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How to open a Mercury US bank account in Switzerland

By Doola

Published on 1 Aug 2024 2 min read

Opening a Mercury US Bank Account in Switzerland: A Comprehensive Guide

How to Open a Mercury US Bank Account in Switzerland

If you are ready to apply for a Mercury US bank account in Switzerland, follow our step-by-step guide for detailed instructions.

Benefits of Opening a Mercury US Bank Account in Switzerland

Opening a Mercury US bank account in Switzerland offers numerous advantages even if you live in Switzerland. One key benefit is the access to the robust US financial system, which provides more flexibility for conducting business internationally. Additionally, Mercury’s digital-first approach allows for seamless online banking, eliminating the need for physical presence in the US.

Moreover, having a US bank account can streamline your business operations by facilitating easier transactions with US-based clients and suppliers. This can lead to improved cash flow management and potentially lower transaction fees compared to international banking options.

Pros and Cons of a Mercury US Bank Account in Switzerland

A Mercury US bank account in Switzerland has its pros and cons. On the positive side, you gain access to an efficient online banking platform tailored for startups and entrepreneurs. It offers features such as no minimum balance requirements, free domestic and international wires, and integration with accounting tools.

However, there are cons to consider. For instance, the initial setup requires navigating the complexities of US banking regulations. Additionally, while digital banking is convenient, the lack of physical branches can be a drawback if you require in-person services. Finally, it’s important to be aware of any fees associated with currency exchanges and international transactions.

How to Open a US Business Bank Account from Switzerland

To open a US business bank account from Switzerland, you will typically need to go through several steps. Firstly, ensure that your business entity is properly registered in the US. This often involves filing the necessary paperwork with a US state, obtaining an Employer Identification Number (EIN), and complying with any other regulatory requirements specific to your state of registration.

Next, you will need to provide documentation that verifies your identity and business structure. This can include a copy of your passport, proof of address, and business documents such as your articles of incorporation. Once your documents are in order, you can proceed with the application process through platforms like Mercury, which cater specifically to non-US residents looking to open US bank accounts.

Compliance Requirements for Using a Mercury US Bank Account in Switzerland

When using a Mercury US bank account in Switzerland, it’s crucial to adhere to both US and Swiss compliance requirements. US regulations, such as the Foreign Account Tax Compliance Act (FATCA), require reporting of foreign accounts to the US Internal Revenue Service (IRS). Ensure that you stay updated with these regulations to avoid any legal issues.

In Switzerland, compliance with the Swiss Financial Market Supervisory Authority (FINMA) regulations is essential. This includes adhering to anti-money laundering (AML) rules and providing accurate and transparent financial reporting. Understanding and complying with these dual regulatory frameworks is vital for maintaining good standing with both countries’ financial authorities.

Tax Obligations for Using a Mercury US Bank Account in Switzerland

Using a Mercury US bank account in Switzerland comes with tax obligations in both countries. In the US, you may need to report your bank account and any associated income to the IRS. This is particularly important for businesses, as failure to comply can lead to significant penalties.

In Switzerland, you will need to declare your US bank account and any income generated through it to the Swiss Federal Tax Administration (SFTA). Swiss residents are taxed on their worldwide income, so it’s important to ensure that you accurately report all earnings. Consult with a tax professional to navigate the complexities of international taxation and to ensure compliance with both US and Swiss tax laws.

Can I Apply for a Mercury US Business Bank Account from Switzerland?

Yes, you can apply for a Mercury US business bank account from Switzerland. The process involves ensuring that your business is properly registered in the US and that you have all the necessary documentation. doola is happy to help you open your bank account via doola’s partnership with Mercury. However, please note that Mercury cannot currently open accounts for founders operating in restricted countries, including Afghanistan, Belarus, Cuba, Iran, North Korea, and several others.