How to open an international business account

Domestic business accounts make separating company and personal transactions much easier. In fact, most entrepreneurs consider them essential.   

However, international business accounts are very useful for firms that partner with overseas suppliers, have subsidiary companies or staff abroad, or want to expand globally. Multi-currency accounts make paying and collecting funds in other regions easier by segregating one main account into currency-specific subaccounts. 

This guide will explore the benefits of opening an international business account and explain how doing so could transform your growing enterprise. 

What is an international business account? 

With an international business account, you can pay, receive and hold funds in different currencies. Currencies are held in subaccounts with unique IBANs within your main account. So, when you log in, you should see how much money you have in total and how much you have in each currency. 

What are the benefits of an international business account? 

International business accounts are practical if you regularly pay staff or suppliers in other countries. They also make managing your global cash flow simpler, allowing you to control currency conversions and transfer funds as needed. 

While you could use a conventional account to transact internationally, the benefits of an international business account include: 

• Multi-currency access: You choose which currencies to keep in your account. Some providers offer more than 50 currencies, while others have a more limited range. 

• Faster payments: Make one-off, batch and bulk payments quickly and easily without incurring high fees. 

• One main account: Currency-specific subaccounts eliminate the need to open multiple accounts in different countries, reducing admin time.

  
  

   

Premium providers also offer dedicated relationship managers and flexible international business account options to suit your needs. This level of service can be helpful if you have more complex financial needs. 

What to look for in an international business account 

There’s no one-size-fits-all international business account – especially if you run a small or medium-sized business. It’s important to choose an account with features that suit your needs. 

Is the account easy to use? 

An uncomplicated platform makes getting the most out of your international business account easier. Ideally, you should be able to see an overview of your total balance and the balances held in all your subaccounts. You should also be able to move money between currencies from a central dashboard and access help when you need it. 

Are the exchange rates and fees fair? 

Some providers charge a high markup on foreign currency exchanges. Others have a wide gap, called a spread, between bid-ask prices for currencies – in other words, what they’re willing to sell a currency for versus what they pay for the same currency.  

Hefty markups can cost you money over time, so it pays to check a firm's fees and typical foreign currency spread before committing to an account. Spreads should stay within three per cent in all but the most unusual FX transactions. 

Is the provider compliant? 

Finally, ensuring your potential account provider complies with the law is essential. Unfortunately, companies sometimes offer services they’re not licenced to provide, so it’s vital to check these two resources before signing up for services: 

• The FCA Register: The FCA Register includes all regulated individuals and firms in the UK. Searching the Register online can reveal whether an international business account provider is listed and regulated.  

• The ICO register of data protection fee payers: Companies that process and hold personal information must register with the Information Commissioner’s Office (ICO). You can look for an international business account provider’s name on the ICO register of data protection fee payers.  

  
  

   

Searching the sites above can help you avoid being scammed by a clone company – a firm masquerading as a legitimate FCA-registered organisation. 

How do you open an international business account? 

To open an international business account, you'll need many of the same documents required for opening a domestic business account. However, some banks only open international accounts for existing customers, while others have minimum income, deposit or balance requirements – especially if you live outside the UK.

An alternative bank account could be a good solution. These providers follow the same strict regulatory standards as traditional banks but offer a customised approach to compliance when opening accounts. This often allows for quicker account setup, enabling business owners to start transacting in days instead of waiting weeks or months. 

Here's a general overview of the steps to open an international business account: 

• Complete the application form either online or in person. 

• Submit all necessary business-related documents. 

• Verify your identity, home address and business address. 

• Go through the compliance screening process. 

• Make an initial deposit to activate your account. 

All financial institutions, including alternative providers, must adhere to strict anti-money laundering (AML) and counter-terrorist financing (CTF) procedures to make sure clients are legitimate, legal businesses. This means you’ll need to answer specific AML and CTF-focused questions during onboarding, like these: 

• What does your company do? 

• Where do you do business? 

• Do you partner with individuals or companies in high-risk countries? 

• What do you intend to use your account for? 

• Where do your incoming funds originate? 

You'll also need to pass a liveness test either in person or via video link to prove you're a real individual. Other compliance checks may also be necessary.

Can anyone open an international business account? 

Most legitimate business owners should be able to open an international business account via a traditional bank or an alternative provider. Because or their more complicated compliance needs, businesses with complex structures, offshore trusts and free zone companies sometimes find it easier to open accounts with alternative providers. 

International business accounts from Interpolitan 

Business current accounts separate company and personal transactions, making them ideal for entrepreneurs in the UK. However, if you trade across borders, need to pay staff overseas or partner with suppliers in other regions, your domestic account might not be flexible enough to meet your needs.  

An international business account from Interpolitan could be just what you need. Our experienced compliance team can assist companies with complex structures and more extensive due diligence requirements than banks typically offer. Once onboard, we assign you a dedicated relationship manager – a real person who is available whenever you need help. 

• 55+ currencies available. 

• Transact in 160+ countries. 

• Experienced compliance team. 

• Dedicated relationship management. 

• Consistent and fair FX spreads. 

To learn more about international business accounts from Interpolitan, contact us today.