What to do when you can’t open a business bank account as an e-⁠resident?

This guest post explores how to overcome business banking challenges , was written by Narvi, a borderless provider and trusted member of the e‑Residency Marketplace.

You’ve launched your company, registered it in Estonia, and everything’s in place — except one thing: you can’t get a business bank account for your small business.

It’s a challenge many founders encounter - sometimes early on, other times unexpectedly. Bank account issues can arise without much explanation, and finding clear alternatives isn’t always straightforward.

And while you may think to use a personal account versus a business banking account, this isn't recommended. It can also make it challenging for you to apply for credit cards in the future.

So, what can you do to ensure you have the right account to process business transactions?

This article cuts through the confusion, laying out why it happens, who’s most affected, and what practical steps you can take to open a business bank account as an e-⁠resident, so you can separate your personal finances from business transactions.

Why you might get rejected for a business bank account

Getting turned down by a bank for a business checking account is rarely personal. Oftentimes, it’s procedural or automated based on several factors.

But that doesn’t make it easier to navigate. Most new accounts get rejected due to risk. This usually boils down to what a bank is willing to accept and what it isn’t when it comes to traditional checking and business savings accounts.

The details vary between institutions, but a few key patterns show up again and again.

Your business doesn’t fit the bank’s risk profile

Every bank, whether traditional or digital, has internal rules about who they’ll onboard. 

These rules aren’t always public, but they usually revolve around perceived regulatory or financial risk. This includes how easy it is for the bank to verify your business activity, where your customers are based, and how closely your operations align with anti-money laundering (AML) requirements.

Whether a Ukraine-based iGaming group or a German web3 startup, if your business operates in a sector with added compliance requirements or a history of regulatory scrutiny, you're more likely to be flagged.

You’re in a “high-risk” industry

Some industries are more likely to be rejected, no matter how legitimate the business is. Even affiliate marketers connected to these industries may face rejection. It often has less to do with your specific activity and more with the sector's overall risk reputation and perceived likelihood of financial losses, regulatory violations, or reputational damage.

Each bank defines risk differently. One may reject all high-risk entities, while another may onboard them with enhanced due diligence. 

If your industry falls into this group, you don’t necessarily need to change your business. Just know which banking providers are equipped to handle it.

Your company’s jurisdiction or UBO’s citizenship raises red flags

Where your business is registered matters. So does where you, or your ultimate beneficial owners (UBOs), live. 

Some banks only accept locally registered companies and may require a valid business license. Others have strict onboarding restrictions tied to international sanctions or internal country risk ratings.

Most reputable banks will decline the application outright if any UBO is a resident of a country under international sanctions or on a Financial Action Task Force (FATF) grey/black list. Even if your company is registered in Estonia through e-⁠Residency, your banking eligibility depends heavily on the UBOs’ current place of residence and citizenship.

In practice, a founder with citizenship in a FATF-blacklisted jurisdiction who registers their company in Estonia will still get rejected for a EU bank account unless they relocate or restructure the ownership.

Your application raises questions

In some cases, the rejection is about incomplete or inconsistent paperwork. Common issues include:

• Vague or overly broad business models
• Missing supporting documents
• Complex ownership structures
• Limited credit score history or unclear source of business funds
  

These problems are often fixable with the right information and documentation.

Digital banks often expect the same level of clarity and proof as traditional banks, especially when onboarding non-resident companies.

Prepare a clear explanation of your business model, provide a clean ownership breakdown, and document your revenue sources in advance. It's also helpful to have a strong understanding of what your typical business expenses look like to ensure you are doing business with non-restricted parties.

What to do if you’re rejected for a business bank account

Getting rejected is not the end. Instead, see it as an opportunity to reassess and strengthen your application.

Whatever you do, avoid using your personal bank account to process business transactions.

Start with the basics

Before making any big changes, take a close look at your original account application. 

• Was everything complete? 
• Was your business model clear and specific? 
• Were your documents aligned with what the bank asked for?
• Did you provide a valid social security number (if applicable)?
• Did you provide a valid business address?
• Did you define whether you're a sole proprietor or an incorporated business?

Sometimes, the issue is as simple as a missing form, vague description, or unclear ownership structure. Here’s a detailed checklist for opening a European business account that can help you avoid some of these challenges.

In these cases, contacting the bank’s support team is worth a try. As noted in the February 2025 e-⁠Residency banking Q&A, support teams may be able to clarify rejection reasons, even if they can’t reopen the account.

Consider strategic changes

If a resubmission doesn’t work, or if your business model falls into a “high-risk” category, you may need to consider strategic adjustments to improve your chances.

Look into non-resident-friendly providers

Some platforms are built to serve international founders, remote teams, and small business owners who fall outside the narrow standards of traditional institutions. 

These providers are often more familiar with the realities of running a global company, supporting business current accounts for e-⁠residents with distributed teams, cross-border operations, or less conventional structures.

Providers like those on the e‑Residency Marketplace are specifically vetted to support this audience, and the official banking comparison guide can help you evaluate their offerings. By choosing trusted providers from the e‑Residency Marketplace, you gain confidence that your business account meets security and compliance standards.

For example, Narvi Payments focuses on banking solutions for businesses that have struggled to open a business account elsewhere, offering a more flexible approach for companies affected by industry type or jurisdiction.

Comparing your business banking options

If you've hit a wall trying to open a business account, you're not alone, and you still have accessible solutions.

The banking landscape is broad, but not all providers are designed with international founders and digital nomads in mind. Understanding the differences between traditional banks, digital challengers, and more flexible platforms can help you decide where to go next.

Each has its strengths, limitations, and onboarding criteria. 

Here’s how they compare when it comes to working with e-⁠residents and non-resident companies.

Business banking options at a glance

No single provider fits every business. What matters most is finding one that understands your situation and is set up to work with it. 

Some founders manage just fine with one core account. Others, especially those handling multiple currencies or separating revenue streams, may benefit from more than one. Learn more with a helpful breakdown of when having multiple business accounts makes sense.

It’s worth noting that for most, it’s not necessary to open a business account in the same country where your company is registered. 

Whether you're navigating risk classification, jurisdiction issues, or a lack of local presence, some services specialise in solving these exact problems. So, be sure to explore all of your options.

A checklist for what to do if you can’t get a business bank account

It’s frustrating when the rules aren’t clear. But there are ways to work within the system and move your business forward. While you can’t change the rules, you can navigate them. Follow these steps to get your business account back on track.

1. Review your application

• Double-check for missing documents or vague business descriptions.
• Make sure your limited company structure is clear and consistent.
• Include accurate details about your business activity, ownership, and revenue sources.

2. Reach out to the provider

• Ask if your account application can be reviewed or amended.
• Some banking services request additional information or allow you to correct mistakes or clarify your business model.
• Keep all correspondence in case you apply elsewhere.

3. Check your jurisdiction and UBOs

• Confirm where your company is registered and where your ultimate beneficial owners (UBOs) reside.
• If any UBOs are from restricted or sanctioned countries, this may block approval.
• Restructuring ownership or relocating a UBO to a different EU country may be necessary in some cases.

4. Assess your industry risk

• Consider whether your business falls into a flagged sector (e.g., crypto, defence, supplements).
• Prepare documentation to demonstrate legitimacy and regulatory compliance.
• Reframe your business model if it’s being misclassified due to vague language.

5. Explore non-resident-friendly banking options

• Look for providers that serve international founders and support business current account services for e-⁠residents.
• The e-⁠Residency Marketplace is a good place to start, with vetted services familiar with cross-border setups.
• Be prepared for due diligence. These platforms are more flexible, but still regulated and compliant.

6. Stay transparent and organised

• Keep financial records up to date.
• Maintain a clear credit history and document your income sources.
• Ensure existing business credit cards tied to your business or name are in good standing.
• The more prepared and consistent you are, the more likely you’ll find the right fit.

When banks say no, Narvi helps you move forward

Getting a “no” from a bank can feel like hitting a wall, but it doesn’t have to stop your business. 

Many founders are turned away not because their company is illegitimate, but because their industry, structure, or country of residence falls outside a provider’s risk model. That’s where having the right partner makes all the difference, providing you with a separate business account for all your banking needs.

Narvi offers flexible banking solutions designed to support founders who are often underserved by traditional banks:

• Built for high-barrier industries: We keep up with regulations of fast-developing verticals and review each case individually.
• Welcomes non-resident businesses: Designed to work with e-⁠residents and international founders.
• No need to relocate or restructure: Get banking access and separate accounts without changing your business model.
• Fast, compliant onboarding: Streamlined process that meets regulatory standards without the usual delays.
• Real support, not auto-replies: Work with a team that actually understands your situation.
• Transparent monthly fees: Avoid surprises and unexpected monthly fees with our transparent pricing model.

E-Residency makes it possible to launch and manage a business in the world’s most digital country — entirely online, from anywhere. As a trusted member of the e-⁠Residency Marketplace, Narvi works closely with international entrepreneurs to open compliant, fully functional business accounts without forcing them to reinvent their business.