Why the Mainstream Banks often refuse Non UK residents

Believe it or not, the opening of any business account in the UK is difficult enough when you actually live here, so it will come as no surprise to learn it is even harder if you are a non UK resident – but why is it so difficult?

 

Why is it so difficult to open a UK business bank account as a non resident?

There are a multitude of reasons why any UK bank will decline an application and in truth, as every application is based on it’s own merits, it would not be fair to say they are all declined for the same reason, however below we have listed a few of the reasons why a non UK resident might struggle to open a Business Bank Account here in the UK.

It is also worth saying at this point, that if one of the mainstream banks decline you, then you can assume the other’s will to, simply because they all tend to follow the same process when it comes to an application process.

 

With our Guaranteed Service we will open you a business account for any non UK resident.

  • Every registered company will have at least one Director and Shareholder, so the banks here MUST be able to formally identify you, which in certain countries in the world could be problematic, so if that is not easily done, it is often a lot easier to decline an application rather than risk opening a business account for someone they may not be 100% sure they can identify.

  • Every bank will have a different risk appetite, so if your business activity is consodered as high risk, then your options will be restricted when it comes to business banking.

  • When registering a UK limited company it is advised that when it is registered it is done so using individuals as the shareholders and directors and NOT using a foriegn company.

    It will complicate the application if another company owns shares in it, as it will be difficult to formally identify the owners of that business should the foreign company be subsequently sold.

So what are the options for Non UK Resident?

Well despite the challenge for non UK resident directors and shareholders to open a business bank account here, there are options which will be available but just not with the mainstream banks.

Every application is based on it’s own merits and there are many other alternatives to chose from, so it is more about finding the right business account to best suit your business or payment requirements – which is where we will help you.

Finding the right banking partner for Non UK Residents

It is fair to say that every banking provider is often readily available to anyone who is willing to put the time and effort into finding them, however how will you know if the one you find is the right Bank for you and your business?

If you open the wrong type of business account not only could you be missing out the ability to collecting certain payments, which could result in a loss of business, but more importantly, there is such a variety of providers that should you pick the wrong one, the fixed and hidden costs of an account could be quite considerable, so the relatively small amount of money to engage a specialist company to do that work for you, could save you a considerable amount of time and also a lot of money.

Need more help or advice? Speak to one of our specialist consultants on +44 20 3286 3929
or complete your details online by clicking here

Requirements
When applying for a Business account for any non UK resident the key to all applications is that you must provide suitable documents and have the following:

A UK Ltd Company registered at Companies House

Photographic ID
Valid photographic identification with proof of home address and evidence of business

How can I open a UK business bank account as a non resident?

With most mainstream banks refusing to offer business accounts to non UK residents, it can be very difficult to get any business banking without some physical connection to the UK.

However we have a number of regulated business account providers who will consider non UK residents who have a UK Limited Company as long as they can provide suitable proof of Identity and have a legitimate business.

We can help with the application from start to finish by initially sourcing a provider who will accept your application right the way through to submission and acceptance.

In most circumstances, they will also process your application without the need to travel here, meaning everything can be completed by providing copies of all the necessary documentation.

The type of banking facilities available will very much depend on the ‘risk’ profile of your business, so may can expect to get access to a UK sort-code and GBP account number, a key element to accept UK faster payments.

Here are some of the features you can be sure will be INCLUDED with your new Business Account:

  • UK Sort Code & Account Number

  • Euro Account with IBAN & SWIFT

  • Internet & Online Banking

  • UK-UK Payments*

  • Euro & USD Payments**

  • SAFE: Fully Regulated & Authorised by the FCA

  • No long term contracts – cancel at anytime

If you want to know more about why the mainstream banks often decline applications from Non UK residents, please read the page on Why the mainstream banks decline non UK resident business account applications.

Need more information on how we can help?
Telephone +44 (0)20 3286 3929
Email: admin@extradirect.com
Apply Online by Clicking Here

9am to 5.30pm Monday to Friday UK – GMT

Extra Direct is NOT a Bank but a specialist banking intermediary who is able to source and help open business accounts for non UK resident directors and shareholders who can provide suitable photographic and proof of home address identity.