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Table of Contents
- Non-residents can open a UK business bank account
- Multiple accounts cater for non-residents, but your options are more limited
- A UK limited company must have a business bank account
Thinking of starting a business in the UK while living overseas? Setting up a UK business bank account as a non-resident might take a bit of research, but there are options available, and with a little guidance, it doesn’t have to be complicated. You just need to know where to start.
A business bank account can be a good idea and may even be mandatory, for example, if you register a limited company. If you are unsure, check our overview of who needs a business bank account.
Which business bank account is best for non-residents?
There are some options available when looking for a UK business bank account as a non-UK resident.
Some providers will allow a business to open a bank account with just one UK resident director. For example, a NatWest business bank account requires just one person on the application form to be a UK resident.
If your business does not have at least one UK resident director, your choices can be more limited.
One option is a Tide business bank account, which allows applications from outside the UK but may require additional checks before opening your account.
Another option is a Revolut business bank account. You can apply for a Revolut account if you reside in the European Economic Area (EEA), the United States, Switzerland and some additional territories like Jersey and the Isle of Man.
How to open a UK business account for non-residents
When you have found the right business bank account, you need to go through an application process, which will vary slightly between providers. You (and any key shareholders) will need to provide:
- Proof of identity: A passport, UK driving licence or national ID card.
- Proof of address: Bank statements or utility bills.
- Company documents: Limited companies will need to share a certificate of incorporation, and any relevant licenses, while partnerships will need to supply a partnership agreement. Sole traders will need to share a tax return or self-employed registration.
- Proof of funds: You may be asked to provide information about where any opening balance comes from, which may include bank statements, invoices or loan agreements.
Applicants from outside the UK may need to have their documents translated into English and notarised.
If you have this information and documentation prepared, you should be ready to tackle the application process. You can even apply online for some accounts. However, some providers may require you (and any other company directors) to travel to a UK branch to present documentation in person.
For more detailed general information, explore our article about how to open a business bank account.
Business bank account challenges for non-residents
It can be challenging for non-residents to get a business bank account because of:
- Anti Money Laundering (AML) regulations: Entities regulated by the Financial Conduct Authority (FCA) must verify the identity of individuals and businesses. Part of this process is the Know Your Customer (KYC) and Know Your Business (KYB) checks on names, addresses and even income. These checks are in place to prevent financial crime and assess customers’ risk level.
- Travel: Non-residents may be required to travel to the UK to open a business bank account, which can be costly and time-consuming depending on where you live.
- Limited choice: In part due to the FCA’s regulations, many UK banks will not provide you with an account if you are a non-resident. As such, you may struggle to find an account with all the features your business needs.
It is important to note that you do not need to use a UK bank account for your UK business. You might consider opening a business bank account in your country of residence instead. However, there are many benefits to a UK business bank account. These include:
- Transactions: Sending or receiving money from UK-based customers, suppliers and employees is much simpler with a local bank account.
- Credibility and trust: A UK business bank account will make your business seem more established and trustworthy to potential customers and partners in this country.
- Tax: Your business will need to pay tax in the UK. Many UK account providers offer specific tools and materials to help business owners understand and fulfil their tax obligations.
- Expertise: Customer relationship managers from the UK have the knowledge and skill to help your business with any problems.
Can a non-resident start a business in the UK?
If you are a non-resident, you can start a business in the UK, and opening a business bank account can be an important step towards this.
If you are starting a limited company in the UK, you need to register with Companies House and have:
- A UK business address: This must be a physical address in the UK (not simply a PO Box) and it must be in the UK nation in which your limited company is registered. It must also be ‘appropriate’, meaning your business will be able to receive post at this address.
- A unique company name: Your business’s name must be unique and should not mimic or impinge on the trade mark of another company.
- A business bank account: You must have a business bank account to open and run a limited company.
If you want to operate as a sole trader in the UK as a non-resident, you need to register for self-assessment with HMRC. You can find out more information in our guide to setting up as a sole trader.
If you need more information or cannot decide what business structure you would like to use, explore our guide to registering a business in the UK.
Find a business bank account
With good organisation and understanding of your business’s needs, finding the right UK business bank account can be done if you are a non-UK resident.
» MORE: Compare business bank accounts
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