How to Open a Bank Account for a New Company

Can a new company open a bank account

Yes. A company can generally apply for a corporate account right after incorporation if it meets the bank’s customer due diligence requirements. The common belief that an account cannot be opened without trading history or financial statements is not accurate. Many banks and financial institutions work with startups and companies preparing to launch. The application is made with incorporation documents, a business plan and information about the planned activities.

Incorporation alone does not guarantee approval, though. A bank distinguishes between a legally registered company and a business with a clear commercial purpose. A company with only a certificate of incorporation and no explanation of what it will do will face more questions. The bank needs to understand who owns and controls the company, what it will do, where its money will come from and how the account will be used. An application is sometimes approved before the first customer payment arrives.

A regular corporate account is opened after incorporation, because the bank must confirm that the account holder exists as a legal entity and identify its representatives. There are exceptions. In some countries founders must deposit share capital into a designated account before incorporation is complete. Whether such an account is available depends on local company law and banking practice.

Which documents a corporate account requires

Requirements vary, but most banks ask for a similar set of documents.

An example from practice. UK government guidance for international businesses lists proof of UK company registration, a UK business address, identity documents for all directors and owners, ID for shareholders holding over 10% and a business plan explaining why a UK account is needed. The bank may also ask for bank statements or audited accounts.

Why banks check new companies

Banks must comply with anti-money laundering, counter-terrorist financing and sanctions rules. Before a relationship begins they must identify the customer, understand its ownership and control structure and assess the purpose and nature of the relationship. For companies this usually means establishing the ultimate beneficial owners, understanding the business and assessing the expected source and flow of funds.

In the EU these duties are set out in Article 20 of Regulation (EU) 2024/1624. A bank must identify the customer and beneficial owners, understand the ownership structure, assess the purpose and nature of the relationship, check whether the customer and owners are subject to targeted financial sanctions, obtain information on the customer’s business, monitor the relationship on an ongoing basis including the source of funds, and identify politically exposed persons. The extent of the measures depends on a risk assessment. The Regulation applies from 10 July 2027, and national laws apply until then. Requests may seem excessive to a founder, but the bank has to establish whether the relationship fits its risk appetite and obligations.

Why banks refuse new companies

A lack of trading history is rarely the problem in itself. More often the bank refuses because it cannot understand or verify the business, its owners or the expected transactions.

1. Foreign shareholders and directors

   If owners live outside the country of incorporation or the structure includes intermediate companies, checks increase. The bank asks for documents, addresses, tax residence and the rationale for the structure. Any nominees must be disclosed, as we explain in our article on nominee directors and shareholders.

2. Offshore structures

   The bank will ask why the country was chosen, where the business is actually managed, where staff and contractors are, who takes decisions, why the account is needed in that country and whether there is real activity connected with the jurisdiction. A company registered in one country, managed from a second and trading in a third must explain why.

3. Higher-risk activities

   Many banks treat crypto exchanges and brokers, crypto payment gateways and wallets, online gambling and betting, forex and CFDs, payment processing and remittance, adult content and high-volume international trade as higher risk. That does not make an account impossible, but some banks refuse certain models outright. A bank may accept a software developer but refuse an unlicensed crypto exchange or a casino without a gambling licence. Companies in regulated sectors should prepare licences, registrations, AML policies and partner details. We cover this in our article on banking and payments for iGaming.

4. Unclear source of funds

   The bank needs to know where the initial capital comes from. It may be shareholder contributions or loans, venture investment, income from another business or asset sales. Evidence includes bank statements, investment and loan agreements, financial statements and proof of the shareholder’s legitimate source of wealth. Saying that the shareholder funds the company may not be enough without verifiable documents.

5. No commercial substance

   Having no staff, office or customers does not make a company unsuitable. Many startups work remotely. But a company with no link to its country of incorporation and no credible purpose will face questions. The clearer the explanation of how the business works, the easier it is for the bank to assess it.

Opening an account without an office or remotely

In many countries a dedicated office is not required to open an account. Banks do, however, distinguish between a registered address, a correspondence address and the actual place of business. An address from a registered agent may work for incorporation but not for the bank. The bank may ask for a lease, a description of how the business operates, details of staff and contractors, where management decisions are made, and contracts with customers and suppliers. A virtual office does not rule out an account, but you must be able to explain the real operating structure.

Remote opening is not available everywhere. Depending on the bank, the process may involve video identification, electronic document checks, notarised or apostilled documents and interviews with directors or owners. Traditional banks often require a personal meeting. According to UK government guidance, a full UK account requires at least one company representative to meet the bank in the UK to sign a bank mandate. It is therefore wise to check remote options before incorporating in a given country.

Bank account or EMI account

If a bank refuses, a company can open an account with a fintech provider or an electronic money institution (EMI). These offer business accounts, cards, international transfers and multi-currency payments. An EMI account is not necessarily a bank account, however.

In the UK, payment institutions and EMIs must safeguard customer funds in case of insolvency. They do this either by segregating the funds from their own money or through insurance or a comparable guarantee. New FCA rules have applied since 7 May 2026, including daily checks of the safeguarded amount, monthly reporting and an annual audit for firms holding more than GBP 100,000 of customer funds. Safeguarding is not deposit protection, though. The FCA has stated that money held with an e-money firm is not protected by the Financial Services Compensation Scheme (FSCS).

Before opening an account, check whether the provider is a bank or an EMI, which legal entity holds the funds, whether they are safeguarded or covered by a deposit guarantee, which countries and sectors the provider accepts and whether it supports your currencies and volumes. For many startups an EMI account is a sensible first step while a bank application is pending, and UK government guidance also describes a fintech digital account as a short-term option while a full application is processed. We compare EMI and payment institution licences in our article on choosing between an EMI and a PI licence.

How to improve your chances

1. Choose the bank before incorporating

   Not every bank accepts companies from every country. Check whether it takes foreign-owned companies, non-resident directors and your sector.

2. Prepare a clear business plan

   What the company does, how it earns, who its customers are and where it operates. Include realistic transaction estimates.

3. Show a transparent structure

   A chart of all shareholders and ultimate owners that explains nominees, intermediate holdings and trusts.

4. Document the source of funds

   Evidence for the initial capital and how the company will be financed in its first months.

5. Add regulatory documents

   For a regulated sector, licences, registrations, AML policies and a description of compliance.

6. Explain the jurisdiction

   If the company is offshore or international, explain why the structure was chosen and where the real work happens.

7. Be consistent

   The business plan, corporate documents, website, contracts and the bank questionnaire should describe the same model. Inconsistencies raise questions and undermine trust.

How long it takes to open an account

There is no single timeframe. A simple application from a local company with resident shareholders and a clear model can be processed fairly quickly. An international company with foreign owners, a complex structure or regulated activities may need several weeks or more. According to UK government guidance, opening a full UK account takes roughly 4 weeks to 3 months. The official Dutch business portal says approval often takes 2 to 8 weeks and that banks may charge for extra checks. These are indications, not guarantees. Account opening should be part of the launch plan rather than treated as a formality.

What to do if a bank refuses

A refusal from one bank does not mean another will refuse. Banks have different risk appetites, target customers and internal policies. After a refusal, take a few steps.

1. Ask for the reason

   Find out whether the bank can give at least a general reason.

2. Review the application

   Look for missing or inconsistent information.

3. Add evidence

   Prepare documents that answer the bank’s concerns.

4. Look for specialist banks

   Consider banks that focus on international businesses or startups, and EMIs.

5. Reconsider the model

   Check whether the business model, licensing position or corporate structure needs to change.

Do not apply to many banks in a row without understanding why you were refused. A better-prepared application usually works better than simply more attempts.

Frequently asked questions

See also: Nominee Directors and Shareholders; EMI or PI licence; Banking and payments for iGaming; KYC and KYB for Payment Providers. Services: Company structure.