Is it easy to open a bank account for a BVI company?

While opening a bank account for a BVI company is becoming increasingly difficult due to rising global regulatory standards, that doesn't mean it's impossible. How easy this will be depends on multiple factors: everything from bank policy to the organization of the company and the kind of business activities there are. Let me explain more below.

1. Compliance Requirements: KYC & AML

Banks usually have strict Know Your Customer and AML requirements. Salient features include very elaborate documentation of the ownership structure, beneficiaries, and business activities of the company. Enhanced due diligence may also be carried out in specific cases, especially when the nature of the business is perceived to be very risky.

2. Transparency of Beneficial Ownership:

Banks need absolute transparency on the ultimate beneficial owners of the BVI company. If the ownership structure is overly complex, or involves an offshore trust, account opening can be either substantially delayed or not possible at all.

3. Bank preferences:

More conservative banks may not be eager to open accounts for offshore companies, including BVI ones, while some banks, particularly in Asia-in particular, Singapore and Hong Kong-or Switzerland, are much more used to dealing with offshore companies and thus easier to work with.

4. Minimum Deposit and Fees:

Some banks condition the opening of a BVI company's account with large minimum deposits and maintenance fees. Swiss and Singapore banks, popular premium banking regions, may require anything from $10,000 to $100,000 or much more.

How to Improve Your Chances:

5. Prepare Thorough Documentation:

Have all your documents at hand: this would include the incorporation documents of the company, proof of business activity in the area, financial statements, passports, proof of address for the directors and shareholders, and other such documents that the bank may require.

6. Professional Engagement:

It is significantly helpful to utilize the services of a corporate services provider or bank introducer familiar with BVI structures because this would significantly improve the rate of success. They would, therefore, be capable of walking you through the process and liaising on your behalf with the bank.

7. Consider Neobanks and Fintech Solutions:

Less complex businesses with minimal banking requirements may be surprised that fintech solutions, such as Revolut or TransferWise, offer so much easier and quicker set-ups. However, they are unsuitable to handle large transactions.

In general, while regulatory tightening has made it not quite as straightforward as it was once, with the right preparation and right banking partner, it is still very possible to open a bank account for a BVI company. It's best to choose a bank experienced in dealing with offshore companies and be ready for an extended review process.