.g., utility bill), and possibly a social security number or tax identification number. For legal entities: business registration documents, tax identification numbers, articles of incorporation, and ownership information. Agree to Terms and Conditions: review and agree to the terms and conditions, including any specific agreements related to the client funds account, such as minimum commitment, fee schedule, annexes. Pay attention to any extra fees, withdrawal policies, and any restrictions that may apply. In addition, we recommend to double check for policies allowing the banking institution to halt any payments and request additional information, especially related to client transactions. Receive account details and integrate via API : once your client funds account is approved, you will receive account details, which typically include an account number, routing information (for wire transfers), and any login credentials for online account access, if applicable. Do not forget to automate the banking processes using API integration by requesting API documentation and Sandbox for testing, prior the account approval, so there is plenty of time to prepare/test. Start using the account: with your client funds account now open and funded, you can begin using it for its intended purpose, such as holding client funds, processing transactions, or managing deposits and withdrawals. Remember that the specific requirements and processes can vary between financial institutions and regions. If you would like get our opinion on your situation or receive an up to date list of banks that can open one or another type of bank account for Crypto related business or entity with a VASP license, reach out to us by submitting contact form and we will get back to you with some useful tips! Conclusion In conclusion, opening operational and client funds accounts for Crypto VASP entities, is pivotal for effective financial management and regulatory compliance in the cryptocurrency industry. Operational bank accounts serve a range of functions, while client funds accounts protect assets and enhance transaction efficiency. Navigating the account opening process with due diligence and compliance is essential for ensuring the success and security of crypto-related activities.

In this article we will talk about how African companies can open bank accounts in the EU or UK and conduct business in local currency. It is not a secret that over the last five years, African economies and digital businesses have experienced significant growth and expansion due to a combination of factors, including increased access to technology, favorable demographics, and a growing entrepreneurial spirit. Such economic growth was fueled by rapid internet penetration allowing digital entrepreneurs to target foreign and more developed economies in client pursuit. Another key factor is that African nations have a predominantly youthful population which is growing at a rapid rate. This demographic advantage has attracted tech companies and entrepreneurs to invest in the region, targeting a market with significant potential for digital products and services. In turn it has helped E-commerce businesses to experience a substantial growth across Africa, with companies like Jumia, Konga, and Takealot expanding their operations. Africa has been at the forefront of fintech innovation too, with mobile money services like M-Pesa in Kenya and various digital banking platforms gaining traction. So in the past several years, African businesses have thrived due to increased internet access, and growing investment in sectors like e-commerce, fintech, and agri-tech. This growth has been further fueled by increased government support, improved infrastructure, and a burgeoning entrepreneurial ecosystem. 5 Reasons Why African Businesses Need EU Based Bank Accounts African businesses that deal with international clients may need bank accounts in Europe or UK to conduct business in local or international currency (such as EUR, USD, GBP, CHF, etc.) for several reasons: Currency Exchange and Risk Management: having a European bank account allows African businesses to conduct transactions in the local currency of their European trading partners, reducing the need for currency exchange and associated costs. It also helps mitigate currency risk, as fluctuations in exchange rates can impact the profitability of international transactions. Operational Efficiency: a local European bank account can streamline financial operations for African businesses operating in Europe. They can pay suppliers, receive payments from customers, and manage expenses in the local currency more efficiently, avoiding delays and complications associated with international wire transfers and currency conversions. Credibility and Trust: having a local bank account in Europe can enhance the credibility of African businesses in the eyes of European clients, partners, and regulatory authorities. It demonstrates commitment to the local market and simplifies financial interactions with European entities. Regulatory Compliance: some European countries may have specific regulatory requirements or restrictions when it comes to financial transactions with foreign entities. Having a local bank account can facilitate compliance with these regulations, making it easier for African businesses to operate within the legal framework of the European market. Taxation and Reporting: having a local bank account can help simplify tax reporting and compliance with local tax authorities in Europe, as financial transactions are conducted in the local currency and may be subject to local tax regulations. 3 Smart Ways To Move Money Between Europe And Africa Bank Transfers: using international bank transfers or wire transfers through established financial institutions. This method offers security and reliability, but it can be expensive due to fees and unfavorable exchange rates. To minimize costs, consider using online platforms that specialize in international money transfers. For example, several banks that Epico Finance works with offer a wide range of wire transfers in local African currencies such as: Botswanan Pula, Ghanaian Cedi, Kenyan Shilling, Lesotho Loti, Mauritian Rupee, Malawian Kwacha, Nigerian Naira, Tunisian Dinar, Ugandan Shilling, South African Rand, Zambian Kwacha, Egyptian Pound, etc. Cryptocurrency: cryptocurrencies like Bitcoin, Ethereum or stable coins for cross-border transactions are widely used in African business ecosystem. Cryptocurrencies can provide fast and relatively inexpensive transfers. There are a lot of on-ramp and off-ramp platform that can easily exchange stable coins to fiat and vice versa, with an instant fiat settlement into virtual IBAN . Epico Finance works with several such platforms that can bridge the gap between fiat and crypto in a single ecosystem. If you’d like to learn more about crypto to fiat solutions, contact us via a contact form. Foreign Exchange (Forex) Brokers: forex brokers specialising in international currency exchange can offer competitive rates for large transactions. How Can African Company Open A Bank Account In Europe? We have already discussed how African business can benefit from having European or UK based bank account and what are smart ways to move funds between the two continents. Next move is understanding how can actually African businesses open a bank account in the European Union or UK by following a series of steps. First it is important to understand, which country or countries are the main markets for the African entity. A priority would be to have a local bank account with a local IBAN. However, EEA is very open and majority of the banks offer multi-currency accounts therefore any jurisdiction within the EEA would serve the purpose. We usually advise businesses to seek UK based accounts with multi-currency GB IBANs. Selecting a bank is the next important step. We have already covered that topic extensively int this article here . Look for banks with experience in serving international clients and expertise in your industry. We can suggest a list of banks that fits your business model and flow of funds, get in touch with us here . After bank is chosen, financial institutions typically have specific documentation requirements. Commonly requested documents include: Business Registration: provide proof of your business's legal registration in your home country and any necessary certifications. Business Plan: detail your business activities, financial projections, and the purpose of the EU bank account. KYC Documents: Know Your Customer (KYC) documents such as passports, identification documents, and proof of address for the business owners, directors, and authorized signatories. Corporate Documents: Provide corporate documents such as articles of incorporation, a certificate of good standing, and any relevant licenses. Once the bank reviews and approves your application, you can proceed to open the business bank account. This may involve signing account agreements and providing the initial deposit. In addition, many EU banks offer online banking services, allowing you to manage your account remotely or via a mobile application. Ensure you have access to these services for convenient day-to-day operations. If your business deals with multiple currencies, inquire about the availability of multi-currency accounts or foreign exchange services to manage transactions efficiently. Usually banks adjust their pricing for such transactions based on volumes and currency pairs. If more currency and payments business can be transferred to that specific bank, the better rates can be achieved. And let’s not forget that many banks in the EU or UK can provide a dedicated relationship manager or FX dealer. You can read more about currency management tips in our article here . And lastly, it is extremely important to stay informed about EU banking regulations and compliance requirements, as these may change over time. Ensure your business continues to meet all regulatory obligations. Conclusion As seen from tremendous growth in the African digital business landscape, more and more companies are seeking clients, suppliers or partners in the EU. Naturally, a requirement of local business accounts arise and such accounts can be opened based on several steps. To open a bank account in the EU for an African business, the process involves choosing a bank, preparing required documents, complying with regulatory requirements, opening the account, setting up online banking, considering currency needs and maintaining compliance.

In this article we will talk about ways of lowering taxes for digital business legally so that entrepreneurs could keep more of their own wealth and money. A lot of people run online businesses, starting with ecommerce, to online marketing, consulting, media, or doing any type of business where they are generating revenue online, by using credit or debit cards via payment gateway or collecting transfer from clients (more about payment gateways and card processing in this article ). Usually online entrepreneurs are looking into places like Dubai (UAE) to lower their taxes by establishing a company in a free zone there. And it is a good way to lower corporate tax to 0%. But how do you also keep payment processors and clients happy when they are paying you to your local account? Often clients are from non-offshore jurisdictions like UK or EU and they might not want to pay using AED to your local UAE bank account. So how can you make your clients happy when they need to pay to your company account, even though your company is set-up in off-shore jurisdiction so that you can legally pay 0% corporate or income tax? Here are simple steps: Intermediary structure: a simple structure is to have two different entities – one is UAE company (or any other traditional offshore entity) and a company somewhere else to have payment processors or payment methods. The UAE entity can be a marketing management entity, and the other company (onshore that deals with clients) would then send money to your marketing company based in UAE, that is going to be the one paying 0% corporate tax. Such structure is called intermediary company structure where the goal is to have an intermediary step in front of offshore entity. Onshore bank account: another great tactic is to have an onshore bank account for your offshore entity that you can incorporate in any of the traditional offshore jurisdictions such as UAE, Belize, Seychelles, Mauritius, BVI and so on. Opening EU or UK based bank account for offshore company is not an easy task. A lot of banks will refuse such account opening, while fintech and digital banks will require first having an EU based account with other bank or provider before opening an account with them. Or having a local based account with local bank first is a must and even so they can only provide nested accounts without individual named IBANs. But there is still a few players in the market, that can open EU or UK for offshore entities without these strict requirements. However, a full due diligence will be carried out before account opening. We can recommend best digitals banks for offshore entity account with individual named account IBAN in the EU or UK, do not hesitate to get in touch with us . Having named account in the EU or UK, would automatically allow you to collect payments from global clients in their local currency and will easy business dealings. How to incorporate a company in Dubai Free Zone or any other traditional offshore Jurisdiction? Often people want to reduce their corporate tax close to 0% but don’t know where to start. It is indeed possible to do everything on your own when it comes to company in incorporation and setting up bank accounts. However, some jurisdictions have requirements for local directors or even an office. The most straight forward way is to work with corporate services provider that will handle everything from A to Z when it comes to company set-up in a specific jurisdiction. Yes, it might not be the lowest cost pathway but it will guarantee that everything will be done in-line with local compliance. We work with several corporate service providers around the world helping their clients to set-up bank accounts for their newly established companies. We would be happy to recommend corporate service providers based on your desired jurisdiction. Conclusion There are several ways to lower corporate taxes as low as 0%. It depends on the clients that a specific business is serving and how the owner wants to structure the group. The two viable solutions are low cost and low maintenance solutions that were discussed in detail.

Why Are Cross-Border Payments Expensive? If you’ve ever been wondering why cross-border payments are expensive, then please keep reading on. It can often seem like cross-border payments are highly priced, even though they're just simple transactions. Especially for smaller value payments, or SME payments, which are small in value and can be infrequent. There are several reasons why cross-border payments have high costs associated with them: Correspondent Banking. All cross-border payments go through the correspondent banking network, which involves intermediary banks moving money for you. Each intermediary will be charging a fee along the way. You might ask: Why do bigger companies get their cross-border payments cheaper? It is simple—because of wholesale correspondent banking. It works in a way that specialised payment companies get their payment routes from top-tier banks, such as Deutsche Bank, Citi, Barclays, etc. Their own cost is relatively low as they are buying the service in bulk. When they resell to the end client, this means that the end client’s cross-border payment will be going through the Top Tier Bank. And this is where the wholesale service initially came from. Logically, SME will be charged a higher price for any payments due to the low value and infrequency of transactions, while a big corporation will have thousands of payments. Eventually, huge volumes will create more business for payment specialists and a better price for big corporate clients. Profitability. The business of cross-border payments is highly profitable, and the institutions moving money internationally are incentivized to keep it that way. The banks will continue charging fees as long as the market participants are willing to pay them. Anyhow, some digital banks and payment specialists are disrupting this market with very low fees or even no fees. But in the end, if they have to pay for correspondent banking services, they will eventually need to charge something to their clients. Regulatory costs . There are other costs that clients do not see. Being compliant with the regulation is an expensive process. Moreover, each bank or cross-border payments company has to have KYC (know your client) and AML (anti-money laundering) procedures and people on its payroll that will implement those procedures. This is a heavy financial burden for those institutions. Foreign exchange costs Most cross-border payments involve currency conversion, which can impact the ultimate cost of that transaction. Usually, currency conversion is not cheap because several parties are involved in such transactions and each of them has to make a profit. For example, if an SME client is charged a 1% fee for EUR/USD conversion, the payments company or a bank is getting the same liquidity for 0.05% or less. In the case of bigger banks, the cost of converting major currencies via direct market access can be very close to zero. Geography. It is true that some regions are heavily unbanked, which means that cross-border payment penetration into those regions becomes a difficult task. Finding a suitable cross-border payment route to an unbanked region might inflate the cost of the transaction due to the many correspondent banks involved. In some regions, people do not even use electronic money. So the transaction must reach the final recipient in the form of cash. And that can complicate the process even more. How Can I Send Cross-Border Payments? It is now clear that cross-border payments are more complicated than they appear at first glance.There are some factors to account for, so the price of cross-border payments is high. Even so, there are payment specialists in our network that specialise in cross-border payments and foreign exchange and can offer cross-border payments at a much lower cost than local banks. It is an easy and straight-forward bank account opening process for cross-border payments with our partner banks that will eventually save your time, money, and nerves while transacting internationally. Reach out to us to get introduced to the most cost-saving banking platform across the globe. Conclusion Cross-border payments can be more difficult than they seem. Each intermediary involved in a cross-border payments transaction is getting a cut, which eventually inflates the ultimate fee for the transaction. But you can save on those cross-border payment transactions with our team's help.

If you are wondering how to open a bank account for crypto business, then keep reading as we are going to deep dive into this. The majority of traditional banks and payment institutions, or EMIs, are not opening accounts for crypto-related businesses, and there is a fundamental reason for this: money laundering. Why Opening A Bank Account For Crypto Business Is So Hard? Compliance, compliance, and compliance. It is extremely hard or impossible to determine where the money is coming from. Essentially, any financial institution faces a money laundering risk.And such risks are not tolerable, especially for institutions that have top-tier banks as correspondents. The problem with crypto is that it is extremely hard to determine where the funds came from. Even if the crypto firm is paying regular employees or utilities, such as phone or internet bills, the money was earned in the crypto trading or exchange-related business where users could interact and trade in an undisclosed manner. Crypto-Friendly Banks and Payment Companies: What to Look For? There are a huge variety of digital banks and payment providers that serve high-risk industries, but only a small number of those will actually be looking to open accounts for crypto businesses. Still, there are some, and as such a selection is small, there are some things to pay attention to: Licence. It is critical that the firm be licenced on-shore, preferably within the EU. Named IBANs. In case some PSP approves your crypto business, find out if you are going to be provided with an IBAN . Currencies. The reason we put this as a separate checkpoint is because it is extremely hard to have payment and accounts supported in USD for crypto business, as the majority of USD correspondents are very strict in regards to such transactions. It would be really nice to have multiple currencies available, not just the euro. Fees. As the number of institutions willing to open an account for crypto-related business is so small, they are usually very aggressive with fees, as the high risk of banking such clients has to be justified. Even though there are ways to reduce such fees to a minimum, And we help clients negotiate that. Ongoing compliance. It is important to be aware of ongoing compliance with any payments company, as it may cause a lot of operational obstacles. There are a few things to ask before opening an account for crypto business so that there is an understanding of what ongoing compliance will look like: Transfer limits. What are the limits of money transfers before payments get stopped for a compliance check? Number of payments allowed. Is there a certain number of payments that can or cannot be processed within a certain period of time? Types of documents to support payments. Sooner or later, you will be asked by the payment company's compliance department to provide documents supporting the transfer. Be ready and have a clear understanding of what kind of documents will be accepted and how often this will be required. Monthly minimums. Will there be any minimums to adhere to? Or similar questions that might look important for your crypto business. Conclusion. All in all, it is not easy to open an account for crypto business. Therefore, it is important to have someone besides you who can help, and that is why we are ready to help you! Reach out to us and get a consultation from our expert team!

What is Payment Automation? If you've ever wondered how to automate your business payment with API connect, then keep reading on. Saving time has never been as important as it is today, and business owners are looking to save time, automate, and become more efficient. Such an approach leads to investing time where it pays off. Banking used to consume lots of time for business owners and their accountants. But times have changed. Nowadays, everyone can automate their payments via API connectivity, which is seamless and cheap. Plugging into a fully automated API that comprises an extensive suite of business-ready payment and reporting solutions And such solutions can be seamlessly integrated with existing back-office systems. Such automated payment systems can resolve many problems for businesses and their accounting departments. What Are the Benefits of Payments Automation? First of all, a stable payment system based on APIs will automate a lot of internal processes. Payments APIs from the best banking platforms are built on a suite of microservices to mitigate systematic risk and failures. Secondly, API is made seamless by an ERP or TMS that automates your management exposure with full reconciliation and real-time transaction reporting. On top of that, it is secure, as it was created by experienced developers and is securely encrypted, including restrictions and the latest authentication procedures. And finally, the payments company will support your integration in order to leverage the cutting-edge API technology with a whole suite of services. How Do I Get an Automated Payments System? We are collaborating with leading payments specialists across the globe that are helping SME’s, mid- to large-sized companies, and even other payment companies bank effortlessly via API connectivity. There are many companies from various industries and verticals that have already integrated via API technology and are leveraging payment networks to route thousands of payments daily. Reach out to us, and we will introduce you to top-tier banking service providers that will fit your business and help you save on payment costs. Our partner's payments API features include: Streamlined Processing - By connecting your business to an API-integrated suite of services, you can gain greater business payment control and collections with cost-effective foreign exchange conversion. Global payments reach - via API, you get access to a wide global payments network that is able to provide a complete cross-border pay-out solution. This enables your organisation to create payments in over 100 different currencies. Competitive rates - our partners are bank agnostic and have access to a variety of top-tier banks for their payment execution. Such a network is able to deliver more competitive rates and the best choice for payment routing. Automatic validation - a function that ensures all your payments are delivered on time by automating appropriate country rules. Our partners are aware of what information is needed to avoid payment returns. Compliance - The API connection allows you to keep up with the latest international legislation in order to ensure that all payments are never compromised. Conclusion Even though they can be easily automated with API connections, traditional banking and accounting still take a lot of time and work. In case you’re looking for multi-currency account services, we have a whole article on how to choose the best payments provider here .

If you are wondering how to open a bank account for a holding company, then keep reading. We are going to discuss the pros and cons of having a centralised multi-currency account for holding companies and separate accounts for holding companies. There are several factors to take into account, such as where the directors are based, transfer pricing, and different banks supporting different subsidiaries. Business Banking for Companies Owned by a Holding Company It is hard to open bank accounts for companies owned by the holding company. Regular banks are not keen to provide services to such corporate structures, and there are several reasons for that. For example, non-resident directors, or UBOs. Traditional banks usually require directors of the company to be residents of the country where the company is registered and operational. The appetite for risk among major financial institutions is often limited. While complex corporate structures pose risks and regulatory pressure, there are a few ways to reduce such risks, for example by having the same banking provider for the whole structure. Since one entity is onboarded by the bank or fintech, the rest should pass through compliance easier as the risk profile is already established within the compliance department. In addition, banks look at the business activities of the holding and its subsidiaries. It is much easier to open banking facilities when all entities are engaged in the same sector or business activity. Or are serving each other in the same industry with clear activity segregation (horizontal integration of businesses)? Moreover, if currency operations are centralised with the holding parent, transfer pricing kicks in and can cause extra layers of accounting. Quite often, it is more simple to have separate multi-currency accounts for holding owned companies. Practical Account Opening Steps for Holding Companies Before submitting your account opening application, you have to prepare it to be in line with what the bank is expecting from you. It helps if you are going to think like the bank thinks. Banks and fintechs want clarity and transparency in regards to the group or holding structure, source of funds, etc. You should prepare a clear and understandable organisation chart showcasing the links between companies and their ultimate beneficial owners. A detailed business activity description is especially needed, as from our consulting and work experience in banks, we know how badly compliance people want to understand the purpose of the account and source of payments. In addition, it is important to prepare some business activity-related invoices that can actually prove the business activity is legitimate and in line with what is being described. If holding companies are newly established, it is even more difficult. Banks do not want to touch newly formed holding companies. Digital banks and fintechs are very careful too. In our experience with clients, one trick that works is to submit an application for account opening with a traditional bank, and once the bank responds that the application has been received and is being reviewed, submit the same application to a fintech company, adding the bank's response. It shows that your company is pursuing traditional bank accounts and that fintech is not the last resort, which puts a lot of fintech companies off. It is also extremely important to justify non-resident directorships. It really helps if a parent or holding company opens a subsidiary directly as a 100% owner rather than with mixed ownership. This would signal the bank that you are just expanding the business in another country. Every instance is very different, as holdings are special corporate actors. We have helped multiple holding companies with account opening, and if you are looking for tips or help, do not hesitate to reach out to us for a free consultation or an introduction to favourable banking providers. Conclusion All in all, banks and FinTechs are very careful with holdings and holding companies. In the past few years, financial service providers have become more restrictive in regards to complex corporate structures; therefore, it is important to prepare the bank account opening application in a way that the banks want to see it. We can help you do exactly so; reach out to us for more information.

If you are wondering how to open a UK bank account as a non-resident seller on eBay, Amazon, or Etsy, keep reading as we are going to give you a full guide. In order to be able to sell on eBay, Amazon, or Etsy in the UK market, you must have a non-resident company registered with a company house in England and then open a bank account. There are several ways to quickly register and form a company in the UK; you may look for a service provider that can do that for you at minimal cost while also providing a virtual office and address, which will be needed for the bank account opening. Reach out to us, and we will give you a list of providers for e-commerce company incorporation in the UK. After Company Is Formed, Steps To Open A UK Bank Account As A Non-Resident As a non-resident director, or UBO, you can open a UK bank account for your e-commerce business if you can provide the necessary information and documents as discussed previously. Here are the basic steps: Choose the right bank for you: research and compare different UK-based banks or payment providers in order to determine which one is best for you. If you don’t have time for research, contact us, and we will provide you with a list or a free consultation. Gather required documentation: most UK banks will require your passport or ID, proof of address (PoA), description of your business activity, company incorporation documents and registration details, and proof of address of your company (we can help there too). Application to open an account: normally, you can apply for an account opening online. It might take a long time to process your application if you are using publicly available channels. To speed things up, we can provide introductions to responsible people within some digital banks that will take care of your application right away. In addition, you might receive questions or requests for more documents once the application is reviewed; our advice is to respond to such requests as soon as possible. Waiting for approval: once the application is submitted, the compliance department will review it, make the necessary public checks, and determine if your business is eligible for bank account opening. As I said, you might also need to provide additional information after the initial review. Funding the account: once the account has been approved, you will need to deposit money into it. This can be done by international wire transfer or by already receiving revenue from e-commerce activities generated on eBay, Amazon, or Etsy. It's important to note that the requirements for opening a UK bank account for non-resident eBay, Amazon, and Etsy sellers vary by bank, as each has its own client acceptance policy. What Should Non-Residents Look For When Choosing a UK Bank Account? As a non-resident, choosing a UK bank account can be challenging. However, we have compiled a few key points to look at before choosing the right one for you: Eligibility. In general, banks and payment providers have restrictions (jurisdictions, business, risk, etc.) on who can and cannot open an account.Make sure you understand their eligibility criteria and fulfil them. Alternatively, you may contact us for a free consultation and introduction to top-tier banking platforms in the UK. Fees. It is important to understand the fee structure, as it can help you save a tonne of money. Make sure you understand if there are any monthly fees, account opening fees, maintenance fees, or others. In addition, as a non-resident business owner, you will probably be remitting money back to your home country. This means you will need international wire transfers that might be costly. Contact us to make sure you get the best conditions for international money transfers. Exchange rates. If you will be making regular transactions in a different currency than your revenues, consider a bank that offers competitive exchange rates. Moreover, the exchange rate softens depending on several factors, such as currency, annual volume of exchange, and liquidity. Contact us to get an introduction to the best currency platforms in the UK. Online banking platform Check the bank’s online banking system and ensure that it is user-friendly and secure. Customer Support. Look for a good reputation for customer service and response times. Even better, seek out a personal relationship manager! Reputation. Consider checking the reputation and reviews of the bank or payment provider that you are going to use for your UK business. Trustpilot or similar is recommended. Conclusion All in all, opening a UK bank account as a non-resident requires research, preparation, document gathering, and budgeting. Feel free to use our team’s help in choosing and preparing for bank account opening.

Why Are Inexpensive Supplier Payments Important? If you’ve ever been wondering what the best way is to make overseas supplier payments, then please keep reading on. The digital economy is connecting businesses around the globe, so the need to make cross-border payments when paying overseas suppliers is increasing. Paying overseas suppliers in foreign currencies can be expensive and confusing at the same time. Thus, choosing a good payments provider is crucial and can make a difference in avoiding expensive transactions due to bad FX rates. Automate Supplier Payments and Improve Business Cash Flow A good supplier payments provider can also help improve business cash flows. This is achieved using certain automation tools that payment providers have. For example, automating supplier payments and doing them in bulk In other words, it is called mass payments . It is possible to not only make supplier payments in bulk but also to set the payments platform to make those payments on certain days of the month or in the future. Everyone knows that delaying supplier payments can improve business cash flow, but why bother doing it manually? Besides the mass payout solution, the integration with the supplier payment provider via API can completely automate this process. How to Pay Overseas Suppliers Inexpensively As technology and open banking are pushing payment costs down and opening new payment routes on a global scale, moving from a traditional bank to a digital bank or payments specialist is becoming the best option for SME’s. But finding a good digital bank or payments specialist isn’t easy. We talked about how to choose the best provider and explained what to look for. Finding a good and inexpensive provider, on the other hand, is a true fortune.Epico Finance team can help you with your choice for overseas supplier payments and foreign exchange matters. Reach out to us to get introduced to the best payment providers that can help you get the following banking features: Single IBAN for all payments and foreign exchange transactions Ability to receive payments in over 30 different currencies ability to send payments in 50+ currencies to 170 countries Ability to make mass payments by integrating via API or uploading an Excel spreadsheet Access to effective currency hedges for up to 2 years Process automation via API integration straight to your back-office Payment control and audit trails Streamlined beneficiary management and compliance processes The relationship manager is ready to help find the best solution and answer questions. Foreign Exchange and Supplier Payments The easiest and most straight-forward way is to hedge all FX exposures. With the right strategy in place, businesses can avoid losses arising from fluctuations in the foreign exchange market. There are plenty of hedging strategies out there; we have already written about some of them here . Nevertheless, it is recommended to speak with a foreign exchange specialist who is able to understand and advise on each different situation. Such specialists will be able to select a cost-effective solution that will keep business profit margins safe. FX specialists will also assist in the establishment of clear risk management objectives and guidelines. You can also speak with us during a free consultation or with FX specialists from our digital banking partners to get a tailored foreign exchange risk management strategy for your business. Conclusion All in all, the global digital economy is connecting businesses across borders. Paying overseas suppliers is becoming the norm, so it is important to get prepared and save money on costs. We hope that this guide will help you navigate supplier payments and make improvements.

If you are wondering how to open a bank account for your CBD business, then please keep reading as we are going to share our tips and experience with you. In recent years, CBD has seen a tremendous growth in terms of volume and adoption of CBD-based products, starting with nutrition to cosmetics and even clothing. According to this study, the market for CBD products in the EU and the US is growing at a rate of more than 30% per year. However, this adoption is still in the infant stage when it comes to banks and opening bank accounts for CBD businesses. Why are CBD businesses struggling with banking? Between the traditional banks and their compliance and due diligence policies, CBD is widely misunderstood in regards to being a drug. However, digital banks are opening their minds in regards to what the differences are between THC and CBD and what the value proposition of the CBD business is. Another reason is a high number of chargebacks or reversed payments. Naturally, a lot of banks attach a high-risk label to such business and carefully consider whether there is a necessary appetite for risk with such reversed payments or chargebacks. Moreover, CBD and hemp cultivation are becoming mainstream agriculture businesses and should be treated as such. In some countries, it is supervised or even licenced activity that adds a layer of trust for digital banks. Real Estate in CBD and Hemp Cultivation In our consulting experience, we have seen a business model where some companies build facilities for CBD cultivation but do not grow the plants directly but rather rent their facilities to farmers who then grow the plant. When we were helping our client open an account, we had to pitch the bank with a business plan and prove that the client was not directly involved in hemp cultivation. It was strange that the bank was so reluctant, as several months ago we successfully opened an account for a CBD grower from Canada. It is important to be clear about the main line of planned business and the purpose of the bank account. Our job as advisors is to help clients prepare for the bank’s due diligence and explain their business in as much light as possible. CBD and Hemp Business Banking: How to Open an Account? Anyone who has tried to open an account with a traditional domestic bank knows that it is a hard mission. Traditional banks are very slow and have increasingly difficult AML and KYC due diligence, and on top of all that, they are not familiar with CBD business. An alternative strategy that we use to help our clients open accounts with reputable financial institutions is digital banking, or PSPs (EMIs). As we have a strong background in banking and a wide network of partners, we already know which institutions are willing to look at CBD and hemp businesses as potential clients. In addition, we will land named accounts for our clients, and in some instances the IBANs will be from top-tier banks in the world such as JP Morgan, Barclays, Citi, or Goldman Sachs. So if you are looking to open an account for your CBD and hemp business, reach out to us for a free consultation! Conclusion The CBD and hemp industries are rapidly expanding, and more businesses are discovering the need for international bank accounts, which are extremely difficult to obtain. Given all the complexities, there are still many options for bank account opening, especially with EMIs and digital banks. Send us an email, and we will reply with a list of CBD-friendly banks and payment providers.

If you are looking to open a bank account for your gambling business, then keep reading as we are going to share key tips for application success and a list of gambling-friendly banks. It is no secret that many banks and payment providers do not have a risk appetite for gambling companies. Especially with an offshore licence. That is why it is deemed a high-risk business, and banks that onboard such businesses require premium fees for banking services. Where To Open A Bank Account For Gambling Business? Most likely, traditional banks won’t open accounts. The easiest way is through PSPs (payment service providers) or EMIs (Electronic Money Institutions). There are plenty of PSPs and EMIs that support gambling businesses with account opening. However, not all of them are good solutions, and here is why: Multi-currency accounts. Most EMIs and PSPs are unable to offer multi-currency accounts for gambling companies. In order to build a scalable business, we suggest having a multi-currency banking solution. Fees. The vast majority of EMIs will charge account opening fees, monthly fees, and premium transaction fees. It is important to have a sensible pricing structure in order to be profitable. Banking restrictions. Be aware of all banking restrictions and any additional charges that might arise from such restrictions. Jurisdictional support. The majority of EMIs will be interested in EU-licenced businesses only. If you have an offshore licence, it can become tricky to open a bank account. If you have at least one entity in the EU within your group structure, we suggest starting by onboarding the EU entity and then the rest of the group. This will help with the risk profiling of your group and open doors for offshore entities. Client support. Make sure you will have a point of contact, a relationship, or an account manager within the company opening the bank accounts. API integration. It is of great importance to have the ability to integrate via API and automate your payment operations, at least in part. Banking providers that are gambling-friendly have licences mostly in Lithuania or the United Kingdom. If you would like to get a list of the best banking service providers for the gambling industry, reach out to us, and we will share this with you. If you need help building a strong application for account opening, reach out to us for help. Conclusion It is not easy to open a bank account for a gambling business. Traditional banks do not want to touch this industry; therefore, alternative banking providers are the next best option. Reach out to us for a list of the best institutions based on your business case.

If you are looking to open investment bank account for your trading or your investment portfolio, then keep reading on as we are going to share some tips for you. There are many options for investment or brokerage account opening, especially with Neo brokers, various investment apps (start-ups) and classical brokerages. However, there is a huge difference between regular stock broker and investment bank. Why It Is Important To Have Your Investments With Investment Bank? There are many reasons why you would be better off having your portfolio with an investment bank rather than a neo-broker. Custody. It is important to know who is the ultimate custodian of your assets. The majority of brokerages and neo-brokers use custodians and sub-custodians for client asset safeguarding. It is high risk with small brokers that they might be cutting corners to get cheaper custody or earn additional revenue from client assets. An investment bank would be a broker and a custodian. Or be using another top-tier institution to safeguard clients assets. Asset segregation and good standing. All financial institutions are obliged to segregate their own assets from their clients assets. But how can you be sure it is done properly? With an investment bank or top-tier brokerage firm, you can always check their financial statements or management reports. Not only the listed brokers and banks provide such information. Top-tier private banks are transparent as well. Deposit guarantees. Investment banks are covered by the EU's deposit guarantee schemeosit guarantee scheme. We can help you open an investment bank account with a top-tier bank in the EU. Reach out to us. Transparent fees. As investment banks are heavily regulated, they must strictly comply with the regulations. On top of that, an investment bank will protect its reputation and will never charge hidden fees. Access to global markets Investment banks usually have access to global markets and a variety of instruments that will not be available with local or neo-brokers. If you seek diversification or regional investment opportunities, an investment bank is able to provide more instruments for you. Investment research. Most investment banks offer free investment research from in-house analysts. Market news and research material can help generate investment or trading ideas and enhance portfolio returns. Portfolio tools and ready-made investments Investment banks often offer various portfolio tools and ready-made investments. On top of that, many investment banks also give access to mutual funds. Wealth Management. Investment banks also offer wealth management services next to the brokerage account. Cost structure. Many consider investment banks a costly alternative to neo-brokers or investment apps. However, everything depends on the portfolio size. Investors that have portfolios above 1 million euros can effectively negotiate investment service costs down. We have helped many clients get cost-competitive accounts with investment banks. Reach out to us to learn more. Relationship manager. Many experienced investors know that once you make a registration with a regular brokerage, you will receive a salesperson's call promising many things. But once the account is opened, it's really hard to get any help. Sounds familiar? Investment banks do provide personal relationship managers to assist clients. If you would like to receive such service, reach out to us, and we will introduce you to senior relationship managers at top-tier investment banks. Account Opening Process With Investment Bank Investment banks have similar onboarding processes as regular banks. They perform due diligence, AML/KYC checks, etc. Sometimes there is more emphasis on the source of wealth for private individuals than opening a regular bank account, but that depends on the jurisdiction the individual is from. As the due diligence and account opening process is so similar to that of a traditional bank, you must prepare to wait and respond to the bank's compliance questions for at least a few weeks if you are onboarding as a corporate account and several days if you are onboarding as a private individual. Investment banks are not as quick as FinTechs or neo-brokers. Conclusion All in all, there are many advantages to opening an investment bank account rather than using a local brokerage or investment app. This is especially true if you have a sizable investment portfolio. If you have a portfolio that is below 50.000 EUR, reach out to us for a list of the best neo-brokers or investment apps to kick-start your investment journey!