Opening a business bank account in the UK
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.
Fintech business accounts
With a host of world-class banking services, London is both an attractive and inviting place to do business, especially for international companies. Joseph Sim, Director at Meridian Solutions, explains the benefits of fintechs and outlines the essential requirements for opening an account.
Key benefits of a fintech business account
Many global businesses enter the UK market through fintechs, thanks to their speed, efficiency and streamlined processes. This offers access to banking services quickly and helps to fast-track UK entry. Key benefits include:
- Digital UK-based accounts in the business name.
- Quick, remote setup.
- No requirement for UK-based directors or owners.
- Send and receive payments locally and internationally in multiple currencies.
- Local payment options to pay staff and tax authorities (e.g. HMRC).
- Secure and innovative technology platforms.
Requirements for opening a fintech account
To get started, businesses must complete an electronic application form. For verification, the following documentation is also required:
- Full transparency of company ownership: a breakdown of ownership structure and percentage shares held up to an individual level.
- Personal identities: verify identities of directors and/or significant owners.
- Disclosure of source funds and wealth: transparency across all financial streams, supported with bank statements from the parent company.
- Overview of company activity: information on customer and suppliers, website details, invoices and business plans.
Content provided by Meridian Solutions. This information is intended for general guidance only. You should always seek professional advice.
Business incentives
The UK has several incentives for businesses, ranging from research and development credits to incentives for companies in arts and culture.
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.
Learn more about forming a UK entity.
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.
- Advise on setting up in London.
