How to open a UK business bank account - A 2023 Guide

You can open a UK based business account as a non resident - and as long as your business is based in the UK you should be able to open a business bank account there. In fact, if you’re running a limited company in the UK you’re actually required to have a business account to keep your personal funds separate from your business balance.

That said, there are restrictions in place which are decided by the providers themselves, so you’ll need to check the banks or fintech providers you’re interested in to see if you’re eligible under their policies.

Restrictions are sometimes in place due to strict UK laws governing money laundering and fraud - which simply make it not worthwhile some banks offering accounts to people they can’t meet in person. Other banks overcome this issue by requiring a company representative to act as signatory and be a UK resident or at least visit the UK for long enough to sign a mandate to open the account.

It is possible to open a business account online in the UK with traditional banks, however, in practise your options might be limited. This is usually due to the UK’s strict Know Your Customer (KYC) rules. Banks must be able to fully verify the identity of any individuals, and the proper registration of a business, to offer an account. Some companies have this figured out and have great solutions to comply with KYC rules online - others do not.

The options you may run into include:

Some banks simply do not allow you to open an account online
Some allow you to start the application online but require an in person signature prior to beginning operating
Some banks insist on a UK based representative, even if the business owner is non-resident
Some banks and fintech providers allow digital verification processes to get your account open and operating entirely online

The only real way to work out whether you’ll be able to open an account in the UK that suits your needs online is to do some research. We’ll cover a few options later, including major UK banks and fintech providers, so you know where to begin.

The process for opening an account varies a lot between providers. If you choose a traditional bank, you’ll need to assemble your supporting documents, and may need to visit a branch to hand in paperwork and give a signature. You may also need an opening deposit to get started.

With online alternative providers you’ll be able to upload required documents and ID online or using your mobile device. This is typically a quicker process compared to the in person application processes employed by some mainstream banks.

There’s some really useful information on how to open a business bank account as a foreign investor, on the UK government website.

The exact documents and information you need when opening a UK business account will vary by provider, and also depending on the type of business you run. You’ll want to check the full details of your chosen account before you begin your application.

It’s common to be asked for:

Personal information, ID and addresses for owners, partners, and anyone who controls 10% or more of the business
Business contact details and address, including online and social presence
Business plan, financial history if any, and forecasts
If you have a limited company you’ll need your Companies House registration number
An opening deposit

In most cases, to open a business bank account in the UK you should have a UK registered business - for some accounts you can also be a sole trader or freelancer - aged over 18.

There are other standard requirements which basically restrict banks and other providers from giving accounts to businesses which may be involved in illegal or restricted activities. While many of these restrictions are obvious, others may not be so intuitive. Some charities, businesses selling alcohol or companies involved in pharmaceuticals may not be able to open some accounts for example. Check the provider’s acceptable use policy carefully to make sure your business complies.

The opening or monthly fee you pay will vary depending on the account type, the plan you select and the business entity you are running. You can usually find free to open accounts - at least for smaller businesses and sole traders - although you’ll still want to check out transaction fees to make sure they are acceptable to you. Larger businesses with more complex financial needs might benefit from a fee paying account to access a broader range of services - weigh up your options before you decide.

Traditional banks offer a broad suite of financial products, so theoretically if you pick well, you could get all your needs from day to day management, finance, investments and FX services, in one place. However, whether or not this works for you will depend on your preferences and your business type - the accounts available from some banks don’t offer great flexibility, so you may find you need to maintain a high minimum balance, or pay service costs on your account for example. A smart place to start is with one of the UK’s Big 5 banks: