UK LTD + High Street Bank account for Non Resident

[TheTrader]

Hi, I want to open a UK high street bank account for my UK LTD company as a non resident. Indian passport Holder, have residency inn 3 GCC countries. Source of funds will be from another UK bank account who owes me some money in GCC. I am willing to deposit 7 figures initially and significantly increase the investment. The plan is to invest in UK, China and UAE using the funds. The UK entity will be a holding company. Any advice on how to proceed will be helpful. I haven't started the UK LTD. I have plans to invest in UK real estate, that is the main reason for UK company and accounts. I am open to any other setups that will be helpful. Thank you

 

[Sols]

One way in might be to reach out to the private banking divisions of Barclays, HSBC, Lloyds, and NatWest. You may need to start offshore in Isle of Man, Jersey/Guernsey, or Gibraltar. In some ways, those territories function like regular UK banks but in other ways not. Establish a relationship and then go from there transition into business banking at which point you may be able to establish a relationship with the bank in mainland UK.

Nedbank or Investec may be better fits than the usual high street banks.

Working through a trusted intermediary fiduciary like Vistra, Sovereign Group, Dixcart, and so on might help open doors or cut corners if you're struggling doing it yourself.

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This is the probably the answer to your question.

 

[TheTrader]

My initial plan is to visit HSBC and Barlays like you mentioned. But will they have any issues with my source of funds? Also any insights on my tax implications?

 

[EliasIT]

A few years ago, I had a local lawyer with me at Barclays in one of their branches in London. The lawyer was quite well-connected, which is why we managed to get a meeting. However, even though we demonstrated substance, they still wouldn't open an account for one of my businesses. So, I think it's going to be really difficult unless you have a substantial amount of money, in the millions.

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If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.

 

[Sols]

TheTrader said:
My initial plan is to visit HSBC and Barlays like you mentioned. But will they have any issues with my source of funds?
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I don't really understand your SOW. Is it a loan repayment from another person? Then just show the bank your loan agreement and all other relevant documentation.

TheTrader said:
Also any insights on my tax implications?
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The UK company is tax resident in the UK and required to pay UK corporate income tax on taxable income. For you personally, there shouldn't be any tax implications based on what you've said so far.

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This is the probably the answer to your question.

 

[TheTrader]

It is a loan repayment that he should have given me in the GCC, but the money is in the UK now. So since I am also interested to invest in UK, I plan to receive it in a UK account.

 

[TheTrader]

EliasIT said:
A few years ago, I had a local lawyer with me at Barclays in one of their branches in London. The lawyer was quite well-connected, which is why we managed to get a meeting. However, even though we demonstrated substance, they still wouldn't open an account for one of my businesses. So, I think it's going to be really difficult unless you have a substantial amount of money, in the millions.
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I already contacted HSBC, they rejected. 3s.money seems like an option, but I am not sure if I should trust them with 7 figures.

 

[EliasIT]

You really need to prepare thoroughly with all documents, budgets, and a business profile before setting up a meeting with banks like HSBC, etc. Otherwise, you'll find yourself being shown the door with a “NO” faster than you walked in. I haven't had such bad experiences with EMIs yet, but I usually make sure to call or exchange messages with them beforehand, before transferring money into the account.

Toggle signature
If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.

 

[TheTrader]

I have already been in contact with 3s.money and they told me it is possible to open the account, and they don't seem to have much restrictions from the initial conversation. I will try Investec and Barclays before I go with 3s.money. I am willing to try through Vistra as well like @Sols mentioned.

 

[Houdini]

3s.money is a good alternative to many of the often mentioned here i.e. Wise and Revolut.

 

[UniversalTrader]

If you want a high street bank - Santander, Barclays and Lloyds all have online applications for opening a UK limited company bank account. Keep your answers simple, short, and uncontroversial. I usually state that the company will be for consulting, 1-5 transactions a month, £10,000 or less per transaction, etc. This will get you a bank account. Also, same for Revolut, Starling, Monzo, etc. Regardless of what I've then done transaction and volume-wise thereafter, historically, there's never been a problem. It's a check-box exercise to get it open.

 

[TheTrader]

without being a resident? They don't ask for any other information? I will try this.

 

[UniversalTrader]

TheTrader said:
without being a resident? They don't ask for any other information? I will try this.
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The company is the resident, being a UK registered entity.

 

[Forester]

UniversalTrader said:
The company is the resident, being a UK registered entity.
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🙂 Sure; yet I presume that @TheTrader was pointing at the fact that the company has a non-resident director; and this is the problem ”“ TBMK.

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[UniversalTrader]

Forester said:
🙂 Sure; yet I presume that @TheTrader was pointing at the fact that the company has a non-resident director; and this is the problem ”“ TBMK.
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Of course, but that's a procedural/admin hurdle that's easily overcome. E.g. A British citizen could setup the company, open the bank account, then transfer the shares and Directorship to the non-citizen via Companies House WebFiling online.

 

[Sols]

Which then becomes public information and the company is required to undergo KYC renewal. Failure to self-report can be grounds for account termination, especially if it's a complete change of hands. The transfer of share will have to be justified with a SPA or similar.

Sounds like a great way of turning a bank account into a SAR.

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This is the probably the answer to your question.

 

[Compliance Circle]

UniversalTrader said:
The company is the resident, being a UK registered entity.
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That doesn't automatically mean it has substance usually necessary to open and operate high street bank account. You can point to the fact that the UK company is i.e. tax resident but it won't give any more assurance as to its substance unless you've something more factual.

UniversalTrader said:
Of course, but that's a procedural/admin hurdle that's easily overcome. E.g. A British citizen could setup the company, open the bank account, then transfer the shares and Directorship to the non-citizen via Companies House WebFiling online.
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Right, right. Account termination in hindsight. And as @Sols rightly pointed, great pathway to suspicious activity report.

Bear in mind that since, unless you have some exceptional and very rare circumstances, all Companies House information on directors, sharehorlders is publicly available and almost instantly exchanged with bank's AML module.

 

[Houdini]

UniversalTrader said:
If you want a high street bank - Santander, Barclays and Lloyds all have online applications for opening a UK limited company bank account. Keep your answers simple, short, and uncontroversial. I usually state that the company will be for consulting, 1-5 transactions a month, £10,000 or less per transaction, etc. This will get you a bank account. Also, same for Revolut, Starling, Monzo, etc. Regardless of what I've then done transaction and volume-wise thereafter, historically, there's never been a problem. It's a check-box exercise to get it open.
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without substance in the UK LTD you won't get any bank account there! Personal visit will be required as well for foreigners.

 

[UniversalTrader]

Compliance Circle said:
That doesn't automatically mean it has substance usually necessary to open and operate high street bank account. You can point to the fact that the UK company is i.e. tax resident but it won't give any more assurance as to its substance unless you've something more factual.



Right, right. Account termination in hindsight. And as @Sols rightly pointed, great pathway to suspicious activity report.

Bear in mind that since, unless you have some exceptional and very rare circumstances, all Companies House information on directors, sharehorlders is publicly available and almost instantly exchanged with bank's AML module.
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Of course, I'm merely suggesting practical possible solutions for the OP to try. None are 100% guaranteed. There are 1m SARs filed every year in the UK. I can only speak from my own practical experience.

 

[CALAY]

@TheTrader Would you consider EU banks for your UK LTD? Or the account needs to be exclusively in the UK for some reason?