Obligation to open a bank account
Company court registration is a decisive step in the life of the enterprise, however further conditions must also be met for lawful and uninterrupted operation. Under the current regulations, a domestic legal person must have a domestic payment account. This means that the existence of a bank account in the operation of companies is not merely a practical matter, but an obligation based on law. Therefore, failure or delay in opening an account can cause serious practical and legal problems in the company's operations.
Is the bank obliged to open an account?
In practice, the question often arises whether, if the law requires the company to have a payment account, the bank is obliged to conclude a contract with it. The short answer is that for businesses there is no general, unconditional obligation to open an account.
Therefore the bank decides on account opening based on its own internal rules, risk management considerations and customer due diligence obligations. It may happen, then, that account opening does not occur immediately, the bank requests further documents, or in some cases refuses to conclude the contract. This is particularly common when the ownership structure is complex, the ultimate beneficial ownership is difficult to uncover, or foreign parties are also involved in the company.
In practice this means that the bank assesses the company’s background not only formally but also from a risk perspective. The more complex the ownership or operational structure, the more likely it is that more detailed documentation and a longer examination will be required.
What documents are required?
The documents and requirements necessary for account opening may vary by bank, but generally the personal identification documents of the person authorized to represent the company are required, as well as a notarized specimen signature or a signature specimen attested by a lawyer. Company documents are also indispensable, such as a company court order or company extract regarding the registration not older than 30 days and the articles of association. You need to obtain information from the given bank about the form of these documents – for example, whether they can be submitted electronically or whether the original documents must be presented in person.
Opening a corporate bank account is a legal obligation for most business entities, yet account opening is not automatic. The bank decides on concluding the contract based on customer due diligence and risk management aspects, therefore preparing the appropriate documentation is particularly important for a successful account opening. We assist our clients to ensure that the appropriate documentation is available during account opening, thereby providing the greatest possible chance that the account opening will succeed and the company can commence operations as soon as possible.