Every business operating in Ireland will need a business bank account. This includes cash-based businesses; they require bank accounts to receive payments from clients and pay their suppliers as well. Above all, a business bank account ensures that you separate personal finances from business finances for the sake of accountability.
The process of opening a business bank account in Ireland varies depending on whether the business in question is a sole proprietorship/ partnership or a limited company.
Setting up a business bank account for sole proprietorships/ partnerships
It is simple for sole proprietors operating under their legal names to set up a business bank account in Ireland. However, sole proprietorships and partnerships that operate under names that are not their true legal names are required to provide banks with additional information to prove their authenticity such as; business name registration certificate, information about each partner, nature or partnerships and partnership agreements. Note that, in both scenarios, banks may ask for information about any other beneficiaries of the business. They may need their proof of address and identification.
Setting up a business bank account for limited companies
A limited company’s Board of Directors must pass a resolution to open a bank account. Bank will have mandate forms that authorize them to follow directions by the board of directors regarding the opening and operations of the account such as; who is permitted to carry out transactions on behalf of the company and what should be the daily withdrawal limit. The mandate form must be duly signed by any individual authorized to operate the bank account on behalf of a limited company. The bank may also request additional company information like; memorandum of understanding, articles of association, certificate of incorporation and business name registration certificate. Note that, the bank may request official copies for verification. Banks may also request information about beneficial company owners; those with voting powers or control 25% or more of the company shares. Information on beneficial owners includes; proof of address and proof of identity.
Opening a business bank account in Ireland is not that complicated, but, getting the process complete with the help of experienced Ireland company registration experts simplifies the business bank account opening process and avoids discrepancies that may affect business operations later on. This is because having a business bank account is crucial for investors as it grants them the authority to do legal transactions and explore other business ventures that appeal to them in the region. As such, a business bank account in Ireland opens up the door to great business opportunities available in the country and the vast EU region; explains why every investor must ensure that they follow the business bank in Ireland opening process and guidelines to the latter.