CIM bank demanding substance, any advices?

[Serni]

Hello,
I own Scotland LP and some time ago I've got email from CIM demanding me to open an office and to hire an employee in the UK. I have an offer from my registration company to send me the documents proofing I have an office and employee for 2350GBP/year. They send me the sublease agreement and work contract with UK citizen for that.
I am struggling if I should pay for that (how long it will help me to save the account?) or search for my luck in another banks (like Russian, for example - I have some good connections there). Or probably rent a real office in UK and hire some person there.
A little bit tired of this cat-and-mouse game and looking for some long-life solution for my business. Even thinking about moving my business to my residential country.
Any thoughts?

 

[boomy]

Thats the very best to do if you have the money and‍ can afford it!

If you are that good connected in Russia I don't understand why⁠ you setup anything with CIM bank and anywhere else?

 

[Serni]

Russia isn't the best⁠ place for doing the international business. Opaque tax system, bank control, taxes, etc, etc. Everything⁤ is very complicated when you own the everyday operational international business and one day you⁣ can find yourself locked in prison, easily.

 

[CaLViN]

Same for me.
We will go with renting an office and having a local secretary.‌
Audited reports are necessary,too.
We want to keep the account active as having a bank‍ account nowadays is really valuable.

 

[Serni]

What's the budget for it?⁠

 

[CaLViN]

Costs around 500 EURO per month.Seems logical for our business.

 

[Serni]

500 Euro doesn't look that much, but how do you fit your office and secretary‍ in it? The minimal wage in UK is more then 1700 pounds and CIM demands⁠ it has to be full-time worker and they check if you pay him a real⁤ salary.

 

[CaLViN]

Well,our company is in Estonia which means wages are cheaper..

We also have a UK‌ company with Rietumu Bank account and they accepted only employee contract and rent agreement but‍ CIM bank asks for more as you have mentioned.

 

[Martin Everson]

I wonder of this is the direction other European banks are heading in? Could be‌ a worrying trend even for those of you living in the Europe who simply chose‍ another European country to establish a company because it is simpler.

 

[Silvio]

From what I hear, most banks just want substance SOMEPLACE, doesn't have to⁠ be in the jurisdiction you are incorporated at. Or are satisfied at a lower level⁤ of substance.
CIM are very excessive and I don't think it will work out well⁣ for them. I wonder if they will become more lenient soon when they see many⁢ of their clients leaving the bank...

 

[CaLViN]

Correct,CIM wants them all :

CIM Bank makes changes to its rules.
1). It is‌ necessary to confirm company office in the country of registration;
2). It is necessary to‍ confirm employee in the country of registration;
3). It is necessary to provide AUDITED statements;⁠
4). It is necessary to provide tax return report.

 

[JackAlabama]

These rules are really heating up and are annoying as hell. Is it time to move⁠ to Africa, rent a small hut as office and hire a part time secretary picking⁤ up the phone and have another employee specific for your business. All for 50$.

That might be a good business idea to pull off?

 

[CaptK]

A lot of people are doing that now. You can get an office, manager and‌ secretary for 500 pm in Nairobi. Similar thing in Johannesburg.

 

[Mark Rucken]

Except that CIM does not support African companies, so they might just close your accont⁠ if you show up with office and stuff from Africa 😀

 

[JackAlabama]

Maybe time to switch the whole setup to Africa? 😉😉

 

[Martin Everson]

They must be confident that clients can afford to create the substance and that CIM have⁠ a compelling banking offering for clients that they won't choose to leave for an easier⁤ life.

To be honest this might be option. Tons of freezones across Africa offering zero tax⁢ and plenty of international banks servicing them in Africa.

 

[daxbr]

Just checked for lowest GDP, any contacts in Somalia? 🙂

 

[JackAlabama]

Due to lockdown I made quite some research about Africa talked with countless⁤ people, lawyers, banks and whatnot online.
Enforcement is also often also very lax in case⁣ errors have been made.
A vast array of mobile money / card processing is also⁢ available.

Minimum wage is often 50$/month. That is enough for someone picking up a mobile︀ phone. Also there is no need for a posh office.

 

[JackAlabama]

No, I have not looked at this place.
It could well be that they are blacklisted‌ like Sudan. They have also Somaliland/Puntland and its a pirate hot spot.

Other countries there‍ have very low minimum wages too and are not blacklisted.
Botswana for example is also⁠ dirt cheap in regards to labor.
80k $ gives a PR, they have territorial tax⁤ etc., beautiful nature. And you do much more than any of these political charities.

 

[CaptK]

Contacts yes, anyhope of getting your cash out?........................ NONE!!

A simple office office in Kenya with a mobile phone⁠ and just getting them to respond to enquiries will suffice. They can post it on⁤ their LinkedIn as Director of bulls**t and Head of Bollocks. To be honest you could⁣ do this for about 150 a month.