Are you starting your own business?
There are many things that you must do, think of, and set up that sometimes it may be hard to remember, or even know every detail or what you need to do.
Today we will talk about opening a business bank account.
We will go over what you need to bring, how and why you need to prove you are the ultimate beneficial owner, as well as why you need to indicate any other people who are a beneficial owner, and why it’s important.
Opening a Business Account
When you go to open your first business bank account, you will need to prove who you are, that your business is legitimate, and that everyone in your business who stands to profit from it is not at risk of committing a financial crime.
This involves giving the bank several pieces of written proof, and allowing yourself and any other beneficial owners to go through background checks.
You will need to bring with you a list of documents, including:
- Your business license
- Your business registration — to prove inception date
- Your financial records
- Your ID and the ID of other beneficial owners
- And ownership agreements, to name a few
UBO and BO proof
When proving that you are the ultimate beneficial owner and verifying the identity of any other beneficial owners, it is vital that you disclose all the information you are requested.
This includes providing full names, date of birth, and private address of all beneficial owners — including yourself.
A beneficial owner is any person who stands to profit from the business financially or otherwise.
This includes those who hold a 25% stake, ownership, or voting rights for the business.
It can also include people who occupy a role in the management of the company.
Why all the questions and paperwork
Banks are required to collect all this information as a worldwide effort to detect, stop, and prevent financial crimes — such as money laundering, scammers, counterfeiters, terrorist financing, and financial fraudsters.
The paperwork you supply allows the bank to investigate you, your business, and any others involved to determine if there is a risk of these financial crimes being committed.
By complying with the process, you are supplying peace of mind to the bank and the economy.
After you open an account, you will need to be wary of the rules and regulations that the banks need to follow while monitoring you and others who have an account — including spending limits, deposit changes, and other actions.
When you go to open your business bank account, you will be faced with many questions and need to provide a ton of paperwork.
Some of the most important things to bring to the bank include your ID, business license, registration papers, IDs of any people who can be considered a beneficial owner, and your financial records.
You will need to prove that you are the ultimate beneficial owner to help the bank to do their part in preventing financial crime.
Always come prepared to help the bank do their job, by being prepared when you go — the economy will thank you.
