Paying a sister company or a subsidiary abroad is a payment like any other. The documents that make it smooth.
Many groups based in Central and West Africa have entities abroad: a purchasing office, a subsidiary in Europe, a holding company. Payments between these entities are common, and they are checked like any other payment.
Why intra-group payments are checked
For banks and payment providers, a transfer between two companies of the same group is still a cross-border payment. It must match a genuine, lawful transaction, such as goods or services supplied, management fees or the repayment of a documented loan.
The documents to prepare
- An invoice issued by the receiving entity, or an equivalent document.
- The agreement behind recurring flows, such as a service or management agreement.
- If relevant, a document showing the link between the two entities.
Common pitfalls
- Paying from the account of a company other than the one named on the invoice.
- Vague descriptions such as “transfer” or “support” with no underlying document.
- Mixing personal and company funds.
How Volta handles it
You add the invoice to your payment and our team checks the file with you before you pay. The funds must come from an account in your company’s own name. Every payment keeps its invoice, quote and SWIFT proof in your history, which helps your auditors and your transfer pricing documentation.