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By valero
- In Uncategorized
In previous articles, we show you how to set up your company as a sole trader or with a Limited Company. But you will need to open a bank account in one of the UK banks if you want to be fully operational with your company.
This is one of the key aspects to operate seriously and comply with tax obligations in the United Kingdom. We offer you a slight guide to explain the main steps to open a business account in the UK.
Requirements to open a business bank account in the UK
It is important that you start the process by making sure that you meet all the necessary requirements and documentation. Here’s what you need to do either at a branch or an online bank.
Firstly, you must register your company in the Companies House, the official companies register in the UK. The bank will ask you for the documentation they provided you with, i.e. the Company Number and your company’s UK address.
The setting up of a company generates several documents that are essential to keep as they are like an ID card to you company. The banks will require them when opening a business bank account.
These documents are the Certificate of Constitution and the Articles of Association. It is advisable to draw a document listing the directors, shareholders and other members with decision-making power.
Naturally, banks will need to verify your or the other people in charge of the company identities. For this reason, they may require you to show a valid identity document as well as proof of address valid for 3 months (invoices, for example).
The last but not least document will be one that proves your business real activity (contracts signed, suppliers or invoices issued). Although they are not always requested, it is wise to have them ready.
Steps to open a business bank account in the UK
Once you have gathered all the documentation, the first thing we recommend is that you organise it properly. It will help to speed up the process as much as possible.
Once you have done this, you will need to make another important decision: the type of bank. Nowadays there are many digital options that have joined traditional banking and that offer many advantages due to their flexibility.
Traditional banks can create a greater sense of security and offer a full range of financial products because of their experience. However, the process tends to be slower and requires a face-to-face visit to the branch.
On the other hand, digital banks allow you to open your account in a fully online process. The bureaucratic requirements are fewer and the time required to complete the process is shorter. Digital banks are more flexible and may not require you to be a UK resident.
In the case of digital banks, you will need to have the documentation in digital format. After that upload it to the platform and fill in the necessary forms and verify your identity (video call or selfie).
If the bank validates your documentation, it will proceed to open an account for you. They will then provide you with an Account Number, a Sort Code, access details for your online account and bank cards.
It is important that you consider aspects such as monthly fees, transfer costs, services included or multi-currency functionalities. It would help you making your final decision about your future bank.
Conclusion
Opening a business bank account in the UK will allow you to show a more professional image. Also to comply with the obligations of the Spanish Tax Agency’s counterpart, His Majesty’s Revenue and Customs.