If you live outside the UK and want to start a business here, one of the significant challenges you may encounter is obtaining a bank account for your company. Is having a bank account essential, and when should you open one?
In this article, we’ll discuss the benefits of opening a UK bank account and the consequences of postponing this. We’ll also explore the banking options available for non-resident company owners, outline the steps for registering a business in the UK, and highlight the benefits of working with trusted partners to streamline the process.
Key takeaways
- There is no legal requirement to have a bank account when you register a company in the UK. But, you’ll almost certainly need one to operate day to day.
- A bank or digital payment account enables you to pay your taxes, keep financial records, and transact with customers, staff and suppliers.
- Non-residents have several options, including traditional UK banks, digital providers, overseas accounts, and agency bundles with banking introductions.
Do you need a UK bank account to start a business?
Although you may find conflicting information online, there is no legal requirement to open a UK bank account when forming a company or registering for tax purposes.
However, you will need a reliable way to manage and process payments for your business, making a UK bank account a practical necessity.
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Having a UK bank account makes it much easier to receive payments from customers, pay suppliers, and pay tax in this country, while also keeping your financial records in order. It also enhances your professional image, and could help you access credit, grants or investment.
What happens if I delay opening a business bank account?
The sooner you open a bank account, the better, as any delay could quickly create problems. Keep in mind that it may take a few days to receive approval for a new account.
Most staff, customers and suppliers expect to pay or be paid via bank transfer or major platforms. Without an account, you may face delays that disrupt operations or damage your reputation.
Transactions in your business can be tricky, including:
- Paying salaries or drawing dividends
- Handling National Insurance contributions
- Filing annual accounts and tax returns
- Paying Corporation Tax on time
- If you’re registered for VAT, filing returns, and paying VAT.
These tasks are all easier – and often only possible – with a UK bank account. One key advantage of opening a UK business account? Your money is protected under the Financial Services Compensation Scheme (FSCS), up to £85,000, even if the host bank fails. This applies to non-residents, too.
Banking options for non-resident company owners
UK banks often add extra checks for non-residents looking to open an account, not because it’s impossible, but due to stricter anti-fraud and ID policies.
Some large global institutions can help you set up an account with their UK business if you bank with them in your home country.
Digital providers
Some non-resident business owners prefer a digital-first approach, using fintech platforms that offer UK account services to overseas residents.
For example, you can apply for a Revolut business account if your company is already registered and you can prove its physical presence in the UK. The applicant must reside in one of 13 supported countries or territories outside the UK.
Wise also offers business accounts with local UK details. These allow you to collect and spend GBP just like any other UK company.
Formation agent services
If you live outside the UK, you can use an agent to help you set up a company here, including help with getting a UK bank account. For example, Quality Company Formations’ Non-Residents Package includes:
- A Central London registered office address
- A banking introduction to specialist partner WorldFirst, which is also an EMI
- A UK business bank account number and sort code.
Services are subject to approval, and not all users qualify.
It means you can receive money fee-free and pay it to other UK accounts. Alternatively, you can send money to over 210 countries worldwide in more than 100 currencies. It also allows you to open multiple currency accounts with local IBANs in 15+ currencies and receive payments from platforms like Amazon, AliExpress, TikTok Shop, as well as over 100 marketplaces.
Legalising your documents for overseas use
If you prefer to use a bank in your home country, you may need to legalise your UK company documents first. This process, called an Apostille, is handled by the UK Foreign Office. It proves your company’s status to overseas institutions and is commonly required abroad.
How to open a business in the UK
Starting a business in the UK as a non-resident can seem like a complex task. But there is a solution. A professional agent can handle the setup of your registered UK addresses and provide essential services and privacy protection, making the process simple and compliant.
Setup help using agent-based services
In addition to the banking introduction, Quality Company Formations’ non-resident incorporation package offers everything you need to set up and run your UK limited company.
This includes a web domain, mail forwarding, registered office address, certificate of incorporation, digital company registers, London or regional telephone number, and your first confirmation statement (previously known as an annual report).
Registered and director service address options
In addition to a registered office address, UK government agencies, such as Companies House and HMRC, require a service address to be provided for certain individuals, including your company secretary, directors, first shareholders and people with significant control (PSCs).
Using a director service address allows you to have an official address for government mail, while keeping your home details private. This can also prevent junk mail and unwanted visitors from reaching your home address.
Demystify the banking process – use a trusted partner
A bank account, or digital payment account – either based in the UK or your home country, using verified Apostille documents – brings efficiency, professionalism, and in some cases, financial protection.
The wrong bank setup can cost you time, money, and confidence. With so many myths online, it’s worth researching your options carefully and considering a trusted agent, such as Quality Company Formations, which can offer a vetted payment partner.
Frequently asked questions
Please note that the information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While our aim is that the content is accurate and up to date, it should not be relied upon as a substitute for tailored advice from qualified professionals. We strongly recommend that you seek independent legal and tax advice specific to your circumstances before acting on any information contained in this article. We accept no responsibility or liability for any loss or damage that may result from your reliance on the information provided in this article. Use of the information contained in this article is entirely at your own risk.
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