Opening a UK Business Bank Account | Challenges for Overseas Companies - video Dailymotion

The SmartMove2UK

This video from the SmartMove2UK channel discusses the difficulties faced by overseas companies when Opening a UK Business Bank Account. The video highlights seven key challenges, including lack of UK credit history, complex company formation requirements, stringent identity verification processes, and language barriers.   Brexit-related regulations and navigating the UK's distinct financial system are also cited as significant obstacles. Finally, the video offers the channel's services to assist companies in overcoming these hurdles and successfully establishing a UK bank account.   Also, you can get more insights about Registering a UK Company as a Foreigner: https://smartmove2uk.com/registering-a-uk-company-as-a-foreigner/   Key Requirements:  Company Registration: Most banks require your business to be registered with Companies House in the UK. However, some banks may accept overseas companies with a physical presence or a trading address in the UK.   Proof of Identity and Address: You will need to provide identification for the company directors or shareholders, such as a passport or national ID. Additionally, you'll need to submit proof of address, which could include a utility bill or bank statement.   Business Documentation: Banks typically request your business incorporation certificate, tax registration details, and other documents like a business plan or financial records, especially for overseas companies.   Compliance Checks: UK banks are required to conduct strict anti-money laundering (AML) checks. Be prepared to provide additional documentation to prove the legitimacy of your business.   if you have any queries, our UK Immigration Lawyer will guide you precisely for the same!   Contact our experts on +91 98191 27002 OR drop us an email on info@smartmove2uk.com   To stay connected with us!  ► Visit our Website: https://smartmove2uk.com/  ► Follow us on LinkedIn: https://www.linkedin.com/company/smartmove2uk/  ► Like us on Facebook: https://www.facebook.com/SmartMove2UK/  ► Follow us on Instagram: https://www.instagram.com/thesmartmove2uk/   Popular Hashtags:   #ukbusiness #ukbusinessbankaccount #ukbusinessvisa #ukbusinessimmigration #ukvisa #ukbank #buisnesstips   Related Search Terms:   UK Business Bank Account  open bank account in uk  how to open bank account in uk from india  best bank to open an account in uk  best bank account in uk  open uk business bank account from overseas  how to open an account in uk  open business bank account uk  how to open bank account in uk for non re

Transcript

00:00Hello everyone and welcome back to my channel. I'm Falguni Vaiparek. I'm a solicitor and founder

00:05for a company called the Smart Move to UK, a UK immigration law firm. And today we're going to

00:12discuss an important topic for overseas companies looking to expand into the United Kingdom and

00:19setting up a UK bank account has been very challenging. I see this very often that Smart

00:26Move to UK. We kind of help a lot of companies to set up their footprints in the UK. And this

00:33particular step of opening up a bank account is so challenging. I receive independent inquiries as

00:40well. So we are dedicating this video completely to understand the process and the challenges to

00:47open up an account in the UK, especially the company account.

00:56So this process can be challenging and time consuming with several potential hurdles along

01:07the way. Let's dive into the key seven problems that an overseas company might face when setting

01:15up a UK bank account. First is a lack of UK credit history. Now, if you're a company outside the UK

01:23and you're entering the UK for the very first time, there is no history. The history will get built

01:30after you enter in. So one of the biggest obstacles is the lack of credit history in the UK. UK banks

01:37rely heavily on credit scores to assess the risk of lending money to the customers. Without an

01:43established UK credit history, an overseas company may struggle to convince the bank that they are a low-risk

01:51customer. This can make it difficult to open a bank account or access offers for financial services

01:58such as loans or credit cards, etc. The second problem is the company formation requirement. To open up

02:06a UK bank account, an overseas company must have a registered office and a UK business address.

02:13Additionally, the company may need to provide documents like certificate of incorporation and a

02:19business plan. So depending upon which bank are you speaking with, I think most of the time they will land up

02:25asking the certificate of incorporation. They go into in-depth with your business plan, your forecast, your

02:32projection, your transaction value. It's an ample of question. It's like a panel discussion that they have and

02:38it's not very simple and that's where you appreciate the accounts opening up easily in the home country. But this is a

02:44process and, you know, with patience, you do get through with the end results, but you need to answer these

02:50questions as a company. So this process, as we discussed, is time consuming, especially when the

02:57companies are unfamiliar with the UK company formation requirement. And in some cases, a UK-based

03:03resident director may also be required. So again, it's not mandatory with all the banks, but some banks may ask

03:10to have somebody who is local, who is British to be the director. And depending upon the ownership

03:17structures, expected turnover of the company, transaction values, etc. These all factors are taken into account

03:25to determine whether they can open up an account for the company or not. So the third problem is the

03:32identity verification. UK banks are required to verify the identity of their customers. It's like the KYC that

03:40we have in India is the same thing in the UK, to comply with the anti-money laundering, that is the AML,

03:48and the counter-terrorism financing regulations. This can be challenging for overseas companies,

03:55especially if they don't have physical presence in the UK. Banks may require directors and shareholders to

04:03provide proof of identity and address such as passports or utility bills, adding another layer

04:11of complexity to the process. The fourth one is the language barriers. Language barriers can also pose

04:19a significant problem. Many UK banks require all correspondence to be in English, which can be

04:26challenging for companies where the first language is not English. So this can lead to misunderstanding and

04:32delays in account opening processes. So the fifth problem is different banking system. The banking

04:39system may differ significantly for what overseas companies are accustomed to. For example, UK banks

04:46might not offer the same types of services available in the other countries and they may have different

04:54policies and procedures for opening accounts or accessing financial services. So sometimes you do come across

05:01global banks, you know, having presence in your home country as well as in the UK. But when they are UK,

05:07there are different policies for them to open up an account. And when they are in your home country,

05:12there's different body governing their opening of account and therefore they have different policies. So they

05:17may not be able to facilitate the opening of accounts. Even if you have presence or you have account in your home

05:25country, it still would be a challenge to get it opened up in the UK. Navigating these differences can

05:32be challenging to overseas companies. The sixth problem is Brexit. Brexit has introduced additional

05:38complexity to the UK banking regulation. Since UK is no longer a part of European Union, overseas companies

05:45might need to comply with extra regulation and requirements when setting up a UK bank account. This adds to

05:54again another layer of complexities to an already challenging processes. This particular problem

05:59is faced more by European Union companies who are setting up the footprints, but not particularly anybody who is not

06:06from the EU geographies and are headed towards UK to set up their accounts there. Problem seven, financial

06:13regulation. Lastly, overseas companies must navigate UK financial regulations such as Financial Services and Markets Act and the

06:21payment services regulations. Complying with this regulation often requires providing additional documentation

06:29and information making the process more time consuming. So setting up a UK bank account as an overseas

06:35company can be a daunting process. It requires a lot of patience. Even when the company begins with this

06:43process, we give them a heads up to say that this is a bit of a challenging step here and one has to be really

06:50patient to go through. From a lack of UK credit history to language barriers, there are many challenges to

06:58overcome. However, with the right preparations and understanding of UK banking system, it is possible to

07:05successfully set up a UK bank account and access the financial services. Whatever your growth vision,

07:12setting up in the UK can be much, much easier by sourcing the right advice. We at Smart Move to UK are here to

07:20help you with all your needs from taxations to payrolls to accounting and banking. Feel free to contact us

07:29for any kind of support and guidance. Thank you so very much for watching this video. If you found this

07:34video helpful, please give a thumbs up and subscribe to our channel for more insightful content. If you have

07:40any questions or need further assistance, leave a comment below in the comment box and we'll reach out to you.

07:46See you next time. Bye-bye.

07:57Bye-bye.

Opening a UK Business Bank Account | Challenges for Overseas Companies

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