Corporate Bank Accounts (Company)

Business bank accounts are essential for legal entity operations in Georgia and can be opened within days of company registration. This comprehensive guide covers corporate banking for Individual Entrepreneurs, LLCs, and foreign company branches.

Why Corporate Accounts Are Necessary

Georgian law requires business entities to maintain separate banking for business transactions. Mixing personal and business finances through personal accounts creates compliance issues, complicates accounting, and may trigger tax authority questions. Corporate accounts provide clear separation, professional credibility with clients and suppliers, and proper documentation for tax compliance and financial reporting.

Even Individual Entrepreneurs (IEs), despite being sole proprietors, benefit significantly from dedicated business accounts. While IEs can technically use personal accounts for business, dedicated accounts simplify bookkeeping, separate business from personal finances for tax purposes, enable professional invoicing and payment collection, and project professionalism to clients. Most successful IEs maintain separate business accounts from inception.

Limited liability companies (LLCs) and corporations must use corporate accounts - no personal account mixing is permitted. Corporate structure requires clean separation of personal and corporate finances to maintain limited liability protections. Using personal accounts for corporate transactions can pierce the corporate veil, exposing owners to personal liability.

Opening Corporate Accounts - Documentation Requirements

Company registration documents form the foundation of corporate account opening. For LLCs, required documents include the company registration certificate from the Public Registry, company charter (articles of association), shareholder registry showing ownership structure, and director appointment documentation. For IEs, requirements are simpler: just the IE registration certificate from the Revenue Service suffices.

Director identification requires passports and Georgian residence permits for all directors and authorized signatories. Foreign directors face additional scrutiny, with banks potentially requesting enhanced due diligence. Having at least one local director with Georgian residence simplifies banking significantly. Directors must appear in person for initial account opening at most banks.

Corporate tax identification number (TIN) is mandatory for all business entities. The TIN is assigned automatically during company registration, appearing on registration certificates. Banks require TIN verification to ensure proper tax authority linkage. This enables automatic reporting of transactions and compliance with tax regulations.

Business address proof demonstrates corporate physical presence. Acceptable documents include property ownership deeds for company-owned premises, commercial lease agreements with company as tenant, and co-working space memberships with registered business address. Virtual offices are generally accepted though some banks prefer traditional office space. The address should match registration documents.

Business plan and activity description help banks understand corporate purpose and expected transaction patterns. Simple one-page descriptions typically suffice for most businesses. Include information on products/services offered, target markets, expected revenue, anticipated monthly transaction volumes, and whether business is primarily domestic or international. Enhanced documentation may be requested for unusual activities or high-risk industries.

Initial deposit requirements for corporate accounts typically range from $100-500 depending on bank and account type. Some banks require higher minimums for foreign-owned companies or certain business types. Premium corporate accounts with enhanced services may require $1,000-5,000 minimums. These deposits function as minimum balance requirements rather than non-refundable fees.

The Corporate Account Opening Process

Step one begins immediately after company registration. Most entrepreneurs open corporate accounts within 1-3 days of receiving registration certificates. Having banking operational quickly enables receiving payments, paying suppliers, and demonstrating business activity. Some forward-thinking entrepreneurs research banks and prepare documentation even before company registration completes.

Step two involves selecting appropriate banks based on business needs. Consider account fees and transaction costs matching expected volumes, international banking capabilities for import/export businesses, merchant services for businesses accepting card payments, payroll processing features for companies with employees, online banking sophistication for remote management, and customer service quality and English support availability. Visiting 2-3 banks to compare offerings is worthwhile.

Step three requires gathering complete documentation. Prepare all company documents, director passports and residence permits, business address proof, business description, and initial deposit funds. Making photocopies accelerates processes though originals are required for verification. Having documents organized and readily accessible demonstrates professionalism.

Step four involves scheduling bank appointments. While walk-ins sometimes work, scheduling appointments ensures specialist availability and potentially expedited processing. Corporate banking specialists handle business accounts rather than retail tellers, requiring appointments at many banks. Mention your company type (IE vs. LLC) when scheduling so appropriate specialists are assigned.

Step five is attending the appointment with all required parties. Directors and authorized signatories must attend initial account opening in person. Bring passports, company documents, and the business plan. Bank staff review documentation, complete application forms, verify identities, and explain account features and fees. The process typically takes 45-90 minutes depending on business complexity.

Step six involves making the initial deposit and completing account activation. Cash, transfers from personal accounts, or international wire transfers can fund initial deposits. The bank processes the application, often requiring compliance department approval before final activation. Simple domestic businesses typically receive approval within 1-2 business days. International businesses or those in regulated industries may face 3-7 day approval processes.

Step seven is receiving online banking access and cards. Online banking credentials are typically provided within 1-2 days of approval, enabling immediate account management. Corporate debit cards take 5-10 business days, with expedited delivery available at some banks for additional fees. Checkbooks, increasingly rare in Georgia, take similar timeframes if requested.

Corporate Account Types and Features

Standard business current accounts serve most small to medium businesses. These accounts provide debit cards for directors and authorized users, online banking with corporate features, domestic and international transfer capabilities, and bill payment services. Monthly fees typically range $10-30 depending on the bank and transaction volumes. These accounts suit most IEs and small LLCs with straightforward banking needs.

Multi-currency business accounts allow holding GEL, USD, EUR, and other currencies within single account structures. This is essential for international businesses receiving payments in multiple currencies or maintaining forex reserves. Currency conversion happens instantly at competitive rates through online banking. Most banks offer multi-currency capabilities at no additional monthly fee, though higher minimums may apply.

Merchant accounts enable businesses to accept card payments from customers. Requirements include business license, tax compliance verification, and sometimes minimum operating history. Fees typically include monthly account fees ($20-50), per-transaction percentages (1.5-3.5%), and equipment rental or purchase costs for POS terminals. E-commerce businesses can integrate payment gateways without physical terminals.

Payroll accounts streamline employee salary payments for companies with staff. These accounts enable batch salary payments, automatic tax withholding calculations, and compliance reporting to tax authorities. Banks provide specialized software or integration with accounting systems. Fees depend on employee numbers, typically $5-10 per employee monthly plus base account fees.

Corporate credit lines and overdraft facilities provide working capital for established businesses. Banks require financial statements, tax returns, and operating history (typically 12+ months) before extending credit. Interest rates vary by creditworthiness and collateral, typically ranging 12-25% annually. Credit limits range from $10,000-$500,000+ depending on business size and financial strength.

Individual Entrepreneur (IE) Accounts

IE accounts offer simplified processes compared to LLC accounts. Documentation requirements are minimal - just IE registration certificate, director passport, and residence permit. Some banks classify IE accounts as enhanced personal accounts rather than full corporate accounts, simplifying compliance and reducing fees. Opening typically completes same-day or next-day.

IE-specific products at some banks provide tailored services for individual entrepreneurs. These accounts recognize IEs' unique position between individuals and corporations, offering appropriate features like business invoicing tools, simplified accounting integration, lower fees than corporate accounts, and easier loan qualification than startups. TBC Bank and Bank of Georgia both offer specialized IE packages.

Fee structures for IE accounts typically fall between personal and corporate rates. Monthly maintenance might be $5-15 versus $15-40 for full corporate accounts. Transaction fees are similarly reduced. For IEs with modest transaction volumes, the savings add up significantly over time. As IE businesses grow, upgrading to full corporate accounts becomes worthwhile when transaction volumes justify higher fees.

Converting personal accounts to IE accounts is possible at most banks when individuals register as IEs after already having personal accounts. This convenience enables seamless transition from personal to business banking. However, opening dedicated IE accounts rather than converting provides cleaner separation and better accounting. Most advisors recommend dedicated business accounts from IE inception.

LLC and Corporate Accounts

Full corporate accounts for LLCs provide comprehensive business banking including multiple authorized signatories with customizable permissions, enhanced compliance documentation and reporting, higher transaction limits for large businesses, sophisticated treasury management tools, and dedicated relationship managers at some banks. These features support complex operations and growth.

Signature authorities can be structured flexibly. Single signature authority allows any authorized person to transact independently. Dual signature requirements mandate two signatures for transactions above specified amounts, providing control and fraud protection. Different limits can apply to different signatories based on their roles. Banks accommodate complex authorization structures when documented in board resolutions.

Fee structures for LLC accounts reflect enhanced services and compliance. Monthly fees typically range $20-50 for basic corporate accounts, $50-200 for premium accounts with relationship management and enhanced services. Transaction fees may be per-transaction or percentage-based depending on the bank and transaction type. Volume discounts apply for high-transaction businesses.

Foreign-owned companies face additional scrutiny during account opening. Enhanced due diligence includes ultimate beneficial owner identification, source of funds documentation, detailed business plans explaining Georgian operations, and sometimes reference letters from foreign banks. Processing takes longer, often 1-2 weeks versus 1-3 days for locally-owned companies. Having local directors and substantial Georgian presence facilitates approval.

Online Corporate Banking Platforms

Corporate online banking platforms exceed personal banking capabilities with features tailored for business operations. Multi-user access with role-based permissions allows accountants view-only access, controllers payment approval authority, and directors full control. Audit trails document all actions for compliance and security. These features support proper internal controls.

Batch payment processing enables paying multiple suppliers, contractors, or employees simultaneously. Upload spreadsheets or integrate accounting systems to execute dozens or hundreds of payments with single approvals. This automation saves substantial time versus manual individual payments. Most banks support batch processing through online platforms or API integration.

Accounting system integration available at major banks connects banking directly to accounting software like QuickBooks, Xero, or local Georgian systems. Automatic transaction downloads eliminate manual data entry. Some banks offer dedicated APIs enabling custom integration for sophisticated businesses. Integration dramatically improves accounting accuracy and efficiency.

Reporting and analytics features provide insights into cash flows, spending patterns, and financial trends. Export capabilities generate reports for accountants, tax preparation, and financial analysis. Historical data retention typically extends 5+ years, supporting audits and long-term planning. Premium accounts may include enhanced analytics and forecasting tools.

International Banking for Georgian Businesses

SWIFT transfer capabilities enable Georgian businesses to transact globally. Major banks maintain correspondent banking relationships with banks worldwide, facilitating international payments and receipts. USD and EUR transfers typically process within 1-3 business days. Exotic currencies or difficult jurisdictions may take longer or require additional intermediary banks.

International payment costs vary by bank, currency, and amount. Outgoing SWIFT transfers typically cost $15-40, with smaller banks often charging less than major banks. Incoming international transfers are usually free or low-cost ($5-10). Correspondent bank fees add $10-25 to total costs. For businesses with significant international activity, comparing banks' international fee structures is essential.

Trade finance services including letters of credit, documentary collections, and trade guarantees support import/export businesses. These products require specialized expertise and higher fees but provide security for international trade. Bank of Georgia offers the most developed trade finance services, with TBC Bank also providing comprehensive capabilities. Smaller banks may have limited trade finance options.

Ongoing Compliance and Maintenance

Annual compliance documentation may be requested by banks including updated financial statements, tax returns, renewed licenses or permits, and updated beneficial ownership information. Providing documentation promptly maintains good banking relationships and prevents account restrictions. Proactive communication about business changes helps banks understand evolving activities.

Transaction monitoring occurs continuously for anti-money laundering compliance. Unusual patterns trigger reviews, with banks requesting explanations or supporting documentation. Large cash deposits, frequent international transfers, or transactions with high-risk countries receive enhanced scrutiny. Legitimate businesses with proper documentation have nothing to fear, though responsive communication resolves reviews quickly.

Account fees should be reviewed periodically to ensure optimal bank selection. As businesses grow, transaction patterns change, potentially making different account types or banks more suitable. Negotiating fees is possible, particularly for high-volume businesses. Comparing banks every 1-2 years ensures competitive pricing and optimal service levels.

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