Complete guide on how to open a UK business account, locally and from overseas

Overview of UK business banking

The United Kingdom has one of the world’s most established and globally connected banking systems. London, in particular, has long been a leading financial hub, and the UK banking sector today blends the reliability of traditional institutions with the innovation of a fast-growing fintech ecosystem.

For businesses, this translates into three main options:

• Traditional high street banks such as Barclays, HSBC, Lloyds, and NatWest. They provide a wide range of accounts, lending products, and advisory services. However, onboarding can be lengthy and document-heavy, especially for overseas companies.
• UK challenger banks and fintechs such as Tide, Starling, and Monzo. These digital-first providers focus on fast account opening, transparent fees, and integrated tools for small and medium-sized businesses.
• Global fintech platforms such as Aspire take the fintech model further by focusing on international businesses incorporated in Singapore and across Asia. Aspire provides multi-currency accounts (USD, GBP, EUR, and SGD) with local account details, enabling you to receive payments as if you had a domestic account in each market. With fully digital onboarding, transparent FX, and global transfers, Aspire is designed for cross-border founders who want to operate in the UK and other international markets without the friction of setting up a traditional UK bank account.

Types of business bank accounts in the UK

When you are ready to open a business account, you will see that there are a few different types to choose from. Each type of business bank account is designed for different kinds of businesses and different needs. Here are the most common ones:

1. Business Current Account

A business current account acts as the central hub for your day-to-day financial operations, from customer payments and supplier bills to payroll and cash flow management. Most UK companies rely on this as the foundation of their banking setup, with the largest business current account options offered by established banks as well as newer business current account providers that focus on speed, flexibility, and digital-first features.

2. Business Savings Account

These are ideal for parking surplus funds while earning interest. You will find flexibility in access terms, depending on whether the account is instant access, requires notice, or is fixed for a term.

3. Business Money Market Account (MMA)

A hybrid solution with higher interest than typical savings, this business account maintains some liquidity features, such as limited cheque writing or debit access.

4. Fixed-Term Deposits

These enable you to lock in funds for a set duration in exchange for better interest rates. They're best for savings that can remain untouched for the term.

5. Merchant Account

A merchant account or integrated service is essential if you accept card payments. It temporarily holds funds from transactions before transferring them to your main account.

6. Foreign Currency Account

Specialised for cross-border businesses, this account lets you hold and manage non-GBP funds. It is helpful in reducing FX risk and simplifying international transactions.

7. Multi-Currency Accounts

While rare among traditional banks, this type of account lets you manage multiple currencies under one roof. Digital platforms like Aspire make it possible by combining global payment access with innovative accounting tools, transparent FX, and seamless products and services that help your business grow. This is perfect for small companies operating across borders.

When should you open a business account in the UK?

Timing matters when it comes to opening a UK business bank account. Set it up too early, and you may add unnecessary paperwork. Leave it too late and risk delays with payments, partners, or compliance. Here are the key signals that show it's the right time:

1. When you register a UK company

If you incorporate a UK limited company, opening a business account promptly is essential. This is often required for tax, accounting, and compliance purposes. HMRC anticipates the separation of business finances from personal accounts.

2. When you start trading in the UK

If you plan to sell to UK customers online or in person, having a UK business account makes payments smoother and helps you avoid costly FX conversions.

3. When you hire or pay UK-based staff and suppliers

Paying employees, freelancers, or vendors in the UK is far easier with a domestic account. International transfers can be slow and expensive, while local payments in GBP are cheaper and more reliable.

4. Before you raise funds from UK investors

Investors usually expect you to have a UK business account if they're wiring capital into your company. It signals credibility and avoids delays when closing deals.

5. When cross-border costs start hurting

If currency swings or transfer fees are eating into your profits, a UK business account can help. Having GBP on hand, whether with a fintech company or a traditional bank, eases cash flow friction.

Can you open a UK business account as a foreign entity?

Yes, foreign entities can open a UK business account, but the process depends on how your business is structured and your goals.

1. If you register a UK company

The simplest path is to incorporate a UK limited company. Once registered with Companies House, you can apply for a business account with most UK banks. You'll need:

• Your Certificate of Incorporation
• Details of directors and shareholders
• Proof of business address
• Identification documents (such as passports) for company officers

2. If you operate through a foreign entity without a UK company

Some banks may allow non-UK companies to open a business bank account, but the requirements are far stricter. You may be asked for:

• Full incorporation documents from your home country
• Certified translations if not in English
• A UK business address (not just a virtual office)
• Details of your UK trading activity

This route often takes longer, and not all banks accept applications.

3. Digital alternatives

If you aren't ready to register a UK company, digital-first platforms like Aspire can bridge the gap. Aspire offers multi-currency accounts (GBP, USD, EUR, SGD, IDR) with local account details. This allows you to:

• Collect payments from UK customers in GBP
• Pay UK suppliers directly from your GBP balance
• Avoid high FX costs and international transfer delays
• Save on banking fees, as most digital accounts have no monthly or account opening fees
• Integrate seamlessly with accounting tools, payment gateways, and e-commerce platforms for smoother cash flow management

This flexibility means you can test and grow your UK presence without going through the full banking and company incorporation process immediately.

However, these digital alternatives aren't licensed banks in the UK. They typically partner with regulated banks to provide services and offer what are often called “functional” business accounts rather than full business banking. As such, services like loans, overdrafts, or cheque facilities may be limited. That's why you should carefully assess your needs before deciding whether a digital provider is sufficient or if a traditional bank account is necessary for your business.

Step-by-Step guide to opening a UK business account: For local, foreign, and overseas businesses

Can you open a UK business account online?

Yes, you can open a UK business account online. However, there are several things to note.

Challenges of opening a UK business account from overseas

Opening a UK business account from overseas can be a complex process. Banks usually want proof that you have a real presence in the UK, such as a local address backed by utility bills or rental agreements, which is not easy if you're only testing the market.

The paperwork is heavier too, with requests for foreign incorporation papers, certified translations, and ID checks for every director or shareholder. On top of that, many banks still expect you to appear in person, which can mean booking a trip just to open the account you’ll need to trade.

Approval can drag on for weeks or months, even once you apply, as compliance teams work through the paperwork. And once the account is open, you could trigger UK tax responsibilities like corporation tax or VAT if you start trading actively.

For many overseas founders, such processes can feel more hassle than progress. That is why modern business banking apps and fintech platforms exist. They cut through the friction with 100% digital onboarding, multi-currency accounts that include GBP, and seamless payment solutions that help you start transacting immediately.

With integrated online banking and innovative tools to manage your business, you can immediately connect with UK clients and suppliers. For many international entrepreneurs, this is the best business banking route compared to traditional banks' delays.

Open and access your GBP local account from anywhere with Aspire

If you're running a business from outside the UK and need a simple way to open an account, Aspire can be your ideal alternative. With Aspire, you open a GBP local account from anywhere. Aspire is built for founders and SMEs in Singapore and across Asia who must transact globally (including the UK, EU, and US).

Unlike a traditional UK high-street bank, Aspire doesn’t require you to physically be in the UK or put down £10,000–25,000 deposits. Everything is digital-first, from onboarding and compliance to account management; everything happens online. Aspire focuses on cross-border businesses that need multi-currency transfers, GBP accounts, and integrations with tools like Xero.

With Aspire, you can:

• Send and receive payments in GBP
• Access your account from your phone or computer
• Use tools to track spending and plan your budget
• Set up your account quickly with little paperwork

Aspire is perfect for remote business owners, freelancers and startups who want to work globally. Open an account right away!

Frequently asked questions

1. Can I open an account in the UK as a non-resident?

Yes, many digital banks accept applications from people living outside the UK. You need a UK-registered company and proof of ID. Not all banks allow this, so it is best to check before applying.

2. Which bank is best for a business account in the UK?

It depends on your business needs. Some banks have no fees, while others offer better tools. Please consider reviewing the independent service quality survey and reading feedback from other business owners to make an informed decision.

3. What is required to open a business bank account in the UK?

You will need:

• A registered UK business
• Proof of ID and address
• Information about your business
• Possibly a credit check or more documents, depending on the bank