Do you need a professional bank account for your business or freelance work?
Depending on your business structure (such as a micro-enterprise, limited liability company, or sole proprietorship), you may be required to open a professional bank account for your business when registering.
Depending on your business structure (such as a micro-enterprise, limited liability company, or sole proprietorship), you may be required to open a professional bank account for your business when registering.
In addition to this mandatory requirement, having a bank account professional to your business has several advantages. What are they?
Before diving into these details, Micco stands as an all-in-one financial platform tailored for business creators, facilitating a comprehensive array of services. These include streamlined procedures for company registration, professional bank account establishment, capital deposit management, and more.
Micco's commitment to empowering business creators extends to:
- Effortless company registration processes
- Seamless professional bank account setup
- Convenient capital deposit management solutions
- A suite of additional financial tools and resources catered to entrepreneurs
With Micco, business creators can access a one-stop solution designed to streamline their financial operations and support their growth endeavors effectively.
1. What's the Use of Opening a Bank Account Specifically for Your Business?
Opening an account professional to your business can:
- Separate your business transactions from personal ones to avoid tax and accounting confusion.
- Potentially designate agents and co-holders different from those of your personal account.
- Allow access to services tailored for professionals.
2. Is Opening a Bank Account Specifically for Your Business a Mandatory Requirement for Company Formation?
All companies requiring registration of capital (such as EURL, SA, SAS, SARL, etc.) must open a professional bank account for their business at the time of formation to deposit their capital.
In fact, without proof of deposits separate from ordinary accounts, which can only be provided by banks, it's impossible to register a company. Banks may refuse to open a professional business account without providing a reason.
3. Opening a Company Bank Account: Is it Optional for micro-entreprise/auto-entrepreneur ?
Founders of micro-entreprise are not required to open a current account specifically for their business, as their businesses have no capital.
However, according to the PACTE law enacted on May 22, 2019, if you operate as a micro-enterprise (freelancer), you're obligated to open a professional business bank account once your annual turnover exceeds €10,000 for two consecutive years.
In practice, for micro-enterprises (freelancers), it's essentially another personal account related to your business. This account is separate from your current account used for personal expenses, distinguishing between personal and business transactions.
4. Features of a Company Bank Account
- Separate business operations from those conducted by the business owner/shareholder as an individual.
- Avoid confusion between business and personal cash flow and finances.
- Designate business partners as agents.
- Access specialized services offered by banks (e.g., electronic currency, cash flow lines, etc.).
A professional bank account can provide support throughout the entire lifecycle of your business, from establishment to daily management, providing the tools needed to manage finances. Whether mandatory or a wise choice, opening a professional bank account when registering a business in France can help avoid financial confusion, designate different agents and co-holders, access professional services, manage company finances better, ensure compliance with regulations, and lay a solid foundation for future success.
Additionally, Micco can assist with registering and managing company bank accounts, making the entire process smoother.
