Opening a physical (traditional) bank account for a foreign company

For foreign businesses Singapore company registration, Hong Kong, Mỹ or offshore countries (BVI, Belize, Seychelles, etc.), owning a foreign bank account for transactions and money transfer/receipt is extremely important in business. Reputable, famous and highly secure physical banks are always the priority choice of many businesses. In this article, GLA will point out: 

• Detailed process of opening a foreign physical bank account, from A-Z.
• Notes when opening a foreign physical bank account.
• Digital bank account - alternative to traditional bank accounts.

1. What is a physical/traditional foreign bank account?

Foreign physical/traditional bank accounts are bank accounts belonging to companies/financial institutions/banks with physical presence, branches, ATMs so that account holders can perform banking activities (transactions, payments, money transfers/receipts) directly with bank employees. 

2. Why should I open a physical foreign bank account?

Individuals/Businesses open physical foreign bank accounts because of the following advantages:

• High level of safety and reputation: foreign physical/traditional banks are all long-standing banks, licensed by the Monetary Authority, State Bank of Vietnam and have a high level of prestige and safety. Individuals/Businesses can be completely assured when transferring money/investing in physical banks. 
• Support multi-currency transaction: foreign physical bank supports multi-currency international payment transaction such as USD, SGD, HKD, etc.
• Wide range of banking services: foreign physical bank accounts provide a full range of banking services, including:
  • Deposit cash directly at the bank, withdraw money at the bank or ATM.
  • Transfer/receive money domestically and internationally.
  • Deposit savings accounts, take out loans, open credit cards, and other forms of investment.
• Using Letter of Credit, which is a payment commitment document, is requested by importers (buyers) to the bank to ensure payment to exporters (sellers). This is a service that only physical banks provide, most digital banks do not provide this service. 
• Easy access and support: account holders with physical bank accounts can easily withdraw money online (banking app), directly to the bank or at an ATM. When there is a problem with the account, they can directly contact the bank staff. This is a point that digital banks do not support because the process is 100% online. 

3. Notes when opening a foreign physical bank account

Notes that Individuals/Businesses need to know when opening a foreign physical bank account:

• Account Opening Fees: Opening a physical bank account will require Minimum deposit meets the regulations of each bank (about several thousand USD or more).
• Account maintenance fee: Maintaining a physical bank account will have an annual fee depending on each bank's policy.
• Transaction fees: ATM withdrawal fees, domestic and international transfer fees.
• Bank Account Opening Objective: Determine the Individual/Business's objective when opening a foreign physical bank account for what purposes: international money transfer/receipt and LLC or just money transfer/receipt
• Banking services: What services do banks provide, which services meet needs and which services are not needed.

Before deciding to choose a foreign physical bank to open a bank account, Individuals/Businesses need to compare and learn the above notes to make the most accurate and appropriate decision.

The installation process of GLA Bank Comparison Tool to compare famous, reputable physical banks in Singapore, Hong Kong, USA, etc. 

4. Procedure for opening a foreign physical bank account 

The process of opening a physical foreign bank account includes the following steps:

5. Which foreign physical bank is best for Individual/Business?

List of foreign physical banks has thousands of banks in many foreign countries, Individuals/Businesses should choose which bank is also a difficult and complicated choice without advice from financial experts. The following are options for opening a foreign physical bank account for Individuals/Businesses:

• Open a physical bank account in the country where the foreign company is established.
• Open a physical Offshore bank account in a country other than the country of incorporation.

Among the countries that open physical bank accounts, Singapore, Hong Kong, and the US are the three countries with a list of reputable, globally famous physical banks, with the Monetary Authority licensing and managing physical banks here. 

The list of famous and prestigious physical banks in the world includes: UOB, OCBC, HSBC, Bank of China, etc.

To determine which foreign physical bank is best for an Individual/Business, information on needs and business models is needed to provide the most accurate advice. 

You are wondering about the success rate of opening a physical bank account for your business.

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6. How does GLA support opening foreign physical bank accounts?

GLA, with experience in supporting businesses to establish offshore companies (BVI, Belize, Seychelles, etc.) to open physical bank accounts for individuals/businesses in Singapore and the US, will accompany businesses to:

• Choose a bank that suits your needs and business model.
• Register, open, authenticate foreign physical bank accounts for the company.
• Contact the bank to support issues in the process of preparing procedures and documents to register a foreign physical bank account for Individuals/Enterprises.
• Provide other services such as: Tax - accounting - financial reporting for foreign companies. 
• Register, authenticate, open international payment gateways such as: PayPal, Stripe, etc.

7. Is a physical foreign bank account the only solution?

Foreign physical bank accounts have many businesses that do not meet the requirements to open an account or open an account unsuccessfully, so a digital account is the leading alternative solution.

GLA supports Individuals/Businesses to open digital bank accounts to ensure international transactions. 

Digital bank account is an alternative to traditional banking because:

• Business accounts do not cost as much to open and maintain as traditional bank accounts: no initial deposit required, no minimum balance required like traditional banks.
• Fast digital bank account opening time: digital bank account opening time is only 3-5 days, much faster than traditional bank accounts (from 3 - 5 months).
• Multi-currency with just 1 digital bank account: a variety of strong currencies such as USD, HKD, SGD, etc., easily make cross-border payments with flexible domestic or international payment costs with just 1 bank account.
• While Offshore Companies wait for a successful traditional bank account opening, digital bank accounts are the leading alternative to traditional bank accounts.

8. Frequently asked questions when opening a foreign physical bank account

Highlights

• A physical (traditional) foreign bank account is a top priority for many international businesses. 
• Opening a physical bank account will have requirements for: minimum deposit, account maintenance fee, account opening fee is higher than digital bank account.
• Businesses that do not meet the requirements to open a foreign physical bank account or are waiting to open one can open a digital bank account with simple procedures and low account opening and maintenance costs.
• GLA will support businesses to open bank accounts for companies in more than 10 countries. GLA supports opening companies abroad.