Difficulties many do not tell you about
During the process of Latvian companies registration and purchasing, our clients often ask how they can open a bank account in Latvia. The main peculiarities you should be aware of are requirements for non-residents and more complicated for account-opening procedures in Latvia. Why is it so?
Many complications appear because of international legislation on anti-money laundering and terrorist financing prevention. This is the main reason why banks have to know well their client and take a close look to their finance sources, company’s branches activity and its beneficiaries.
While working with non-residents, banks in Latvia face many troubles on legislation and procedure levels and that is the reason why many banks refuse to work completely with such clients. This information is not published online, so it is very hard for an entrepreneur to understand which bank is working with non-residents and which is not.
What do you have to know to avoid troubles while opening a bank account in Latvia?
1. You have to choose the right bank, which
- Works with non-residents in Latvia;
- Prefers to work with companies of your profile.
2. Prepare the necessary papers list for Latvian bank account opening.
You have to be aware that all papers you might need are divided in two parts:
- Standard set of corporate documents (you will find the list on the bank’s website);
- Specific documents, which banks require from non-residents to be sure that the beneficiary has sufficient funds and to check the occupation activity of the company, etc.The second part of documents set can differ from bank to bank. The list of needed papers you will find it only contacting the bank’s manager, i.e. you might require additional visits to the bank.
- You should attend the bank and sign all bank forms personally.
- You will be checked by the bank’s Compliance Office.
The Compliance Office is a legal department in a bank, which checks the authenticity of the provided information. For instance, if the client comes from the Russian Federation and he or she has purchased a company in Latvia, the bank can inquire what companies does he or she own in Russia, what is his/her activity, etc. They can ask for register statements and other supporting documents, check publically available sources, social networks, look for an open information about a client in the Internet to be sure the person is real and law-abiding entrepreneur.
Why are such strict rules beneficent for your business?
If you have a real business and you are fully open in front of the bank, there will definitely be no problems while opening an account, but if you conceal anything, you might face difficulties. On the other hand, such a strict approach from banks’ side is the foundation of their stability. Accuracy in clients selection is the guarantee of long-lasting and successful bank’s functioning.
Opening a bank account in a Latvian bank is simpler if you
- definitely know in which bank you are going to apply to;
- have all the requested documents prepared;
- have an appointment with a manager, not simply walking in;
- have a reference from a bank’s partner-company.
All of this becomes clean and simple if you use BBCRiga consultants’ services.
What is the procedure of a bank account opening in Latvia with BBCRiga?
Step 1. You provide us with all the necessary information about the company to fill in bank forms.
We are aware of the bank’s attitude to different types of activity and are aware of their non-resident internal procedures checks. We have contracts with all large banks of Latvia, who work with non-residents.
This is why we are recommending to you a bank you should refer to and it will be the one, which will most likely open a bank account for you.
Step 2. We are making an appointment with the bank’s representative after all documents are pre-approved by the bank.
Large Latvian banks, who work with non-residents, have a wide network of representative offices in CIS in all large cities. We make an appointment in the office close to you.
We communicate with number of managers in these banks and our cooperation lasts for a long time, which helped us to build trust relationship. Be sure that when coming to an appointment you will definitely have a special treatment of your personal manager.
Step 3. After an appointment, you get all the necessary documents and account’s requisites so there is no need for you to visit the bank once more.
Step 4. The documents you have applied are being checked in a set of bank structures, including the Compliance Office that we have already mentioned. Lawyers might have additional questions, and they will be asked through your personal manager in the bank on in BBCRiga.
A reference from us as from a bank’s partner increases a trust to your company in many times. It can help you to have fewer checks during a bank account opening.
It usually takes from 3 to 10 days to be checked by the bank. After that, you can use your Latvian bank account.
To get more details on bank accounts opening, Latvian company purchase or registration, please do not hesitate contacting our consultants.