What Not to Do When Setting Up a Foreign Bank Account
If you’re thinking about expanding your business internationally, it’s a good idea to set up a bank account in the country you’re targeting. This overseas bank account will simplify things when you eventually have to make payroll and tax payments. However, setting up a foreign bank account can be challenging if you don’t know what to expect. Here, Galvin International walks you through the details of establishing a foreign bank account for seamless international expansion—here’s what not to do.
Delay the Setup
Though the world of business is fast-paced, setting up a foreign bank account can take time. Banking compliance is growing more complicated, and this results in longer setup periods. You may need to gather data from different sources, and you’ll have to carefully check your records to make sure this data is accurate. Create your business expansion plan accordingly; allot enough time for your account approval to come through.
Allow Payments to be Authorised Without Your Approval
Always keep close tabs on your overseas account, and never allow payments to be authorised without your express approval, whether it’s for money movement, setting up new suppliers or payroll. Even if you’re employing a provider, ensure that your company signs off on all of the account’s transactions.
Forget to Test Your Payments from the Account
Don’t leave things up to chance. Check that your payments work before you need to send money out of your account. Conduct a ‘penny test’—transfer a small amount of money to another account—to guarantee that your employees, suppliers or taxes aren’t left unpaid.
Go in Blind
One of the most important things you can do in the process of expanding your business is to educate yourself on what it takes to grow globally. Galvin International can help—we’ll assist you in finding the right overseas bank for your business, guide you through banking compliance and set up partnerships with providers and advisers who are experts in your targeted expansion country.
We’ll also lay out your options for you. Setting up foreign bank accounts is often necessary in the globalization process, but there are other methods of payment you can use in certain instances. For example, Galvin International can explain the benefits and drawbacks of making payments directly from your HQ bank accounts, or the pros and cons of using money movement services. By getting to know you and your business, we can determine the right methods for you.
At Galvin International, we work with you through each step of your business’s expansion. We provide you with experts on the ground and fill you in on all the details, keeping your company compliant and your operations running smoothly. Ultimately, we strive to give you the resources your business needs to grow and flourish. Get in touch with us today to learn more about setting up foreign bank accounts and expanding your business internationally.
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