The bank account is a vital aspect of the company registration procedure, yet it is one that is often neglected. Many individuals will believe that when they start a limited company they can keep money in their personal account, or with another business. In the UK it is a legal requirement to keep personal and company finances separate, emphasising the importance of opening a separate company account. There are certain documents and pieces of information that can help speed up the process, in addition to taking advantage of our bank introduction scheme.
In order to open a business bank account when you register a company, the bank you select will require certain pieces of information and potentially certain documents. Wisteria Formations can offer an introduction to the business team at either HSBC or Barclays bank, in order to reduce the hassle for you of arranging an appointment. After initial contact has been made, the bank is likely to ask you a number of questions before the account can be opened.
Firstly, it is likely that the bank will be interested in learning as much about your business as they can. This will help them tailor the types of accounts that you need based on the company’s requirements. The bank will probably ask for a
detailed description of your business activity. This information should not only cover the markets in which you trade, but also any financial figures that you may have, such as previous or expected total revenue. Additionally, they are likely to enquire into the type of customers that you will be serving. They will be interested in whether they are individuals, businesses or public bodies. Additionally, the bank will want to know whether any customers are likely to be from abroad. This is so they can tailor the account to facilitate foreign payments.
The bank will also require similar personal information about the directors and shareholders as is supplied in the company formation process. Residential addresses and dates of birth, supported by relevant anti-money laundering documents, will be required. In addition to simple identity details, they may also make enquiries into your personal finances and experiences. The bank may be interested in personal income made in the last few years. Furthermore, they will want to know whether you have any relevant experience in the field that your company operates within.
Besides personal ifnormation and company contact details, there are a few incorporation documents that the bank may be interested in seeing. The incorporation certificate is proof of the company’s existence, including the registration number. It is not uncommon for the bank to want to see an official printed original copy of this certificate before they will open a bank account registered to the company. Furthermore, occasionally the bank will require you to provide them with share certificates. Although this information is on the company register, purchasing a printed certificate will carry greater weigh in terms of the bank’s decision.
Finally, after supplying the relevant documents and information to the bank, you will be subject to a credit assessment. This is an important step in the process, and the bank will not open an account if the credit check is failed.
If you have any questions about opening a bank account, or want Wisteria to help you open an account with HSBC or Barclays following your company formation, please contact us. Our customer support team can be reached at formations@wisteria.co.uk or on 0844 893 0808.
