Opening accounts for UK entities with non-UK UBOs: what really moves the needle

Setting up firm in UK in 2026 remains accessible to non-residents: legal regulations do not prohibit foreigners from registering legal entity here. However, existence of firm itself and opening bank account are two different processes. While organizations registration is highly standardized, banking practices for legal entities with non-British ultimate beneficial owners present practical barriers and restrictions that significantly influence strategy selection and business planning.

Basic principle: no legal prohibition

In United Kingdom, there is no direct legislative restriction prohibiting opening of business account for legal entity solely on grounds that its ultimate beneficial owners reside outside country. In terms of registration status, such firms are entirely legal and can be established remotely. However, legal accessibility does not mean that banks are equally willing to accept such companies without additional conditions.

Regulatory framework for anti-money laundering, KYC/KYB rules and risk assessment of banking system make procedure more complex and costly for non-residents than for residents. Same requirements for identifying and verifying beneficial owners apply to all customers, but banks apply stricter practices to foreign customers.

British banking practices: high standards and restrictions

Traditional high street banks can officially serve companies with foreign directors or shareholders, but they often impose significant conditions:

Resident presence. Number of banks require at least one director with British residential address to open account; otherwise, banks may refuse or require personal visit to a branch in UK for identification purposes.

Personal presence. Non-residents are often required to identify themselves in person at bank branch, which creates logistical and financial barriers for owners and directors living outside UK.

Additional conditions. Some banks require minimum account balance or detailed business plan confirming actual economic activity in UK. In case of Barclays International, account may be accessible through international division, but with entry threshold and offshore service status.

Thus, physical absence of UK resident significantly reduces number of banks willing to work with firm.

New financial solutions and digital banks

With advent of financial technology, market has undergone changes. Fintech platforms provide more flexible options for companies with international beneficial owners:

• New digital accounts. Solutions such as Tide, Revolut, and Wise allow you to register business account remotely with fewer administrative barriers compared to traditional banks.
• Residency requirements. However, there are restrictions here too: some solutions only allow accounts to be opened under certain conditions.
• Documents and verification. Fintech services still require standard documents: passport, proof of address, company documents, but verification can be more technological and faster.

Important distinction: even if technology provider allows remote account opening, it is also subject to AML and FCA regulations and has right to refuse without explanation. In practice, this happens more often than customers would like, especially if risks appear to be elevated.

Documents and information that banks pay attention to

Following items are important for banking compliance:

• Identification of ultimate beneficial owners. All persons who control organisation are required to provide banks with detailed information. This list includes passport details, origin of funds, address, and business transaction details. This is part of AML/KYC verification process.
• Openness of ownership. Bank’s decision may be influenced by fact that owner is located in jurisdiction with increased risks. For example, low transparency and sanctions.
• Business plan and economic activity. Data such as assessment of actual market presence, source of income or volume of operations is usually requested in order to assess risks.
• Legal and regulatory documents. Separate part of package consists of statutory documents, confirmation of organisation’s address, certificate of incorporation and operating permits.

Banks need to see your actual economic history, proof of transactions, and plans, because it is not enough to have a company only on paper.

It is not enough to simply have firm on paper: banks require actual economic history, plans and confirmation of operations.

When bank account is not required

UK legislation does not require legal entity to have bank account specifically within UK banking system. Firm may not have UK account if it does not conduct operations, or it may be serviced through account opened in jurisdiction of residence of its owners. In this case, firm remains legal, but its operational capacity in markets requiring local settlement account will be limited.

For organizations with non-residents, this is important fact: instead of fighting for an account in UK, they sometimes choose account in another jurisdiction with reliable reputation, legalising documents and organising legal support.

When assessing chances of opening account in UK banking system for legal entity with foreign ultimate beneficial owners, it is important to consider following:

• There is no direct prohibition, but there is practice of refusal. Banks do not formally prohibit opening account, but their risk-oriented policy makes it difficult.
• KYC/KYB requirements are strict and mandatory. Verification of ultimate beneficiaries, addresses and origin of funds is central element of assessment.
• Having UK resident increases your chances. Even single British resident director or shareholder significantly simplifies process.
• Fintech platforms are not panacea. They offer flexibility, but they also have limitations and may refuse service without explanation.
• Alternatives are important. Using international accounts or banks in other jurisdictions when UK account is unavailable often proves to be most workable solution.

As result, for non-residents with foreign ultimate beneficial owners, not only legal requirements become key, but also risk assessment by banks, internal policy of particular financial institution, and client’s willingness to provide full transparency of their structure and activities.

FAQ

Is it possible to open a bank account in the UK if all beneficial owners are non-residents?

There is no formal prohibition. However, decision is always made by bank based on its own risk assessment. In practice, firms with wholly foreign beneficial owners are more likely to be refused, especially if they have no economic ties to UK.

Does director or beneficiary have to be physically present in UK to open account?

In most traditional banks, yes. Personal identification at bank branch is often required. Some fintech platforms allow remote account opening, but they may also require video verification or additional checks.

Is it necessary to have British resident in firm structure?

Law does not require this, but from banking perspective, having director or shareholder who is UK resident significantly simplifies process. In number of banks, this is unspoken but de facto requirement.

Can bank close account after it has been opened?

If, during course of business, questions arise regarding transactions, ownership structure or business transparency, bank has right to review relationship and close account, subject to established notification periods.