In recent years, more companies have found themselves doing business in countries that suddenly come under international sanctions. Whether due to political decisions, war, or financial restrictions, being located in a sanctioned country can lead to serious problems, such as blocked payments, closed bank accounts, loss of suppliers, and growing concern among clients.
If your business is based in one of these countries, it’s natural to start looking for ways to protect your operations and maintain stability. One possible solution is moving your business abroad. But how can you do that without losing your clients or access to the banking system?
In this article, we’ll consider the key steps for relocating your company safely from a sanctioned country, while continuing to serve your clients and maintaining international banking access.
Why businesses leave sanctioned countries
Sanctions can disrupt a business even if it has nothing to do with politics. Some of the most common problems include:
- Bank accounts frozen or closed by international institutions
- Blocked access to SWIFT or global money transfer systems
- Suppliers cutting ties due to risk concerns
- Clients are hesitant to continue cooperating
- Delays or refusals when receiving payments from abroad
As these risks grow, many business owners realize that relocating is not just a good idea, it may be the only way to survive. However, it’s important to understand that forming a new company abroad is not enough on its own. You’ll also need to adjust your contracts, structure, and banking setup to ensure everything works smoothly.
Step 1: Choose a suitable country
The first decision is to find a country that is stable, open to foreign business, and free from sanctions. This new location should offer good banking connections, allow you to open a company as a non-resident, and ideally provide a reasonable corporate tax system.
Some countries that have become common relocation destinations include:
- United Arab Emirates (UAE), ideal for tech and trading firms
- Serbia is welcoming to foreign nationals, with access to both the EU and Russian markets
- Turkey remains a strategically located country open to many industries
- Kazakhstan or Armenia are neutral options often used by companies from the CIS
- Georgia is known for fast company formation, low taxes, and no sanctions
Before making a choice, be sure the country is not part of the same sanctions framework that affects your home country, for example, check if it belongs to the EU, US, or UK sanctions regime.
Step 2: Form a new company abroad
After choosing a destination, the next step is to legally register your business. In most cases, this means forming a limited liability company (LLC) or a local equivalent.
You’ll want to:
- Work with a local agent or law firm to handle registration
- Clearly define your business activity and ownership structure
- Register the company under the name of the real owner, not a nominee, unless permitted by law
Most importantly, ensure that the new company’s ownership and control are clearly separated from the sanctioned entity. This helps avoid suspicion and improves your chances of success when dealing with clients and banks.
Step 3: Open a bank account in the new country
Once your company is set up, you’ll need a functioning business bank account. This step is crucial. Banks will ask questions about your business, including the type of services or products you offer, your source of funds, your client list, and whether anyone involved is on a watch list or sanctions list.
To increase the likelihood of approval:
- Choose banks that are open to non-resident company accounts
- Consider working with a consultant or bank introducer to guide the process
- Be clear and transparent in all your answers
- Avoid direct references or links between the new company and the sanctioned business
Even with a fresh structure, some banks may ask about previous business ties. If your new company deals only with former clients and can show operational independence, it may still pass due diligence checks.
Step 4: Inform and transition your clients
Relocating does not mean losing your clients. The key to retaining them is clear and timely communication.
Let your clients know that your business is now operating through a new legal entity. Explain that this change was made to ensure stable banking, ongoing services, and smoother international transactions. Reassure them that the quality of service and pricing will remain the same.
Ask them to begin making payments to the new company’s bank account. If necessary, issue updated contracts and invoices using the new company name and details. Updating your email addresses, websites, and branding may also help reinforce the transition.
In cases where clients are large institutions, they might request additional documents to confirm that the new company is not linked to sanctions. Be prepared to provide your company registration certificate and bank account confirmation letter.
Step 5: Handle compliance and export controls
Even if your new business structure is legal, you must still stay within international rules and standards. It’s your responsibility to make sure that your new setup is compliant.
Here’s what to consider:
- Check if your industry is affected by export controls—for example, if you deal in software, electronics, or dual-use items
- Avoid working with any partners, clients, or suppliers who appear on sanctions lists
- Keep your paperwork in order, including contracts, payment records, and invoices
- Use screening tools or compliance software to help review partners before doing business
Staying compliant protects your new company’s reputation and helps avoid new problems with banks or regulators.
Step 6: Close or freeze the old company
Depending on your situation, you may decide to shut down the old company entirely, keep it for local operations, or suspend its activity.
Each option has pros and cons. If the company is no longer functional or carries risk, liquidation may be the cleanest choice. If you want to keep it alive for future use, you might freeze activity but maintain the legal license.
In any case, it’s wise to speak with a lawyer before transferring any assets, intellectual property, or ongoing contracts to the new company.
Tips to avoid banking problems
International banks pay close attention to companies coming from sanctioned regions. To avoid trouble:
- Choose a fresh, neutral business name with no clear link to the old company
- Avoid using the same domain names, branding, or staff email addresses
- Hire an accountant in the new country to manage financial reports and tax filings
- Keep personal finances and business accounts completely separate
If a bank sees too many warning signs, it may refuse to open an account or shut down an existing one. That’s why being clear, consistent, and prepared to explain your business is critical.
Possible scenario of moving out of a sanctioned country
Let’s take the example of a small software firm from Belarus that is currently facing major problems with payments. Its PayPal account gets blocked, and several EU clients begin to hold back transfers due to growing compliance concerns.
To fix the situation, the company could decide to register a new LLC in Armenia. It opens a local business account, sets up a Stripe account for card processing, and starts signing new agreements with its existing clients under the Armenian entity.
While the Belarus office continues to support the internal team, all international payments are routed through the new company. As a result, operations remain stable, and no clients are lost. This approach not only keeps the business alive but also prepares it for future growth in a more secure and accessible market.
Bottom Line
Relocating your business from a sanctioned country is a major step, but for many, it’s the only way to stay connected to clients, banking systems, and international markets. The process involves selecting a suitable jurisdiction, creating a new legal entity, opening a compliant bank account, and carefully managing the transition with your clients.
Separating your new company from your old one and staying compliant with all international rules is essential. With proper preparation, honest communication, and clean documentation, you can continue operating your business and keeping your revenue streams active, even during uncertain times.
For further insight, read our article “Why Offshore Banking Is Making a Comeback in 2025?”
If you’re unsure how to begin, don’t hesitate to schedule a free consultation with our team. We’re ready to help you plan your next move with confidence.
Disclaimer
Widelia and its affiliates do not provide tax, investment, legal, or accounting advice. Material on this page has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, investment, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Please consult https://widelia.com/disclaimer/ for more information.
