Bank for holding/subsidiary companies

[Jk2006]

Hi

First time poster here just beginning my startup journey and looking for a little banking advice:

I have decided on a holding co and subsidiaries structure to fit my plans.

It seems banks don't like opening accounts for hold co or companies with a corporate psc

Putting aside why I want that structure (for now)...can anyone recommend a bank that is ok with these?

Thanks in advance

K

 

[Bobbo]

This may be just poor phrasing but, if you have a subsidiary company wholly owned by a holding company which is wholly owned by you then while the subsidiary has a corporate shareholder it does not have a corporate psc (person with significant control). the person with significant control as you, indirectly, control 100% of the voting rights of the subsidiary.

If this is the case, then correcting the PSC details at Companies House may help your search for a bank.

 

[Jk2006]

Thanks for the reply @Bobbo

My wife and I are 50-50 across the parent co.

Are you saying you CAN (optional) set the PSC to the PSC(s) of the parent..i.e. wife and I or you MUST (this is the rule).

The subsidiaries I have seen always have the parent entity as psc.

The April 2016 rules for the PSC register seem to suggest that is expected too. Multilevel subsidiaries enter the parent entity and that carries on until you get to a company up the chain that has a PSC register with the real individuals on it.

Finally - this is what e.g. starling says in it's eligibility blurb:

Limited Companies and LLPs need all Persons of Significant Control (PSCs) to be a UK resident and natural persons (i.e. no corporate shareholders).

Which seems to imply corporate shareholders will be expected to be psc

 

[Mark T Jones]

The 'why' question may well be central to the answer

What banks don't want is

Dormant or fairly static accounts (they cost money to maintain)
Opaque or complex structures (big history of fraud and nefarious activity)

It's likely that one or both of those are your barriers

 

[nelioneil]

How big is your "group" in terms of revenues, assets etc... it's very possible a holding company is just far too much hassle and extra admin.