Banking services are an essential part of the journey to incorporate a company in Latin America. Latin America offers diverse banking environments, from highly digitized systems in Chile and Colombia to privacy-driven options in Panama and Belize. The process involves navigating through various requirements specific to each country’s banking system. Understanding the documentation needed is crucial to expedite the process. This guide synthesizes the common banking requirements across the region while highlighting critical country-specific differences to help foreign investors plan effectively.
Key takeaways on how to open a corporate bank account in Latin America
| Which banks are the best to open a corporate bank account in Latin America? | They include: Itaú HSBC Citibank JPMorgan Chase BBVA Banco do Brasil Banco Santander Banorte Banco de Crédito e Inversiones Davivienda |
| The process to open a corporate bank account in Latin America: | 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. |
| Do all banks have the same process? | They do not – even within the same country banks can vary enormously. This is a rough guide to the general practices. |
| Can you open a bank account online in Latin America? | Yes, this is possible with most banks across the region. However, check for full details. |
| What are the necessary documents when opening a corporate bank account in Latin America? | 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. |
| Are there financial checks in Latin America? | Compliance (KYC/AML) is strict across the entire region. |
| How long does the process take? | Timelines are longer than in the US or Europe (weeks vs. days). |
General Requirements for Opening Business Accounts
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.
Expert Tip: The “W-9/W-8BEN” Equivalent
From our experience, US-connected clients must be prepared for FATCA compliance everywhere. Every bank in the region will ask if the beneficial owners are US persons. You must have your US Tax IDs (EIN or SSN) ready.
Furthermore, for non-US owners, banks will require CRS (Common Reporting Standard) self-certification forms to declare where the UBOs are tax residents. Having this tax residency information ready for all shareholders prevents last-minute scrambling during the application.
Regional Bank Comparison – Services and Regulations
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.
Major regional banks include Bancolombia, Itaú, Scotiabank, BBVA, and local partners. Regional differences affect onboarding time and ease of international transfers. Each country has unique KYC/AML obligations, often aligned with FATF guidelines. Most enforce UBO declarations and FATCA/CRS compliance. These are an important part of regional tax and accounting requirements.
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.
Comparison Table:
| Country | Min Deposit | Avg Opening Time | Foreign Ownership | Remote Opening |
|---|---|---|---|---|
| Panama | $1,000 | 2–3 weeks | Yes | Yes |
| Colombia | $500 | 2–3 weeks | Yes | Limited |
| Chile | $500 | 2–4 weeks | Yes | Rare |
| Brazil | R$500–R$2,000 | 3–6 weeks | Yes | No |
| Belize | $500 | 1–2 weeks | Yes | Yes |
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.
The Challenge of Remote Opening
Across Latin America, the “know your customer” culture is predominantly face-to-face. While digital banking is advanced, the initial opening of a corporate account almost always requires the physical presence of the legal representative. Truly remote opening for a new corporate entity is rare and usually requires a specific power of attorney granted to a local partner.
Additional FAQs About LATAM Corporate Banking
Based on our extensive experience, these are the common questions and doubts of our clients about opening a company bank account in Latin America:
You can open a corporate bank account online in some Latin American countries, though requirements vary by country and bank. Appointing a legal representative based in Latin America is often advised, as many banks require certain procedures to be completed in person.
Banks usually require an application form, articles of incorporation, and identification documents for shareholders and legal representatives when opening a corporate account. Additional documents may be requested if deemed necessary.
Corporate bank account access in Latin America is often granted by the account owner via the bank’s virtual platform, using a physical security token. Some banks offer online platforms in multiple languages, though most are only in Spanish.
For corporate banking in Latin America, using a larger bank is recommended due to their expertise in international commerce, extensive service offerings, and numerous branches and ATMs. For operations in a single country, the largest local bank may be the best choice.
A bank account is essential for companies in Latin America, enabling operations like paying taxes, payroll, local suppliers, and other domestic transactions.
Banking secrecy is generally a constitutional right in Latin America, but many countries are implementing Ultimate Beneficiary Owner (UBO) registration to increase transparency.
Yes. Most countries allow foreign-owned entities to open business accounts if they meet incorporation, compliance, and documentation requirements.
Panama and Belize offer relatively easy remote onboarding options for offshore or IBC structures.
Most countries do. This person often serves as the official signatory and liaison with banks.
USD accounts are common in dollarized economies (Panama, Ecuador, El Salvador) and permitted in some others (Uruguay, Peru). In countries with stricter controls (Brazil, Colombia), holding foreign currency accounts locally is restricted or heavily regulated.
Failing to meet UBO, AML, and tax registration obligations can delay onboarding and lead to account rejection.
Banks in the region face heavy fines for non-compliance with money laundering regulations. As a result, their compliance departments conduct manual, in-depth reviews of every foreign shareholder document, which extends timelines.
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.
