The company took a day to form. The bank account is taking a month, and the bank has just sent another list of questions. That is the most common story we hear from founders who live outside the country where their company sits.
It helps to know what the bank is actually doing. Banks rarely refuse a company simply because its owner lives abroad. They refuse when they can’t work out who owns it, what it does, or why it needs an account in that country, because the rules they work under require them to know. This guide explains those rules in plain language, what you’ll be asked for, and how to prepare. Bank-specific criteria change often; for Hong Kong banks in particular, see opening a Hong Kong bank account remotely.
Why banks ask so many questions
Banks everywhere follow customer due diligence standards set internationally by the Financial Action Task Force. In short, a bank has to identify the customer, identify the individuals who ultimately own or control it, understand the purpose of the account, and keep checking that what goes through it fits what it was told. National rules turn that into specifics:
- Owners and controllers. US banks, for example, must identify and verify “any individual who owns 25 percent or more” of a company opening an account, “and an individual who controls the legal entity.” That bank rule still applies in 2026, even though US companies no longer report their owners to FinCEN.
- Tax residence. Under the OECD’s Common Reporting Standard, banks in most countries must collect each account holder’s tax residence and tax number, and for many small companies the tax residence of the individuals who control it too. That is the self-certification form in every account pack.
- US tax status. A company that isn’t American documents its status for US tax purposes on IRS Form W-8BEN-E, which non-US banks and payment platforms often ask for as well.
Regulators also say this shouldn’t become a blanket “no”. The FATF has said its standards don’t call for cutting off whole classes of customer to avoid risk rather than manage it. The Hong Kong Monetary Authority is explicit: applications “should not be rejected merely because the customer is incorporated or established offshore, or because the beneficial owners or directors of a corporate customer are non-residents.”
Sources: FinCEN: CDD rule · FinCEN: BOI final rule Q&A · OECD: CRS entity self-certification · IRS: Form W-8BEN-E · FATF: risk-based approach and de-risking · HKMA: CDD FAQ
What you’ll be asked for
The exact list differs by bank, but the shape is the same almost everywhere:
- The company: certificate of incorporation, articles, the current list of directors and shareholders, and the registered address.
- The ownership chart, down to people: every layer between the company and the individuals who own or control it. If a shareholder is another company, expect to provide its documents too.
- The people: passport and proof of address for each director, significant owner and account signatory.
- Tax forms: the CRS self-certification for the company (and its controlling persons), and often a W-8BEN-E.
- The business: what you sell, to whom, in which countries, through which website, with expected monthly volumes and currencies. Contracts, invoices or a pipeline make this real.
- The money: where the opening deposit and the first funds come from, and sometimes your wider source of wealth.
- The reason for this country: why a company here, run by someone there. Customers, suppliers, staff or investors in that country answer this; “low tax” alone doesn’t.
Bank or e-money account?
Many founders start with a payments or multi-currency account from a fintech, and add a bank account later. Both are useful; they are not the same thing.
| Bank account | E-money / payment account | |
|---|---|---|
| If the provider fails | Deposit insurance up to the local limit (for example FSCS in the UK, FDIC in the US) | UK: not FSCS-protected, but money is safeguarded. US: the fintech itself is never FDIC-insured; pass-through cover only if conditions are met |
| Credit and facilities | Overdrafts, loans, trade finance possible | Usually none |
| Who will pay into it | Everyone, including governments and large buyers | Most customers and platforms; some suppliers, tenders and large buyers insist on a bank |
| Opening | Slower, more questions, sometimes a meeting | Usually online and faster |
| Currencies | Depends on the bank | Often many currencies with local receiving details |
In the UK, the FCA puts it simply: with an e-money institution “your money won’t be protected by the Financial Services Compensation Scheme,” but it is safeguarded, so “if they go out of business, you should get most of your money back.” In the US, the FDIC warns that “nonbank companies themselves are never FDIC-insured.” Keeping the operating float with a fintech and reserves with a bank is a common pattern. Keeping the books across several currencies is covered on Certanta: multi-currency bookkeeping.
Sources: FCA: payment service providers · FSCS: e-money · FDIC: banking with third-party apps
What gets applications stuck
- Answers that don’t match. Your residence on the bank form, on the company register and on the tax self-certification should agree. When they don’t, the bank has to stop and ask. See company in one country, you in another.
- Layers. A holding company above the trading company, or several owners in several countries, multiplies the documents and the questions. Many online onboarding routes accept only individual shareholders.
- A vague description. “Consulting” or “trading” with no customers named reads as a risk. A specific one rarely does.
- No reason to be there. A company with no customers, suppliers or people in its country of incorporation is harder to explain.
- Undisclosed arrangements. A nominee shareholder or director not mentioned to the bank will usually surface, and then the problem is trust, not structure.
How to prepare, in the right order
- Choose the bank before you form the company. The bank you want should shape the structure, not the other way round.
- Keep ownership simple for the first account: individuals as shareholders where you can.
- Write a one-page business description: what, who, where, how much, which currencies, which counterparties.
- Gather the documents once, certified where the bank asks, for every person and every layer.
- Fill in the tax forms consistently with where you actually live and where the company is actually run.
- Apply to one or two providers that fit, rather than ten at once. Refusals are often recorded, and repeated applications invite questions.
An example
Invented for illustration. Sofia lives in Mexico City and runs a Hong Kong company selling packaging sourced in Guangdong to retailers in Latin America. Her first bank application stalled: her form gave a Hong Kong address, her passport said Mexico, and the business was described as “trading”. The second time she gave her real residence everywhere, attached a one-page description naming her three main suppliers and five customers with expected monthly volumes in dollars, and explained why Hong Kong: her suppliers invoice in renminbi and Hong Kong dollars. She opened a multi-currency account with a fintech within days, and a bank account a few weeks later.
Get the bank file right the first time
We prepare the account file with you, introduce you to banks and payment platforms that fit your business, and help with reviews later. The bank decides; we make the case properly.
Talk to us about bankingFrequently asked questions
Can a non-resident open a business bank account?
Yes, in most countries, but the bank must be able to identify who owns and controls the company, understand what it does, and see why it needs an account there. Hong Kong’s regulator says applications should not be rejected merely because a company is offshore or its directors or owners are non-residents.
What documents do banks ask for from a foreign-owned company?
Company documents, an ownership chart down to the individuals, passports and proof of address for directors, significant owners and signatories, a tax residence self-certification, often a W-8BEN-E, and a clear description of the business, its customers, volumes and source of funds.
Is a fintech or e-money account as safe as a bank account?
Not in the same way. In the UK, e-money is safeguarded but not covered by the FSCS. In the US, non-bank fintech companies are never FDIC-insured themselves, though money they place at an insured bank can be covered if conditions are met. Check the provider’s terms.
Why was my business bank account application rejected?
Banks rarely give reasons, but the usual causes are inconsistent residence details, complex ownership, a vague business description, no apparent link to the country, or undisclosed nominee arrangements. Fix those before you reapply.
Should I open the bank account before or after forming the company?
Plan it before. Choose the bank first, then form the company in a way that bank accepts, for example with individual rather than corporate shareholders. The account itself is opened once the company exists.
General information for internationally mobile founders, not tax, legal or immigration advice for your situation. Rules and fees change; confirm your position with a qualified adviser in each country involved before acting.