Opening a business bank account in the UK from Australia

International trade is one of the biggest businesses in the UK. Opening a UK-based bank account can be optimal if you regularly do business with UK based businesses or suppliers. This article explains what you need to know about opening a business bank account in the UK from Australia. We’ll cover business structures, how foreigners can apply, the documents you’ll need, and which traditional banks to consider.

We’ll also look at a simpler alternative: Wise. Wise isn’t a bank, but it offers business accounts with many of the same features. It can be a good option if you want to manage UK payments without the extra hassle of opening a local bank account.

Table of contents
Setting up a UK business bank account Best business bank account in the UK Alternative - Wise Business Barclays HSBC Royal Bank of Scotland (known as RBS) Lloyds Bank Opening a UK business bank account for non residents: Wise Business - For borderless business transactions!

Setting up a UK business bank account

Non-resident individuals who live abroad can establish UK business bank accounts in theory. Unfortunately, the process of setting up this business bank account is not so simple.

To open a business bank account in the UK, you’ll need a UK-registered business address with proof of identity. You’ll likely require additional company registration documents as well as a description of what your business does. Traditional banks often need to verify customers in person. This creates challenges for people who live outside the country.

Can I open a UK bank account from Australia?

It is possible to open a UK bank account from Australia. However, not all traditional banks accept non-residents. Some banks do offer personal offshore bank accounts for people living abroad. These accounts are secure and support international payments.

One example is the HSBC Expat account.¹ It is made for people who live outside the UK in countries that qualify - including Australia. To open an account, you must meet at least one of these conditions:

• Save or invest £75,000+ with HSBC Expat within 3 months
• Earn at least £120,000 a year and have this salary paid into the account
• Already be an HSBC Premier customer elsewhere

These accounts typically use UK, EU, or US currencies. With HSBC Expat, you can also open a savings account in up to 18 different currencies.

However, for business specific bank accounts, the process is slightly harder. Establishing accounts with HSBC UK Business Banking² or Lloyds Bank International³ requires a UK-based business address along with a UK-citizen director. Barclays International Business Banking is an option for businesses registered with Companies House⁴. Most of these banks require telephone communication or in-person verification before you can open your business account.

Alternatively, Australian businesses can leverage the use Wise Business multi-currency account, which provides local account details in 8+ currencies, including GBP. This allows you to transact like a local entity in the UK and easily convert between currencies like AUD, USD, and EUR at the mid-market exchange rate, with no hidden markups.

Sign up for the Wise Business account! 🚀

What is required to open a business bank account in the UK?

Before you begin the process to open your business account, you should check you have the right documents. Set documents tend to vary according to each bank or account type. Typically, you’ll need:

• Valid passport or national ID
• Proof of personal address (utility bill or bank statement)
• UK company registration details (if applicable)
• Shareholder information and details of company structure
• Proof of UK business address (if applicable)
• Business activity description (or business plan)

Process to open a business bank account in the UK

The process for opening a business account will vary between banks. It’s usually necessary to visit a branch in person (or have one of your directors do so) to sign the required paperwork to get the account up and running.

Depending on your company structure, you may need to provide details and proof of ID for more than one person. This is especially true for banks that require a UK-based director. Some banks require this information for all owners or beneficiaries, or for a proportion of your directors.

If you have a UK registered business, UK Finance has a handy guide to opening a business bank account⁵. You’ll enter a few details into the website, confirm the type of business you run and then get a helpful checklist of the documents you’re likely to need to help you prepare for opening your account

Business bank account fees

When you’re choosing the right business account for your needs it’s important to look at the fees you’ll need to pay to operate it day to day. Some accounts have monthly fees, which may be waived as an opening offer for new customers. However, you’ll likely also have to pay some transaction fees for things like sending and receiving payments, depositing cash or using your company credit or debit card. The fees you pay can vary widely by bank and account type so you’ll need to read the small print carefully.

When you’re checking the fees, don’t forget to look at the price you’ll pay to send and receive international payments. This is one area where traditional banks may fail their customers, charging high fees and adding a markup to the exchange rate they use. It’s worth looking at the exchange rate offered, and comparing it to the mid-market rate for the currency pairing, which you’ll find on Google.

How long does it take?

The time it takes to open your business bank account generally depends on the documents needed to open it. It typically ranges from a few weeks to several months.

Businesses with UK addresses or registration numbers may have fairly quick processing times. For banks requiring the details and IDs of multiple directors or shareholders, the process can take a fairly long time.

Best business bank account in the UK

Finding the best business bank account in the UK depends on the structure of your business. The UK banking sector is led by the ‘big four’: Barclays, HSBC, Royal Bank of Scotland, and Lloyds. These are known for their size and service variety. Still, you may find better features or flexibility with newer or digital-only banks. For businesses without a UK base, Barclays International Business Banking can be a good option. It’s important to note that Barclays does not serve businesses in some sectors like gambling and cryptocurrency.

Let us look at some of the business bank accounts and alternative options available in the UK:

Alternative - Wise Business: the borderless account for business

Wise Business offers a cost-effective and transparent solution for Australian businesses working globally. As an alternative to banks, Wise Business makes managing money internationally a hassle-free experience, without being more expensive than what it needs to be.

You can open your account entirely online with no paperwork or UK address requirements.

You'll benefit from the following with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, Quickbooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

Barclays

• 1,600 branches in the UK, with some 4,750 globally
• Start-up business bank accounts from £6 a month
• Some new companies can access 12 months free banking with a Barclays⁶ account
• Mobile and internet banking and specialist support for businesses

HSBC

• Said to be the 4th largest bank globally, and the most profitable bank in the entire world
• Business bank accounts for a wide range of different business types and stages
• Help to switch if you already have an account with a different bank
• Best tariff promise means HSBC⁷ will make sure your account is reviewed annually and inform you if you could save with a different account type

Royal Bank of Scotland (known as RBS)

• RBS⁸ Group serve some 18.9 million customers globally
• 2 years free banking for start-ups, and a range of accounts for different business types and charities
• Open to customers over 18 who have the right to be self employed in the UK
• Perks include mobile banking, a relationship manager and ‘accelerators’ to help grow your business

Lloyds Bank

• 16 million personal and business customers
• Business accounts are available based on the annual turnover of your company
• Lloyds⁹ states it approves 9 out of 10 applications for overdrafts
• Use the Lloyds resource centre to get support for growing your business

Opening a UK business bank account for non residents:

Unfortunately many banks are unwilling to consider applications for business accounts from non-resident business owners. To offer a business or personal account in the UK, banks must take certain steps to check the identity of their customers. In many cases, they do this by checking ID documents, as well as asking for a UK residential address. This simply makes it more straightforward for them to fulfil their duty to know who their customers are and prevent fraud.

That said, some global banks can consider applications from non-resident customers who already bank with them at home. Barclays for example, may open a UK account for customers who already bank with them overseas, so it’s worth asking your regular bank if they have a way to help you do the same.

Can I open a corporate bank account in the UK with a foreign corporate entity?

There’s no legal barrier to opening a business bank account in the UK with a foreign registered company. However, in practice it can be tricky to do so. That’s because British banks must perform a number of due diligence on customers, to limit the scope for fraud and money laundering.

Because it’s hard to check out the legitimacy of businesses, and even harder when the owners might not be UK residents, many banks simply don’t offer accounts to foreign registered companies.

If you already have a business bank account with a global bank, it’s worth talking to them about whether or not they have British branches, or even work with any UK based banks as partner institutions. If they do, your local bank may be able to help you get set up with a business bank account in the UK more easily than if you try to do it yourself.

Can I open a UK business bank account from abroad?

This will depend in part on your residence status. If you’re a UK tax resident, and have a residential address there, you might well be able to open an account online based on your UK residency. There are many agencies available online which can work with overseas entities and customers to open UK based bank accounts. This process may take some time, and there will be a fee to pay for the service. Make sure you know exactly what you’re getting for your money before you agree.

Wise Business Account for borderless business transactions!

Opening a business bank account in the UK from Australia can be challenging. One solution to consider is the Wise Borderless Business account. You can open this account online without needing a British residential address or UK-based directors.

With Wise Business, you’ll get your own UK account details - making it easier to manage your business finances. The account offers simple, transparent fees and competitive exchange rates. Start managing your business internationally with ease and open a Wise Business account today!

Sign up for the Wise Business account! 🚀

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💵 Moving big money? Send over 20,000 GBP or equivalent within a month with Wise, and you'll get even lower fees - as low as 0.1% - for all your transfers that month. Whether it's one large transfer or multiple smaller ones in any of the global currencies we support, you can save more with Wise.

👉🏻 Learn more about large amount transfers with Wise

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Sources:

1. HSBC non resident bank account
2. HSBC International
3. Lloyds Bank International
4. UK Government - companies-house
5. UK Finance
6. Barclays
7. HSBC Business
8. RBS
9. Lloyds Business
   Sources accurate as of 22 July 2019

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