There are a number of reasons why Puerto Rico is a desirable destination overseas investors and companies, ranging from its favorable tax advantages for resident companies and individuals, to its idyllic beaches and vibrant Caribbean culture. Whatever is attracting you to the US island territory, at some point you will be required to open a corporate bank account in Puerto Rico.
To date, there is one type of corporate bank account that companies can open in Puerto Rico:
- Resident corporate account – For local businesses, or for foreign businesspeople who have gone through the long and arduous task of achieving legal residency in Puerto Rico. This account is ideal for foreign companies that have moved their business to the island in order to enjoy the 4-percent fixed corporate tax rate.
The required documentation to open a corporate bank account in Puerto Rico varies wildly from one bank to the next, as do things like minimum initial deposits.
Many banks do not require minimum deposits to open business bank accounts, while at least one bank on the island insists that new accountholders deposit a minimum of $100,000 USD. Just like in the case of opening a corporate bank account in the Dominican Republic, in Puerto Rico it will take some shopping around before you find a bank that meets your business needs.
Table of Contents
Open a corporate bank account in Puerto Rico: Top banks to consider
What follows are some of the largest and most established local and foreign banks on the island territory:
- Arca International Bank (It is possible that this bank only accepts customers who have references)
- Banco Popular de Puerto Rico
- Banco Santander (Recently acquired by First Bank)
- Citibank
- FirstBank
- Oriental Financial Group
- Scotiabank of Puerto Rico
While the Puerto Rican government has for years had a policy in place to attract international business, the island’s banks are not quite on the same page. To open a corporate bank account in Puerto Rico, most banks on the island require extensive amounts of documentation, paperwork, and certifications from overseas banks and even government bodies.
Banks often require more documentation than what is legally required. There is also a high level of scrutiny that goes into every new account application, so it’s extremely important that companies consult on-the-ground legal, accounting, and financial expert(s) to ensure that all documents are in order, and also to act as signatories in some cases.
SEE ALSO: 5-step guide to starting a business in Puerto Rico
Documents required to open a corporate bank account
The following documents are required to open the company bank account:
- Merchant Registration Certificate (SC-2918), issued by the Department of Treasury of Puerto Rico.
- Evidence of Employers Identification Number (EIN).
- Valid photo ID issued by the government of Puerto Rico or the United States.
- Ultimate Beneficial Owner
- Copy of the Articles of Association and Articles of Association or company bylaws
- Copy of the Certificate of Incorporation
- Certificate of ‘Good Standing’
- Updated registry of shareholders
- Copy of the Board resolution appointing the directors and their powers
- Board resolution authorizing the opening of an account with the bank.
- Financial Statements
Common Questions when opening a corporate bank account in Puerto Rico?
Based on our extensive experience these are the common questions and doubts from our clients when looking to open a company bank account in Puerto Rico.
No. However, you can open a bank account from abroad with the support of a local attorney empowered through a power of attorney (POA), however, the original bank application forms will need to be sent to Puerto Rico.
The following documents are required to open the company bank account:
– Merchant Registration Certificate (SC-2918), issued by the Department of Treasury of Puerto Rico.
– Evidence of Employers Identification Number (EIN).
– Valid photo ID issued by the government of Puerto Rico or the United States.
– Ultimate Beneficial Owner Information (SSN, contact information, etc)
– Copy of the Articles of Association and Articles of Association or company bylaws
– Copy of the Certificate of Incorporation
– Certificate of ‘Good Standing’
– Updated registry of shareholders
– Copy of the Board resolution appointing the directors and their powers
– Board resolution authorizing the opening of an account with the bank.
Any member of the company that is authorized by company shareholders can have access to the bank account.
Companies choose to open bank accounts in Puerto Rico due to economic and political stability; the ability to hold currency in US Dollars, the national taxation system, and banking privacy.
Yes, the Bank Secrecy Act, states that the information obtained by a Financial entity must be kept strictly confidential and may only be provided to third parties by order of the competent judicial or governmental authority. However, financial institutions must comply with anti-money laundering laws in the United States.
Biz Latin Hub can help you to open a corporate bank account in Puerto Rico
At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean, with offices in Bogota and Cartagena, as well as over a dozen other major cities in the region. We also have trusted partners in many other markets.
Our unrivalled reach means we are ideally placed to support multi-jurisdiction market entries and cross border operations.
As well as knowledge about how to open a corporate bank account in Puerto Rico, our portfolio of services includes hiring & PEO, accounting & taxation, company formation, 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.
If this article on opening a corporate bank account in Puerto Rico was of interest to you, check out the rest of our coverage of the region. Or read about our team and expert authors.
The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
