Every company, small or large, planning to expand to the UK market, needs a local business account. When I first started in my role at the embassy, I was rather shocked how lenghty this process was. I imagined an investor would simply fill in an online form and the account would be ready to use in a couple days. Why is it not the case?
All banks in the United Kingdom are required by law to comply with anti-money laundering (AML) laws and Know your Customer (KYC) requirements to prevent criminals and terrorists from using financial products or services to store and move around their money. If they fail to do so, they can face verybig fines.
This basically means that before a UK bank opens a business accout for someone who is not a UK resident, they need to review a high number of documents, make sure the company is not involved in anything illegal, etc.
What can you do to be more "bankable"?
- Appoint a UK resident / citizen as a Company Director registered at Companies House to be a UK resident account signatory
- Employ a UK resident in the UK Ltd business (at least planned in the business plan) to be a UK resident signatory
- UK place of business (separate from registered office)
- A clear business plan identifying revenue forecats, suppliers and employee numbers by year 2 identifying existing and prospective UK customers and known UK suppliers.
- Keep it simple. UK Ltd to target UK and EU customers only, as ambitions grow, you can amend.
---------------------------------------------------------------------------------------------------------------
Ifyour company needs some interim solutions (before the bank account is opened) to maintain the UK business momentum, there are definitely solutions:
- Revolut: https://www.revolut.com/
- TransferWise Borderless Business Account: https://transferwise.com/us/borderless/
- CashPlus: https://www.cashplus.com
One more advice I have - don't just enter a high street bank and ask a clerk to help you open a business bank account. Reach out to myself and my team and we will connect you to the bank of your choice. We will make sure you speak to a person who is specifically focused on foreign investors. That way, you will save a lot of time and avoid unnecessary discussions.
Please, reach out to me at lucia.klincova@fco.gov.uk and I will be happy to help!
Lucia
As a seasoned professional deeply entrenched in the intricacies of international business and finance, my wealth of experience is rooted in a distinguished tenure at the embassy. During my time in a pivotal role, I navigated the complexities of establishing business operations in the UK, and it became abundantly clear that the process of obtaining a local business account was far more convoluted than one might anticipate.
My firsthand experience illuminated the regulatory landscape that governs the UK banking sector, particularly the stringent anti-money laundering (AML) laws and Know Your Customer (KYC) requirements. These regulations are not mere bureaucratic hurdles; they are essential safeguards against financial malfeasance, preventing criminals and terrorists from exploiting financial services for illicit activities. The gravity of non-compliance is underscored by the substantial fines banks face if they fail to uphold these standards.
To be deemed "bankable" and expedite the process of securing a business account in the UK, several strategic measures must be undertaken. One effective approach is appointing a UK resident or citizen as a Company Director registered at Companies House to serve as a UK resident account signatory. Additionally, employing a UK resident within the UK Ltd business, with the intent clearly outlined in the business plan, further enhances the likelihood of approval. A distinct UK place of business, separate from the registered office, and a comprehensive business plan are integral components of the application, detailing revenue forecasts, suppliers, employee numbers, and identifying existing and prospective UK customers and suppliers.
Furthermore, it's paramount to adopt a pragmatic approach by initially targeting UK and EU customers, with the flexibility to expand ambitions as the business matures.
Recognizing the challenges companies face in maintaining business momentum while awaiting the opening of a UK bank account, I advocate for interim solutions. Platforms such as Revolut, TransferWise Borderless Business Account, and CashPlus offer viable alternatives during this transitional period.
In my professional capacity, I strongly advise against the conventional route of approaching high street banks and engaging with general clerks to open a business bank account. Instead, leveraging my expertise and that of my team ensures a more streamlined process. By connecting with us, you gain access to individuals specifically focused on assisting foreign investors, saving valuable time and avoiding unnecessary hurdles.
For personalized assistance and guidance in navigating the nuances of establishing your business presence in the UK, please feel free to reach out to me directly at lucia.klincova@fco.gov.uk. I am dedicated to facilitating a smooth and efficient entry into the UK market for your company.
