Opening Accounts for Foreign Companies in Belarusian Banks

In recent years, Belarus has attracted the attention of foreign companies with its open economy and convenient business conditions. One of the aspects of successful activity in the Belarusian market is the possibility of opening bank accounts, which refers to the steps necessary for the implementation of financial transactions, payment processing and resource management. This article will look at the main features of opening bank accounts for foreign companies in Belarus, including document requirements and practical business tips. Understanding these aspects will help companies integrate into the Belarusian financial system and succeed in the new market.

Why should a foreign company open a bank account in a Belarusian bank?

Opening a bank account with a Belarusian bank provides foreign companies with many advantages and opportunities for doing business in Belarus. Here are some key reasons why this might be useful:

1. Simplification of financial transactions
Having a local bank account allows foreign companies to easily and quickly carry out financial transactions, such as transfers, settlements with counterparties and receiving payments from customers who are located in Belarus.
2. Reducing currency risks
Opening an account in Belarusian rubles can help reduce currency risks associated with currency fluctuations and sanctions when the company does business in Belarus or with Belarusian partners.
3. Convenience of calculations
A bank account facilitates settlements with local suppliers and customers, as transactions can be carried out faster and with lower fees for international transfers.
4. Access to finance
Some Belarusian banks offer financing, including loans and guarantees, only for companies with accounts with these banks. This can provide additional financial opportunities for business growth.
5. Attracting investment
Having a bank account in Belarus can increase the confidence of investors and partners, demonstrating the company’s commitment to the local market.
6. Compliance with the law
You need to open a local account to conduct some types of activities in Belarus, cooperate with government organizations, open representative offices, and start new companies. This requirement must be taken into account when planning a business.
Opening a bank account in Belarus is an important step for foreign companies that want to conduct business successfully in the country and take advantage of its economic opportunities.

How to open a bank account for a foreign company in Belarus

It is better to entrust the issues of opening a bank account in Belarus to a local representative or employee who is familiar with the specifics and speaks Russian. Such a representative will need a power of attorney from the company. The head of a foreign company usually does not need a power of attorney to open a bank account. Still, the Bank may request another document confirming the head’s authority.

Power of attorney to a representative of a foreign company

A power of attorney is issued by a foreign company and signed by the head of the company. The power of attorney must be translated into Russian or Belarusian, and the translation must be notarized.
There is no uniform procedure for opening bank accounts for foreign companies in Belarus. Each Bank determines the documents needed and the procedure for opening such an account. 
We recommend collecting certain documents before opening an account. In banking practice, these documents are requested from foreign companies to meet the requirements for preventing the legalization of proceeds from crime, the financing of terrorist activities, and the financing of the proliferation of weapons of mass destruction. Let’s analyze the standard process of opening a bank account by a foreign company step by step.

Step 1. Evaluating the possibility of opening an account
Not every foreign company can open a bank account in a Belarusian bank. Companies in certain jurisdictions that do not participate in international cooperation in preventing money laundering, financing terrorist activities, and financing the proliferation of weapons of mass destruction may not open Belarusian bank accounts. The list of such jurisdictions includes the DPRK and Iran.
Also, companies whose beneficial owners, founders, and managers are included in the list of persons involved in terrorist activities cannot open bank accounts in Belarus. 

Step 2. We collect documents for opening an account
It would help if you prepared an extract from the state’s commercial register where the foreign company is registered. Usually, banks ask for a statement up to one year before applying. For accuracy, the extract must be translated into Russian and notarized with the notary. Instead of an extract, another official company registration document is suitable. This document must be translated into Russian, and the translation must be notarized.
Also, banks usually ask for a document based on the company’s operations. This may be a charter or other document translated into Russian with a notarized translation.

Step 3. Get a permit (in case of opening a representative office of a foreign company)
Suppose a foreign company decides to open a representative office in Belarus. In that case, the representative office will need permission from the regional executive committee or the Minsk City Executive Committee to open a representative office and bank account. To open a representative office, you need the same documents as for opening a bank account, plus a power of attorney for the head of the representative office and regulations on the representative office. 
A permit to open a representative office is issued after paying the state fee and submitting documents within 30 days.
To open a bank account, some banks ask for a copy of the permission to open a representative office and the regulations on representation, certified by the head of a foreign company or a notary.

Step 4. Select the Bank to open an account with
There are 21 banks and two non-bank financial institutions operating in Belarus. The National Bank of Belarus’s website has a list of banks with links to their websites: https://www.nbrb.by/system/banks/list.
A foreign company can open an account with a Belarusian bank in Belarusian rubles and foreign currency. Different banks provide different conditions for clients to open accounts. You need to study:

• Conditions for opening and servicing bank accounts in different currencies.
• Terms of consideration of documents for opening an account with different banks. 
• The Bank’s ability and timing to make payments, particularly the ability to transfer money to foreign banks, may be restricted due to sanctions.

The list of documents required for opening an account and the requirements for these documents differ from Bank to Bank, so you should check with the selected Bank which documents are required for opening an account.

Step 5. Submit documents to the selected Bank
The selected Bank requires the foreign company’s representative to personally submit an application and a package of requested documents. A foreign company representative who submits documents to the Bank will need a power of attorney to open a bank account and sign contracts with the Bank. A representative can be authorized by a power of attorney to dispose of money in a bank account if the representative’s name is indicated on the signature sample card.

Step 6. Create a signature sample card
The Bank will ask you to fill out a card with samples of signatures of persons with the right to manage a bank account. 
A signature sample card is a paper document that the bank requests to issue in cases where a bank account is opened not remotely but by submitting documents in person. Foreign companies usually do not open bank accounts remotely with Belarusian banks. A signature sample card is required to confirm that the signatures of the persons who sign the settlement documents are correct. 
The Bank will ask you to confirm the credentials of the persons indicated on the signature sample card. Usually, this requires documents about the employment of these individuals: contracts and orders translated into Russian. You will also need documents that prove their identity. If necessary, all documents are translated into Russian, and the translation is notarized. 

Step 7. Fill out the client’s application form

• A mandatory questionnaire is a measure that is necessary for the Bank to meet the requirements for preventing money laundering and the spread of terrorist activities. In particular, you will need to provide the following information in the questionnaire:
• About the head of the company or a person who represents a foreign company by its constituent documents.
• About the person who manages accounting in the company.
• About its beneficial owners (these are individuals who own at least 10% of the company’s shares or interests or an individual who is the owner of the company): citizenship, surname and first name, patronymic (if any), date and place of birth, place of residence( stay), date of a passport or other identity document.
• About companies of a foreign company that own at least 10% of the shares or shares in the authorized capital.
• About the types of activities of a foreign company and management bodies.

Step 8. We receive documents about opening a bank account
Banks are required to open a bank account by the next business day after the client’s request. This allows the Bank to ask for the necessary documents in advance and write an application for opening an account after checking these documents. Before opening a bank account, the Bank’s security service checks the client’s application form and documents submitted by a foreign company representative. 
The Bank informs the account holder of the account number. It enters into agreements on account opening and cash settlement services, a current (settlement) bank account agreement, or one general agreement.
Such agreement or agreements are signed by an authorized person on behalf of a foreign company. Therefore, the Bank will ask this person for a power of attorney, which includes the person’s authority to sign contracts with the Bank and open a bank account. The head of a foreign company signs contracts without a power of attorney.

Step 9. Manage your bank account remotely
A foreign company has many opportunities to manage its bank account remotely in a Belarusian bank. At the same time as opening a bank account, the Bank usually issues an electronic digital signature certificate and connects it to the remote banking system. You can also use Internet banking and get a corporate bank card for remote access to the account. A corporate bank card owner usually has the option to install the Bank’s mobile app.