Glossary

Banking & KYC

Bankability

The likelihood that a bank or payment provider will accept and maintain your account, based on your profile, documentation, and business model.

Beneficial owner

The natural person(s) who ultimately own or control a company or account, beyond the legal entity. Banks and regulators require disclosure of beneficial owners.

UBO

Ultimate beneficial owner; same as beneficial owner. The real person behind a company or structure.

Business narrative

A short, factual description of your business: what you do, who your clients are, and expected payment flows. Used by banks and processors to assess risk.

KYC

Know your customer. The process by which banks and regulated firms verify the identity of clients and understand their business and source of funds.

KYC pack

The set of documents required to open an account or onboard: typically ID, proof of address, company docs, narrative, and source-of-funds evidence.

Proof of address

Document showing where you or your company is based (e.g. utility bill, bank statement), usually dated within the last few months.

Source of funds

Evidence of where money used to fund a company or account comes from (e.g. salary, sale of asset, existing business). Required for AML compliance.

Onboarding

The process of opening an account or becoming a client: submitting documents, verification, and approval.

Rejection driver

A common reason banks or processors decline an application (e.g. incomplete docs, high-risk sector, weak narrative).

Registered office

The official address of a company in its jurisdiction of incorporation, used for legal and official mail.

Correspondence address

Address used for routine mail; sometimes accepted by banks when a physical trading address differs from registered office.

Applicant

The person or entity applying for a bank account or payment processing. Banks verify both the entity and individuals behind it.

Account opening

The process of applying for and being approved for a business (or personal) bank account.

Compliance & regulation

AML

Anti–money laundering. Rules requiring firms to verify identity, understand business purpose, and assess source of funds.

Automatic exchange

Jurisdictions sharing financial account information with each other’s tax authorities under CRS/FATCA without you having to report manually.

W-9

IRS form used by US persons to provide a US taxpayer identification number to a financial institution (FATCA).

W-8BEN

IRS form used by non-US persons to certify foreign status and possibly claim treaty benefits (FATCA).

CRS

Common Reporting Standard. International framework for automatic exchange of financial account information between tax authorities.

FATCA

US law requiring foreign financial institutions to report accounts held by US persons. Banks collect IRS forms (e.g. W-9, W-8BEN).

EDD

Enhanced due diligence. Extra checks applied to higher-risk customers: deeper verification and sometimes written policies.

CDD

Customer due diligence. Standard identity and risk checks; EDD is the enhanced level.

Self-certification

Form you complete for CRS/FATCA declaring your tax residency (and sometimes citizenship). Banks use it to report to tax authorities.

Tax residency

The jurisdiction(s) where you are treated as tax resident. Declared on CRS/FATCA forms and can trigger automatic exchange of account data.

PEP

Politically exposed person. Someone in a prominent public role; banks apply extra checks. Not a ban but may slow onboarding.

Sanctions

Official lists of individuals or entities that banks must not deal with. Screening against sanctions is mandatory.

Entity & structure

Incorporation

The process of forming a legal company (e.g. limited company, LLC) in a given jurisdiction.

Jurisdiction

The country or territory where a company is formed or an account is held. Determines applicable law and regulation.

Mainland company

A company registered to trade onshore in a country (e.g. UAE mainland), as opposed to in a free zone.

Free zone

A designated area with its own rules (e.g. 100% foreign ownership, tax benefits). Common in UAE and some other jurisdictions.

Registered agent

A local representative or service required by some jurisdictions to receive official mail and maintain the company’s registered address.

Memorandum and articles

Constitutional documents of a company (UK-style); equivalent to certificate of incorporation and bylaws elsewhere.

Certificate of incorporation

Official document proving that a company has been formed in a jurisdiction.

Director

Person responsible for running the company. Banks often require ID and proof of address for directors.

Shareholder

Owner of shares in the company. Beneficial owners are often shareholders or control shareholders.

Substance

Economic presence in a jurisdiction (e.g. staff, office, activity). Some jurisdictions require it for tax or compliance.

Formation

Same as incorporation; the act of creating the legal entity.

Renewal

Annual or periodic filing or fee (e.g. annual return, registered agent fee) to keep the company in good standing.

LLC

Limited liability company. A common company type in the US and some other jurisdictions.

Limited company

A company whose members’ liability is limited to their share capital. Common in UK and many Commonwealth jurisdictions.

Offshore

Colloquial term for a jurisdiction often used for holding or tax structuring. Not a legal category; bankability varies.

Onshore

Jurisdiction where the company trades or has substance in the same country; often used in contrast to “offshore”.

Payments & processors

Payment processor

A provider that accepts and processes card or online payments (e.g. Stripe, PayPal, Adyen) on behalf of merchants.

Payment gateway

Technology that connects a merchant to a payment network; sometimes used interchangeably with processor.

Evidence of delivery

Proof that you deliver what you sell: e.g. tracking for goods, contracts or access for services. Processors use it to assess chargeback risk.

Chargeback

Reversal of a card payment initiated by the cardholder or bank. High chargeback rates can lead to reserves or account closure.

Restricted category

Business type that a processor does not accept or treats as high risk (e.g. certain supplements, crypto, adult).

Acceptable use policy

A processor’s rules on what businesses and activities are allowed. Violation can lead to closure.

Reserve

Portion of your processing volume held by the processor for a period, often when chargeback risk is higher.

Payments rails

The channels that move money: bank accounts, processors, gateways. You need both banking and often a processor to get paid by clients.

EMI

Electronic money institution. A licensed provider that can issue e-money and provide payment accounts; some offer business accounts.

Billing descriptor

The text that appears on a cardholder’s statement for your charge. Clear descriptors can reduce chargebacks and disputes.

Underwriting

A processor’s or bank’s risk assessment of your application. May involve extra docs or time for higher-risk profiles.

Costs & timeline

Cost bucket

Category of cost (e.g. formation, registered agent, banking, accounting, renewals). Used to compare total cost of ownership.

Timeline stage

Phase of setup (e.g. document prep, formation, banking application). Banking often takes longer than incorporation.

Hidden fee

Cost not clearly stated upfront (e.g. introducer fee, bundled compliance). Ask for a full breakdown before committing.

Annual return

Periodic filing required by many jurisdictions to keep the company on the register. Often due yearly.

Total cost of ownership

Full cost over time: formation, agent, banking, accounting, renewals. Compare this, not just formation fee.

Variance

Why costs or timelines differ: jurisdiction, provider, document readiness, risk profile.

Risk & due diligence

Red flag

A sign of risk or a scam: e.g. guaranteed bank account, pressure to pay upfront, or requests to misrepresent information.

Due diligence

Checks you do before engaging a provider: verify registration, read contracts, check reviews. Also used for EDD/CDD by banks.

Failure point

Common reason an application or project fails (e.g. incomplete KYC, wrong jurisdiction for your profile).

Scam

Fraudulent offer (e.g. guaranteed bank account, no-questions setup). See Red flags for due diligence.

Contract clause

A term in an agreement. Check scope, refunds, and liability before paying a provider.

Use cases & business types

Use case

A type of business or situation (e.g. SaaS, agency, e-commerce, holding company). The site uses use cases to shortlist jurisdictions and guides.

Holding company

A company that holds assets (e.g. IP, property, shares) rather than trading. Banks want clear structure and source-of-funds documentation.

IP licensing

Licensing intellectual property (e.g. software, brand) to other entities. Income is often royalties; banks want written agreements.

High-scrutiny industry

Sector that faces stronger bank and processor due diligence (e.g. crypto, certain financial services).

SOW

Statement of work. A document describing scope of services; useful as proof of delivery for agencies and consultants.

Proof of service

Evidence that you delivered a service (e.g. contract, signed completion, invoice). Processors may request it.

Royalty

Payment for use of IP (e.g. licence fees). Holding companies often receive royalties; banks want licensing documentation.

Marketplace & partners

Qualified request

A completed request form that meets our criteria for routing to partners (profile, needs, docs readiness).

Request introductions

The flow where you submit your profile and we route qualified requests to vetted partners (formation, accounting, banking introducers).

Partner

A vetted formation agent, accountant, banking introducer, or consultant we may refer you to. We do not provide services ourselves.

Vetted partner

Partner that meets our verification criteria (e.g. licensing, compliance stance). See Partner standards for criteria and removal policy.

Methodology

How we build comparisons and scores: factors (bankability, cost, timeline, etc.), data sources, and limitations.

Formation agent

A provider that helps you incorporate a company in a jurisdiction. We may refer to vetted formation partners.

Introducer

A partner that introduces you to a bank; they do not guarantee approval. Be wary of “guaranteed” introductions.

Removal policy

Conditions under which we remove a partner from our directory (e.g. complaints, breach of standards).

General

Entity

A legal structure (e.g. company, LLC). Separate from banking: having an entity does not guarantee a bank account.

Shortlist

A narrowed set of jurisdictions or options that fit your use case and bankability. Use Compare and use-case pages to build one.

Banking difficulty

How hard it typically is to open and maintain a business account in a jurisdiction (often low/med/high in comparisons).

Ongoing burden

The recurring cost and effort of compliance: filings, accounting, renewals, reporting.

Best for

Summary of who or which use cases a jurisdiction or option suits best. Used in comparison tables and jurisdiction pages.

Report outdated info

How to tell us when content is wrong or out of date. Usually a mailto or form link in the footer.

Cost range

Indicative low/med/high cost in comparison tables. See jurisdiction pages and guides for actual ranges.

Timeline

Typical time from start to account open or project complete. Banking often drives the critical path.