In this article, we’re discussing the best small business bank account UK style.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Best Small Business Bank Account UK
- Who Can Open a Business Bank Account in the UK?
- How to Open Business Bank Accounts in the UK
- Frequently Asked Questions
- Ready to Explore Your Options?
Best Small Business Bank Account UK
The best small business bank account in the UK depends on the specific type of business, industry, required services, and local ties. For example, most small businesses will find that digital banking options meet their requirements. However, businesses with borrowing requirements or requiring in-person merchant services will likely look to traditional banks.
That said, one of the most critical factors when it comes to choosing the best small business bank account in the UK is the local status of the business. In other words, is the business that is trying to open a bank account considered resident or non-resident for tax purposes?
The reason that residency status is so important is that many UK banks will not accept applications from non-resident businesses. So, if you have a non-resident business, you should click the link first shared above to explore business bank account opening for non-resident UK companies.
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Who Can Open a Business Bank Account in the UK?
In theory, anyone can open a business bank account in the UK. However, different businesses (and business owners) will have an easier time than others.
Of course, resident operating companies with local shareholders and directors will follow a relatively straightforward process. On the other hand, businesses with foreign non-resident owners and directors will face the most challenges.
In this section, we’ll share the specific client groups that can find (and open) UK accounts.
Client Groups That Can Open a Business Bank Account in the UK
- Resident UK shareholders and directors
- Resident foreign shareholders and directors
- Non-resident UK shareholders and directors
- Non-resident foreign shareholders and directors
As you can see, we’re specifically referencing the profiles of the shareholders and the directors and not mentioning the jurisdiction of registration, industry, or risk profiles of businesses. And, there’s a good reason for this…
The UK is not the most accessible banking jurisdiction for foreign, offshore, or complex entities nor is it easily accessible for high-risk businesses.
With this in mind, we typically suggest that individuals with businesses outside of the UK (e.g. non-UK entities) look to open elsewhere. In fact, in certain instances, we also suggest that UK entities consider banking outside of the UK.
But, if you have a UK LLP or UK LTD company and you’d like to move forward with account opening, here’s how to do it.
How to Open Business Bank Accounts in the UK
To open business bank accounts in the UK, you need to select a bank that accepts your business profile and has requirements you are able and willing to meet. In most cases, the three requirements that are difficult for business owners to overcome include the deposit requirement, proof of address, and being able to visit the bank in person.
Fortunately, there are solutions to overcome each of these challenges, and the many others that non-resident business owners will undoubtedly face. We share the step-by-step process to overcome these in our Advanced Banking Report on Bank Account Opening for UK LTD and UK LLP companies.
That said, here’s a look at the specific requirements for opening that you should be prepared to provide.
Requirements for Opening UK Business Bank Accounts
- Company documents
- Companies House number (UK companies)
- Proof of the business address
- Business description
- Business website
- Information on customers and transaction
- Businesses are required to have a local signatory
- In-person meeting with a company representative
Additionally, each of the shareholders and directors will be required to provide:
- Government-issued ID
- Proof of address
Frequently Asked Questions
Below are two of the most common questions we receive from people looking at opening the best small business bank account in the UK. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Which Bank Is Best For Small Business in UK?
The bank that is best for small business in the UK will depend on several factors. These factors include the industry, required services, transaction activity, deposit amount, risk factors, ability to open in person, and the profile(s) of the beneficial owner(s). With this in mind, in order to choose the best bank for a particular small business in the UK, careful consideration needs to be given to these factors when deciding.
Which Bank Is Easy to Open Business Bank Accounts in the UK?
The bank that is easy to open business bank accounts with in the UK depends on the entity applying. For example, HSBC is a suitable option for a number of different businesses, if they can meet the deposit requirements and show up in person. Alternatively, any of the other high-street banks may be worth considering if a business has a local presence and requires basic services.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.