Corporate banking in Estonia
Healy Consultants will be happy to help our Clients to secure a corporate bank account in Estonia and obtain additional corporate facilities with preferential terms. All required due diligence documents will be submitted on our Client’s behalf to his preferred bank. If required, Healy Consultants will be happy to attend bank interviews and complete bank application forms on our Client’s behalf. Kindly read below for complete Estonia banking sector guide and our recommendations for the banking facilities available in this country.
Estonia corporate banking options
- The Estonian banking sector is predominantly owned by Scandinavian banking groups including i) Swedbank; and ii) SEB bank. These two banks are the only ones considered medium-sized banks in Estonia, while the other six are considered as small banks;
- While the European Union is having trouble with the soundness of its banking sector, Estonia’s banks proved as financially stable with Tier 1 capital ratios averaging between 15-30% in 2014, according to ECB stress test data;
- Healy Consultants recommends our non-EU Clients to open their Estonian corporate bank account with a bank with which they already have a bank account in another home country, for example SEB bank. As a result, this strategy will reduce i) the total engagement timelines and ii) the bank’ requirements for our Client’s security check;
- Local Estonian banks, such as i) Eesti Krediidipank and ii) LHV bank, can also prove as an excellent providers of complete financial services. They offer online banking in English and are less stringent in the due diligence policies. Consequently, some of our Clients may choose to open a bank account with a local Estonian bank instead of international group.
Healy Consultants Estonia corporate banking services
- Healy Consultants assists our Clients with opening a corporate bank account in Estonia for a one time fee of €3,950. Please read below for further information:
- Healy Consultants will be pleased to open an Estonia corporate bank account without travel. It is a time consuming task, Healy Consultants will shelter our Client from the administrative challenges. As you can appreciate, it is a difficult task to obtain bank account approval through a newly formed company, when shareholders and directors and bank signatories reside overseas. Healy Consultants will prepare a business plan for the bank to optimize the probability of corporate bank account approval. Depending on our Client business and nationality, there is a 10% probability the banks will request a bank signatory to travel for a one hour bank interview. Healy Consultants will try its best to negotiate with the bank for a travel exemption. If our Client must travel to Estonia for corporate bank account opening, Healy Consultants will refund our Client €1,450;
- If our Client is not comfortable with a Estonia corporate bank account, Healy Consultants can open an international corporate bank account outside of Estonia. Examples include New York, Germany, Bulgaria, South Africa, Australia, London, Singapore, South America or Dubai. Our fee for this service is €3,950 without travel or €2,550 with travel. All banks will be top tier banks in these countries with excellent internet banking services;
- The banks enjoys ultimate power of approval of corporate bank account applications. Consequently, guaranteed success is outside of Healy Consultants’ control. What is inside our control is the preparation and submission of a high quality bank application that maximizes the likelihood of approval. To date, we enjoy a 100% approval record because of our global banking relationships and determination;
- Global banks continue to tighten corporate bank account opening procedures, their internal compliance departments completing more thorough due diligence of Clients. Consequently, our Clients should expect the bank account approval period to take up to 4 weeks. Furthermore, global banks now require evidence of proof of business in the country where the corporate bank account will be, including sales contracts or lease agreement.
- If requested, Healy Consultants will also be pleased to assist our Clients with obtaining bank financial support for their projects in Estonia. Please read below for further information:
- Estonia banks are happy to provide multiple options of corporate finance to foreign entrepreneurs. Healy Consultants will be happy to assist our Clients with obtaining corporate finance in the form of i) a corporate loan; ii) credit lines; iii) overdraft strategies or iv) preferential credit terms. Please contact our Estonia relationship office for inquiries regarding these services and related fees;
- To provide the facilities described above, in most cases Estonian banks will require additional corporate due diligence, including: i) quality business plan with SWOT analysis; ii) sufficient collateral; iii) qualification and education of the management and iv) audited financial statements of up to 3 years;
- If required by our Clients, our expert corporate banking team will be happy to assist our Clients to secure European trade finance facilities including i) extended bank guarantees ii) L/Cs iii) finance against trust receipt (for imported goods) and iv) document against payment and against acceptance.
Opening a corporate bank account in Estonia
- In order to open a corporate bank account on our Client’s behalf, Healy Consultants will proceed as below:
- Prior to Estonia company formation, Healy Consultants will assist our Client to choose the best corporate bank account amongst the different banking options available;
- Healy Consultants submits a complete corporate bank account opening application to the preferred bank including i) all bank questionnaire forms and ii) all due diligence documents;
- Once the corporate bank account is approved, Healy Consultants emails our Client the bank account details required for the share capital transfer;
- Our Client then proceeds to transfer the share capital onto its Estonian corporate bank account. The bank issues a certificate of deposit necessary to continue with Estonia business formation.
Exchange controls and other regulation
- Since 1992 with the implementation of a Currency Board by the IMF, Estonia does not implement foreign exchange controls on payments to foreign individuals and companies;
- Both residents and non-residents in Estonia are allowed to open bank accounts in foreign currencies, including €, US$ and any other currency available;
- Estonia’s Central Bank does not restrict the amounts of foreign currency that residents may hold in their bank accounts.