Bank Accounts, Permits, and Licenses of Export-Import Business

An export-import firm must open a bank account with an international bank that can accom­modate specialized transactions such as letters of credit, foreign exchange payments, forfeit­ing, and so on. Some international banks have subsidiaries in importing countries that can verify the creditworthiness of foreign buyers. Sole proprietors and partnerships can open a bank account by submitting an affidavit of the fictitious business name statement to the bank with the initial deposit. In the case of a corporation, banks often require articles of incorpora­tion, an affidavit that the company exists, and its tax identification number. It is important to check with the city or county to determine whether permits or business licenses are required.

Source: Seyoum Belay (2014), Export-import theory, practices, and procedures, Routledge; 3rd edition.

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