Funding and sustainability
Increasingly, investors are looking at sustainability – often termed environment, social, governance (ESG) – when they allocate funding. This is irrespective of whether your business is part of the conventional market, or whether it has a special sustainability focus for its product or service. From retail to construction, energy to infrastructure, businesses in every industry are discovering that embracing ESG builds a resilient and stronger business.
In Investec’s 2024 private equity trends survey, 59% said the implementation of ESG best practice at portfolio company level adds to value of a business. Also, only 17% said ESG had not been a significant factor in investment decisions.
What UK business model should you choose?
Before you consider specific tax details, seeking advice on the most appropriate business model to adopt in the UK is essential.
For example, in some groups, the head office entity will contract with all customers globally, and the newly formed UK entity will simply provide services to the head office entity (but not enter into customer contracts).
For other groups, the UK entity may contract directly with customers either because this is a requirement of the customer or because of different tax/legal obligations.
Therefore, each business model has different accounting and tax implications that you need to know about and understand. To ensure you have all the required information, we recommend taking advice as early as possible to explore the options and ensure that the model you select is appropriately understood and documented.
Opening a business bank account
Have the correct documents to hand to help speed up your application. The common requirements from banks are:
- Your business plan, key people, markets and customers: This information covers what the firm will do, projected sales, income and expenditure, as well as key suppliers and customers in London and overseas. These details help avoid payments being classed as unusual and delayed or denied.
- Company structure chart: This information should cover ownership and respective percentage shares held down to an individual level. Banks ask for underlying documentation – certificate of incorporation, share registers, share certificates, partnership agreements and trust agreements – unless it is available on a public register.
- Identification and verification: A passport or driving licence is needed to verify the identities of key individuals. A recent bank statement or utility bill verifies addresses.
- Bank statements: If your company is a newly registered subsidiary of an existing company, you need to provide six months of statements from the parent company depending on where the initial funds come from and how much is invested. Your bank may also need bank statements from the beneficial owners, as well as an explanation of their source of wealth.
Content provided by Metro Bank. This information is intended for general guidance only. You should always seek professional advice.
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How London & Partners can help
Our team offers free advice to potential investors, from startups to established companies. We can:
- Introduce you to our professional network of tax and law specialists.
- Connect you to networking groups.
- Advice on setting up in London.