When registering a company in England, it is essential to ensure its ability to process international transactions, withdraw funds to business accounts or with bank details, etc. In this regard, signs of successful business development include opening a corporate account in one of the foreign banks, e.g., in England. This jurisdiction is not offshore, but opening an account here for an English company with a beneficiary from Ukraine is considered an extremely popular service among Lawrange clients. The main reason for the popularity of Great Britain is the opportunity to optimize taxation and gain access to developed banking services. In general, the use of a reliable banking system allows a registered business to operate without failures or force majeure situations.

 

If we talk about foreign banks in general, registering an account for an English company with a beneficiary from Ukraine can be quite a difficult task due to legislative restrictions, a multi-level identification system, the application of FATCA recommendations, and international banking policies. Strict compliance with the AML policy forces foreign banks to scrupulously treat non-resident clients, even if they have officially registered enterprises in England. That’s why it is so important to enlist the support of experienced, highly qualified lawyers from Lawrange AA. Our assistance will be helpful to you thanks to our vast experience and established cooperation schemes with the best representatives of the English banking system and other foreign banks.

 

Advantages of opening an account for a UK company

Formally, the UK is often called an offshore, but from a legal point of view, it is not. This country acts as a prestigious financial center in Europe and is popular among entrepreneurs worldwide. Opening an account for an English company with a beneficiary from Ukraine will allow you to avoid serious restrictions when processing international transactions and any difficulties in maintaining tax reporting (it takes a minimum of effort and time). It is also possible to maintain the anonymity of beneficiaries.

 

Reliable banking system

The UK has one of the most stable and sophisticated banking systems in the world, based on centuries-old traditions and modern FinTech innovations. London is one of the world’s largest financial centers, and almost every international bank is present in this city. Banks in England traditionally offer a wide range of services and the opportunity to use an extensive network of branches around the world. You can take a similar advantage when using some other jurisdictions that offer high-quality service and the opportunity to support the development of your business. In general, opening an account in a suitable country allows your company to gain high status and reputation.

 

Attractive tax conditions

Dividends paid to UK companies are generally tax-free. The UK also does not impose income tax on dividends paid to foreign residents. A UK company may be legally exempt from UK tax if it remains a local tax resident and operates through a branch/permanent establishment in a tax treaty jurisdiction.

 

Very often, tax incentives are used abroad for companies engaged in research and development. Large companies can take a deduction from their taxable income, which is on average 30% of their ongoing expenses for qualifying research activities. Capital gains for companies selling subsidiaries (with at least a 10% ownership interest) are exempt from tax if the subsidiary has been owned for at least one year.

 

Comfortable business conditions

According to the Index of Economic Freedom and Competitiveness, the UK is consistently included in the world’s top 10 strongest economies. It is rated highly for freedom of investment and capital flows. Moreover, it is generally accepted that the jurisdiction has extremely low corruption. Thanks to this, a business environment with minimal risk has been created here for international investors who can count on:

 

  • effective legal protection when investing;
  • transparent contract bidding protocols;
  • fair consideration of conflict situations when going to court.

 

The development of businesses is also supported by a large concentration of highly educated, experienced workers, offering a wide range of professional skills to international investors.

 

Please note! The UK is a stable, well-regulated jurisdiction. Therefore, opening a legal entity and registering an account for an English company with a beneficiary from Ukraine can be used by our compatriots as a stable, well-regulated instrument for conducting international business activities.

 

Who benefits from opening a corporate account in England

A wide range of legal entities and individuals can open a UK bank account, but the local banking system is most popular among the owners of:

 

  • Large and small businesses, international corporations, LLCs, and other forms of organization available in the UK.
  • Investment funds: exchange-traded funds, mutual funds, venture funds, hedge funds, etc.
  • Financial institutions, such as insurance, leasing companies, banks, payment systems, etc.
  • Technological startups: having a bank account facilitates activities of IT studios, outsourcing agencies, and innovative companies.
  • Trade enterprises: if you are engaged in import/export or own shops/houses, an account with one of the local banks will be an extremely useful tool for you.

 

To open an account, Ukrainians must ensure compliance with several requirements of local legislation.

 

Conditions for opening an account

To register an account for an English company with a beneficiary from Ukraine, you must provide detailed information about the business and the features of its management. An application for opening an account will only be considered if the applicant’s identity meets certain criteria. You should also be prepared for a thorough compliance, identification, and verification procedure. English and other foreign banks prefer to work with non-residents who are actually and physically located in the country. In some jurisdictions, it is possible to open an account online, as well as through payment systems.

 

Please note! In England, it is much easier for non-residents, particularly Ukrainians, to open a company than to open an account for it at a local bank. This is because our compatriots are identified by the English banking system as high-risk AML clients. However, with the support of experienced specialists from Lawrange AA, this procedure, despite its complexity, is quite feasible, not least due to the ability to use the services of a nominee founder or director. Besides, we will always suggest alternative options, i.e., banks and payment systems in other countries, in which you will have a much better chance of opening an account.

 

Company documents

English banks check all necessary information about a legal entity on the website of the Companies House using the name and number in the state register provided by the applicant. If this is a different jurisdiction, corporate documentation shall be provided. In addition, banking institutions are interested in:

 

  • Copies of contracts and invoices with English counterparties.
  • Evidence of the presence of an active office or production at the place of the company’s registration.
  • Internal company documents, AML policy, compliance regulations, and ESG documentation (Environmental, Social, and Corporate Governance).

 

Depending on the bank’s policy, a certified power of attorney may be required to open or manage an account. An important condition when submitting these documents is their translation into the state language with notarization.

 

Documents of the beneficiary from Ukraine

An indicative list of documents is as follows:

 

  • International passport of the beneficiary or account manager.
  • Evidence of a local address (usually a utility bill).
  • Social security number (depending on the bank’s policy).
  • A detailed personal resume (CV).
  • Information about family members.
  • Confirmation of corporate rights.

 

To successfully complete the verification and identification procedure, you may need to visit the bank in person.

 

Financial means and sources of income

An essential condition is confirmation of your income sources, for which you must provide:

 

  • A bank statement in the beneficiary’s country of residence.
  • Newest tax returns (for the latest reporting period).
  • Confirmation of the sale of property (a popular way to confirm income sources).
  • Information about the company’s potential turnover.

 

If investor’s funds, venture capital, or startup lending are invested in your business, you must provide a notarized copy of the relevant agreement.

 

Other requirements and restrictions

One of the important restrictions concerns the residence of the managers of a British company. This position must be held by a person who has a local residence, a visa, or Indefinite Leave to Remain in the country. Moreover, according to the requirements of some English banks, not only directors but also persons with significant control over business processes in your company must be residents. Only in this case will the activities of a company registered in England be considered legal. Other restrictions may apply in other jurisdictions.

 

Account opening process

You can open an account for an English company with a beneficiary from Ukraine in a few steps. The very first and most important stage is choosing the banking institution that will best meet your needs. To do this, you should pay attention to the established tariffs, the services offered, and the benefits you will receive by opening an account. Important factors are the size of commission fees, accessibility of online banking, credit limits, the size of the minimum deposit balance, etc.

 

Document preparation stage

You should approach the preparation of the necessary documentation with all responsibility since the slightest mistake may lead to delays in account opening or even result in a refusal. Lawrange specialists can provide all the necessary assistance in successfully overcoming this stage, including ensuring the correct appearance of statements, powers of attorney, and the completeness of the entire package of documentation.

 

Application submission

An application to open an account shall be submitted by filling out a standard form, in which you should indicate:

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  • Data regarding the company, its owners and managers.
  • Sources of financing for the enterprise.
  • The currency in which the account will be opened.
  • The volume of planned income to the account for the month.
  • Number of expected transactions per month.
  • Information about the countries with counterparties from which the company plans to cooperate.
  • Estimated amount in the account (minimum and maximum).

 

Consult with your accountant before completing this form to avoid any potential discrepancies in bank compliance matters. If there are inconsistencies between business processes and financial indicators, you risk receiving a refusal to register a bank account.

 

Gaining access to your account and banking services

The bank carefully checks your application based on various parameters. In most cases, those wishing to register an account for an English company with a beneficiary from Ukraine may be required to provide additional documentation (at the discretion of the bank). If the verification is successful and there are no errors, the applicant receives confirmation to open a business account. After this, depending on the tariff, you will be able to use online banking, checkbooks, and bank cards. In this case, you need to check the terms and conditions of using your bank account.

 

Tax obligations for Ukrainian beneficiaries when opening an account for an English company

The British tax system has a multifactorial nature, forcing entrepreneurs to care about compliance with relevant tax laws and regulations. One of the main taxes in the country is Corporate Tax. It is applied at different rates depending on the size of the company’s income – from 19% to 25%. Trusts and investment companies are subject to a separate corporation tax rate of 20%, and oil and gas companies pay 30%.

 

Value Added Tax (VAT) applies at a rate of 20%, although a lower rate applies to some goods and services. Real estate owned by the company is also subject to taxation, and rates depend on its assessed value (from 0% to 5%).

 

Having a corporate account in an English bank greatly simplifies tax reporting. At the same time, all companies must report to the British tax authority, even if the legal entity is exempt from paying corporation tax or did not conduct business during the reporting period.

 

A beneficiary from Ukraine who owns more than 50% of a British company’s share in the territory of Ukraine is subject to Law No. 466-IX and the provisions of Article 39-2 of the Tax Code, which define the implementation of the concept of a “controlled foreign company” (CFC). According to these legislative acts, CFC owners are required to pay taxes on profits from their business abroad. However, Ukrainian beneficiaries can take advantage of the double tax treaty concluded between Ukraine and the UK. At the same time, it is important to understand that even in this case, the controlling person is not exempt from the need to regularly submit tax reports on the CFC. In addition, if the share of a CFC changes, control of such a company ceases, or if it is liquidated, the Ukrainian tax service must be reported within 60 days.

 

Please note! The Ukrainian Tax Service may cancel the possibility of applying for tax benefits on the basis of the double taxation convention if there are any doubts regarding the economic feasibility of certain transactions and business operations.

 

Time frame for opening a business account

This procedure takes 1 or 2 weeks, but this period can vary significantly depending on the complexity of the situation. For example, in the UK, the registration process for beneficiaries from Ukraine is longer than for residents since English banks assign a high AML risk to Ukrainian clients. In some other European jurisdictions, this problem is not as severe.

 

Another factor that increases the length of registration may be the provision of incomplete or incorrect information about yourself, the company, and its structure. If your business has a complex structure, banks need more time to conduct a detailed analysis. The type of bank also influences the duration of opening an account. For example, the procedure is often faster if it is a neo-bank. Based on this, companies registered in Britain need to allocate time to their business plans for opening an account.

 

Why choose Lawrange

Foreign banks base their activities on the Know Your Client principle, so any information is always carefully checked when opening an account. English banks conduct even more scrupulous checks in cases where a British company with a beneficiary from Ukraine needs a corporate account. This fact significantly complicates the entire process. However, with professional legal support, you are sure that your company will surely obtain a bank account. Our specialists are well acquainted with all the features of this procedure, and they will do everything necessary to achieve the goal in a short time. With our help, you can prepare a complete package of necessary documents, eliminating the risk of making any mistakes.

 

In the course of their work, Lawrange experts provide detailed consultations, within which you can get answers to all questions related to registering a corporate account. They will tell you which banking institution best meets your needs, and if necessary, they will help you use alternative methods: opening an account in a payment system or other European banks.

 

Conclusions

Opening a bank account for a company registered in England brings you a lot of profits, ranging from a highly developed, reliable banking system to a stable economy and a comfortable tax regime. However, as practice shows, opening an account for an English company with a beneficiary from Ukraine may have some difficulties. For example, according to the policy of English banks, foreign clients are considered “risky” from the very beginning. Some banking institutions and payment systems find it easier to refuse service to foreigners than to conduct a thorough check of them. You can solve this problem and ensure a high chance of cooperation with a foreign bank with the support of Lawrange.

 

FAQ

What is KYC and Due diligence?

These are procedures carried out by the bank to find out important financial and personal information about the applicant and their business. On its basis, it is possible to understand the potential client’s activities and their trustworthiness.

 

What rates and commissions are applied when opening and servicing an account for an English company for Ukrainian beneficiaries?

Rates and fees vary depending on the bank you use. You can get more detailed information on personal consultations with our specialists.

 

Can I open an account online?

Due to strict adherence to the AML policy, as well as a less loyal attitude towards non-resident clients, opening an account in England without the personal presence of the applicant is impossible. However, the applicant may be a resident director of your company or another fiduciary. There are also jurisdictions, not only European ones, that provide the opportunity to open an account online.

 

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