Opening a bank account from abroad (help the expats)

[matteo]

Dear all,

I'm in the early stages of setting up my company (we'd be dealing with designer goods imported from Italy). Although both I and my co-Director (an Italian national) are both resident in Italy (i'm a UK citizen), according to British law and Italy-UK agreements, we are lawfully able to open a company based in England. Great. That's where we want to do business. Perfect.

So... we're all set up, but I find out that UK banks make if difficult for non-residents (British nationals or otherwise) to open business accounts in the UK. But I keep getting conflicting information. Just yesterday, an HSBC employee told me there would be no problem, and even gave me a list of documents my Italian partner and I would have to bring to the application meeting. Same bank, different call, two minutes later, and they tell me we can't...

Barclays, HSBC etc. suggested I contacted their international, off-shore branches, but I have various issues with that. First of all, I am told off-shore banks do not provide the same sort of guarantees (in case the bank goes bust etc.) as on-shore. Secondly, they require a minimum deposit of 5-10 grand upon opening the account (in every application form I've seen anyway), which we don't have and our business plan doesn't (luckily) require.

Why does the British Government allow non-residents to form companies in the UK, but then it's impossible for them to have a bank account in the UK?

Please, does anyone know a solution to this issue? I am sure others would also benefit from the information, as I doubt I'm the only one in this situation.

Any responses are greatly, greatly appreciated.

Cheers,


Matt

 

[matteo]

Just wondering if anyone could help out on this. I'd be extremely grateful!

 

[Big Pete]

Dear all,

I'm in the early stages of setting up my company (we'd be dealing with designer goods imported from Italy). Although both I and my co-Director (an Italian national) are both resident in Italy (i'm a UK citizen), according to British law and Italy-UK agreements, we are lawfully able to open a company based in England. Great. That's where we want to do business. Perfect.

So... we're all set up, but I find out that UK banks make if difficult for non-residents (British nationals or otherwise) to open business accounts in the UK. But I keep getting conflicting information. Just yesterday, an HSBC employee told me there would be no problem, and even gave me a list of documents my Italian partner and I would have to bring to the application meeting. Same bank, different call, two minutes later, and they tell me we can't...

Barclays, HSBC etc. suggested I contacted their international, off-shore branches, but I have various issues with that. First of all, I am told off-shore banks do not provide the same sort of guarantees (in case the bank goes bust etc.) as on-shore. Secondly, they require a minimum deposit of 5-10 grand upon opening the account (in every application form I've seen anyway), which we don't have and our business plan doesn't (luckily) require.

Why does the British Government allow non-residents to form companies in the UK, but then it's impossible for them to have a bank account in the UK?

Please, does anyone know a solution to this issue? I am sure others would also benefit from the information, as I doubt I'm the only one in this situation.

Any responses are greatly, greatly appreciated.

Cheers,


Matt

Why so intent on having a British bank ? foreign banks handle all currencies in the same way , or have i missed something ? are you living in Italy ? or the greatest country in the world with the highest standard of living UK ?

 

[matteo]

Hi Big Pete,

thanks for your message. The thing is, because of anti-money laundering agreements between Italy and the UK, it's rather hard to open a bank account here, if your business is incorporated in the UK.

But, given the difficulties I'm encountering, I'm now looking into that.

I'm still interested, if anyone has further advice, though.

Regards,


Matt

 

[Big Pete]

Hi Big Pete,

thanks for your message. The thing is, because of anti-money laundering agreements between Italy and the UK, it's rather hard to open a bank account here, if your business is incorporated in the UK.

But, given the difficulties I'm encountering, I'm now looking into that.

I'm still interested, if anyone has further advice, though.

Regards,


Matt

Oh i see ok now i understand the old money laundering crock of rubbish thing..

yep well if you lost all roots with the best place in the whole world UK ,then yep its gonna get sticky , maybe you should come back after all its the finest place in the world to live ..

 

[elaine@cheapaccounting]

I have a direct contact at HSBC who handles this for our overseas based limited clients all of the time. Happy to introduce you if that helps - PM me your email. No guarantees but at least you would have a contact who knows the process

 

[matteo]

Oh i see ok now i understand the old money laundering crock of rubbish thing..

My feelings exactly!

I have a direct contact at HSBC who handles this for our overseas based limited clients all of the time. Happy to introduce you if that helps - PM me your email. No guarantees but at least you would have a contact who knows the process

- Elaine: thank you very much for your generous offer. It's genuinely kind of you. I'll try and find a solution, before bothering you. But I might get in touch regarding your accountancy services.

Thanks to both,


Matt

 

[staffjam]

I also have an offshore company - but have a HSBC business banking account - you don't need a large balance either. Very helpful and global.

 

[martha-jc]

I can also recommend HSBC - get in touch with their Commercial International Banking Centre in Canary Wharf. The process was smooth and quick. As far as I can tell/the success I've had, the only other option in a case like this would be a sterling account with an Irish bank (they are not subject to the same anti-money-laundering requirements)

Thanks and good luck!