Offshore & Onshore Company Bank Account Opening

Whether you’re launching a project, opening a bank account, or structuring an offshore company!

Both offshore and onshore banks are required to comply with these rules. The difference, as a rule, lies in the level of tolerance towards foreign structures and the speed of decision-making.

Offshore banks focus on working with international structures, non-residents, and cross-border transactions.

They are often part of large financial groups or operate through a network of correspondent banks.
An offshore account is suitable for companies that manage global cash flows and are not strictly tied to one country.

An offshore account is usually needed if:

• clients and counterparties are located in different countries;
• transactions are mainly conducted in foreign currencies (USD, EUR, GBP);
• the company is a holding, investment, or trading structure;
• a flexible multi-jurisdictional payment infrastructure is required.

An onshore account is required if:

• The company operates in a specific country and serves the local market.
• It is necessary to receive and send local payments with minimal fees.
• It is important to demonstrate substance to tax and regulatory authorities.
• CFC, economic presence, and local taxation requirements are taken into account.

In practice, many groups use a combined approach: onshore accounts for local operations and offshore accounts for managing international flows.

Offshore account: step by step

For offshore banks, the quality of the initial dossier and the clarity of the business model are particularly important.

1. Project analysis and jurisdiction selection At this stage, business objectives, currencies, key markets, and banking requirements are determined. The selection of jurisdiction takes into account country risk scores, the level of regulatory pressure, and the available payment infrastructure.
2. Preparation of corporate structure If necessary, the company is registered, the ownership structure is formed, corporate documents are drawn up, and, if necessary, basic substance is provided.
3. Collection and preparation of documentation Corporate, personal, and operational documents are prepared. When working with offshore banks, notarization and apostille are often required.
4. Pre-approval The company profile is sent to the bank for preliminary assessment. At this stage, the bank confirms whether it is willing to consider such a structure in principle.
5. Formal signing of forms and KYC/AML compliance Bank questionnaires are filled out, a video conference or interview is held, and the bank clarifies the details of the business model and sources of funds.
6. Initial deposit and account activation After approval, the bank requests an initial deposit, sets up online banking, and connects payment channels.

Onshore account: step by step

For onshore banks, substance and ties to the local economy play a key role.

1. Choosing a bank and account type The requirements of specific banks are assessed, including their willingness to work with foreign beneficiaries, the availability of online banking, and corporate services.
2. Preparing a complete set of documents In addition to the standard set, confirmation of office rental, employee hiring, local contracts, and tax status is often required.
3. Submitting documents and preliminary assessment The bank conducts KYC/CDD and assesses the company’s risk profile. At this stage, it is usually determined whether there is sufficient substance and whether the activities are clear.
4. In-person or remote identification In some countries, the director or UBO must visit the branch in person. In other jurisdictions, video identification is permitted.
5. Conclusion of a banking service agreement Agreements, FATCA/CRS forms, and confirmations of sanctions and PEP checks are signed.
6. Account activation and connection to the payment infrastructure After the account is activated, the company gains access to local payment systems (SEPA, national clearing systems) and SWIFT.

Remote vs In-Person Account Opening

The possibility of opening an account remotely depends on both the bank’s policy and the regulator’s requirements. If the company structure is simple and the owners reside in low-risk countries, many offshore banks are willing to conduct a full remote KYC.

Sometimes a personal visit is still required. This applies to high-risk industries, PEP status of owners, complex ownership structures, or the requirements of a specific jurisdiction. Onshore banks are particularly strict about in-person identification, as their legal connection to the state is critical.

Thus, the format of opening an account depends on a combination of factors: the company’s risk profile, local regulations, internal procedures, and the nature of its activities.

Most rejections are not due to formal violations, but rather to insufficient transparency or internal doubts on the part of the bank regarding the applicant’s stability. If the ownership structure is too complex, the sources of funds are not confirmed, or the business model appears incomplete, the bank is more likely to reject the application than to take on the risks.Most rejections are not due to formal violations, but rather to insufficient transparency or internal doubts on the part of the bank regarding the applicant’s stability. If the ownership structure is too complex, the sources of funds are not confirmed, or the business model appears incomplete, the bank is more likely to reject the application than to take on the risks.

Common reasons for rejection include negative records on key individuals, links to high-risk jurisdictions, lack of substance for onshore accounts, contradictions in documents, weak operational logic, and lack of licenses in regulated sectors. In some cases, the bank does not disclose the reasons, but analysis of internal materials almost always allows you to determine which elements caused doubts.