If you have recently incorporated a company then it is time to start thinking about your post incorporation duties. One thing you’ll need to do is set up a business account.
Do I need To Set Up A Business Bank Account?
- If you have a newly incorporated company then you may need to think about setting up a business bank account. There are many different bank providers available in Ireland and the process is usually a very quick and easy set up. It is always the easier option to have a separate bank account for managing your companies finances. Here at Irish Formations we can give you a free referral for an Irish Bank Provider.
- This comprehensive guide will provide you with information on all the necessary requirements before you open a business bank account. It will also enlighten you with information on the main banking providers in Ireland and what they require to set up an account.
Everything I Need To Do Before Opening A Business Bank Account?
Before opening a business bank account there are a number of requirements you will need. This will start with the registering of your Irish Company.
How To Set Up An Irish Company?
Here at Irish Formations we are experts on company set up and can ensure high quality, accuracy and efficiency when registering your company. The first step after you reach out will be an initial consultation call from our Managing Director to discuss your specific business needs. After then discussing everything you will require you can get set up online and make a purchase of a company. A member of our team will then correspond with you throughout the whole process. Below is a checklist of everything you need to get yourself started:
1.Have At Least 1 Director
you will need to have at least one director who is a resident within the EEA. If they do not hold Irish residency then you will need to purchase a non resident or section 137 bond. All company directors must also now surrender a PPS number during the process of incorporation. If the directors do not have a PPS number then they have two options. Either an RBO or a VIN can alternatively be used for all CRO correspondence. RBO will be the number received from registering your beneficial owners. If the director does not have a PPS or an RBO they will have to apply for a VIN (Verification Identity Number). Our team here will supply you with the form, all you need to do is fill it out and send it back to us. We can then submit it for registering and await your VIN.
2. Appoint A Company Secretary
You must appoint a separate company secretary if you only have one director. If you have more than one director then either of these can act as secretary as well. The company secretary is responsible for making sure your company stays compliant and meets annual deadlines. Many people may opt to use a nominee secretary service. This means using your third party to act as your secretary. We provide this service here at Irish Formations. It is important to note that this means we sit in the chair but do not engage in any secretarial duties. However, many of the duties required post incorporation will be covered in the purchase of any one of our premium company formation packages.
3. Have at least one shareholder and decide on how many shares you would like to release
Every company needs at least one shareholder. These are the rightful owners of the business and it is often common practice for the director and/ or the secretary to be shareholders in a new company. The shares of a company determine the legal ownership. Therefore, it is important that you allocate and issue these correctly.
4. Decide on A Company Name
The company name must be unique and not be linked or similar to any other name. The CRO can be quite rigid with this so it is important to choose something carefully. As part of your incorporation we can do name checks for you and we can also correspondent with the CRO should they reject your name choice. They will then ask you to resubmit an alternative name. It is usually best to avoid this by using a third party such as ourselves who can do a name check for you before submission.
5. Have A Registered Address and a Trading Address
A registered address serves as the official and legal address of your company. It is required to be a physical location within Ireland and should be monitored regularly. People often opt to outsource their registered address for a number of reasons but primarily because important notices are sent to this location. The registered address is publicly accessible through the CRO website. On the other hand, a business address is where your company receives its business-related mail. It’s important to note that for tax purposes, Revenue still needs to be informed of the exact address from which your business operates (trading address). However, setting up a separate trading address is not a mandatory requirement when establishing a company in Ireland.
6. Prepare and Sign The Incorporation Documents:
Once you have all of the above accumulated you can now fill out your incorporation documents. A member of our team will liaise with you on this and keep you updated once they are submitted. They can all be done remotely and sent back via email. We strive to make the process as simple and as easy as possible.
Post Incorporation Duties
There are a number of post incorporation obligations which every Irish company must complete. These include;
- Filing your first annual return: every company is obligated to do this regardless of trading status and lack of compliance will lead to penalties or late fees. This service is provided with the purchase of any one of our premium packages.
- Registering your beneficial owners: It is a requirement for every company to register their beneficial owners with the RBO. This is a necessary requirement needed to open a business bank account.
Things To Consider When Opening A Bank Account
- Whether it can be opened remotely or whether you will have to be physically present. This one is particularly notable for non resident directors.
- How much they charge in fees. Some bank providers may charge less than others so this is important for new companies as they may want to minimize costs.
- Do they offer an online banking app? Digital banking is becoming more and more popular and choosing a bank with an online app could be a convenience to a new business start up.
- Will there be any restrictions? How much can you transfer per day. How will your banking differ as per the growth of your business.
Everything You Will Need To Open A business Bank Account
Each bank has its own unique set of requirements for opening a business bank account account, which is why we always advise reaching out to them directly to inquire about their specific criteria. However, when applying for a business bank account, many banks typically request the following:
- Photo ID and proof of address from the account holder(s): Acceptable forms of ID may include a current passport or driver’s license, while proof of address documents can include utility bills, certain tax documents, and mortgage papers.
- Certificate of Incorporation and a copy of your company’s constitution (applicable for Limited Companies): If your company is a Limited Company, you will need to provide the Certificate of Incorporation and a copy of your company’s constitution.
- Proof of registration with the Registration of Beneficial Ownership (RBO): You will need to show evidence that your company is registered with the Registration of Beneficial Ownership (RBO).
To ensure a smooth account opening process, it’s best to get in touch with your chosen bank directly and gather all the necessary documents they require for your specific business account application.
Bank Providers In Ireland
There are an array of different bank providers in Ireland but the main ones we would recommend are AIB or Bank of Ireland. We also offer referrals to Revolut or Fire.
- AIB: The AIB Business Startup Package is specifically designed for startup businesses that have been in operation for less than three years and are in the process of opening their first AIB Business Startup Current Account. Director required to be physically present in the bank for opening of account.
- Bank of Ireland: Bank of Ireland offers a Startup package specifically designed for businesses that have started within the last three years.
- Revolut: Revolut offer a very quick and fully remote service. You cab be fully set up online in a matter of minutes. A Revolut business account offers a fully digital account in over 30 currencies. It is a great option for companies who need to make and receive payments in multiple currencies.
- Fire: The Fire business account presents a cutting-edge digital banking solution tailored to meet the needs of businesses in Britain and Ireland, with a special focus on serving e-commerce enterprises.
Still Have Some More Questions?
If you still have some questions unanswered make sure to get in touch and a member of our team would love to help you as best as possible! We only give bank referrals and do not act as a third party between the client and the bank. However, we can offer our guidance on what bank providers we have in Ireland and what may suit you best.
