Russia corporate bank account
Healy Consultants will be happy to set up a corporate bank account for our Clients in Russia. Our experienced corporate banking division will prepare the requisite due diligence documentation and submit them to our Client’s preferred bank in Russia. Kindly find below a detailed guide regarding various banking options in Russia and Healy Consultants’ services in this regard.
Russia corporate banking options
- Russia’s banking sector grew significantly in the past decade with current revenues of the largest banking group – Sberbank reaching US$6 billion (RUB 362 billion). This said, the start of 2015 was marked with destabilization of the Russian financial system due to two major factors, including i) the economic sanctions levied by the United States and the European Union; and ii) the the falling oil prices from US$115 per barrel in June 2014 to US$49 in January 2015;
- Most of the banking institutions in the country are Russian-owned with most international banks not having a sizable presence in the country. Reputable Russian banks with quality corporate banking facilities include i) Sberbank; ii) VTB and iii) Alfabank. Healy Consultants often recommends our Clients use Russian banks as most local banks i) offer up to par online banking in English and ii) do not implement high due diligence requirements. Consequently, many of our Clients may choose to open a bank account with a local bank. Healy Consultants recommends either Sberbank or VTB as the preferred local institution;
- Alternatively, Healy Consultants can open for our Clients a corporate bank account with international banking groups including i) ING Russia; ii) Citibank Russia and iii) HSBC Russia;
- Healy Consultants always recommends our foreign Clients to open their corporate bank account with a bank with which they have prior banking relationship in another country, thus reducing i) the total time required to open the bank account and ii) the bank’ requirements for our Client’s due diligence check.
Healy Consultants Russia corporate banking services
- Please find below an overview of Healy Consultants’ services:
- Our experts will be pleased to assist with opening corporate bank accounts in Russia. It is a time consuming task; however, Healy Consultants will shelter our Client from all administrative issues. Unfortunately, all bank signatories must have a face-to-face meeting with a bank officer either at the bank or at our Moscow affiliate office. During this meeting, the bank officer will certify the signature of the signatory.
- Following bank account approval, the Russian bank will directly and independently email our Client the corporate bank account number;
- Healy Consultants will be pleased to assist our Clients with obtaining financial support for their projects in the country. Please read below for further information:
- Healy Consultants will be happy to aid our Clients in obtaining additional corporate finance in the form of a business loan, credit card overdraft or extended credit lines. Please contact our dedicated Russia relationship officer for inquiries regarding these services and related fees;
- Russia banks will consider providing funds to finance investment or export finance projects, provided sufficient due diligence is submitted. Local banks often require the following documentation to consider an application, including: i) industry specific business-plan; ii) availability of collateral assets; iii) qualification and experience of business owners and management; iv) last 3 years audited financial statements and v) a detailed review of the project’s strength, weaknesses, opportunities and threats (SWOT matrix);
- Our in-house financial advisor will also be happy to provide our Clients with further assistance to secure trade finance services including i) bank guarantees; ii) letters of credit; iii) finance against trust receipt (for imported goods) and iv) document against payment and against acceptance.
Opening a corporate bank account in the Russian Federation
- To proceed to open a corporate bank account on our Client’s behalf, Healy Consultants will advance as below:
- Before setting up a business in Russia, Healy Consultants will help our Client decide between corporate bank account with local or international banks;
- As a next step, the exact corporate structure is agreed with our Client, according to Russian Company Laws;
- Healy Consultants notarizes the signatures on the registration application with Russian Notary Public and prepares company deeds and articles of association for Russia company formation;
- Healy Consultants successfully registers our Client’s company with the unified register at the Federal Tax Service to obtain the single number for state registration and federal tax registration, required for corporate bank account setup;
- Our Client meets the bank officer and completes the bank account opening application for opening the bank account;
- Once the corporate bank account is approved, Healy Consultants emails our Client the bank account details;
- Our Client then proceeds to transfer the share capital to the Russia corporate bank account.
Exchange controls and other regulation
- Despite the sanctions imposed by the European Union and the United States for asset freeze and capital repartition lockdown to several hundred individuals, the Russian Federation boasts liberal foreign exchange controls. Consequently, cash flows are free to move in and out of the country without restrictions from the Central Bank of Russia;
- Both residents and non-residents in Russia are allowed to open bank accounts in foreign currencies, including €, US$ and Ruble. There are no restrictions on the amount of foreign currency that residents may hold in their bank accounts.