You win a client in Lagos, they ask for naira account details, and the local bank says you need a Nigerian company first. You don't. With Verto Local Accounts, your business gets local account details in another country's currency, issued in your own company's name, without setting up a subsidiary or opening an account with a foreign bank. Here is why banks ask for an entity, and how to get paid without one.
Why banks ask for a local company
Most banks open business accounts for companies registered in their own country. That is not an arbitrary rule. Banks have to verify who owns and runs every business they serve, and that is far easier when the company, its directors and its documents sit inside their own legal system.
A foreign company brings extra work. Its registration documents are in a different format, its directors may live in several countries, and its activity may be hard for the bank to monitor. Many banks therefore ask non-resident businesses for a local entity, a local director or a minimum deposit before they will consider an application.
Some markets add exchange-control rules on top. These govern who can hold local currency and how money moves in and out, and they can mean extra checks for foreign account holders.
Why setting up a subsidiary is a heavy fix
The usual answer is to register a local company. That works, but it is a large commitment just to receive payments.
A subsidiary needs its own registration, its own directors, its own tax filings and often its own audit, every year, in every country. It needs a local bank account, which brings its own onboarding process. For a business that simply wants customers in a new market to be able to pay it, that is a lot of cost and admin before the first invoice is settled.
It also slows you down. Months spent setting up an entity are months in which a new client either waits or pays you by international wire, with the delays and deductions that brings.
How Local Accounts remove the need for an entity
A regulated payments provider can issue local account details to your existing company. With Verto Local Accounts, you request details in the currencies you need, and your customers pay them by domestic transfer over their own country's clearing system.
In most cases, you do not need a subsidiary in that market. For example, a UK company can get NGN account details without a Nigerian entity, and those details are generated instantly once the account is approved. Verto issues local account details under your business name, subject to eligibility checks for each currency.
Verto offers local account details in AED, GBP, EUR, USD, NGN, KES, ZAR, TZS, UGX, DKK, XOF and XAF. Payments travel over domestic rails, for example:
USD over ACH, the US network that Nacha governs.
NGN over NIBSS Instant Payment, Nigeria's real-time interbank service.
KES over PesaLink or RTGS in Kenya.
GBP over Faster Payments, and EUR over SEPA.
Most local payments to a Verto Local Account settle the same day, and many, such as GBP and EUR payments, arrive within minutes. The money lands in your Verto Multi-currency Wallets, where you can hold it, convert it or pay it out.
Why this is also a foreign currency account without a foreign bank
Local account details and a currency balance together do the job a foreign currency account at an overseas bank would do. You can receive in the currency, hold it for as long as you need, and pay suppliers from it.
The difference is who you deal with. Instead of opening separate accounts with banks in each country, you open one Verto business account and add currencies as you need them. You start with USD and your home currency wallet, then add others from the Wallets page.
Verto is authorised by the UK Financial Conduct Authority as an Electronic Money Institution rather than a bank, and customer funds are held in safeguarded accounts, separate from Verto's own money. The FCA explains how safeguarding works for e-money institutions.
What Local Accounts don't replace
Local account details let you get paid like a local business. They do not make you a local business.
If you plan to hire staff in a country, sign local leases, register for local sales tax or bid for work that requires a registered presence, you may still need an entity there. Take local legal and tax advice for those decisions. Many businesses use Local Accounts first, test demand in a new market, and only set up a company once the revenue justifies it.
Local Accounts are also built for bank transfers. If your customers want to pay by card at an online checkout, you will need a card acquiring service as well.
How to stop the problem coming back
Once you have local details, a few habits keep payments flowing smoothly:
List your currencies. Note which currencies your customers prefer to pay in, not just the ones you invoice in today.
Request details for each. Add each currency to your Verto account and request Local Account details.
Update your invoices. Put the right details on each invoice, one set per currency, and remove old wire instructions.
Check who will pay. Other businesses can pay into a Local Account by default. Payments from individuals are available for selected industries and currencies, subject to approval.
Decide when to convert. Hold balances in the currency you received, or convert with Exchange Now at a live rate, 24/7.
For a fuller explanation of how the details themselves work, read what a virtual account for business is.
Frequently asked questions
Can I open a local account in another country without a local entity? In most cases, yes. Verto issues local account details in your business's name, so a UK company can receive NGN, or a Kenyan company can receive USD, without a subsidiary in that market. Each currency is subject to eligibility checks.
Do I get my own account number? For some currencies, Verto issues dedicated account details in your business's name. For others, you use a shared account with a unique reference. Both work, and funds reflect automatically once the payment is received.
How quickly can I start receiving payments? Once your Verto account is approved, local account details can be requested from the platform. NGN details for a UK business, for example, are generated instantly.
Is Verto regulated? Yes. Verto has licences and approvals in eight countries, including the UK, the US and Nigeria. You can read more on Verto's licences page.
Getting paid in a new market shouldn't cost you a new company. Open your Verto account to collect, hold, convert and pay in one place. Get started or speak to Verto sales about the currencies you need.
Get account details in other countries with Verto
Share this article
