Opening a UK business bank account: Ltd, branch or foreign company

The private limited company, the most common vehicle

A UK business bank account is opened in the name of a company registered at Companies House, or of a foreign business active in the United Kingdom, after checks on its directors, beneficial owners and real activity. A Ltd can be registered online within days with no legal minimum capital, so banks, knowing it may exist without trading, review every file in depth.

A Ltd can be registered online with Companies House within days and has no legal minimum capital. This ease attracts many foreign founders, but banks know a Ltd can exist without trading, so they review every file in depth.

Mandatory identity verification since November 2025

Under the Economic Crime and Corporate Transparency Act, directors and persons with significant control must verify their identity with Companies House since 18 November 2025. Banks expect to see this verification completed.

The PSC register and beneficial owners

Every British company keeps and publishes a list of persons holding more than 25 percent of shares or voting rights or exercising control. The bank compares this register with ownership documents and reports discrepancies to Companies House.

Non-resident directors: the main friction point

A Ltd with no director living in the United Kingdom is often turned down by high-street banks, which frequently require at least one director with a UK home address. Digital banks and payment institutions are sometimes more open.

Opening a business account with a major network

For a Ltd, NatWest reviews the Companies House number, directors' and PSCs' identity, expected turnover, main clients and suppliers and the countries involved in payments. A costed business plan speeds up the review considerably.

Branch of a French company in the United Kingdom

A foreign company setting up in Britain must register it with Companies House as a UK establishment. The bank then asks for the parent's articles and registry extracts translated into English, together with the board decision to set up.

Corporation tax, VAT and the HMRC calendar

The main corporation tax rate is 25 percent, with a 19 percent small profits rate. VAT registration, at a standard rate of 20 percent, becomes compulsory above a turnover threshold, and returns are filed digitally.

International payments, multi-currency and trade

Alongside a British business account, British banks offer euro and dollar accounts, letters of credit and currency hedging for importers and exporters. Euro payments to the European Union go through SEPA, while flows to sanctioned countries are declined.

Card acquiring and authorised providers

Companies can accept cards through their bank's acquiring service or through FCA-authorised payment providers. The acquirer assesses the business sector, typical delivery times and chargeback risk before setting rolling reserves and fees.

Public annual accounts and tax transparency

Every Ltd with a UK business bank account files annual accounts and a confirmation statement at Companies House, open to anyone. Accounts of passive entities are reported under the CRS, and a French shareholder remains bound by their own reporting duties.

Steps to open a UK business bank account

The company is first registered at Companies House, which gives it its registration number, its articles and the public list of its directors. It then chooses a bank, completes the application, often online, and answers the questions of the compliance team. Depending on the institution and the complexity of the structure, the decision comes after a few days or several weeks, with no guarantee of acceptance. Asking these questions first helps you judge whether a UK business bank account is realistic for your situation.

The bank may ask for a video interview, certified documents or a check in a branch. Decide from the start who approves payments, with what limits and what dual approval. Changing the powers on a business account later requires new documents and another pass through compliance, which sometimes delays the business. Setting this up well at the start saves time later on a company bank account in the UK.

After opening, test the account with a small first transfer in sterling, then in the other currencies you need. Then give the bank details to customers and suppliers, and set up online banking with at least two users, so that one director’s absence does not block urgent payments.

Documents for a British business account

The typical file brings together the certificate of incorporation, the articles, the list of shareholders and directors, a group chart down to the individuals and the identity documents of each director and beneficial owner, with proof of address. The bank also asks for a description of the activity, the main customers and suppliers, the countries involved in payments and the expected turnover. These elements must be consistent with each other.

Where shareholders or companies are established abroad, prepare the original documents: register extracts, articles, powers of attorney. They are generally expected with an English translation, sometimes certified, and in some cases an apostille. Start these steps early, because they are among the slowest. Ask the bank to confirm in writing what it expects for a business account in the UK.

Finally, write a short, costed business plan explaining what the company does, how it earns money and why it needs a British account. The story must match the articles, the contracts and the first invoices. A vague or contradictory file is one of the most frequent reasons for refusal or for requests for extra papers, especially for a company whose directors live abroad.

Running a company bank account in the UK: sterling, euros and cash

A company that sells in the United Kingdom collects mostly in sterling, whereas a company working with Europe often receives euros. Ask the bank which multi-currency accounts it offers, what fees apply to transfers and what conversion rate it uses. A British business account is easier to manage when each currency has a clear purpose.

Plan recurring payments: salaries, taxes, VAT, rent and supplier invoices. Keep a sufficient balance before each tax deadline, since a delay can bring penalties and interest.

Keep regular contact with the bank’s relationship manager. Tell them about changes of director, shareholder, address or activity, since they condition the update of the compliance file. A bank informed in time adapts limits and services more easily, whereas a change discovered afterwards can lead to a temporary restriction of the account or an urgent request for documents. Treat the account as a long-term relationship rather than a one-off formality.

Common mistakes and checks before opening

Common mistakes are opening a file before incorporation is complete, untranslated foreign documents, a group chart that does not trace back to the individuals and a vague business plan. Others are choosing a bank on fees alone, without checking its experience with companies run by non-resident directors, and giving the account details to customers before the account has been tested.

Before paying in funds, check that the institution or provider is authorised in the United Kingdom, for example by consulting the FCA’s public register.

Always confirm in writing the conditions that apply to your situation before signing the account agreement or transferring the capital.