Opening a British company bank account has always been an object of interest for firms willing to build trust, access local clients, and also operate trouble-free in the European Union. However, there might be one difficulty. When the ultimate beneficial owners are represented by foreigners, the process can turn daunting. Being under strict regulatory pressure, banks require verifying ownership, assessing risks, and also ensuring compliance with anti-money laundering rules. It doesn’t make it unreal, but one should consider all the crucial nuances and pitfalls to come up with the right application.
Why banks pay so much attention to UBOs
It’s one of the major responsibilities of banks to be aware of who’s behind this particular firm. According to a definition, a UBO turns out to be any individual ultimately owning or controlling a firm and holding at least 25% of stocks or voting rights. As for foreign UBOs, in particular, those outside Great Britain or the European Union, banks take extra care to explore the background, source of wealth, not to mention business activity. The very principle is strikingly simple – transparency diminishes risks of fraud, tax evasion, as well as financial crime. You won’t raise suspicion if you buy any of these fully-operational banks.
Key success factors for approval
To increase your chances of approval, take the following measures:
- Clear corporate structure: If the ownership chain comes with offshore jurisdictions, holding entities, or nominee arrangements, it can be questioned by banks. You’d better simplify the structure and provide full documentation.
- Proven source of funds: The way you earned your money as a UBO is one of the bank’s top concerns. You’re expected to provide solid evidence in the form of contracts, tax returns, financial statements, and also proof of commercial operations. It should help to establish legitimacy.
- Business activity associated with Great Britain: A firm with no connection to the British market seems suspicious. Demonstrating clients, suppliers, or planned contracts in the UK will greatly improve your position.
- Professional presentation: With a clear business plan, well-prepared compliance documentation, alongside a consistent narrative, you’ll raise no concerns for the bank. On the contrary, with a rushed or incomplete application, you’ll most likely face rejection.
Common challenges
Foreign UBOs often come across delays because of translation needs, extra background checks, or requests for notarised documents. Moreover, sometimes, with a high risk level detected, the application can be rejected. That’s why so many firms work with professional legal advisors who know how to present the application properly. They can also help to choose a banking license for sale.
Can a foreign company have a UK bank account?
It’s possible, but much depends on the bank’s policies. The matter is that some banks demand a British presence, while others accept foreign firms on the condition that they can prove strong business links to Great Britain.
Can foreigners have a UK bank account?
Persons who aren’t British residents can open UK bank accounts, but it would be harder to do so with traditional banks due to their conservative approach to clients. As a rule, non-residents use fintech or online banks for this need.
Who is a beneficial owner of a bank account?
A beneficial owner appears to be the real person ultimately controlling or deriving revenue from a firm or account, even if the account is in the company’s name.
How to open a business bank account in the UK for non-residents?
Non-residents require preparing all the necessary documents. They should also come up with proof of business activity in Great Britain in addition to identity verification for all UBOs. They’d better turn to online or fintech banks to speed up the process. Traditional banks are clumsy structures, but it’s possible to collaborate with them with the right approach.
