How to open a Bank Account in the UK and Choosing the Right Provider
Matt Godfrey · Posted on: March 28th 2025 · read
Opening a business / corporate bank account in the UK may seem like a straightforward process, but when you explore the available options, and then realise the mountain of ‘red tape’ involved, it can quickly feel overwhelming.
Whether you are a UK registered entity looking to switch banks or an oversees corporate looking to establish a bank account in the UK, understanding the available options and process is crucial.
Choosing the right provider
Before opening an account, the first step is to choose the correct provider for your needs. Banks offer different levels of services, from basic transactional accounts to full-service banking with borrowing and foreign currency options. Traditional banks such as the ‘High Street Banks’ (Barclays, Lloyds, NatWest and HSBC) offer comprehensive banking solutions, including business accounts, loans, and foreign currency services etc. Digital banks like Monzo, Tide and Revolut provide modern, tech driven banking solutions, often with lower fees and more streamlined account opening processes.
Understanding your needs
When selecting a financial provider for your business, you must consider what services you require. Do you need a basic transaction account? Or are additional features such as direct debits and overdraft facilities necessary? Does your business operate internationally? If so, you might need a foreign currency account, whether that is US Dollars or Euros etc. Businesses with high levels of deposits may benefit from specialised savings or investment products designed to maximise returns. Lastly, consider the structure of your company, if you have overseas directors or shareholders, or a Trust within the structure, this could impact your eligibility. Taking these factors into account will help you to narrow down the available options that align with your business’s requirements and structure.
Disclosing company structure and foreign ownership
Businesses must disclose details about their structure, particularly if foreign ownership or overseas residency is involved. Many banks impose minimum deposit or turnover requirements, which can vary between providers. Companies owned entirely overseas or without a UK based director may encounter additional challenges, as some banks mandate in person meetings while others offer a fully online application process. Understanding these requirements in advance can help businesses prepare for a smoother account set up. If your corporate structure has many layers and / or a Trust involved then this may require additional KYC / AML checks that can lengthen the whole process, plus disclosure of the trust documentation and trustees could be required.
The account opening process
Opening a business bank account in the UK involves several essential steps to ensure regulatory compliance. These typically include:
- Choosing the right bank: Whether you opt for a high street bank, a challenger bank, a private bank or a FinTech bank , ensure they align with your business’s needs now and in the future. If you know you are going to need to move banks at some point have a plan for this and start building a relationship with your next bank now.
- Submitting documentation: You will need to provide proof of identity, address, and details about your business structure. In some cases, you may also need to provide details of directors and significant shareholders.
- Know your customer (KYC) and Anti-money laundering (AML) checks: Once the application is submitted, the bank will conduct rigorous KYC and AML checks to verify the legitimacy of your business. This is a standard process to ensure compliance with UK regulations.
- Account approval: If all checks are passed, the account will be set up, granting you access to essential banking services.
Challenges for foreign companies and non-residents
Foreign companies and non-UK residents often face additional hurdles when opening a UK bank account, as many banks require at least one UK based director or a registered UK business address. Using virtual office services can help establish a UK address and alternative providers like Wise, Revoult, and Tide specialise in serving international businesses, offering a more flexible account opening processes. By exploring these options foreign companies can find a banking solution that meets their needs while complying with UK regulations. To navigate these challenges, businesses can seek guidance from a professional advisor like the Banking and Finance Team at MHA.
Case studies
A Swansea based company started with a digital bank but outgrew its services. Expert assistance helped them transition to a bank account offering better funding and savings solutions.
An overseas company looking to open a UK subsidiary struggled with banking due to a lack of UK directors. Through expert guidance, they found a digital banking solution that met their needs.
A client needing to re-bank due to compliance changes successfully transitioned to a more suitable provider with expert support.
Guidance and support
Whether you are an overseas business navigating the complex UK banking requirements or a UK business looking at your banking options because you’ve fallen out of love with your current bankers, our Banking and Finance team is here to guide you through the process. Our experts, have hands on experience within the UK banking arena, meaning we understand the processes and requirements including things like KYC and AML procedures. Our Banking & Finance Team know exactly what banks are looking for and can provide valuable insights to help you secure a UK bank account that meets your needs.
Let us help you make the right choice. Contact us now to get expert advice tailored to your banking and finance needs.
