NO. If you are living in India and have a small business in the US, then you cannot have a physical bank account in the US, unless you travel there and get your physical bank account open, or have a co-founder who can help you with it.
That being said, however, there are alternative options called Neo Banks through which you can open a bank account online in the US while sitting in India.
What Are Neo Banks?
Neo Banks are the banks that do not have any physical presence, which means digital-only banking platforms that operate only online. The best part about these banks is that they are at lower cost and in many cases even free.
There are two types of Neo Banks
- Full Stacked Neo Banks
They have their own banking license.
- Fronted-Focused Neo Banks
They are not your typical banks but Financial technology (Fintech) companies that partner with traditional banks.
Eligibility For Opening An Account In Neo Banks
This is the main list of documents that most Neo Banks requires. This list can vary for different banks.
*Note: all these documents must be uploaded online while creating the account.
LLC Approval Documents
Identification– this will mostly include a scanned picture of your passport, your phone number, and other contact information.
LLC address
EIN number
You might also be interested in reading our blog on How To Send Money From US to India For FREE
Best Neo Banks For Your Small Bussiness
Different businesses have different banking needs. Here is our list of Top Picks, along with detailed descriptions, so you can choose the one that suits your business the best.
1. Relay Bank
If you are someone who likes to stay at the top of your cash flow, then this bank is the best bet for you.
Benefits Of Relay Bank
- No account fees, overdraft fees, or minimum balances.
- Up to 20 individual checking accounts.
- Payments and deposits via ACH, wire, and check.
- Deposits from payment processing providers like PayPal, Stripe, Square, and more.
- 50 virtual or physical Visa® or debit cards.
- Ability to set transaction and withdrawal limits on employee debit cards.
- Deposits are FDIC insured.
Features
| Savings Account | None |
| Transaction fees | Payments • Unlimited transactions • Free ACH and check payments • Domestic outgoing wires: $5 • International outgoing wires: $10 Deposits • Unlimited transactions • Free ACH and check deposits • Free incoming domestic and international wires • Free cash deposits and withdrawals at AllPoint+ ATMs |
| Financing | None |
| Advanced Features | Relay Pro for $30/month, you get: • Unlimited outgoing domestic and international wires • Same-day ACH transfers |
| Account Integrations | QuickBooks Online, Xero and Gusto |
| Customer Service | You will get customer support via Email, chatbot, or phone |
Cons Of Relay bank
- Cannot deposit cash or order checks.
- Limited phone support (9 a.m.-5 p.m. ET, Monday through Friday). However, Email support is available seven days a week.
- Long hold time for deposited checks (up to 6-7 business days).
Why Should You Choose Relay Bank
Built-in bookkeeping features:
Relay is designed to be a bank account and cash management service. It offers direct integration with QuickBooks Online and Xero, so you can seamlessly sync transaction data with your accounting software.
Relay Pro offers additional bookkeeping features. These include setting approval workflows for bill payments and automatically importing unpaid bills from QuickBooks or Xero. You can also connect your Relay account to PayPal, Stripe, Square, and Venmo.
2. Brex
Their main focus is on enterprise and venture-backed startup customers. If you have a small business, then you should probably look out for other alternatives.
This bank is best suitable for medium to large businesses.
Benefits
- No account fees or minimum balances
- They do not have any Debit cards but have amazing cashback rewards for Credit cards
- Account integrations with QuickBooks Online, Xero, Sage, and Netsuite.
Features
| Checking Accounts | Upto 8 |
| Savings Account | None |
| Transaction fees | Payments Unlimited transactions Free ACH and check payments Free outgoing and international wires Deposits Unlimited transactions Free ACH and check deposits Free incoming domestic and international wires |
| Financing | Start-up funding available with certain requirements |
| Customer Service | Customer support via Email or Phone |
Cons
- Credit limit fluctuates with cash in the bank. For startups, this can make available credit less predictable than is ideal.
- No debit card.
- Only available to medium to large startups and scaled companies.
Why Should You Choose Brex
- If you are a tech startup, then it is the best bet for you. Brex offers a ton of banking, expense management, and cashback rewards on card spend, making them a great fit for enterprise businesses that spend a lot and require robust employee spend management.
- Brex partners with various third-party banks, all of which are FDIC-insured which means your money is secure up to the value of $250,000.
- You can earn returns on your funds, by investing them into a money market fund.
3. Mercury
If you aim to build a high-growth, digital-first technology startup, then Mercury is the best option. Along with all the basic banking features, they also give founders access to a venture debt product that facilitates fundraising for seed, series A, and DTC rounds through their investor network.
Mercury’s strong startup community, basic banking features, and low fees make it an excellent fit for your business.
Benefits
- Mercury offers a curated investor list and a networking program that connects founders with investors
- They also provide tech perks like Amazon Web Service, Hubspot, and QuickBooks Online discounts.
- No account fees, overdraft fees, or minimum balance.
- Advanced digital tools including API access to automate and customize your banking.
- FDI insured.
Features
| Checking account | Upto 15 |
| Savings Account | 1 saving account per business with 0.001% interest |
| Transaction Fees | Payments Unlimited transactions Free ACH and check payments Free outgoing domestic Free USD international wires, otherwise 1% FX fee is applied Deposits Unlimited transactions Free ACH and check deposits Free incoming domestic and international wires |
| Cards | One physical debit card per user, unlimited virtual cards |
| Financing | Startup funding available with certain requirements |
| Account Integrations | Quickbooks online and Xero |
Cons
No cash deposits
Sole proprietorships and trusts can’t open an account
Why should you choose Mercury
- Mercury bank account was designed to cater to the needs of startups and small businesses. It is a perfect solution for digital businesses including E-Commerce businesses.
- With Mercury, you can easily manage your account through a mobile app, which allows you to check your balance, view transactions, receive online payments, monitor spending, and transfer money.
- Mercury also gives access to its banking software. With this access, you can customize and automate your Mercury account by designing internal dashboards, making bulk payments, creating transfer rules, automating reconciliations, and more.
Click on the link to check out the step-by-step process of How To Open An Account in Mercury Bank in a very easy-to-understand manner.