Updating corporate documents of foreign companies: necessity or formality?

Each foreign company has a set of basic documents that banks, counterparties, clients and government or licensing authorities can request at any time. Regularly updating these documents, at least once a year, is an important rule. It will ensure you complete transactions, such as opening accounts, smoothly and quickly without wasting time due to out-of-date documents.

International companies need to collaborate with banks from other jurisdictions. For example, suppose your company is registered in the UAE, and you have an account in another country. In that case, consular certification of constituent documents and translation may be required for banking transactions. In this country, these procedures are not only financially expensive (with initial costs of 2,000 euros and above) but also require significant time to complete, so we recommend studying such issues in advance and preparing documentation in advance, preferably immediately after receiving it.

... Preparing documents in the UAE can be not only a lengthy but also an expensive procedure. Therefore, if you plan to open a bank account abroad for an Emirati company, discussing with bankers in advance the possibility of providing simple copies of documents instead of official consular versions is recommended. The nice thing is that most documents already contain QR codes, making it easier to verify their authenticity. ... Diana Gulevskaya, Partner Antwort Law

The composition of the company's basic documents depends on the specific jurisdiction in which it is registered and operates, as well as the type of business, but we can distinguish the main groups:

1) Constituent documents: certificate of incorporation, charter (memorandum) of the company and constituent act;

2) Documents on the legal structure: extracts from registers, orders for directors, regulations, decisions of the board;

3) Tax documents: tax identification numbers, tax returns and tax certificates;

4) Financial documents: financial statements, financial statements and audit reports;

5) Ownership documents: certificates of ownership of the company's property and assets, including real estate and vehicles;

6) Agreements and contracts: agreements with partners, suppliers, clients, and employment or rental contracts. If the company is new and has not yet started operating, drafts of future agreements can be provided to banks;

7) Licenses and permits: documents authorizing a company in this jurisdiction to engage in certain types of activities, including licenses for specific types of activities and certificates of conformity;

8) Passports of directors and founders: copies of passports, as well as visas confirming residence.

Based on our experience, we also want to highlight two types of documents that various financial institutions especially often request. In the context of banking, such documents are used to open a bank account and meet the requirements of know-your-customer (KYC) procedures, which include verifying the customer's identity and assessing potential risks, which are necessary to prevent fraud and money laundering, as well as to comply with various regulatory requirements.

1) Bank statements for the last 3-6 months: required for both corporate company accounts and personal accounts of directors or founders. Obtaining these statements from your bank is usually easy, but if you need them urgently, it may take extra time. It is also important to consider that many directors and founders have several accounts, and it is necessary to consider which accounts should be provided to the bank in advance.

2) Proof of Address of Founder/Director: Banks often require proof of address, such as utility bills showing your address, lease agreements, and sometimes bank statements. These documents must be current – no older than 3-6 months.

We advise you to update your bank statements and utility bills regularly, every 3-6 months, to facilitate the process of opening accounts or completing compliance and to ensure a timely process.

Don't let bureaucratic obstacles cause delays in your business operations or problems with regulators. Contact Antwort Law specialists to receive qualified support in preparing and updating all necessary documents. Your success is our concern.

Lidia Ivanova

International lawyer
Antwort Law