Prikhodko&Partners
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International corporate law
Business registration and support in Great Britain Opening a bank account in the UK for a legal entity

Taras Miroshnychenko

Head of International Corporate Law and Fintech Practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.

Opening a bank account in the UK for a legal entity

Opening a bank account for a legal entity in the UK is a complex process that requires careful preparation and attention to detail.

Here is an extended overview of the key steps:

Bank selection:
- Traditional banks (Barclays, HSBC, Lloyds)
- Digital banks (Revolut Business, Tide, Starling Bank)
- Specialized banks for certain industries
Collection of documents:
- Preparation of a complete package of documents
- Translation and legalization (if necessary)
Application submission:
- Online form filling (for digital banks)
- In-person branch visit (for traditional banks)
Due diligence procedure:
- KYC (Know Your Customer) verification
- AML (Anti-Money Laundering) check
- Business model and financial forecast assessment
Signing the contract and activation:
- Agreement on terms of service
- Setting up online banking and receiving cards

Statistics: According to UK Finance, the account opening process for 60% of companies takes up to 4 weeks, for 30% – up to 2 months, and only 10% face a longer process.

Expert advice: Start the account opening process in parallel with company registration to save time. Consider opening accounts at multiple banks to diversify your risks.

Required documents

To successfully open an account, prepare the following extended package of documents:

Corporate documents:
- Company registration certificate
- Founding documents (statute, memorandum)
- Extract from the register of companies (not older than 3 months)
- Ownership and control structure
Identification documents:
- Passports of directors and beneficial owners
- Proof of address (utility bills, bank statements)
Financial documentation:
- Business plan with a detailed description of activities
- Financial forecasts for 12-24 months
- Audit reports (if any)
Confirmation of source of funds:
- Bank statements
- Investment agreements
- Asset sale documents
Additional documents:
- Licenses and permits (depending on the industry)
- Letters of recommendation from partners or clients
- Office lease agreements in the UK

Importantly:95% of successful applications contain a complete package of documents on the first submission. Incomplete documentation is the cause of delays in 40% of cases.

Expert advice: Create a digital repository for documents for quick access and updates. Regularly check the relevance of documents, especially financial forecasts.

Requirements and procedure

Extended requirements of UK banks:

Registration and attendance:
- Official registration at Companies House
- Physical presence in the UK (office, employees)
Management:
- Minimum one UK resident director
- Clear management and decision-making structure
Transparency:
- Full disclosure of ownership structure
- Identification of all beneficial owners (>25% of shares)
Business activity:
- Real economic activity in the UK
- A clear business plan and development strategy
Financial stability:
- Sufficient starting capital
- Projected positive cash flow

Detailed opening procedure:

Preliminary consultation:
- Discussing business needs
- Choosing the optimal account type
Preparation and submission of the application:
- Filling out an online form or meeting in person
- Providing a full package of documents
Enhanced Due Diligence:
- Verification of all submitted documents
- Credit history and reputation check
- Business model and market outlook analysis
Interview with the bank:
- In-person meeting or video conference
- Discussion of business details and development plans
Decision making:
- Approval or request for additional information
- In case of refusal – obtaining explanations
Finalization and activation:
- Signing a service agreement
- Setting up online banking and additional services

Statistics:70% of applications go through the standard procedure, 25% require additional verification, and only 5% face an extended due diligence procedure.

Expert advice: Prepare a presentation of your business for an interview with a bank. This will demonstrate professionalism and seriousness of your intentions.

Opening cost

Understanding the full cost structure is critical for budget planning:

Service	Price range (£)	Notes
Account opening	0 – 150	Free for some digital banks
Monthly maintenance	5 – 150	Depends on account type and scope of services
International transfers	15 – 40 per transaction	Online transfers are usually cheaper
Corporate card	0 – 50 per year	Often the first year is free
Overdraft	10-20% per annum	Requires separate approval
Cash withdrawal	0.3 – 3% of the amount	Free withdrawal limits

Additional costs:

Currency transaction fee: 1-3%
Check transaction fees: £0.5-2 per check
Over-limit fee: £10-30 per incident

Statistics: The average annual cost of maintaining a corporate account in the UK is £200-£600 for a small business and £500-£2,000 for a medium-sized business.

Expert advice: Consider bank bundled offers, which often include additional services at a lower overall cost. Regularly review service terms to optimize costs.

Main difficulties

When opening an account, legal entities face various challenges:

Strict documentation requirements:

The need to provide a large amount of documents
Frequent requests for additional information

Decision: Create a checklist of all necessary documents and prepare them in advance.

Long verification process:

Due diligence can take several weeks or months.
Delays due to the need for additional checks

Decision: Start the process as early as possible and be prepared to provide additional information promptly.

Physical presence requirement:

The need for a personal meeting for some banks
Difficulties for non-UK residents

Decision: Consider digital banks or use the services of a local representative.

Language barrier:

All documentation must be in English.
Difficulties in communicating with the bank

Decision: Use the services of professional translators and consultants.

Refusal without explanation:

Banks may refuse without detailed explanations
Difficulty in appealing the decision

Decision: Apply to several banks at the same time, diversifying your risks.

Statistics:30% of companies face rejection on their first attempt to open an account. Of these, 60% successfully open an account on a second attempt.

Expert advice: Create a detailed business plan and financial model. This will not only help with opening an account, but will also improve your understanding of your own business.

It will also be useful: OPENING A BANK ACCOUNT IN GREAT BRITAIN

Alternatives to a bank account

For a quick start or as an additional solution, consider the following alternatives:

Electronic wallets and payment systems:
- PayPal, Stripe, Square
- Advantages: fast opening, international payments
- Disadvantages: limited functionality, higher fees
Digital banks and neobanks:
- Revolut Business, Tide, Starling Bank
- Advantages: fast opening, low fees, user-friendly interface
- Disadvantages: limited support, possible difficulties with large amounts
International payment platforms:
- TransferWise (Wise), Payoneer
- Advantages: favorable exchange rates, support for many currencies
- Disadvantages: not a complete replacement for a bank account
Cryptocurrency accounts:
- Coinbase, Binance
- Advantages: fast international transactions, anonymity
- Disadvantages: volatility, regulatory risks
Agency accounts:
- Using a broker account
- Advantages: quick start, fewer requirements
- Disadvantages: limited control, additional costs

Importantly: These alternatives may be a temporary solution, but for full-fledged business operations in the UK, a traditional bank account is recommended.

Statistics:40% of new businesses in the UK start with alternative financial solutions before switching to traditional bank accounts.

Our help

Our company offers comprehensive support in opening a bank account for legal entities in the UK.

Here is how we can help at every stage:

Preparatory stage:
- Analysis of your business and selection of the optimal bank
- Consulting on company structuring to meet bank requirements
- Preparation and verification of all necessary documents
Application submission:
- Filling out bank forms and preparing cover letters
- Organization of translation and legalization of documents
- Submitting an application and communicating with the bank on your behalf
Verification process:
- Support during the due diligence procedure
- Preparing responses to additional bank requests
- Consultations on KYC and AML requirements
Problem solving:
- Assistance in case of refusal or delays
- Developing strategies to overcome potential obstacles
- Negotiations with the bank to resolve disputes
Post-opening support:
- Help setting up online banking
- Consulting on optimizing banking costs
- Ongoing support in interaction with the bank

Calculate the cost of services

1 question

Do you have experience working with banks in the UK?

Yes

2 question

Do you have a ready-made business in the UK?

Yes

3 question

Do you need advice on opening an account for a legal entity in the UK?

Yes

How long does company registration take?

A standard electronic application to Companies House is usually processed within 24 hours. However, preparation of the structure, identity verification, obtaining an address, tax setup and account opening require additional time.

Who needs to complete identity verification?

Directors and persons with significant control — PSCs — must complete verification. Once completed, the individual receives a Companies House personal code used to confirm the relevant corporate role. Non-residents may also complete verification, including by using a biometric passport.

Where is the best place to open an account for a UK company with a non-resident director?

Since traditional UK High-Street Banks require a physical business presence, the fastest and most efficient solution for international companies is to open accounts with electronic money institutions (EMIs). Platforms such as Wise Business, Revolut Business and Payoneer are licensed by the FCA and provide full UK and international account details for transactions.

When must a company register for VAT?

The general threshold is £90,000 of taxable turnover over the previous consecutive 12 months or expected turnover during the next 30 days. Separate rules may apply to non-resident and cross-border models, so VAT should be analysed before sales begin.

Is a company required to file reports if it has not traded?

Yes, it is mandatory. Even companies with no operating activity must annually file so-called “Dormant Accounts” with Companies House and confirm the ownership structure through a Confirmation Statement. Failure to file these documents results in substantial penalties (from £150 to £1,500) and compulsory dissolution of the company, with its assets passing to the Crown.

Successful cases on the topic: