How to open a UK business bank account from the US

International travel isn’t always feasible for those looking to open a foreign bank account quickly. And it’s especially unlikely that you’ll travel overseas to make simple transfers or deposits for your business.  

Nevertheless, you may find that your business needs to open a UK bank account. Maybe you’re moving from the US and taking your business with you, or‌ your business is growing and you need to expand your horizons with different currencies. 

In any case, here’s how to open a UK business bank account from the US. 

Requirements for opening a UK business bank account from the US

Although the UK and the US have cultural and geographical differences, their banking systems are fairly similar since they were born of the same origin. However, the US Federal Reserve is much more independent than the UK Bank of England – it has a higher number of duties.  

The US Federal Reserve sets the reserve requirement through legal processes, but in the UK there’s no legal limit to how low it can fall. In extreme cases, the UK government can overrule actions taken by a bank, whereas the U.S. cannot. 

In other words, the UK government has more control over banks than the US. This leads to more restrictions when opening a business account. 

In order to open a UK business bank account from the US, you’ll need:

• Proof of identity for all directors in your business, which can be a passport, driver’s license, social security card, or some other form of government-issued identification 

• Proof of address, which can be found on a recent bank statement, your utility bill, tax form, or something else

You’ll also need to provide some details specific to your company, including:

• Your contact details and full business address

• Your estimated annual turnover

• Your Companies House registration number, also known as your ACN

• Certificate of incorporation, memorandum, and articles of association (if a limited company)

Luckily, you don’t have to worry about being a UK resident to open a bank account from the US, since no legal restrictions are holding you back. Large UK banks (such as Lloyds, HSBC, Barclays, and NatWest) offer international business bank accounts for nonresident directors so long as your business is registered with the UK Companies House.   

Certain anti-money laundering policies will make the process for a nonresident a bit longer. However, the bottom line is that opening a UK international business bank account is possible – there are just some strict requirements to meet. 

Can I open a UK business bank account online?

Opening a UK business bank account is best done online. The larger banks in the UK will allow you to open an international digital bank account online, whether you’re a resident or not.

Once you’ve entered the necessary credentials, you may need to make a large initial deposit depending on your chosen bank. For example, Lloyds and Barclays require a minimum initial investment of GBP 25,000, while HSBC requires nothing.

You’re also likely to face monthly account fees and minimum monthly deposits to maintain balance thresholds and prove your business is up and running. You might need to speak with someone directly for assistance through an international phone number to ensure you choose a bank that best fits your business needs.

Costs and fees associated with opening a UK business bank account from the US

Annual and monthly fees

Some UK banks charge monthly fees anywhere between £0 to £7.50 per month. HSBC, for example, offers free banking for 18 months, then charges £6.50 for every month after. In comparison, Barclays charges £6.00 per month if you maintain an average balance of £25,000 or more in cash or investments for four months. But if you go below that, they charge £20.00 per month.

Some banks charge annual fees, ranging from an average £60 to £78, while others offer fee-free banking for the first year. 

Bank teller and ATM fees

Some banks offer free transactions, but these usually come with particular limits until you begin paying them per transaction. You can typically expect to pay between £0.35 and £0.60 per transaction outside certain limits. 

International transfer fees

Based on exchange rates and international transfer fees, you can expect to pay around 2.6% to 3.5% of your transfer amount. Money transfer specialists can cost around 60% to 70% less.   

For example, if you want to transfer £35,000 internationally, you can expect to pay between £1,050 and £1,400 in fees. 

However, UK banks use a tiered system. This means that the exchange rate margin depends on the amount of money you transfer. Small transfers have a much larger exchange rate margin than larger transfers. You’ll find that the best rates are reserved for transfers meeting £200,000 and above. 

Account closure fees

Account closure fees are rare, but you can never be too sure. It’s best to review your product disclosure prior to closing your account or contact your UK bank directly to get the most accurate information. 

Foreign exchange rates

A foreign exchange (FX) rate is the relative value between two different currencies. In other words, an FX rate is how much money in a foreign currency you can buy with a single U.S. dollar.

For example, one U.S. dollar is equivalent to GBP 0.74. Therefore, when you send US currency to the UK, your dollar will depreciate and your recipient will receive less than you may have intended. You’ll have to consider FX rates when sending a particular dollar amount to the UK and take depreciation into account, literally.

Opening a UK bank account as a non-resident

Let’s look at what you can expect when opening a business account at some of the UK’s largest banks. 

HSBC

Opening an account with HSBC is tough in the sense that you must:

• Already be one of their customers

• Be based in the UK

• Open your account in person 

Essentially, you can open a business bank account with them, but not from the US.

Barclays Bank

Barclays allows you to open a business bank account outside of the UK online, but they’ll expect a surprisingly high initial deposit. As mentioned above, your initial investment must range between £25,000 and £250,000.  

You’ll need the following to apply for and open your UK business bank account:

• Primary ID

• Secondary ID

• An initial investment between £25,000 and £250,000 (which you’ll need to maintain for the first four months)

• An American income of $250,000 or assets worth $2.5 million

NatWest

It’s more feasible to open a business bank account with NatWest as a nonresident, but you must still have a minimum account balance. Unless you have £2 million or more in turnover, you’ll need around £100,000, which can get you started with a community account. You’ll also need to prove an annual salary of £75,000. 

But here’s the catch: While NatWest is one of the easier banks to open a business account with, you’ll need to be in the UK to start it. 

Lloyds Bank

Lloyds requires an initial deposit of £100,000 and proof of income of £50,000 or more. While most large businesses won’t have any trouble with this level of deposit, many startups and smaller businesses may struggle to make this work.

Online banking is a feasible and reliable alternative for those who can’t go to the UK to open a business account. Airwallex allows businesses to open international bank accounts from the US online, from the comfort of their home or office. 

GBP accounts with Airwallex simplify international business

An Airwallex Global British Pound (GBP) Account allows you to open a business account in GBP from the comfort of your home. You won’t need to travel, visit a physical branch, or even have proof of a UK address.  

Open your Airwallex GBP foreign currency account by simply going online and completing a quick process. 

Airwallex has no signup fees, monthly account fees, or burdensome annual card fees. You can send and receive GBP to and from your account through a local sort code and account number without any hassle, and a low FX margin fee at 0.4% above interbank rates. And don’t worry about an initial investment – we don’t require one.

Begin transacting in the UK From the U.S. with Airwallex

Open up an Airwallex foreign currency account within minutes, and we’ll help you get your business functioning and thriving globally in no time.

Or sign up for a demo of our GBP Global Account. We’d love to show you how you can start winning new markets.

[Related article: CHAPS vs. BACS payments: what’s the difference?]