Irish Bank Account for Foreign Company

Bronyraur

Hi All
Does anyone know if any Irish bank/building society/etc will allow an international (non EU) company to open a business account in Ireland without registering in Ireland?
Thanks

sysprogrammer

it's probably best to call the banks:
https://www.google.ie/search?ei=058eWsWSKKqegAaRmJ6ICQ&q=list+of+irish+bank+contact+numbers&oq=list+of+irish+bank+contact+numbers&gs_l=psy-ab.12...0.0.0.41204.0.0.0.0.0.0.0.0..0.0....0...1c..64.psy-ab..0.0.0....0.YhC7q-YU29A

however, why would you not register ??? I'm genuinely curious , it is a very simple process and isn't costly , see :
https://www.cro.ie/Registration/Foreign-Company

hth,
Sys

Bronyraur

Thanks but my first port of call was to call the banks, most said no unless the company is Irish registered. So I was hoping someone had experience doing it or maybe had a contact in a bank that would do it. sometimes banks have branches that will do things the main office wont.
I don't want to register because I don't want to have to comply with Irish company law for my foreign company. Trying to keep things as simple as I can.

sysprogrammer

I suppose you can ask yourself ,would your customers prefer a Euro account with an Irish bank for trusted transfers.

I think you should call the Companies Registration office , and Revenue, to see what they require of your entity.
Or seek the advice of a professional.

I personally would not shy away from a few returns each year, when being a registered entity brings a raft of benefits and trust.

Sysprog

Bronyraur

Thanks, the account for customers doesn't come into it thankfully, not in this case anyway.
What benefits do you have in mind? Just wondering to see if there is anything I have overlooked.

sysprogrammer wrote: »

I suppose you can ask yourself ,would your customers prefer a Euro account with an Irish bank for trusted transfers.

I think you should call the Companies Registration office , and Revenue, to see what they require of your entity.
Or seek the advice of a professional.

I personally would not shy away from a few returns each year, when being a registered entity brings a raft of benefits and trust.

pedroeibar1

Bronyraur wrote: »

Just wondering to see if there is anything I have overlooked.

You have overlooked the fact that inefficient as some Irish banks are, they are not stupid. Ireland, as is common in all developed markets (with the exception of a few tax havens), have stringent AML and KYC rules, they are enforced by the Central Bank and they are respected by bank branches.

If you want to do business in Ireland (and opening a bank account counts as such) you must register your company here – as a branch is the norm. There is nothing to prevent your company trading here from abroad, but it cannot have an unregistered presence.

I do not see any legitimate reason for doing what you suggest, or, to use your own words, is there anything I have overlooked?

Bronyraur

Yes I think you've missed something but I haven't explained the full corporate structure so that's my own fault.
Irish company - I am a Director and sole shareholder. IrishCo has an Irish bank account and trades in Ireland.
Foreign company - I am director and sole shareholder, living in the same jurisdiction as the foreign company. ForeignCo's only function is to provide a service to my IrishCo for payment.
I can, of course, set up a bank account where I am but it would involve a lot of overseas wire transfers which is not ideal. So an Irish bank account would be a lot more efficient.
KYC and AML issues aren't an issue from my end because I am happy to provide any necessary details (M&As, I.Ds, utility bills etc).
If you think Irish banks are inefficient, you should see how bad the banks are where I am. that's why I don't want to use them!

368100

It would depend on the type of industry the company is involved with and the type and sizero of transactions. Some industries are more suceptible to money laundering than others and are therefore higher risk, add to that being incorporated abroad and it's too risky for a bank.

In saying that I absolutely did open accounts for companies incorporated abroad once I was satisfied of the legitimacy of the company. It is a common enough request, especially for larger corporates. A bank will usually need to get a solicitor in the other jurisdiction to examine memo and arts/constitution and prepare a report on this so this may add additional cost as they don't have CRO information to rely on.

Bronyraur

Yes I figured I would have to get a legal opinion alright. But, money laundering issues aside, this is a legitimate request so I was a little surprised that the Irish banks don't just do some due diligence instead of giving me a blanket "no".

As you suggest, I'm sure there are foreign un-registered companies with accounts in Ireland but it's just finding the bank or person who will open one for you is the problem!

Bronyraur

Yes I figured I would have to get a legal opinion alright. But, money laundering issues aside, this is a legitimate request so I was a little surprised that the Irish banks don't just do some due diligence instead of giving me a blanket "no".

As you suggest, I'm sure there are foreign un-registered companies with accounts in Ireland but it's just finding the bank or person who will open one for you is the problem!

368100

Bronyraur wrote: »

Yes I figured I would have to get a legal opinion alright. But, money laundering issues aside, this is a legitimate request so I was a little surprised that the Irish banks don't just do some due diligence instead of giving me a blanket "no".

As you suggest, I'm sure there are foreign un-registered companies with accounts in Ireland but it's just finding the bank or person who will open one for you is the problem!

Thats a point though, money laundering issues are the most common reason for not opening an account like this so it's a key factor. Without knowing the industry you're in examples of what makes banks run for the hills would be transacting in predominantly cash or transacting 3rd party payments through the account. Dealing in precious metals and oil etc are all high risk so youd be unlikely to get an account for those. Jurisdiction comes into play too as some have substandard anti money laundering legislation so too risky.

On the face of what you've said, your irish company is contracting services in the foreign country again would be common enough but it'll ultimately depend on the industry these are operating in. Also, if you'd need to be registered for tax in the other jurisdiction and provide your tax number so they can confirm you're tax compliant.

I would go into one of the biggest branches in dublin city centre as they will have more experience in dealing with this.

Bronyraur

Yeah fair point. They are probably turning away a lot of business and of course I understand the AML risks but I think they should just get their due diligence process in order as best they can.

If anyone knows of a contact/branch that will actually sit down and discuss this with me I would he grateful to know! It's just getting past the initial "no" so I can show them how legit it is that is the problem.

368100

Sent you a PM

pedroeibar1

Bronyraur wrote: »

Yes I figured I would have to get a legal opinion alright. But, money laundering issues aside, this is a legitimate request so I was a little surprised that the Irish banks don't just do some due diligence instead of giving me a blanket "no".

As you suggest, I'm sure there are foreign un-registered companies with accounts in Ireland but it's just finding the bank or person who will open one for you is the problem!

Why should they? The downside for them is huge, the upside is your small account. Looking at your posts in taxation you seem to be looking for advice on how to work around taxation issues..... as others have said, go to an accountant.

Bronyraur

Well if the downside is so huge they all may as well close their doors and not do business at all! Stay extra safe. It's an international business world out there now and people incorporate companies everywhere and go and live and work all over the world now, some people just want a bank account in different countries for legitimate reasons. It's no big deal.

Of course I'm looking for the most efficient manner to tax my affairs, why wouldn't I? I will go to an accountant when I need accounting done, right now I want to know if anyone has a foreign company with an Irish bank account. Do you have some kind of bee in your bonnet about this?

pedroeibar1

Bronyraur wrote: »

Well if the downside is so huge they all may as well close their doors and not do business at all! Stay extra safe. It's an international business world out there now and people incorporate companies everywhere and go and live and work all over the world now, some people just want a bank account in different countries for legitimate reasons. It's no big deal.

Of course I'm looking for the most efficient manner to tax my affairs, why wouldn't I? I will go to an accountant when I need accounting done, right now I want to know if anyone has a foreign company with an Irish bank account. Do you have some kind of bee in your bonnet about this?

Drip feeding info is not helpful…..Most here know about international, it's demeaning and childish to be told in platitudes. I’ve no bee nor even a bonnet, and I’ve opened bank accounts in several countries, with varying degrees of difficulty and ease. I’ve also registered a branch in Ireland (of an EU company) and opened a current account with online access to the overseas HQ. It was seamless, done with Bank of Ireland. If you do business in a foreign market, you respect the local laws. Compliance is one of them, particularly in the EU. Even more particularly when it comes to possible money laundering / tax avoidance. Bitching about banks not jumping to your beck & call does not work. The answer is straightforward, go read the 2014 Act and see why you need to register a business/branch in Ireland. Or, if you are too busy to do that, go to an accountant and pay to be told.

pedroeibar1

And if you are still wondering, have a read of THIS and then wonder why the banks are not jumping with joy to greet you!;)

sysprogrammer

There was a lack of info in your original post about your situation.
and the anti-money laundering laws, and as pointed out , why bother with small accounts .

It is okay to try pay tax efficiently, however this looks a bit unnecessarily complicated, and I really recommend to seek the services of a professional accountant who specialises in tax.

It will save you a lot of time and money for a small outlay