Business IBAN Account Opening [How to Guide]

There are a lot of perks to having a business IBAN account, from reducing payment processing time and cutting costs on international transfers to accessing multi-currency accounts.

But, as attractive as an international bank account number (IBAN) may seem, it can be challenging to apply for web-based company accounts and open European business bank accounts online as a foreign business owner.

However, if you’re frequently sending and receiving international payments in multiple currencies and want to cut down on international transfer fees, reduce exchange rates, and limit transaction charges, opening an IBAN account is more than worth the effort.

KEY TAKEAWAYS

• Foreign businesses can use IBAN accounts to reduce costs on cross-border transactions
• There are important questions you should ask the bank before opening an IBAN account
• Opening business accounts with an IBAN can be challenging to navigate if you don’t know which bank will accept you
• The account opening process will vary depending on where you choose to open the account

Read on in this article to learn the essentials of having an IBAN account. The benefits, the challenges, the steps to successfully open an account, and which countries specifically offer IBANs.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

1. What Is a Business IBAN Account?
2. What Benefits Can a Business IBAN Bank Account Provide?
3. What Are the Challenges of Opening a Business IBAN Account?
4. How to Open Business IBAN Bank Accounts?
5. Where to Open IBAN Bank Accounts for Your Business?
6. Ready to Open an Offshore Bank Account?

What Is a Business IBAN Account?

A business IBAN account is ideal for those conducting businesses inside and outside of the EU. This type of account is often used by businesses in need of fast, low-cost transfers, and multi-currency accounts. Find out how to open and more below.

Before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Business Banking Starter Guide. It’s specifically designed to help your business find and open accounts with the services you need around the world.

What Benefits Can a Business IBAN Bank Account Provide?

Opening an IBAN account can be a powerful tool. In fact, for many foreign business owners, it is most useful for cutting costs on cross-border transactions.

Because of this, the types of businesses that can gain the most from opening a business account with an IBAN are generally those that make frequent transactions between Eurozone banks or internationally.

So, it’s no surprise that these business owners are ultimately looking to open a European business bank account online to unlock specific perks.

Benefits of Opening an IBAN Account for a Business:

A business IBAN account…

• Reduces processing time on payments
• Enables you to send and receive SEPA & SWIFT transfers
• More efficient to send and receive money & payments between Eurozone banks
• Gives you access to multi-currency accounts
• Is cost-effective when sending & receiving payments from overseas
• Offers better security
• Can be opened virtually
• Has lower maintenance fees (varies by bank)
• Reduces the number of bank accounts you need to open
• Is accessible in over 70 countries
• And more…

As you can see, there are many perks to opening an IBAN account for your business, whether your business operates within Europe or internationally.

In fact, one of the best perks of having an IBAN account is that you don’t have to open a bank account for every currency your business uses.

Instead, you can send and receive payments through one multi-currency business IBAN account. This enables you to cut some unnecessary costs when sending payments to suppliers, employees, and contractors working abroad.

Of course, to unlock any of these perks, you need to know how to successfully open an IBAN account for your business. More specifically, you need to know how to properly navigate the business account opening process when applying for a UK company bank account as a non-resident.

With this in mind, let’s take a look at the specific challenges most foreign business owners face when they open a business IBAN account.

What Are the Challenges of Opening a Business IBAN Account?

As with opening any bank accounts, there are some challenges you need to be aware of when it comes to opening an IBAN account.

However, these challenges can mostly be avoided if you know what you’re doing. With that said, they can possibly block you from opening an account if you don’t.

With this in mind, let’s look at some of the challenges you could face when opening a business IBAN account.

Challenges of Opening Company IBAN Bank Accounts:

• Choosing the wrong bank
• Being rejected because your business is too high risk
• Being rejected due to an incomplete application
• Operating in a country that has not adopted IBAN
• Facing limitations on transactions, deposit amounts, payments
• Not having European connections

More importantly, to overcome these challenges and successfully open the IBAN account that you want, you need to know which bank matches your client profile and offers the services you need.

In doing so, it’s crucial to choose a bank and country that both offers the benefits and services that you’re seeking and has conditions that you can meet. Because if you can’t, you’ll be turned away immediately.

Additionally, knowing where your company can open based on the type of company you have is also important. For instance, many business owners struggle to open bank accounts. But, that’s usually because they target the wrong banks or fintech platforms.

So, to help you get an idea of what to expect during the account opening process, let’s take a look at what you need to open a business IBAN account.

How to Open Business IBAN Bank Accounts?

The exact steps you need to take to open a business IBAN account will depend on the bank and country you choose. However, there are some similarities you’ll find across all banks that can help you prepare for account opening.

For example, there are some important questions you will want to ask the bank before applying to open a digital cross-border account or an IBAN account online. This way, you can determine if the bank is aligned with your client profile.

Questions to Ask Before Opening IBAN Bank Accounts:

1. Does the bank offer an IBAN account?
2. Does the business IBAN account offer the currencies you require?
3. What fees may apply?
4. Are you eligible for a debit card?
5. What is the initial required deposit amount?
6. What conditions does your specific client profile need to meet to be eligible for an account?

Answering these questions can help you make an informed decision on whether or not the bank you’ve chosen is a suitable option.

In addition, when deciding on which bank to apply for an account with, you also need to make sure that you can meet the bank’s specific requirements…

• Two forms of government-issued identification
• Bank-specific application form
• Proof of EU connections (varies by bank)
• Proof of address
• Bank reference letter (varies by bank)
• Description of business operations
• Incorporation documents
• Proof of tax residency
• And more…

Keep in mind, that depending on your nationality, citizenship, and business type, additional identification papers might be required. And, based on where you choose to open, the required documents might need to be translated into the country’s preferred language before submission.

Since these conditions vary so greatly depending on the country and bank you choose, it really pays off to do your research ahead of time to find the best bank to apply with.

With this in mind, let’s now look at which specific countries you and your business can open an IBAN account in.

Where to Open IBAN Bank Accounts for Your Business?

The table below outlines where foreign business owners can apply to open a business IBAN account. In this table, you’ll also find each country’s IBAN code, currency, and status within the EU, EEA, or EFTA.

Of course, knowing which jurisdiction offers the best banking services for your particular business and situation can be tricky. Not to mention, each jurisdiction has different application conditions and comes with different perks.

If you’d like help figuring out which jurisdiction is best for your business, check out our premium members-only report specifically on Euro IBANs: “European EMIs for Non-EEA Businesses”. This report highlights providers for non-EEA businesses in Europe and includes solutions for foreign, non-resident, offshore, and even high-risk businesses.

You can access this report immediately when you become a GlobalBanks member.

Ready to Open an Offshore Bank Account?

If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.

GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…

+ Direct support from a team of banking experts

+ Direct introductions to your desired banks

+ Answers to your most pressing questions and challenges

+ Expert insights on which banks to choose & why

+ Plus, FULL access to our entire suite of account opening tools and intelligence!

And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.

Use this link to see how GlobalBanks Insider can help you successfully open accounts.