There are many reasons why a company opens a bank account in a country other than the country of its incorporation. Almost all businesses are more or less connected with other countries, so an average business makes or receives international payments several times a month. This can be with the UK, a top business destination, where you may have business partners. Here are some of the best reasons why you need to open a corporate account in the UK.
With regards to the UK, a company may have foreign suppliers that ship equipment to or from the UK, a company has customers in the UK market or a company may have partners, agents or contractors in the UK. So, the main purpose of opening a bank account in the UK is the necessity to reduce transaction fees on transfers or to be able to access IBAN, SEPA or SWIFT accounts.
Currently, opening a bank account in the UK is a quick and easy procedure. Moreover, it is not obligatory to register your business in the UK before opening a bank account there. There are specialized banking agencies that can help you open a bank account in the UK. In most cases it would be possible to do remotely.
In most cases, the idea of opening a bank account abroad sounds risky. However, there are several practical reasons why opening a UK bank account would be beneficial to your business.
Access to IBAN, SEPA or SWIFT accounts
IBAN number is the standard code for banks which is used to make and receive international payments within its member states. The UK is one of a few countries that uses IBAN number within its clearing system. However, there are countries that do not implement IBAN format which means that you may not receive payments with IBAN number. Opening a bank account in the UK means that you can make and receive quick international payments.
The same applies to SEPA which only operates within the European countries. The UK is in the SEPA Zone and remains there after its exit from the EU. If your company is incorporated outside the EU and UK, then obviously your company cannot have a SEPA bank number.
SWIFT is another system for making and receiving international payments. Though it is largely used by banks all over the world, some countries are not members of SWIFT countries, that restrict its local business to be able to access quick and safe payment system.
Based on the above, it is evident that the UK banks have access to all three international systems. With a UK bank account you can make quick and safe bank transactions.
The UK is one of the largest banking centers across the globe
On top of that, the UK is one of the largest banking and financial center in the world. The UK offers a significant number of banks to choose from, including one of the most capitalized and world-known banks with highest security rankings. This may include banks with local branches in your country of residence.
Despite Brexit, the UK financial system remains to be stable and healthy. A commercial bank account in the UK enables you to protect your company’s assets if something bad happens.
International diversification and reduced fees
When we talk about international diversification, it is always wise to be proactive with your company’s money. It is always worth diversifying as it makes your company less vulnerable to bank insolvencies during economic crises.
The UK has a stable political and financial environment. With its strong economy, UK bank customers can be sure that their assets will be safeguarded.
Access to online banking
Online banking tools are highly demanded these days. It is vital for a modern entrepreneur to operate a company remotely. Online banking gives you the convenience of running your business and doing all your banking. You can consider opening a Corporate account in Paypal, Borderless Account in TransferWise, etc.
UK banks offer highly competitive solutions that allow you to operate your commercial account online from anywhere in the world. UK banks have multi-currency accounts which mean that you can convert funds from one currency to another with low or even no fees.
Please contact eCompany.ltd to know our hot offers for opening UK bank accounts.