Choosing the right bank
Businesses can run into additional problems when they intend to use their UK company as the sponsoring vehicle for bringing skilled workers into the UK.
The Home Office requires not only a new company to sponsor the employee as part of their visa application but also to have a UK bank account, and more specifically, it has to be Prudential registered. This comes down to regulatory compliance for businesses, as UK banks operate under strict regulatory frameworks designed to protect customers and ensure the financial system's integrity. By partnering with a Prudential registered bank, you demonstrate your commitment to adhering to these regulations, such as anti-money laundering (AML) and know-your-customer (KYC) requirements.
For businesses setting up in the UK, Prudential registered banks can be unwilling to take on companies that are not within their 'risk appetite', meaning the level of uncertainty or risk that an organisation or investor is willing to take or accept to meet their objectives — leading to new businesses, such as start-ups which need to possess the ideal 'risk appetite' to partner with a non-prudential bank.
Prudential banks are subject to meticulous regulatory oversight and must maintain higher capital reserves to ensure stability and mitigate risks.
Setting up a business in the UK is a complex and multifaceted process; having a bank account to leverage for business support and advice can be pivotal. Both high street banks and EMIs (Electronic Money Institutions) can support your business and provide all day-to-day banking requirements. Most EMIs are easier to open an account with but usually expect to see foreign exchange movements on the account.