OPENING A BANK ACCOUNT IN GREAT BRITAIN

OPENING A BANK ACCOUNT IN GREAT BRITAIN

Why non-resident needs bank account?

• If you plan to work in UK, your future employer will transfer your salary to a UK bank account.
• Renting a property will be easier if you can cover the costs from a UK account.
• You will be charged a currency conversion fee every time you use your debit card or withdraw cash in the UK. Exchange rates fluctuate, making it difficult to stick to a budget.
• You will need a local bank account to pay bills such as mobile phone contracts, gym memberships and electricity bills.
• If you lose access to your home bank account because you forgot your PIN, it will be difficult for you to deal with it internationally rather than at a local branch.

Types of UK bank accounts

• Current account. This is your daily account into which your basic salary is paid. Current accounts offer debit cards and, depending on your circumstances, will allow you to overdraft up to a set limit. Some of these accounts charge a fee for which you get benefits like cash back on your spending and/or interest on your balance when you use credit or auto insurance.
• Basic bank account is a type of checking account designed primarily for people with low incomes or poor credit. As the name suggests, they only offer the basics. For example, you will not receive an overdraft.
• Savings Accounts – These come in a variety of types, including regular savings accounts where current account customers get a preferential rate, and ISAs where the interest earned is tax-sheltered.

To open an individual bank account in the UK, you generally need two things:

• Confirmation of your identity. This can be done with a passport, driver’s license or national identity card. In general, if you are a foreigner, it is best to use your passport.
• Address confirmation. Each bank accepts different documents, but, as a rule, it is one or more documents from the list below:
• Utility bills
• Valid UK driving licence
• Statement from a bank, building society or credit union
• Mortgage application
• Housing rental agreement for the current year
• A letter from a lawyer within the last three months, confirming the purchase of real estate (or confirming the address from the land register)
• HMRC Self Assessment Letters
• Registration in the voter register
• NHS Medical Card

What is required to open a company bank account?

• Proof of identity, such as a driver’s license, passport or identity card
• Proof of personal UK address, such as a bank statement or local tax authority statement
• Proof of the company’s UK address, such as a utility bill, tenancy agreement or HMRC correspondence
• Contact details (phone number and email address, both personal and business (if applicable))
• Projected annual turnover
• Company registration number or registration certificate
• Number of your employees, if applicable
• Tax status of your business – you may need to provide your Unique Taxpayer Reference (UTR) if you are a sole trader
• Your bank may ask you to confirm the identity and address of anyone who will have access to the account, or anyone who owns a part of the business (usually at least 25%).
• You may also be asked to provide proof that your business is operating. For example, proof that your business has a website or social media presence, or that you are registered with an official industry body.

Assistance in opening a bank account in UK includes consulting a lawyer on the availability of appropriate documents for opening an account, conditions for opening an account, bank tariffs, escorting to the bank, assistance in filling out bank documents and other services in the banking sector.

Opening and maintaining an account in a British bank is one of the main activities of our lawyers and economists. Sign up for a consultation and see for yourself the professionalism of our specialists.