Bank Account Opening
Global banking and especially cross-border transactions became more important over time. International entrepreneurship and location independent business is common practice these days. As such, business people all around the world can now easier than ever choose the best location to establish their business and retain administrative and financial services. In an international setting where activities and transactions enter different territories, banking and finance grows in complexity. Consequently, Delaware companies and legal persons incorporated in offshore jurisdictions lately experience difficulties with corporate bank account opening. What once was a formality now looks like an administrative labyrinth.
Delaware is one of the main US financial centers with an international allure. The State is known for its flexible and favorable company laws and friendly administrative requirements for companies with foreign ownership. It therefore does not come as a surprise that the State has more companies registered than individual residents. The stable and reliable legal framework in Delaware ranks the State as reliable and medium risk in the global financial industry. Bank account opening for Delaware companies is therefore straightforward and often simpler than for many of the offshore jurisdictions.
Legal entities incorporated in the State of Delaware separate the company from its shareholders, management and employees. Consequently, shareholders are to the most financially liable for the value of the shares they hold, and controlling persons are accountable for their conduct in civil dispute management. In exceptional cases, the court may impose personal liability on shareholders and individuals by piercing the corporate veil. The result of corporate veil piercing is that all the assets belonging to the natural person are subject to confiscation in case of established liability. The possibility of personal liability in matters of illicit behavior is for many international counterparts a critical reason to engage into a business relationship. This also applies to financial institutions and matters that involve bank account opening.
The global financial system is vulnerable for abuse. Financial institutions play a pivotal role in society by ensuring the proper functioning of the economy. To protect and maintain the financial system, banking law and regulation aims to safeguard confidence in, and stability of the financial system by providing for a framework under which professional organisations should act. Law makers and regulators provide for an overall regime for banks, and tailor rules towards specific activities, characteristics, and classifications. This means that financial institutions are considered the gatekeepers of the financial system where they police the behavior of their customers. The complexity of international trade and the consecutive financial transactions results in a strict framework for bank account opening and maintenance, especially where it involves international organizations, Delaware companies included.
Derived from their role as the first line of defence, banks and other financial institutions must know their customers and activities. As such, periodic know your client (KYC) procedures and supporting evidence of transactions is often requested. Since company law is always a domestic issue, the general corporation law has no territorial effect. The result is that domestic issues in the USA may fall under the Delaware general corporation law while civil parties and international partners in different countries may require alternative rules to be adopted. This conflict of laws often applies to global banking where businesses engage in cross-border activities.
Due to the constant regulatory changes, technological advances and globalisation, location independent entrepreneurs, consultants and other international small business owners must remain flexible when it comes to banking. The rules of the game have drastically changed over time. As a result, bank account opening for Delaware and offshore companies is not always as easy and fast as it used to be. Professional assistance from the beginning of the account opening process is therefore recommended.
Delaware Bank Account Opening
Delaware companies need, like any other legal entity, a bank account to complete their transactions. The attractiveness of the Delaware company for foreign businesspeople has over time proven its value. The state qualifies as an onshore corporate haven and incorporates most of the US publicly traded companies and many of its international counterparts. With over a million registered businesses, international entrepreneurs are in good company. The attractiveness of Delaware to stable, reliable and large companies creates leverage for international entrepreneurs.
International businesses incorporated in Delaware often retain financial services in countries that are friendly to the corporate activities and location of incorporation. Bank account opening for Delaware companies is often managed by designated Private Bankers or International Business Units. The result is that bank account opening and maintenance for Delaware and offshore companies is done by experienced professionals.
The opening procedures for a bank account for Delaware companies are similar to most international account openings. Most of our customers want to start trading immediately after they incorporated their company. A bank account is needed to complete their transactions. By leveraging our contacts we open bank accounts with several international private banks and international business units of global financial institutions. A balance is sought between efficiency, reliability and safety. As such, we strive to avoid that our customers end up in financial difficulties because of illicit activities of the bank.
Financial institutions we work with do not accept everyone as their client. However, by following the strict procedures for international account opening and maintenance, we make sure that chances for approval are maximized. For more information, to incorporate in Delaware, and to start the bank account opening process, you can complete the contact form below.