Open a Bank Account in Slovenia - 2021 Procedure
Open a Bank Account in SloveniaUpdated on Thursday 01st April 2021
Rate this article
based on 4 reviews.
based on 4 reviews.
Foreign businessmen, as well as foreign natural persons, can open a bank account in Slovenia. However, the regulations are different, as businessmen opening a company in Slovenia will have to provide more information on the newly formed company when setting up the bank account. It can be registered with one of the commercial banks available in Slovenia and our team of Slovenian lawyers can offer advice on the main steps that have to be completed in this sense.
Requirements for Slovenian legal entities
When opening a bank account in Slovenia, the legal entities will be required to provide a set of information, such as: the Slovenian tax number, the company’s registration documents and the residence permit of the applicant. Our team of Slovenian lawyers can provide a further presentation on other documents that can be requested by local banks.
Types of bank accounts in Slovenia
Persons interested in this procedure should know that they may choose from a wide set of bank accounts types. Companies in Slovenia can open payments accounts, as long as they perform payment services. Through the payment accounts, parties included in the respective commercial activity may perform payment transactions.
Legal entities can also set up a joint payment account, which can be opened for various transactions established by minimum two natural persons or legal entities. Our lawyers in Slovenia can offer more details on the main steps that have to be followed when setting up a joint payment account.
Natural persons living in Slovenia may set up a savings account, which is created exclusively for savings purposes. It is important to mention that this type of account does not allow the conclusion of transactions. Foreigners in Slovenia will generally need to provide the following set of documents when opening a bank account in this country: an identity card (or a valid passport), a tax identification number issued by the Slovenian authorities and the tax identification number in the country in which the foreign applicant is a resident.
How can investors open a Slovenian bank account in 2021?
In the case of businessmen who are interested in opening a Slovenian bank account for a newly founded company, there are additional requirements than in the case of natural persons opening a bank account. Besides the above mentioned documents, several requirements have to completed, as follows:
- the founders and the appointed company directors have to be present during the formalities of opening a bank account;
- in the case in which the company’s founders are represented by natural persons, the company’s minimum share capital can be deposited in cash;
- the corporate bank account is necessary for most of the legal entities registered in Slovenia;
- the initial deposit varies based on the legal entity of the company, for example, in the case of a limited liability company, the share capital is established at EUR 7,500;
- investors can also set up a temporary bank account in Slovenia.
In the situation in which the investors have open a temporary bank account, it can be changed into a permanent one after specific formalities are completed between the selected banking institution and the One Stop Shop system in Slovenia. When modifying a temporary bank account into a corporate bank account, after all the documents are verified, the company’s founders are not required to be present during the procedure, as it can be completed by the company’s directors.
Foreign investors should know that the corporate bank account can be registered with any type of commercial bank, with both local and international banking institutions operating on the local market. At the same time, the procedure can be completed by our team of Slovenian lawyers, provided that the company’s representatives have given them the power to act in this legal procedure (it can be performed through the power of attorney).
It is important to know that the obligation to be present as a company’s owner during the procedure of opening of a corporate bank account depends on the banking institution and this is given by the internal procedures of each bank. The selected bank is also the entity that can grant the right of opening a corporate bank account, which means that not all applications will automatically be accepted.
Thus, besides the standard registration papers and several documents attesting the investors’ identity, banks may also request further documents. When opening a Slovenian corporate bank account, investors should expect to provide the company’s business plans, the SWOT analysis, information concerning the financial capabilities of the company, the investors’ qualifications in their chosen field of activity or their management expertise.
Investors who want to open a bank account in Slovenia in 2021 must be aware that is compulsory to provide all the documents required by the bank where they want to open their account, as the banks are entitled to refuse clients if they consider that they do not have enough evidence on the respective business activity. According to the law in Slovenia, investors must provide various documents that state that the business operations will be carried out here, as well as on the nature of such business activities.
In the case of foreign companies expanding in Slovenia, local banks can also request the company’s audited financial statements (Slovenian banks can request in this situation the financial documents for the last three financial years prior to engaging in business activities in Slovenia).
What should one know when opening a Slovenian bank account?
The Slovenian legislation stipulates that both natural persons and legal entities can set up a bank account. Foreigners, who can be residents in Slovenia or non-residents, may also set up bank accounts in foreign currencies. In the case of bank accounts set up in a foreign currency, it is necessary to know that there is no maximum amount imposed to the respective account, as long as the owner of the account is considered a Slovenian resident, as stipulated by the country’s main financial authority, the Bank of Slovenia.
As a natural person, foreigners can also apply for a Slovenian bank account on the online platforms of the banking institutions, but we mention that only few banks provide an English version of their platform, most of them being set up in the Slovenian language. Since this can be a barrier in the procedure, it is highly recommended to discuss directly with the employees of a local bank or to request for legal representation from our law firm in Slovenia.
The procedure can be imposed with a fee, charged by the bank, but there are certain banking institutions that do not request the payment of a fee. Currently, there are approximately 20 banking institutions operating in Slovenia (local and foreign entities), which have received authorization to operate here from the country’s central bank.
Advantages of having a bank account in Slovenia
Running a business requires time and energy. Company registration in Slovenia also implies paying taxes to the local government. Commercial banking can assist Slovenian companies in managing the financial tasks. Having a bank account in Slovenia allows you to borrow money to develop your business.
Banks assign representatives to work directly with businessmen and provide personalized financial services. They also simplify accounting procedures, set up money transfers to other banks and manage the employees` salaries and retirement funds. A number of discounts are offered by banks to their clients as well as automatic payment of invoices.
Banking Law in Slovenia in 2021
In January 2007 Slovenia has enabled its new law regarding banking policies called The new banking act (ZBan-1). The New Banking Act is aligned to the European Directives EU 2006/48/EC and EU 2006/49/EC.
The Slovenian new banking law settles on the conditions for setting up new credit institutions in Slovenia and the legal frame for foreigners who want to open a financial institution in Slovenia. Our law firm in Slovenia can provide you with information regarding the Company Law if you want to open a business.
Any bank that wants to give credit loans is required to obtain an approval from the country’s national bank, The Bank of Slovenia.
Capital requirements for opening a bank in Slovenia
Even if the minimum amount of capital required by Slovenian laws remained at 8%, the new legislations set new rules for the risk weighted assets. The new rules are meant to lower the risks of losing assets due to internal failing procedures but also due to external factors that could lead to such events. The new law offers Slovenian financial institutions a three-way framework from which to choose the most convenient one in order to decrease the risks of asset loss. The New Banking Lawin Slovenia also sets a rule for credit risks based on rating.
The New Bank Laws in Slovenia allow a decrease of the capital adequacy requiring in exchange for a more complex system that will rate the market risks. This measure has been taken for the reduction of capital burden on small and medium size financial institutions.
Supervisory review in Slovenia
Other than the internal capital evaluation, The New Slovenian Banking Law also introduces a supervisory review of the institution conducted by the Bank of Slovenia that is meant to assess the bank, create a risk profile and set a minimum capital requirement. ZBan-1 has also admitted to the mutual recognition and home state member observation. The Bank of Slovenia will allow a foreign financial institution to follow other EU member states legal requirements, but the Bank of Slovenia will keep track of the EU member state’s branch liquidities.
The new ZBan-1 requires discipline on the financial market in Slovenia. These laws consist of a set of regulations that allow market players to evaluate a bank’s capital and risk profile that the Bank of Slovenia must disclose.
ZBan-1 wants to level the odds of credit institutions and investment firms thus leading to an integrated financial market in Slovenia.
Persons interested in receiving more information on this topic are invited to contact our Slovenian law firm for legal advice. Our lawyers can represent investors in other necessary formalities for opening a local company – drafting the company’s articles of association, registering for taxation purposes or choosing a suitable trading name following the applicable legal requirements.