Banking services are an essential part of the journey to incorporate a company in Latin America. Some of the bureaucracy and administration in the process can be unfamiliar or confusing to foreign businesses entering the region, and that’s where we step in. we can help open a corporate bank account in Latin America. Of course, there are significant differences between countries, so this is a general guide to the area as a whole.
The process involves navigating through various requirements specific to each country’s banking system. Understanding the documentation needed, is crucial to expedite the process. A lot of this is to ensure that your corporate bank account in Latin America is compliant with international anti money laundering regulations and to provide transparency. This is key to the economic growth in the region.
At Biz Latin Hub we can help you through every stage of the process of opening a corporate bank account in Latin America and provide you with a full array of back office services throughout your company’s presence anywhere in Latin America and the Caribbean. Thanks to our network of 18 dedicated local offices, we have covered no matter where you are.
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What Documents are Required to Open a Corporate Bank Account in Latin America?
Opening a corporate bank account in Latin America involves navigating through various legal and financial requirements specific to each country’s banking system.
In terms of documentation, you will generally need any or all of the following:
- Proof of local tax registration and copy of the unique number.
- Power of Attorney of the Legal Representative.
- Copy of the ID of the Legal Representative(s) of the company.
- Certified financial statements.
- Declaration of income in the last taxable year.
- Valid original passport with at least two blank pages.
- Good quality picture 3×4 cm, white background.
- Proof of initial capital.
Please note that these requirements may vary depending on the bank as well as the country.
Some Banking Options in Latin America
There are several local and international banks in Latin America that provide good options for foreign companies looking to open corporate accounts. We are listing banks that operate in a number of countries as well as some of the larger operators within big economies.
Most countries will have at least one strong local only option that is usually worth considering, especially if you are likely to operate only in that market. Brazil especially is largely separated in banking terms from the Hispanophone countries. Ultimately, the bank you choose will depend on your particular business needs. However, these are some popular options across the region:
- Itaú
- HSBC
- Citibank
- JPMorgan Chase
- BBVA
- Banco do Brasil
- Banco Santander
- Banorte
- Banco de Crédito e Inversiones
- Davivienda
Our recommendation: You should choose a bank with good international relations. Banks such as CitiBank are excellent choices for foreign investors in the Latin American banking sector, known for their wide range of financial products and services tailored to the needs of both domestic and international companies.
4 Steps for Opening a Bank Account in Latin America
Once you have chosen a provider to bank with, you are ready to begin the process of opening a corporate account. Once you have completed each of the steps and your corporate bank account is established, you are ready to begin business operations.
To open a bank account in Latin America you must follow these 4 steps:
- Step 1 – Get a taxpayer number from the local tax office.
- Step 2 – Provide relevant documentation to the bank for approval
- Step 3 – Wait for the bank to check your company information and follow any additional processes.
- Step 4 – Make a minimum deposit.
Below is more information on each of the steps outlined above.
1. Register with the tax authorities
As your first step, you will need to register with the local tax office
Once you have obtained the pre-RUT, you should present it to the provider of your choice, along with the additional required documentation and ask that they open a corporate account for your company.
2. Give the bank the documents they need
Opening a corporate bank account in Latin America involves navigating through various legal and financial requirements specific to each country’s banking system.
In terms of documentation, you will generally need any or all of the following:
- Proof of local tax registration and copy of the unique number.
- Power of Attorney of the Legal Representative.
- Copy of the ID of the Legal Representative(s) of the company.
- Certified financial statements.
- Declaration of income in the last taxable year.
- Valid original passport with at least two blank pages.
- Good quality picture 3×4 cm, white background.
- Proof of initial capital.
3. Wait for the bank to check your company information
Once the bank has received the necessary documents, it will check your company information and verify that the funds you are depositing were acquired legally. This process can take a few days (or longer).
To avoid problems, be sure that you understand all the rules regarding wire transfers. The wire transfer process is heavily regulated in Latin America, and failing to take the proper steps could result in investigation and fines, as well as extra time, stress, and frustration.
You can also expect a background check, just like when you open a personal bank account. The bank will see that you have no outstanding warrants or unpaid bills. Certain criminal histories, such as those relating to drug trafficking, money laundering, and other financial crimes, could result in your account application being denied.
4. Make a minimum deposit
Once the bank has approved your company as a customer, you will be required to make a minimum deposit. The minimum deposit requirement will vary from bank to bank and may also be mandated according to specific entity regulations which vary by country. Take this into account when choosing where to open an account.
FAQs on opening a corporate bank account in Latin America
Based on our extensive experience, these are the common questions and doubts of our clients about opening a company bank account in Latin America:
This depends on the country and the bank. We always recommend appointing a legal representative based in Latin America because there are often actions that must be performed in a physical branch of the bank.
Normally, the bank will ask for the application form, the articles of incorporation, and the identification documents of the shareholders and legal representatives. If the bank sees it relevant, they will ask for additional documents.
Bank account access can usually be granted by the account owner through the virtual platform of the bank with a physical security token device. Some banks in Latin America will provide an online platform in different languages, but most are only in Spanish.
In most cases, we recommend using one of the larger banks which have significant experience with international commerce, provide a broad service offering, and have a large number of branches and ATMs. If you only want to operate in one country, you may be best off with their biggest bank.
A bank account is a must for all companies in Latin America. The bank account will allow you to complete operations, including paying taxes, payroll, local suppliers, and all domestic transactions.
This depends where you are. Banking secrecy is often a constitutional right in Latin America, but measures such as UBO (Ultimate Beneficiary Owner) registration are increasingly being instituted.
Biz Latin Hub can help you open a corporate bank account in Latin America
At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean, with 18 offices in major cities across the region. We also have trusted partners in many other markets.
Our unrivaled reach means we are ideally placed to support multi-jurisdiction market entries and cross border operations.
As well as knowledge of how to open a corporate bank account in Latin America, our portfolio of services includes hiring & PEO, accounting & taxation, company formation, bank account opening, and corporate legal services.
Contact us today to find out more about how we can assist you in finding top talent, or otherwise do business in Latin America and the Caribbean. Or read about our team and expert authors.
