Great Britain unexpectedly became one of the main destinations for migration of Ukrainians due to the war. In many ways, the popularity of the United Kingdom among our citizens is due to the specifics of the immigration program for Ukrainians, under which our citizens can take advantage of free housing kindly provided by ordinary British people. However, not only foreign businessmen need their own account in an English bank. Almost all payments, for example, with utility services, in the UK are usually carried out in non-cash form. Therefore, any entrepreneur or individual needs to enter into a service agreement with a local bank.
Our firm provides comprehensive advisory and practical services for the establishment and licensing of commercial structures. We also may assist to open a bank-account in UK, Germany, Switzerland, Belgium and other countries around the world.
Ways to open banking accounts in Great Britain: main peculiarities
There is a requirement to open a bank account in the UK and that is proof of address. This usually becomes a serious obstacle for newcomers to the country. Especially if you are not the main applicant, but moved with relatives or with a partner and there are no rental agreements or utility bills in your name. It is quite difficult to open an account if you do not have an employer or are self-employed, which is not a guarantee for most traditional banks.
As a result, the best UK bank account will depend heavily on your situation and needs. The following paths exist.
- Large traditional banks: the path is available if you have a resident card, are officially employed and can confirm the address (there is correspondence in your name). Accounts can be opened for foreigners, but you need to provide an impressive package of documents, confirm the origin of the funds, and the commissions for such an account will be impressive.
- Online banks: opening an account is much easier, but it all depends on the passport of the country of origin; citizens of Russia and Belarus will definitely need a resident card, you will not open an account without it. Many online banks will still require proof of UK residence. This path is best suited for those who want to get inexpensive digital banking services and do not mind somewhat reduced banking functionality.
- Multi-currency accounts: you will receive an invoice for payments in the UK without proof of address (in many cases, but this may still be requested). This is great for EU passport holders and also for a number of other countries.
General procedure: key normative points and documents
The UK banking system is quite conservative and regulated. Due to strict rules designed to ensure security, the vast majority of British banks will prefer to avoid dealing with non-residents of the country. The KYC system, which can be called “Know Your Customer,” makes the decision to open a UK bank account for a non-resident or a company headed by him a cumbersome and overly document-heavy operation. To open an account you can:
- apply online (where possible);
- come to a bank branch and request to open an account. At the moment, most banks have already conducted appropriate training with their staff and they have information about what documents are required when opening an account.
Go through the procedure necessary to open accounts (in some banks, procedures can take up to a month). Required documents may include:
- your passport (BRP is usually not a required document)
- proof of address (often banks agree to a letter from a sponsor confirming that you live there, or a letter from the NHS where you were assigned a number, etc.);
- sometimes it is important to have a British mobile phone number to connect to e-banking.
If you have a photo ID, you can use one of the following:
- passport;
- driver’s license;
- temporary driver’s license;
- national ID card;
- ARC-card;
- UK citizen ID;
- British residence permit.
What account can be opened in the UK?
Bank accounts opened in Britain for citizens of other countries can be divided into several categories, based on their functional purpose.
- Current account. Used by individuals for their personal consumer purposes. Used to pay for various goods and services. To facilitate access to the money deposited in the account, the bank client receives a plastic card.
- Savings account. The funds cannot be actively used; this banking product is intended rather to store certain amounts in a safe place with an impeccable reputation. Opening an account in the UK to receive passive income will not be a good idea – the interest on deposits is too low.
- Target account. This is a tool for placing money and subsequent payment with its help for some specific, agreed-upon program agreements. For example, education or health care.
- Corporate account. Essential for companies if they plan to do business in the UK. All trade, rental transactions, etc. are carried out using a corporate account. Often accompanied by the issuance of a corporate bank card.
You may need to provide next-mentioned documents:
- confirmation of property and corporate rights;
- information about the state of the account and movements on it over the past 3-6 months;
- certificate of income received, incl. accrued dividends;
- data on the composition of the non-resident’s family, etc.
To maintain a UK bank account, a non-resident must comply with strict bank regulations. The goal is a total check to understand the client’s activities. Banks require the maximum amount of supporting information on all banking transactions of non-resident clients to ensure that the transactions are carried out within the framework of legal activities and the client will not compromise the bank. Clients’ assets are verified for their origin.
Opening an account with the Bank of England carries the risk of having it blocked. Non-residents are recommended:
- ensure that the purposes for opening an account, which were specified in the client’s application form, correspond to its actual use;
- avoid accepting payments from other counterparties to an account opened to receive salaries from a British company;
- when preparing for a transaction, first prepare and send documents about it to the bank manager;
- promptly respond to banking requests and do not ignore them;
- keep in mind that banks control not only incoming and outgoing payments; negative information about the client on the Internet/media may cause the termination of service.
In addition to traditional banking institutions, you can also turn to neobanks. Neobanks are a new generation of banks that have taken on the task of fundamentally changing the access and level of banking services. They typically don’t have physical branches. They differ from traditional banks, among other things, in the manner of communication in a language accessible to the average user, fast online technical support and often restrictions on deposits and cash withdrawals.
So, English banks do not just create bank-client relationships, but strive for maximum interaction in all potential areas of cooperation. Banks can assist their clients in areas such as investments, wealth management, taxation, pensions, insurance, trusts, foundations, financing, loans, real estate, philanthropy, estate planning, third party asset analysis, fund formation, asset protection and legal advice.
Our team is ready to accompany you every step of the way in opening your own account in Britain for any purpose. Our experts have enormous experience and many successful cases. Contact us now.
