Setting up a business in the United Kingdom as an expat is an exhilarating venture. The UK remains one of the world’s most robust financial hubs, offering a fertile ground for innovation and international trade. However, for many non-residents or newly arrived expats, the first major hurdle isn’t finding clients or developing a product—it’s opening a business bank account. The UK banking sector is known for its stringent ‘Know Your Customer’ (KYC) and Anti-Money Laundering (AML) regulations, which can make the process feel like an uphill battle.
In this comprehensive guide, we will explore the best UK business bank accounts for expats, ranging from agile digital disruptors to prestigious high-street institutions. Whether you are a digital nomad, a foreign director of a UK Limited Company, or a recently relocated entrepreneur, there is a solution tailored to your needs.
Why Opening a UK Business Account is Challenging for Expats
Before diving into the recommendations, it is vital to understand why the process is complex. Most traditional UK banks require proof of UK residency, a local credit history, and sometimes a physical interview. For expats who haven’t lived in the UK for long—or those who live abroad while managing a UK company—these requirements can be prohibitive.
Fortunately, the rise of ‘Challenger Banks’ and Electronic Money Institutions (EMIs) has revolutionized the market, providing more flexible alternatives that cater specifically to the global citizen.
1. Wise Business: The Best for International Flexibility
Wise (formerly TransferWise) has become the gold standard for expats and international entrepreneurs. While not technically a ‘bank’ in the traditional UK sense (it is an EMI), it offers many of the same functionalities with far more transparency.
Key Features:
- Local Details: Get a UK sort code and account number, as well as IBANs for the US, Eurozone, Australia, and more.
- Low Fees: Use the mid-market exchange rate for currency conversions, which is significantly cheaper than traditional banks.
- Integration: Seamlessly connects with accounting software like Xero and QuickBooks.
- Multi-Currency Accounts: Hold and exchange over 25 currencies.
- Corporate Cards: Issue physical and virtual cards for your team with customizable spending limits.
- Payment Links: Easily accept payments from clients via secure links.
- No Monthly Fees: Their standard account has no monthly subscription fee.
- Invoicing Tools: Create and track professional invoices directly from the app.
- Integration: Direct sync with major UK accounting tools.
- Credit Insights: Provides tools to help you understand and manage your business cash flow.
- Branch Access: Although it’s an app, you have the backing of HSBC’s physical infrastructure.
- International Reach: If your business grows, transitioning to a full HSBC corporate account is easier.
- Global Accounts: Open domestic accounts in 11+ currencies without needing local entities in those countries.
- Marketplace Integration: Connects directly to Amazon, eBay, and Shopify.
- Zero Transaction Fees: On many international transfers compared to traditional banks.
- Certificate of Incorporation: From UK Companies House.
- Proof of ID: A valid passport (not just a national ID card).
- Proof of Address: This is the sticking point. If you don’t have a UK utility bill, some digital banks will accept a lease agreement or a bank statement from another reputable institution.
- Business Description: Be prepared to explain exactly what your business does and where your funds are coming from.
Why it’s great for expats: Wise doesn’t require a long-term UK residency to open an account. As long as your UK company is registered with Companies House, you can often open an account from abroad.
2. Revolut Business: The Tech-Forward Solution
Revolut is another major player that has captured the expat market. Its business accounts are designed for speed and scalability, making them ideal for tech startups and consultants.
Key Features:
Why it’s great for expats: Revolut’s onboarding process is entirely digital. They are highly accustomed to dealing with foreign nationals and offer different tiers of accounts, including a free ‘Basic’ plan to get you started.
3. Tide: Fast and Focused
Tide has grown rapidly by focusing exclusively on small businesses and sole traders. Their value proposition is simple: speed. You can often have an account number in minutes.
Key Features:
Why it’s great for expats: While Tide usually requires a UK address, they are much more lenient regarding credit history than high-street banks. It is an excellent ‘first’ account for an expat who has just arrived in the country.
4. HSBC Kinetic: The Hybrid Approach
If you prefer the security of a traditional ‘Big Four’ bank but want a modern mobile experience, HSBC Kinetic is the answer. It is a standalone app designed for small businesses, backed by the global reach of HSBC.
Key Features:
Why it’s great for expats: HSBC is an international bank by nature. If you are already a customer of HSBC in your home country (e.g., Hong Kong, USA, or UAE), they may be able to use your existing global profile to expedite the UK business account opening process.
5. Airwallex: Best for E-commerce and High Volume
For expats running e-commerce businesses or those dealing with high volumes of international payments, Airwallex is a powerful contender. It bridges the gap between a bank and a global payment processor.
Key Features:
Comparing the Options: What to Look For
When choosing your account, consider these three pillars:
1. Residency Requirements: Does the bank require you to be a UK resident, or can you be a foreign director? (Wise and Revolut are most flexible here).
2. Currency Needs: If you pay suppliers in your home country, look for the lowest FX rates. (Wise and Airwallex lead the pack).
3. Physical vs. Digital: Do you need to deposit cash or cheques? If so, you might need a traditional bank like Barclays or Lloyds, despite the harder application process.
Tips for a Successful Application
To increase your chances of approval as an expat, ensure you have the following ready:
Final Thoughts
The UK banking market for expats is more accessible than ever, provided you look beyond the traditional high-street branches. For most expats, a combination approach works best: use a digital platform like Wise or Revolut for day-to-day international operations and speed, while potentially working toward a traditional account with HSBC or Barclays as your business matures and establishes a local footprint.
By choosing the right partner, you can stop worrying about banking hurdles and focus on what truly matters—growing your business in the heart of the United Kingdom.
