Corporate banking in Estonia in 2022
Healy Consultants Group PLC will effectively and efficiently assist our Clients to secure a corporate bank account in Estonia and obtain additional corporate banking facilities with preferential terms. All required due diligence documents will be submitted on our Client’s behalf to their preferred bank. If required, Healy Consultants Group PLC will be pleased to attend bank interviews and complete bank application forms on our Client’s behalf. Kindly read below to have a complete understanding before applying for business banking in Estonia and our recommended banking facilities available in the country.
Estonia corporate banking options
- The Estonian banking sector is predominantly owned by the Scandinavian banking groups including i) Swedbank; and ii) SEB bank. These two banks are the only ones that are considered as 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 have proved to be financially stable with Tier 1 capital ratios averaging between 15-30% in 2014, according to ECB stress test data;
- Healy Consultants Group PLC 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. The consequence of this strategy would be a reduction in i) the total engagement timelines and ii) the bank’ requirements for our Client’s background check;
- Local Estonian banks, such as i) Eesti Krediidipank and ii) LHV bank, have also proved to be excellent providers of complete financial services. They offer online banking services in English and are less stringent in their due diligence policies. Consequently, some of our Clients may choose to open a bank account with a local Estonian bank instead of an international group.
Healy Consultants Group PLC Estonia corporate banking services
- Healy Consultants Group PLC assists our Clients with opening a corporate bank account in Estonia for a one-time fee of €4,950. Please read below for further information:
- Healy Consultants Group PLC will be pleased to open an Estonia corporate bank account without travel. It is a time-consuming task, Healy Consultants Group PLC 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, directors and bank signatories reside overseas. Healy Consultants Group PLC will prepare a business plan for the bank to optimize the probability of corporate bank account approval. Depending on our Client’s business activity and nationality, there is a 10% probability that the banks will request a bank signatory to travel for a one-hour bank interview. Healy Consultants Group PLC 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 Group PLC will refund our Client €950;
- If our Client is not comfortable with a Estonia corporate bank account, Healy Consultants Group PLC 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 €4,950 without travel or €4,000 with travel. All banks will be top tier banks in these countries with excellent internet banking services;
- The banks enjoy ultimate power of approval of corporate bank account applications. Consequently, guaranteed success is outside of Healy Consultants Group PLC’s 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 Group PLC 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 with multiple options of corporate finance to foreign entrepreneurs. Healy Consultants Group PLC 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 the associated 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 Group PLC will proceed as below:
- Prior to Estonia company formation, Healy Consultants Group PLC will assist our Client to choose the best corporate bank account amongst the different banking options available;
- Healy Consultants Group PLC will submit 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 Group PLC will email our Client with all the bank account details required for the share capital transfer;
- Our Client will then proceed to transfer the share capital onto their Estonian corporate bank account. The bank issues a certificate of deposit necessary to complete the Estonia business formation.
Exchange controls and other regulation
- Since 1992 with the implementation of a Currency Board system by the IMF, Estonia has lifted all the 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 available currency;
- Estonia’s Central Bank does not restrict the amounts of foreign currency that residents may hold in their bank accounts.