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By miguel-ingles
- In Uncategorized
Having a commercial current account in this country will allow a business to access numerous benefits, such as government subsidies. In addition, it will make it easier for directors to check the financial health of the company, as personal and business finances will be separated. For all of the above, in this article I explain the process of opening a commercial bank account in the UK.
Requisites for Opening a Commercial Bank Account in the UK
Starting up a commercial bank account is possible for both British and international businesses. However, it will be necessary to go through rigorous evaluation processes of the company that the banks demand. These will assess aspects such as:
- The reputation of the country of origin.
- The financial history of the corporation and if it has complied with international regulations.
- Transparency of its legal structure.
- The economic development potential of its business model in the UK.
Required Documentation
Apart from estimating the previous characteristics of the company, banks will also demand certain documents. These would be:
- The certificate of incorporation into the Companies House in order to check if the corporation is registered in the UK. If the enterprise has the legal structure of a sole trader, then you must provide the number of the National Insurance.
- Some evidence that confirms the address of the company’s registered office in the British country.
- A copy of the Memorandum and Articles of Association.
- Proof of identification of directors and the mayor shareholders of the business.
- Income and expenditure forecasts.
In the case that you intend to open a bank account as a non-resident, entities may also ask you to demonstrate a substantial economic connection with the UK, submit a detailed business plan, and comply with certain anti-money laundering standards, among other issues.
Steps for Opening a Commercial Bank Account in the UK
For any corporation, it is essential to have a commercial bank account. This will allow you to access private external funding and public subsidies. Moreover, as explained above, it will lead to the separation of personal and professional finances. Here are the steps to take in order to open a commercial bank account in the UK.
- Completing the company registration process into the Companies House.
- Research among the different banks operating in the UK to see which entity offers the most advantageous conditions for the business.
- Send a request to the bank in question along with the documentation they require.
- Payment of the corresponding fees
- Receipt the bank account number and credentials to access it.
You must bear in mind that these steps may vary between banks or depending on the company’s business structure. On the other hand, the deadlines for opening a commercial bank account can go for up to 16 weeks, depending on the entity. Nonetheless, they may be quicker if the owner has a personal account with that same bank.
The Best Banks for Opening a Commercial Account in the UK
When choosing a bank, the business must consider several aspects. First, you should review the commissions that each option charges per month, for international transfers, or if they offer exemptions to new customers or startups over a period of time. Second, if you plan to work with other international partners, you will need to select an entity that facilitates foreign currency exchange and payments abroad. Finally, it is essential that they offer an easy-to-use online platform that allows you to access the account from any location or device.
In the UK, these are the banks that offer the best conditions to corporations:
- Barclays. It stands out for offering special business accounts for startups and small companies. Additionally, the opening process is one of the simplest and most agile.
- HSBC. This is one of the entities with the largest international presence. Therefore, it will be the best option for businesses that require international transactions.
- Revolut. This is an exclusively digital alternative. Its business account type offers certain advantages, especially for international trade, such as multi-currency support or fast transfer. In addition, it includes an easy-to-use interface.
In ukstartcompany, you will find information about how to establish, register and operate companies with different legal structures and business activities in the UK.