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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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Hello, I have set up a UK Company with the intention of

Resolved Question:

Hello,

I have set up a UK Company with the intention of retailing Caribbean goods such as rum cakes condiments, art and costume jewelry. I am the owner director based in Barbados who will be sourcing items and shipping them to the UK , we do have a UK contact.

However, I have been having trouble opening a UK business bank account for the business. Many banks refuse since I would be based in Barbados, with only one bank refusing owing to not being able to accept the Barbados government's notarisation of my identity saying that it must be delivered from the notary directly to them, however the government here won't forward it to them as policy is to give it to the individual, as notarisation is done by the government in Barbados I'm unable to open the account. In trying to figure out what to do a recurring suggestion has been to open a bank account in a country outside of the UK for the business.

My question would this be legal, and if so my next question is how would the collection of money made from sales be deposited, would it then need to be transferred from an individual employees bank account. would I have to fire the employee and rehire them as a consultant so they could open a bank account to transfer business funds ???

Any advice appreciated
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,

Thank you for your question and welcome.

There is nothing to stop a UK company having a foreign bank account. However the company would still be liable to pay Tax in the UK.

In relation to the employees are they working for you in the UK? Is it not possible to direct customers to pay your foreign account directly.

Also as an alternative you could appoint some one based in the UK as a director of the company and arrange for them to open up the company bank account in the UK.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 2 years ago.

Thank you AJ,


 


In relation to the employee they are working for me in the UK, I had at one point made an employee a director for the purpose of opening the account, but the banks are varied on this some, both directors must be UK citizens, and some they still wish to have the owner ID by actually coming in to the bank or having the documents sent directly from the notary.


 


There is some selling that will be done online , however the UK shopping sites require a UK bank account for the funds to be transferred to. Then when we sell at markets the cash that is collected would need to go through some banking system to be transferred to the foreign account


 


 

Expert:  Alex J. replied 2 years ago.
Hi,

Thank you.

As an alternative have you considered setting up an account with a Service Like Pay Pal.

What you are suggesting with your employees taking in the funds is inadvisable. They would have to effectively maintain sole trader accounts, and keep funds separate from their personal fund. It would cause a great deal of hassle if for example one of the employees went bankrupt. If they did not maintain their records correctly you would have problems arguing with a trustee as to which were the monies belonging to the company.

I think as well all the "employees" would have to effectively become consultants which you could force them to do.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 2 years ago.

Thanks AJ


 


I have signed up for Pay Pal, but the challenge is registering/ signing up on the UK shopping sites, they ask for UK bank account information.


 


So if I rehire all of the employees as consultants and they set up a sole trader account, then terms and conditions are agreed on that they will maintain their duties and transfer fund accordingly and they set up the online accounts everything would be based on a solid contract.


 


I think this may work, hopefully they agree.

Expert:  Alex J. replied 2 years ago.
No problem.

I wish you the best of luck.

I would still recommend if possible appointing a UK director and then coming to the UK to have your identity verified. It would be worth for ease of trading.

Do you have any other embassies you can go to? For example is there a French or English embassy that will notarise your identity documents?

Kind regards

AJ
Customer: replied 2 years ago.

I am actually Barbadian, I know there is a English High commission in Barbados and there is a Barbados High Commission in the UK . I'm not sure if they can do anything or advise further.

Expert:  Alex J. replied 2 years ago.
Hi,

Thank you.

They maybe able to notarise and apostille your identification documents for use in the UK.

It may be worth a shot but check with the bank first whether they will accept this.

Kind regards

AJ
Customer: replied 2 years ago.

Thank you.

Expert:  Alex J. replied 2 years ago.
Hi,

No problem.

If I can be of any further assistance please do not hesitate to contact. I am a company law expert and can give you answers to other general company law questions.

I would be most grateful for any feedback.

Kind regards

AJ
Alex J., Solicitor
Category: Law
Satisfied Customers: 3519
Experience: Solicitors 2 years plus PQE
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