EMI for business with real bank IBAN?

[Maitrey]

Good health to all forum participants!

I registered a company in Estonia, I'm a resident of another EU country (permanent residence permit).

I opened an account with Revolut without any problems. But on the very first contract with a company that has an account in Montenegro, I ran into the problem that their bank requires an account only in a real bank.

It is difficult to open an account in a real bank, as you know, especially for a small, albeit crystal-clear company and at least it takes time.

I thought, what if there are EMI that issue real bank IBAN for payments at least in EUR out of SEPA (like Montenegro)?!

Kind Regards!

 

[Martin Everson]

Maitrey said:
I opened an account with Revolut without any problems. But on the very first contract with a company that has an account in Montenegro, I ran into the problem that their bank requires an account only in a real bank.
Click to expand...

Revolut is a real bank now. Did you open with Revolut Bank UAB?

You can check this easily by reading the terms and conditions you accepted when you signed up. Or go into the mobile app and click on your picture and scroll to the bottom "Terms & conditions" and see what you have written there.

Last edited: Apr 12, 2021
Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Maitrey]

Yes and no. I wrote to their support service that the bank of my clients can only make payments to accounts of real banks. To which they replied that, indeed, some banks do not want to transfer money to EMI accounts.
Besides this the accounts migration to their Bank UAB is only being launched on Personal accounts to eligible users. I may take it as a beta version, or a test version. Regarding the business accounts is not yet possible.

 

[Martin Everson]

Maitrey said:
Yes and no. I wrote to their support service that the bank of my clients can only make payments to accounts of real banks. To which they replied that, indeed, some banks do not want to transfer money to EMI accounts.
Besides this the accounts migration to their Bank UAB is only being launched on Personal accounts to eligible users. I may take it as a beta version, or a test version. Regarding the business accounts is not yet possible.
Click to expand...

Ahh ok I see as I am with Revolut Bank UAB for personal account. Thought they would do business accounts also 😕.

You can always try LHV in Estonia. I believe you may need to go in person.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[glengoolie]

Maitrey said:
I registered a company in Estonia, I'm a resident of another EU country (permanent residence permit).
...
It is difficult to open an account in a real bank
Click to expand...

dude, what?

 

[Maitrey]

glengoolie said:
dude, what?
Click to expand...

Yes, it's difficult. Estonian banks don't open the accounts for non-residents but I will try. The others are non interested in small companies with 100.000 turnover.
The EMIs like Revolut are almost perfect but some banks consider themselves smarter than others...

 

[Martin Everson]

Maitrey said:
Estonian banks don't open the accounts for non-residents but I will try.
Click to expand...

Not true.

If you setup your Estonia company via good reputable company like i.e Xolo. They have a good working relationship with LHV and can get per-approval on principle and you then just travel and meet banker in Estonia to sign forms.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[glengoolie]

doesn't estonian tax law require local bank account for a company? if so then the banks MUST open an account for you no matter what, once the company is officially registered.

 

[Martin Everson]

glengoolie said:
doesn't estonian tax law require local bank account for a company?
Click to expand...

No.

If it did then every Estonia e-residents Estonia company is breaking the law as most non-residents don't have a local business account.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[glengoolie]

e-residency is quite a different setup. hardly comparable to a registered company. but ok, i was just asking.

 

[Maitrey]

Martin Everson said:
Not true.

If you setup your Estonia company via good reputable company like i.e Xolo. They have a good working relationship with LHV and can get per-approval on principle and you then just travel and meet banker in Estonia to sign forms.
Click to expand...

Thanks you, I tried to establish relations with the bank, now I am in correspondence with them.
However, it is obvious that already at this stage I see that they need a very clear connection with Estonia, even not only the substance, but also the counterparties, which I do not have a lot.

 

[Martin Everson]

Maitrey said:
However, it is obvious that already at this stage I see that they need a very clear connection with Estonia, even not only the substance, but also the counterparties, which I do not have a lot.
Click to expand...

You may have to try other Eastern European banks perhaps 😕

https://www.bib.eu/en/business-accounts

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[jakubko666]

wise (formerly transferwise) will open bank account for your firm in belgium. Everythink can be done online.
Give it a shot.

 

[Martin Everson]

jakubko666 said:
wise (formerly transferwise) will open bank account for your firm in belgium. Everythink can be done online.
Give it a shot.
Click to expand...

He wants a real bank not an EMI unfortunately.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[spacely]

Maitrey said:
Thanks you, I tried to establish relations with the bank, now I am in correspondence with them.
However, it is obvious that already at this stage I see that they need a very clear connection with Estonia, even not only the substance, but also the counterparties, which I do not have a lot.
Click to expand...

Hey! Please let me know if you have resolved your banking issue already?
This is true, Estonian Banks do not usually work with non-residents after the numerous money-laundering scandals. Although, there are still possibilities to open one in TBB if you have the right person to introduce you and you ready to provide the Bank with some substance: to pay a minimal salary and rent a small office.

Last edited: Apr 20, 2021

 

[mebuq]

why is it so difficult to find a good service provider to set up an offshore company. only I need is someone proffessional who is reponsive. I pay companies to do the job and have no idea what happens.

 

[Kyriacos Zographos]

mebuq said:
why is it so difficult to find a good service provider to set up an offshore company. only I need is someone proffessional who is reponsive. I pay companies to do the job and have no idea what happens.
Click to expand...

most times it's not an issue if the provider is good or bad. Banking is constantly changing so what today might be acceptable tomorrow might be not. But you can always share your problem/experience and we can try to help if we can

 

[eesticonsultingee]

Opening bank account is still possible (SWEDBANK , LHV ) - I have positive track record from these 2 both banks

LHV - remotely client due dilligence
SWEDBANK - personal visit required

 

[bizniz]

To answer the original question: Payoneer might be a good option, or WorldFirst. Both offer accounts that "look as if" they are in real bank. If I recall correctly, Payoneer give you an account in Citibank Ireland, and WorldFirst at Citibank in Netherlands, though that might have changed.

If you don't have clear connections with Estonia, where do you have connections? That could be the place to start.

German banks likes Handelsbank might open the account directly.

You should also be able to open an account in Montenegro for your Estonian company.

 

[Rprox]

Martin Everson said:
Not true.

If you setup your Estonia company via good reputable company like i.e Xolo. They have a good working relationship with LHV and can get per-approval on principle and you then just travel and meet banker in Estonia to sign forms.
Click to expand...

Hi, checking out forums with some Xolo experiences and reviews. Is it necessary to travel all rge way to open a Bank account? No digital signing?