Opening a bank account in the UK; What do I need to know?

One common query that we receive involves the relationship between company incorporation and setting up a bank account. It should be noted that you are not legally obliged to possess a business bank account in order to trade here in the UK. This is a common (and understandable) misconception. For non-UK residents, you are able to use their current bank account from your country of residence.

If you are a non-UK resident, what do you need to know?

Firstly, for a non-UK corporate entity, it can be difficult to open a business bank account. UK banks have traditionally met these applications with an element of caution. This is mainly due to anti-money laundering restrictions in place.

However, if you bank with a large global provider; you should discuss with them the capabilities of them offering you an account with their UK business. We’re also keen to reiterate the fact that we will always provide insight and advice regarding this. We can help you set up a UK account if required. We know the importance of separating your business and personal finances. All you need to do is ask, and I’m sure we will have the answer for you.

Another option is to view an international business account. This does require a typically larger minimum deposit, but it’s certainly worth researching. If however, a Director in the company does reside in the UK, then this will provide a much better opportunity to an open an account.

So what is the process for opening a business bank account, and what do you need to know?

Once the application has been made, you will be of course asked about yourself and your company to see if you hit the eligibility criteria. Generally speaking, you will only be asked to prove your identity and address. The documents required to prove this are:

• Proof of identification for all the directors involved within the company (this would be Passport, Driving License or National ID card)
• Proof of current address (utility bill, recent bank statement or council tax statement)

The typical details you will be required to provide about your company are:

• Full address of the company
• Companies House registration number (which we can provide if formed through our services)
• Estimated revenue (and any other financial information requested)
• Up to date contact details

There may be instances where personal financial details are required, so a credit check can be conducted. This will be at the selected bank’s discretion.

Can a business bank account be opened online?

Most larger and reputable banks will require a physical meeting(s) as an opportunity for the individual to provide identification and documentation, with this relating to the examples earlier. Applications can be started online, but inevitably you would need to discuss this with a branch/bank manager of your preferred choice of bank.  Of course, it’s advantageous to discuss in as much detail as possible, as applications can differ depending on circumstances.

Categorised in: Company Finance, Uncategorised

This post was written by Chris Beck