Business Bank Account Problems

Business Bank Account Problems

Author
Discussion

808 Estate

Original Poster:

2,389 posts

106 months

Wednesday 26th March
quotequote all
I am trying to set up a business bank account. The company is USA owned and most of the directors/shareholders are not UK residents.

I have been told by various banks that 51% of shareholders and directors need to be UK residents. I am a UK based director.

The account needs to be accessed by directors/finance in other countries.

Needs a web portal and not just app based.

Any recommendations? How do big internationals start up UK subsidiaries without the shareholders being resident, or do the banks bend over at the expectation or megabucks and ignore the smaller companies?

Edited by 808 Estate on Wednesday 26th March 10:32

TownIdiot

3,527 posts

14 months

Wednesday 26th March
quotequote all
It will probably be easier to set up a US account.

If it's going to be a reasonable size business you might be able to speak to an actual human at a bank, but that's increasingly difficult. Most banks won't deal with US citizens in their standard offerings.

MaxFromage

2,353 posts

146 months

Wednesday 26th March
quotequote all
Based on your circumstances, unfortunately I don't think you'll be able to set one up. Quite a few clients in your situation have tried and failed.

StevieBee

14,177 posts

270 months

Wednesday 26th March
quotequote all
808 Estate said:
How do big internationals start up UK subsidiaries without the shareholders being resident, or do the banks bend over at the expectation or megabucks and ignore the smaller companies?
The answer's in your question. They set up local subsidiaries.

From what you've described, it seems the company here is just setting up a UK office rather than establish a local business entity.

The UK government requires that all companies that trade in the UK are UK registered. That means that 51% of ownership must rest with British nationals (this is common in most countries).

For example, Starbucks in the UK is owned and operated by Starbucks Coffee Holdings (UK) Limited, a British company owned by two Brits and one Belgian. A percentage of the profits Starbucks Coffee Holdings (UK) Limited makes in the UK will be paid to Starbucks in the US for various services, brand support and the like. And there will exist a tightly controlled contract between the two that prevents the UK company from changing its name, selling up and so on.

It's government legislation, not the bank.

As mentioned, there's not really anyway around it. ..... that I know of!

There is nothing stopping you representing the US company in the UK - just that you need to do all the banking through a US bank in USD although the company should be able to to set up a Sterling account with their US bank.






Edited by StevieBee on Thursday 27th March 07:02

Disco You

3,712 posts

195 months

Wednesday 26th March
quotequote all
This advice isn’t specific to your cross border situation, but in general modern digital (challenger) banks like Monzo and Tide are a lot less of a pain in the arse to set up a new business account with than legacy high street banks.

TownIdiot

3,527 posts

14 months

Wednesday 26th March
quotequote all
Disco You said:
This advice isn’t specific to your cross border situation, but in general modern digital (challenger) banks like Monzo and Tide are a lot less of a pain in the arse to set up a new business account with than legacy high street banks.
None of the challenger banks would do this.

808 Estate

Original Poster:

2,389 posts

106 months

Thursday 27th March
quotequote all
The company is UK registered and UK VAT registered. Its just that 2 of the 3 directors are USA residents.

TownIdiot

3,527 posts

14 months

Thursday 27th March
quotequote all
808 Estate said:
The company is UK registered and UK VAT registered. Its just that 2 of the 3 directors are USA residents.
As has been said you will struggle due to the US connection. Will be easier to do from over there.