A dedicated business accounts gives you access to the financial functionality you need to manage your commercial interests, and it enables you to use targeted tools to manage your company’s funds. Before you can get started, however, you’ll need to know how to open a UK business account and what the process entails.

In this article, we cover the essential steps that virtually all banks and electronic money institutions (EMIs) require when you’re opening a new business account. Read on to find out what you need to do to get your business bank account up and running:

How to Open a UK Business Account in 5 Steps

Opening a business account isn’t complicated but it’s helpful to take a step-by-step approach to streamline and accelerate the process. If you’re planning to open a UK business account, simply follow these five steps:

1. Find the Best Account for Your Business

Many people assume that all business accounts are the same, but this definitely isn’t the case. Every bank, financial institution or EMI has their own terms, so business accounts vary from one financial service provider to another. Furthermore, a single provider may offer more than one business bank account, so there may be various options to consider.

You might be eager to open a business account as quickly as possible, but it’s worth taking your time to research what’s out there to find the best account for your business needs. If you’re moving funds globally, for example, a multicurrency account could be ideal for your company. Alternatively, if you want to access lending facilities, a business account with overdraft facilities and competitive interest rates might be what you’re looking for.

There are a range of features and terms to look out for, so do your research and compare account options before you begin submitting applications.

2. Review the Eligibility Requirements

Again, different financial service providers have different eligibility requirements, so you’ll need to check that you’re eligible for each account you’re interested in. If you qualify to open a UK business account with one provider, don’t assume you’ll be able to open an account with any bank as the criteria may be noticeably different.

3. Submit an Application

Most financial service providers have a relatively straightforward application process, but some are more complicated than others. When you choose an innovative and reliable account provider like PayAlly, you can apply for a UK business account quickly and easily. With a dedicated relationship manager to support you, opening an account is simple and straightforward.

4. Prepare Your Documents

When you’re finding out how to open a UK business account, you’ll want to know what documents you need. Again, this will vary depending on the financial service provider you choose. However, you will usually need to provide a range of documentation, such as:

  • Proof of ID, such as a passport or driver’s licence
  • Personal and business contact details

In addition to this, you may be asked to submit documents that confirm the status of your business, such as:

  • Certificate of incorporation
  • Projected turnover
  • Company’s tax status

When you apply for a UK business account online, it’s often possible to scan and upload copies of these documents, so it needn’t take long to prepare your documents and complete your application.

5. Receive Your Account Details

Once your application has been processed and approved, you’ll receive confirmation and details relating to your account, such as an account number and sort code. Additionally, you’re likely to receive login details or instructions that will enable you to access your new business account online, depending on the features of the account.

With this information, you can begin using your new account to manage your company’s funds.

How to Open a UK Business Account from Overseas

Traditionally, banks have been hesitant to allow non-UK citizens to open UK bank accounts. As the world becomes more interconnected, however, it’s becoming easier for non-UK citizens to open and use UK business accounts.

If you have a residence in the UK, for example, or your company is registered in the UK, many financial service providers will consider this sufficient to enable you to open an account. Remember – every account provider is different, so check what their eligibility requirements are in advance.

Choosing a UK Business Account

A UK business account can be a great option when it comes to managing your company’s finances, but it’s important to make sure that your account will deliver all of the features you need. When you’re choosing a UK business account, be sure to consider the following:

Multicurrency Functionality

A multicurrency account allows you to hold, send and receive funds in more than one currency, which enables you to operate globally with reduced friction and lower costs. With access to local account details, you can simplify and accelerate international transfers, so it can be a valuable feature if you want to grow your company and build a worldwide customer base.

Online Access

In today’s digital environment, having online access to your business accounts is critical but not all service providers offer a user-friendly online environment from which you can manage your account. When you’re choosing an account, take a look at the provider’s online ecosystem to ensure it offers an intuitive and flexible online portal.

Fees and Charges

Most business accounts are subject to fees or charges, but these can vary dramatically. Some account providers may charge a monthly or annual fee for maintaining the account, for example, while others may not charge a fixed fee. Similarly, there may be static or commission-based charges for specific transactions, such as international transfers. Be sure to check this in advance so you can access the most cost-efficient form of financial management for your company.

Opening a UK Business Account with PayAlly

At PayAlly, we provide a financial ecosystem that empowers businesses and enables them to grow internationally. What’s more – we’re here to support you with every step of the application process!

Request to open a UK Business Account with PayAlly here.