The Swiss-Hanseatic Connection: A Swiss Commercial Bank Account Based on Company Registration and Substance in Estonia

Something we often hear is that “opening an offshore bank account has become a lot harder these days.” The reality, though, is that opening an account for a European company has become much harder.

Almost all banks require applicants to provide some documented proof of the economic substance (i.e. the company’s actual physical office). So called “letterbox companies” are no longer welcome at increasing numbers of banks. 

In this spirit, we offer you our experts’ assistance in your company registration with real physical presence in low-tax Estonia and set-up of a corporate account in the holy grail of offshore banking jurisdictions: Switzerland. 

Why arrange your company registration and substance in Estonia?

 Estonian companies offer investors numerous advantages, including the following ones:

• zero tax on reinvested profits
• an opportunity to remotely manage foreign employees
• a well-developed digital infrastructure – you can do all administrative processes online
• direct access to the EU market

Also, as an Estonian resident or e-resident, it is possible to legally manage your company and submit reports and compliance documents digitally. 

How can an owner prove the company’s real presence/economic substance in Estonia?

After the registration of a business in Estonia, you need to open a bank account. For European banks to treat you favorably, the business needs to prove its real presence or economic substance in the country of incorporation. 

The following evidence can be accepted as proof of the company’s economic substance:

• availability of partners (customers, suppliers) in Estonia 
• the documented business revenue and the relevant taxes paid in Estonia (VAT, payroll taxes, etc.)
• a VAT number
• local employees
• Estonian citizenship or residence permit of at least one Board member
• a lease of a real office and/or a warehouse in Estonia
• availability of a startup visa
• a functioning localized business website in Estonia 
• shipment of goods through the territory of Estonia.

We recommend that you should present several of the above-mentioned pieces of evidence.

Our offer includes the following solutions:

• formation of a company in Estonia
• arrangements for the actual rental address + Internet connection
• arrangements for hiring a local director 
• opening of a bank account in Switzerland

The list of documents for company registration and substance in Estonia plus a Swiss commercial bank account

To register a company, you will need to submit:

• a copy of the shareholder’s passport
• the proof of the shareholder’s residential address
• a contact e-mail address
• 2+ name options 
• a corporate e-mail address that will be publicly available
• a description of the company’s activities
• information about the Board members if they are not shareholders
• an application form

To open a Swiss account, you will need to submit:

• Articles of Association and other corporate documents of your Estonian company
• a Contract with the resident Director in Estonia
• a real office rental agreement
• other papers proving a connection with Estonia
• documents of the signatory of the account – the passport, proof of the residential address

Costs of substance in Estonia with a Swiss account set-up

Monthly expenses include:

• office rent + director’s salary + payroll taxes   (from EUR 650 per month)
• accounting costs depending on the amount of work
• income taxes, excise, and other taxes if relevant.

Steps to obtain your company registration and substance in Estonia with a Swiss account set-up

Feel free to contact us at the e-mail address given at the top of this page for services and information. Please specify your questions in as much detail as possible, for our experts to better understand your needs. We would be happy to book a call or Zoom meeting to answer all your questions in person.