Business Bank Account Problems
Discussion
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?
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
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 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.Gassing Station | Business | Top of Page | What's New | My Stuff