Bank Account Query

NoQuarter

Hi guys

I have a few bank accounts in Ireland that I don't use anymore as I'm based abroad now. Just an old current account and an old savings account that has some nominal cash still left in them. I'm starting an Irish company soon and was wondering if I could just use one of those accounts as the company's bank account? Is there any issues with this? Or is it best to just get a business account. The Irish company is basically just a shell to hold some income before it's transferred out to another company abroad so I dont really need the benefits that come with a business account so I'd really just like the simplest option.

Any advice?

Thanks

jimmii

Best practice is to have the company name on the account but it's not imperative.

Avatar MIA

NoQuarter wrote: »

Hi guys

I have a few bank accounts in Ireland that I don't use anymore as I'm based abroad now. Just an old current account and an old savings account that has some nominal cash still left in them. I'm starting an Irish company soon and was wondering if I could just use one of those accounts as the company's bank account? Is there any issues with this? Or is it best to just get a business account. The Irish company is basically just a shell to hold some income before it's transferred out to another company abroad so I dont really need the benefits that come with a business account so I'd really just like the simplest option.

Any advice?

Thanks

This bank account is owned by you and not the company.

NoQuarter

Avatar MIA wrote: »

NoQuarter wrote: »

Hi guys

I have a few bank accounts in Ireland that I don't use anymore as I'm based abroad now. Just an old current account and an old savings account that has some nominal cash still left in them. I'm starting an Irish company soon and was wondering if I could just use one of those accounts as the company's bank account? Is there any issues with this? Or is it best to just get a business account. The Irish company is basically just a shell to hold some income before it's transferred out to another company abroad so I dont really need the benefits that come with a business account so I'd really just like the simplest option.

Any advice?

Thanks

This bank account is owned by you and not the company.

Yes, I'll be a company director.

I know it wouldn't be best practice but are there any serious consequences in doing it? If it causes more problems than not Ill just open a bank account in the company name but I have accounts sitting there that I could utilise easier. It will be a small closed company.

jimmii

NoQuarter wrote: »

Yes, I'll be a company director.

I know it wouldn't be best practice but are there any serious consequences in doing it? If it causes more problems than not Ill just open a bank account in the company name but I have accounts sitting there that I could utilise easier. It will be a small closed company.

Will you be using the account as well? It's best to have an account used purely for the business whether or not the name is on it just so it's handier from an accounting point of view as you would want to be able to identify the business related transactions in case of an audit etc.

Avatar MIA

NoQuarter wrote: »

Yes, I'll be a company director.

I know it wouldn't be best practice but are there any serious consequences in doing it? If it causes more problems than not Ill just open a bank account in the company name but I have accounts sitting there that I could utilise easier. It will be a small closed company.

I'm wondering if there would be money laundering issues. Whether by design or not it could be construed as hiding funds.

NoQuarter

jimmii wrote: »

NoQuarter wrote: »

Yes, I'll be a company director.

I know it wouldn't be best practice but are there any serious consequences in doing it? If it causes more problems than not Ill just open a bank account in the company name but I have accounts sitting there that I could utilise easier. It will be a small closed company.

Will you be using the account as well? It's best to have an account used purely for the business whether or not the name is on it just so it's handier from an accounting point of view as you would want to be able to identify the business related transactions in case of an audit etc.

No I wont be using it, I'll just keep it to the company itself. A lot handier to use this and start providing account details I already have than to making my way back to Ireland to go into a branch and set one up, gathering the required documents they need etc..

NoQuarter

Avatar MIA wrote: »

NoQuarter wrote: »

Yes, I'll be a company director.

I know it wouldn't be best practice but are there any serious consequences in doing it? If it causes more problems than not Ill just open a bank account in the company name but I have accounts sitting there that I could utilise easier. It will be a small closed company.

I'm wondering if there would be money laundering issues. Whether by design or not it could be construed as hiding funds.

I'm quite familiar with AML from my own job but I can't really see how there would be an issue in that regard? Do you think revenue could take a stance that the company is hiding funds?

Either way there are no real AML issues so of course Revenue would be welcome to look into the affairs.

mrawkward

This reads oddly to me! Why not route the money directly to the eventual recipient account? If it is all kosher, company money resting in a directors personal account needs to be classified as a directors loan in the company accounts.

NoQuarter

mrawkward wrote: »

This reads oddly to me! Why not route the money directly to the eventual recipient account? If it is all kosher, company money resting in a directors personal account needs to be classified as a directors loan in the company accounts.

Well that answers it then, I don't want to have it considered as such. Best to just set up an account for the company then.

Thanks