Opening bank account - shareholder's info

[CompuGlobal-Hyper-MegaNet]

I have been trying to open a bank account for my ltd company for quite a while now (orders of magnitude longer than the time it took people on other threads).

I won't go into the catalogue of incompetencies, but I'm getting really frustrated as I had suppliers waiting for me a few months ago and I fear I have now lost them simply because I have been unable to provide them with business banking details.

I bought my company off-the-shelf, as I expect many do. I transferred the existing shares into my name immediately.
I have now been told I have to file an annual return so their system can be updated, showing me as the shareholder. I'm getting conflicting information from different departments, one saying I do and one saying I don't.
It seems preposterous to me that a brand new (well it was at the start of this application!!) company is forced to file an annual return to update this info. It just doesn't sound right.
Can anyone shed light on this?

thanks

 

[Scalloway]

As far as I am aware that is the only way to update shareholders information on Companies House.

 

[CompuGlobal-Hyper-MegaNet]

Agreed, but rather than forcing a company to file an AR, does the banking industry not accept other methods of proof e.g. share certificates?

 

[StevensOnln1]

Why did you buy an off the shelf company? Brand new companies can be formed in a few hours with the correct shareholders and directors listed from the start for under £20 whereas using an off the shelf company just seems to cause unnecessary complications.

 

[Bob]

Do you have an accountant? Most banks will accept a letter from them to confirm ownership. I agree with StevensOnln1. No reason to buy one off the shelf these days

 

[Jeremiah@RHJ Accountants]

Why did you buy an off the shelf company? Brand new companies can be formed in a few hours with the correct shareholders and directors listed from the start for under £20 whereas using an off the shelf company just seems to cause unnecessary complications.

I will second this why buy an off the shelf company?

Speak to your accountant or if you don't have one then get one as this is something they can help you with very easily.

Also the annual return you can do online at companies house (or accountant can) and it cost's £13 so what is the issue?

All you need is the following:

Email address
Password
Registration number
Authentication code

 

[teddys]

I have been trying to open a bank account for my ltd company for quite a while now (orders of magnitude longer than the time it took people on other threads).

I won't go into the catalogue of incompetencies, but I'm getting really frustrated as I had suppliers waiting for me a few months ago and I fear I have now lost them simply because I have been unable to provide them with business banking details.

I bought my company off-the-shelf, as I expect many do. I transferred the existing shares into my name immediately.
I have now been told I have to file an annual return so their system can be updated, showing me as the shareholder. I'm getting conflicting information from different departments, one saying I do and one saying I don't.
It seems preposterous to me that a brand new (well it was at the start of this application!!) company is forced to file an annual return to update this info. It just doesn't sound right.
Can anyone shed light on this?

thanks

When you deal with a bank most of the junior robots out there wouldn't have a clue about the company laws. So please educate them that the following documents are conclusive proof of ownership:

1. Share certificate, together with
2. an entry on the Register of members i.e shareholders: an entry on here will be made on the basis of your having got the shares transferred through the stock transfer form.

A company secretary's certificate that you are the shareholder should be sufficient.

Filing the annual return is not an issue you could change the due date to current date and file it off; but why should you do that.

 

[Bob]

When you deal with a bank most of the junior robots out there wouldn't have a clue about the company laws. So please educate them that the following documents are conclusive proof of ownership:

1. Share certificate, together with
2. an entry on the Register of members i.e shareholders: an entry on here will be made on the basis of your having got the shares transferred through the stock transfer form.

A company secretary's certificate that you are the shareholder should be sufficient.

Filing the annual return is not an issue you could change the due date to current date and file it off; but why should you do that.

Probably because these days, anyone can form a company online for a pittance having no idea what they are really doing. None of the cheap online formations come with any hard copy such as share certificates, register of members, register of director's interests, share register, minute book etc etc and even if they did, most people wouldn't know what to do with them
Anyone can print a piece of paper purporting to be a share certificate and most companies don't have a secretary any more anyway
That's why i wish everyone would go to an accountant to form the company and set it up with all the relevant paperwork - then hopefully no problem with the bank even though. as you say, most of the staff, who no longer are expected to study for the Institute of Bankers, can only follow the rules that they have laid down for them - unlike in my day

 

[teddys]

Probably because these days, anyone can form a company online for a pittance having no idea what they are really doing. None of the cheap online formations come with any hard copy such as share certificates, register of members, register of director's interests, share register, minute book etc etc and even if they did, most people wouldn't know what to do with them
Anyone can print a piece of paper purporting to be a share certificate and most companies don't have a secretary any more anyway
That's why i wish everyone would go to an accountant to form the company and set it up with all the relevant paperwork - then hopefully no problem with the bank even though. as you say, most of the staff, who no longer are expected to study for the Institute of Bankers, can only follow the rules that they have laid down for them - unlike in my day

Thanks. In fact the common perception is that a document filed at the companies house is the ultimate proof. No that's not correct. A company's basic information is public and needs to be updated at the companies registry. That's is it.

We had an issue recently where the bank asked for an annual return to be filed as a proof of ownership change. When challenged they did accept the company's records including a certified copy of the register of memebrs!

 

[Bob]

The benefit of using a qualified accountant. Banks believe them when they certify something

 

[CompuGlobal-Hyper-MegaNet]

thanks for the info guys.
The company was formed through an accountancy practice - it's the service we've used for many clients over the years. I was told this is for convenience as forming through CH is a more arduous process (although I never enquired how difficult it is).
There's no company secretary but we do have documentation such as register of members and share certificates.
I am a non-practising accountant myself with a book understanding of company law only, but have the services of a practice through which all the paperwork has been coming. They've written a letter as one department requested, but it seems to be stuck in administrative purgatory which is why I've approached a different member of staff, who is asking for the AR.
I'm not fully against filing the return, I just feel it's excessive and unnecessary and with me getting conflicting info from different teams, I'm not convinced that it will make a difference anyway. I was just hoping to explore tested alternative to take to them so that I can close this sorry episode and get an account up and running!
cheers, it's all much appreciated.