Bank account in the UK
Despite what we you can read on internet, the opening of a bank account in the United Kingdom is no longer possible for non-residents, and professional accounts is not an exception! But why this refusal from the British banks? The problems of tax evasion and abuse in the past noted by the European Union pushed British banks to react, this is why they now refuse to open bank accounts for non-residents. These problems have greatly accelerated the implementation of the automatic exchange of information and the prohibition of opening bank accounts to non-residents. Many UK, Irish and Scottish companies are sold on Internet because of the advantageous tax regime that these jurisdictions offer. But the problem arises when they have to open a professional bank account. Thus, a British company owned by a non-resident will be unable to open a bank account in the United Kingdom.
A simple example
Mr. X, lives in France and is a French tax resident. He bought in 2016 a Scottish company for 800 € on internet and wants to open a professional bank account in the United Kingdom. He finds himself unable to open an account for one reason, he does not reside in the United Kingdom. In fact, this refusal is a good new for him.
Because the company would have been requalified by the French tax authorities as being managed from France. What is the consequence? The Scottish company would be taxable in France due to a permanent establishment situated in France. You are left to calculate, between the years of missed taxes, to which are added the penalties, the bill goes up quickly for Mr. X.
What solutions are possible?
The mistake not to make would be to open a bank account outside the UK, in a privileged jurisdiction. Why? Holding a Scottish company whose bank account would be Seychellois for example, would only arise suspicions because of a real lack of coherence. You will understand that the best and safest solution for Mr. X would be to close his company, and to use a porting solution or a particular structure, adapted to his situation and his funds. For more information, contact us here
In our example, if the company was Seychelloise, other solutions would have been possible. If you find yourself in that case, we have a solution for you. Do not hesitate to contact us to discuss and remedy to this issue that affects many entrepreneurs. If you are considering purchasing a company in the UK, you will need to take this article into account and avoid this choice for non-residents. CALAY remains available to guide you through that process.
CALAY Banking ™, the choice of prosperity in all legality!