Opening A Bank Account – The Most Challenging Aspect Of Company Formation Germany

Even though the process of setting up a business in Germany is relatively simpler as compared to other European countries, it can still prove extremely challenging for non-German investors. One of the biggest challenges faced by such investors is that of opening a German bank account. Unlike the other aspects of company formation Germany that are largely related to its incorporation, opening a bank account is more about dealing with the red tape and the procedural policies within the country. This naturally makes the process quite difficult, especially for individuals who are neither German citizens nor live in the country but might be interested in setting up a business in the country.

Challenges Of Opening A Bank Account For Foreigners

Theoretically, it is possible to open a Greman business account with almost any direct bank. However, the services of such bank accounts can be availed strictly online as they do not have any specific physical location where the account holders can access them from. Moreover, the requirements for opening a  bank account in Germany may vary from one bank to another. In this context, direct banks are often more accommodating for clients intending to open a bank account for setting up a GmbH in Germany. Most other banks make opening a bank account quite difficult for non-German citizens and foreign business investments.

Key Documents Required For Opening A Bank Account

As with other aspects of forming a GmbH in Germany, opening a bank account also requires foreign investors to provide some vital documents to the banks. The most important of these documents are listed as follows.

·         Valid documents that confirm the identity of the applicants seeking to open an account.

·         Legalization certificates for any foreign certificates and documents

·         Proxy form permitting a specific representative of the applicant to open the business bank account in his/her name.

·         Additional proof and information are required for the purposes of confirming the identity of the applicants.

Other Key Factors To Keep In Mind

In addition to submitting the aforementioned documents, the applicants need to ensure that these are acceptable in Germany. This is extremely important as the authentications and legalizations of several countries are not acceptable in Germany due to various political reasons. This is irrespective of the fact that these nations still take part in this process. In case the applicants are not able to submit their identity proof in person, they can do so through their representative. If it is impossible to submit identity proof in either way, then the applicants can opt to complete Videoldent or POSTIDENT process for the same. While the former process is suitable for people living outside Germany, the latter process is valid for people living in the country itself. The applicants also need to consider the fact that almost all German banks prefer that any documents submitted to them are first translated to German.