For opening any type of company, one of the most important steps is to open a company bank account. It has some features that distinguish it from the bank account of an individual.
Entering a branch of a bank, you will be presented with different types of accounts that are offered to legal entities. Keep in mind that for foreign citizens the process of opening an accumulation and current account is complicated. Often the foreign citizens don’t receive an approval, sometimes it takes 3-4 months for the documents to be reviewed, and there are also more costs. For example, all banks have a fee for reviewing documents for entering into a business relationship with them. Whether you are approved or not, the bank withholds the fee.
The process of opening a company bank account requires special knowledge, we at T&G Consulting can help you.
We present you brief information about the types of accounts:
The accumulation account is a special company bank account to which a certain amount of money is deposited in favor of a company and is a mandatory condition for the establishment of the company. Such an account can be opened by any person managing and representing a company in the process of incorporation. Usually the amount on this account remains blocked until the registration of the respective company or the increased capital. This type of company bank account can be opened both in BGN and in another currency, and the most common documents required for opening are:
- Completed account opening form;
- Specimen of the signatures of the persons who have the right to dispose of the money on the account on behalf of the corporate client, and the seal of the company
- Protocol for establishment of the company / decision for increase of the capital of the company
- The relevant memorandum of association, as well as a document showing which persons have been elected as managers / managing body of the company, if they are not specified in the minutes / memorandum of association
We would like to note that depending on the type of business you have, the bank may require additional documents for opening a fundraising account.
The current account for legal entities is mainly used for daily banking operations and payments. It can also be used to track completed transactions and account balances. The current company bank account is used to make utility payments, to pay salaries, commissions, insurances. This type of account can be opened both in BGN and in foreign currency. The documents required for its opening are:
- Request to open an account;
- Specimen of the signatures of the persons who dispose of the funds on the account – to be filled in on the spot in a bank office.
- Court decision for registration of the company;
- Certificate of current status;
- Bulstat (company) number;
- Company contract.
What is the difference between a current and an accumulation account?
The current company bank account is the typical bank account. Bank transfers can be made to and from it. A debit card can be linked to it, online banking can be used. With the opening of an accumulation account the goal is different. It is suggested by her name – accumulation. These funds deposited in this company bank account are the initial capital of a commercial company (firm). At the time of opening the account, the company has not yet been established and cannot use these funds.
The third type of company bank account is the special account or so. Escrow account. These accounts are opened in cases when it is necessary to make payments on transactions (e.g. real estate transaction, acquisition of shares, tangible fixed assets). In this case a tripartite agreement is concluded between the Bank, the recipient of the funds and a third party – ordering party. The funds on the account are used only when the conditions of the agreement are fulfilled. This type of accounts can be both in BGN and in foreign currency. It is intended only for making payments related to the relevant agreement, which is why it has a blocked expenditure part.
We at T&G Consulting are ready to assist you and advise you on issues related to establishing a company and opening a company bank account. We rely on many years of experience and constant study of the latest requirements – contact us!
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