Let’s start with the fact that a corporate account is a special account in which the company’s funds are stored. Thus, the company’s funds are separated from the director’s personal finances.
An organization may have multiple accounts in local and foreign currencies. It is not forbidden to have several accounts in different financial institutions. Companies can open accounts abroad, that makes it easier to work with foreign clients. The essence of the commercial account is the necessary operations for the good conduct of business. It allows you to perform operations such as:
• Payment of taxes.
• Transfer of salaries to employees.
• Calculation for the lease of premises, for goods, works or services from contractors.
• Acceptance of payments from suppliers and contractors.
• Participation in government tenders.
• Acceptance of payment via the Internet.
For legal entities, a current account helps to act within the law and track every action. Plus, regular tasks that are performed with the account become automatic. This simplifies life and the process of doing business, no matter big or small. Moreover, in our time, the procedure for opening an account is not something unusual, on the contrary, the world is becoming more and more digital and such a thing as online banking has not bypassed a business account. In case of unforeseen circumstances, a bank employee will consult you online. Thus, most problems, if they arise, can be solved without personal presence.
In addition to the obvious advantages of a commercial account, there are also some limits for personal account holders. For example, restrictions on the number of transactions or the amount of transfers. Different tax rates should also be taken into attention. You cannot convert your personal account to a corporate one. Banks do not provide this service.
Favorable rate Before opening business bank account
Before opening business bank account, you need to choose a bank and a favorable rate, submit documents and an application, sign an agreement. Look for a bank that insures the accounts of its customers (this will make it easier to do business), allows you to make transactions on the account remotely, and has good reviews on banking forums. To open an account, banks request different packages of documents, which will be specifically told by the employees of the bank to which you choose to entrust the capital. In general, this process takes little time, about one day. But if you are not a bank resident, this procedure will take longer.
As for the simplicity of this procedure, this is really not the most difficult task in doing business, but even here you can stumble upon failures and difficulties. The bank may refuse to open an account if an incomplete package of documents is provided or the origin of the funds is suspicious. Therefore, if possible, it is best to contact a specialist who will help in solving any problems and collecting documents.
Ingrid Maldine is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Ingrid’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Ingrid has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Ingrid has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
