How to open business bank account in UK?

How to open business bank account in UK?

If you are starting your own business in United Kingdom you will probably need a business bank account.

Of course there is no requirement to have a bank account in the United Kingdom but it’s really recommended and helpful to get your payments and other incomes into bank account.

Using cash is very inconvenient and sometimes you won’t be able to make a proper business with your partners.

Banks in the United Kingdom are very reliable with a great history and traditions.  However they also invest in modern technology and products like   internet banking and mobile banking are also available.

Most of the banks will give you two options for contacting the bank and menu that day-to-day  banking.
You can visit the local branch in your city or you can use an internet or your smartphone to access your bank account.

 If you have established your business  as a private limited company or similar kind of incorporation you need to get all your shareholders  to apply for a business bank account.

If you are a sole Trader you can do it by yourself you don’t need a lawyer or  Financial advisor.

How looks the due-diligence AML procedure?

Every bank need to check you can apply for a business bank account – this is required by 4th AML EU Directive and national law of United Kingdom.

The AML  and compliance procedures require Banks to background check your liability,  so you need to be patient because the bank will ask you several questions and sometimes it would require you to bring some documents to prove your identity,  address and so on.

The usual procedure takes up to 2 hours in one of meeting and they will be at several questions for example:

  • what will be the source of your income 
  • do you plan to receive international payments 
  • what is the nature of your business 
  • how much money would you like to hold on the account,  
  • what amount of income do you expect in the first year of your bank

.After this interview the band will perform a background check in their own compliance Department. Those procedures usually takes one or two business days. 

The better solution is to make a physical appointment in the local branch instead of sending copies of the documents in in the Internet procedure because the bank employee will be able to check your identity and documents you won’t be needed to send digital copies of the other commands to the bank.

As an alternative you can also use and modern fintech company to have your  business bank account. However using traditional banking in our opinion is much more prestigious and shows you that you can connect the tradition with modern technology.

So how do you open a business bank account?

 First you need to check a few banks and compare their offers for business banking.

Most of the banks in UK offers free account banking for newly created companies for some period of time – for example 18 months sometimes or a year.  After this free period for start-ups you will be charged about 5 to 10 pounds per month.
You can take a look up the banks offer  using their website and you decide which bank would you like to choose.

You can check what documents and procedures are required to apply for a business bank account.

Usually there are two ways: You can start the procedure using the internet or you can visit Branch to make an appointment with a business adviser that will help you to prepare for the meeting. 

 If you are a private limited company with more than one shareholder or managing director you should take them all to represent you and a bank. 

The lack of full board representation (managing director or shareholders) could be a problem, unless you have the appropriate legal authorization. 

 After you comply with the procedure you will be able to apply for a business debit card,   credit card, overdraft or other products like savings accounts , checkbooks 

Depending on the bank you will also get a card reader or other kind of electronic devices used to access remotely access your account using the internet or smartphone.
You will also need the mobile phone number and email address if you want to apply for a business account through the internet and mobile devices.

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