It can be very difficult sometimes to open a business account for a company that is owned by an Isle of Man company.
The main reason it is difficult to open a UK business account for a company owned by an Isle of Man company is that it can be difficult to trace the ultimate owners of that business.
If that is the case, then the high street banks will almost certainly decline an application.
It is apparent that the main banks only really want to offer UK residents a business banking facility.
What happens when you register a UK Limited Company?
So when you register a UK registered Limited Company you will need to submit everyone who is a shareholder and director.
If the shareholding or directorship changes, then you would need to inform Companies House.
Companies House would then amend the details on their register which is open to the public.
All the banks will have a direct feed from Companies House, so if any details change they would be informed.
So when they do a check on the key principles of a business, they will want to make sure they are happy with that person.
What difference does it make if an Isle of Man company owns a UK business?
Well the biggest difference is that a company owns the business and not an individual, which could cause an issue.
The reason for that is that the bank offers an business bank account based on the owners and directors at that time.
However if the owners for the Isle of Man company sells their shares in that entity, the bank here would not know or be informed.
Which leaves them vulnerable if a person they may ordinarily decline becomes the ultimate owner of the Isle of Man company.
There could be an instance where they are essentially offering their banking services to someone they may ordinarily decline.
As such, it is more likely they will decline that application rather than take the risk of ownership changing and they are not aware of it.
So yes it may be possible to open a UK business account for a company owned by an Isle of Man company, but not with a high street bank.
However there may be other specialist business banking options available that will consider your application.
For details on what will be available and how to find a business account, please contact us on 020 3286 3929 or complete our online form and we will get back to you – Apply Here