Russia corporate bank account
Healy Consultants Group PLC will be pleased to assist our Clients with the opening of a corporate bank account 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 available in Russia and Healy Consultants Group PLC’s 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 being said, 2015 began 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 fall in oil prices from US$115 per barrel in June 2014 to US$49 per barrel in January 2015;
- Most of the commercial banking institutions in the country are state-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 Group PLC often recommends our Clients to use Russian local banks, as most of them i) offer at par online banking services in English and ii) do not have high due diligence requirements. Consequently, many of our Clients may choose to open a bank account with a local bank. Healy Consultants Group PLC recommends either Sberbank or VTB as the preferred local institution;
- Alternatively, Healy Consultants Group PLC can open a corporate bank account for our Clients with international banking groups, including i) ING Russia, ii) Citibank Russia and iii) HSBC Russia;
- Healy Consultants Group PLC always recommends our foreign Clients to open their corporate bank account with a bank with which they have a prior banking relationship in another country, thus reducing i) the total time required to open the bank account and ii) the bank’s requirements for our Client’s due diligence check.
Corporate banking services of Healy Consultants Group PLC Russia
- Please find below a detailed process of opening a bank account and the corresponding Healy Consultants Group PLC’s services:
- Our experts will be pleased to assist our Clients with the process of opening a corporate bank account in Russia. It is a time-consuming task; however, Healy Consultants Group PLC 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 with their corporate bank account number;
- Healy Consultants Group PLC 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 Group PLC 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;
- Russian 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) audited financial statements of last 3 years 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
- Both foreign companies registered outside of Russia and private persons are able to open corporate bank accounts in Rubles, Euros or US dollars with Russian banks without the need to register a local Russian company;
- According to the Russian Federal Law and Bank of Russia regulations, foreign companies must register with the Russian Federal Tax Authority prior to opening a corporate bank account in Russia;
- Healy Consultants Group PLC assists our global Clients secure accounts in Russia as follows:
- Healy Consultants Group PLC collects detailed due diligence documentation of the foreign company, it’s shareholders, director and UBOs in accordance with our KYC policy;
- Thereafter, our banking team approaches multiple Russian banks to confirm their interest in onboarding our Client’ business;
- Healy Consultants Group PLC assists our Client to translate to Russian all the necessary foreign corporate and personal KYC documents and legalize the same;
- Healy Consultants Group PLC proceeds to register our Client’s company with the Russian Federal Tax Authority and secure INN Certificate (Tax Registration Certificate) in accordance with article 86 of the Tax Code of the Russian Federation;
- Thereafter our banking team will prepare our Client’s preferred bank’s application forms and attempt to negotiate exemption for personal travel to Russia for the foreign bank signatory;
- If the bank declines our request for travel exemption, our Client can appoint Healy Consultants Group Russia representative to attend a bank meeting on their behalf;
- Our team will schedule a meeting with the preferred bank either at the bank branch or at Healy Consultants Group’s Moscow affiliate office to sign off the complete bank application forms, CRS and FATCA forms;
- Following the bank account approval, the bank will directly email our Client the corporate bank account details. This process typically takes a minimum of 2 weeks;
- Thereafter, within 2 weeks our Client will receive i) online banking access (internet banking) and ii) debit cards.
Exchange controls and other regulation
- Despite the sanctions imposed by the European Union and the United States to hundreds of individuals for asset freezing and capital repartition lockdown, the Russian Federation boasts liberal foreign exchange controls. However, it is still challenging to get approval from the Central Bank to transfer the funds outside 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.