Open a business account in Germany remotely

A business account is essential for any company of any size and freelancers. But which account to choose, and how to open a business account in Germany? This Genome article is dedicated to these two topics. And besides, there will be some useful tips for business beginners.

Tips to manage a business in Germany

1. Choose your online presence carefully according to the sector of the activity.
2. Think long-term to nurture a strategic vision. Whatever the size of the business, this will give you a milestone to reach.
3. Also, consider the risks, internal (to avoid) or strategic (to evaluate and measure).
4. Take time to explore the market, your competitors, your real target audience, and your ideal target audience.
5. Affirm a reason to do business. Choose a commitment that you can assume and to which you can provide proof.
6. Choose the legal structure that is right for the business, and then grow it on your own platform.
7. Learn about technological tools, then choose those that will save time, energy, and costs.
8. Join a community of freelancers or companies with different activities from your own.

Strategic points

Your expertise is valuable. Identify how your know-how differs from those of your competitors. Highlight the most unique and important parts of the product or service, along with the needs it covers.

Your entourage is wealth. How do you coordinate your team’s efforts in customer relations? Do you know how to surround yourself with the right advisers in areas you do not master?

Business plan

A business plan is both the CV and the cover letter for your project. It is a file used to present your future company in an attractive, complete, and synthetic way. A business plan provides answers to the main questions that your potential partners ask themselves:

• Who are the project leaders?
• What product or service will the company offer?
• What market will it enter?
• What will be its business model?
• How will it work financially?
• What will be its legal form and organization?

Why make a business plan?

To evaluate and model the project. A business plan is a valuable tool for the entrepreneur himself. Writing a business plan means methodically analyzing a project, criticizing it, and ensuring its opportunity and viability. A business plan will serve as a guide when setting up a business.

To convince your partners and investors. A business plan must make your interlocutors want to work with you or finance you. Investors, businesses, bankers, development networks, institutions offering business creation assistance, associates, suppliers, distributors, and prospects, a business plan is intended for them. They are the ones you need to touch. A business plan is a real demonstration, the result of which must prove the feasibility, viability, and profitability of your business project.

Ensure proper financial and risk management

Managing risk means implementing processes, methods, and tools to limit or avoid what can affect the success of a business. It starts with identifying the risks:

• Strategic risk, for example, a competitor entering the market;
• Compliance risks, such as the introduction of data protection regulations such as GDPR or PSD2;
• Financial risks, such as late payment or failure to repay a business loan;
• Operational risks, such as the theft of equipment or data leakage;
• Other categories of risk, like environmental issues, personnel management, instability of a foreign market, health, and safety;

Likewise, there are several ways to manage risk. Here are a few:

• Accept and transfer risk. By taking out insurance for those risks that are difficult to avoid.
• Reduce risk. By introducing new security, data, and personnel protection measures.
• Eliminate risk. By completely changing the manufacturing or delivering methods or, if you are a service provider, by extending your field of activity.

What is a business bank account?

The professional bank account has several definitions. In the minds of the general public, this concept refers to an account that a company opens and uses during its activity. A company utilizes it throughout its lifecycle. In practice, it can be a simple current account, but the latter is exclusively reserved for professional transactions.

From the banks’ point of view, the “professional” nature of an account makes it stand out from traditional current accounts. This type of account offers additional services suitable only for businesses. To simplify, we can consider that the pro account is a classic bank account, identical with its basic services to a personal one, to which we add professional features. 

A business bank account serves as a medium for carrying out professional transactions. Basically, those operations are carried out within the framework of the company’s activity. It makes it possible to distinguish between transactions carried out in a professional context and those carried out in a personal capacity.

Business account operations:

• Payment of supplier invoices;
• Collection of customer invoices;
• Payments of taxes and social charges;
• Compensation payments to executives;
• Other professional operations (granting and repayment of loans, and so on);

For companies, it is forbidden to mix a private account and a business account. This practice constitutes an offense punishable by heavy penalties. In individual companies, it is not reprehensible, but it remains however largely discouraging.

How does a business bank account work?

In general, a business bank account is not so different from a personal bank account. Both personal and business accounts allow their owners to transfer money online, accept them, make retail and online payments, and obtain physical or virtual payment cards. The procedure of the opening and onboarding is quite simple and fast in both cases as well.

Benefits of a business account

Generally motivated by financial elements, the main disadvantage of opening a business bank account online is that it depersonalizes the relationship between a business owner and their banker. The communication takes place in the bank chatting space, over email, or by telephone. But honestly, in 2022, when all the personal and daily communication is already very much over the device, why would we even need a different way with the bank?

Among the advantages, the digitization of financial services makes it possible to complete procedures quickly and sustainably without any paper waste while reducing account maintenance costs. Some banks guarantee the opening of an online account in about ten minutes. 

Having a business account and using its financial services helps companies and freelancers to separate private funds from business funds. It also comes in handy with tax reports and payments, as all the incomes are present clearly in one space. Also, most business accounts allow their users to share access to an account and assign roles. This helps in the company’s management and finance. And at last, business accounts offer advanced analytics for better planning.

How to open a business account remotely?

Nothing prohibits companies from opening a business account online, that is to say, via online banking. In practice, businesses have the choice between physical banks and online banks. The set of financial services does not differ, while the comfort and sustainability factors play in favor of opening an online account remotely. To choose a reliable business account provider in Europe, we recommend that companies take stock of their needs and motivations beforehand. 

The use of online banks is generally motivated by financial factors. But it must be assessed on a case-by-case basis since this solution is not the least expensive for everyone. Indeed, companies that handle a lot of cash and checks generally do not turn into online banking. But for eCommerce businesses and freelancers, online banking is a better solution.

To open a business account remotely, you must complete an online form via a dedicated application or on the bank’s website and send the scan of the supporting documents requested: proof of residence and business activity, etc.

Genome: open a business account in Germany remotely

Genome is an account provider that issues remotely personal, business, and merchant accounts* with the EU IBAN. You can open a digital wallet for Germany, having such currencies as EUR, GBP, and USD within one financial space. To open an account, please follow the link to the website.

*Please note that Genome’s merchant services have been temporarily unavailable since September 2024.

FAQ

How can I open a business bank account remotely?

You can use Genome to open a business account remotely. The provider also offers personal and merchant accounts*. The issuing process is simple and fast. Within a couple of days, you will be able to use an account.

Can I open a business bank account in a different country?

Yes. With Genome, you can have the European IBAN, no matter the EU country you reside in. To open an account, simply follow the link.

Can I open a bank account in Germany as a foreigner?

Yes. To open a business account in Germany remotely, use Genome. It issues accounts online in three currencies – EUR, GBP, and USD.

Can you open a German bank account online?

You sure can. Follow Genome to open a business account in Germany fast and easily, and in a remote way. Genome offers business accounts to companies of any level and freelancers.