How to Open a Business Account with Santander

SantandrIf you prefer to entrust your business finances to a traditional bank, Santander might be a suitable option since it’s a well-established 16th largest banking institution in the world that maintains its presence in all global financial centres.

It’s important to note that currently, the Santander team only supports their current clients who are looking to open new business current accounts with Santander. However, this is a temporary stage and new clients should be accepted shortly.

What You Need to Know About Santander

Santander, Spain’s largest bank, is best known for its European banking activities but it has also expanded to Asia, North America and South America which makes it a truly global institution with a vast network of partners.

Types of Business Bank Accounts

The following features of Business Current Account are designed to meet simple banking needs:

  • Free everyday banking for startups for 18 months and 7,50 GBP (approx. 8,40 EUR a month after that)
  • Online and mobile banking with text messages and email alerts
  • A vast network of branches in Germany, Poland, Portugal and other European countries
  • 500 GBP (approx. 560 EUR) ATM withdrawal per day
  • Arranged overdraft – 10% EAR (Effective Annual Rate) and the annual fee of 1% of the agreed overdraft (minimum fee – 50 GBP (approx. 56 EUR))

A business is eligible for the Santander Business Current Account if:

  • This account will be used for business purposes only
  • The business is registered in the UK with Companies House
  • You’re either a sole trader or your business is in the legal form of a Partnership, Limited Liability Partnership or a Private Limited Company
  • All its directors, owners (shareholders) or partners are aged 18 or over
  • All its directors, owners or partners are residents of the UK
  • It has no more than two directors, owners or partners
  • Arranged overdraft – 10% EAR (Effective Annual Rate) and the annual fee of 1% of the agreed overdraft (minimum fee – 50 GBP (approx. 56 EUR))

1|2|3 Business Current Account is an award-winning account by Moneyfacts and it also provides standard everyday banking. This account has the following features:

  • Up to 300 GBP (approx. 336 EUR) cashback each year
  • 0,10% gross/AER monthly interest on any credit balances
  • Discounted monthly fee of 5 GBP (approx. 5,60 EUR) for startups for 18 months and switchers for 12 months, and 12,50 GBP (approx. 14 EUR) thereafter
  • Access banking services online, at Santander branch counters and Post Office branches
  • 1|2|3 Business World offers (e.g. fixed rate business bonds)

A business is eligible for the Santander 1|2|3 Business Current Account if:

  • All its directors, owners (shareholders) or partners are aged 18 or over
  • All its directors, owners or partners are residents of the UK
  • It doesn’t already have a 1|2|3 Business Current Account (including startup and switcher offers)
  • This account will be used for business purposes only
  • The business is registered in the UK with Companies House
  • You’re a Sole Trader or your business is in the legal form of a Partnership, Limited Liability Partnership or a Private Limited Company with no more than two directors, owners (shareholders) or partners

If you decide to switch your current business account to Santander using the Current Account Switch Service, you’ll pay a reduced monthly fee of 5 GBP (approx. 5,60 EUR) per month for the first 12 months. After the 12-month period, the standard fee of 12,50 GBP (approx. 14 EUR) will apply.

Treasurer’s Current Account account is designed to meet the needs of clubs, societies and charities and therefore offers the following benefits:

  • Free everyday banking (cash deposits, withdrawals, Bacs credits, etc.)
  • Text and email alerts that enable users to stay on top of their business
  • Secure 24/7 online and mobile banking
  • You can have an account with up to three signatories who are authorised to approve financial transactions (however, there is no option available for more than one signatory to be required to authorise a financial transaction)
  • You can authorise your employees to manage the current account so you can concentrate on your business strategy

A business is eligible for the Treasurer’s Current Account if:

  • It’s a club, society, charity, or other non-profit organisation operating in the UK
  • This account will be used for business purposes only
  • All its directors, owners (shareholders) or partners are aged 18 or over and are residents of the UK
  • It has an annual turnover of up to 250,000 GBP (approx. 279,000 EUR)

Santander business online banking offers a variety of benefits, to name a few:

  • You can monitor your business accounts in real-time online or via a dedicated mobile application
  • You can make sterling domestic and international payments, including Bacs, Faster Payments, CHAPS and account transfers
  • You can optimise your payment workflows by using payment import, templates and beneficiary management
  • You can conveniently engage in financial reconciliation activities by exporting your business account data in different formats
  • Customisable user access, including flexible role management and various options of payment signing controls
  • Santander online banking support team is ready to resolve any problems you might face

Why Choose Santander

Santander aims to build client relationships via local relationship teams who share their expertise about the local business environment with clients. They go above and beyond to provide tailored insights to support every businessperson beyond banking so that every one of them can grow their business.

If your business is complex enough to require a relationship manager, you can expect that they’ll take a deep dive into your business and the entire market in order to find out the following fundamental information:

  • What forces are driving your business
  • What future possibilities you wish to explore and how Santander can employ its resources to help you
  • How the Santander team and global network can empower you to realise your business growth strategy

If you care about the planet we all share, you’ll be pleased to learn that Santander is committed to executing a sustainability strategy across all its activities. For instance, the electricity used in Santander properties is 100% renewable. Moreover, in 2020 the bank gave 16 mill. GBP (approx. 18 mill. EUR) to support communities.

Requirements for Businesses

To open a business account with Santander, you’ll be required to provide the following information:

  • Business name and date of formation
  • A detailed description of your business activities
  • The anticipated annual turnover for the next 12 months
  • A number of employees
  • Details of your income derived from the business and any other sources of income you may have
  • If you’re switching from another bank – the last statement including your sort code and account number
  • Annual accounts for established businesses
  • VAT number (if the business is VAT-registered)

Anybody who’s named in the application has to supply the following personal information:

  • Full name, date of birth and nationality
  • Three years address history
  • Current residential status (owned, rented or other)
  • A country of tax residence
  • Length of time with current personal bank and number of personal credit cards
  • Telephone number and personal and business email address
  • Role in the business (e.g. owner, director or shareholder)

Generally, the following documents are required:

  • Proof of the current trading address for the past three years (e.g. credit card statements addressed to the business at the trading address or utility bills)
  • Proof of personal ID documentation for all sole traders, partners, directors, shareholders, account operators, trustees and beneficiaries (for those who are new to Santander, further checks will be required and they may be asked to provide the Santander team with other documents)
  • Proof of residential address of all sole traders, partners, directors, shareholders, account operators, trustees and beneficiaries

For a Limited Company, Limited Partnership or Limited Liability Partnership the following documents are also required:

  • A Certificate of Incorporation from Companies House
  • If the owner of the company has recently changed, copies of the relevant Companies House forms must also be provided

Clubs and societies must provide the following documents:

  • A copy of the Constitution or equivalent that specifies the nature, purpose and objectives of the club or society
  • A meeting record or written request on the headed notepaper of the club or society that gives authorisation to open a new account, lists all officers of the club or society as well as confirms authorised operators of the account and is signed by two official committee members
  • Proof that the annual turnover is under 250,000 GBP (approx. 280,000 EUR)

A Partnership must provide the following:

  • Partnership Agreement or Deed
  • Contract of co-partners or certificate of formation, if applicable

The Process of Opening a Business Account With Santander

Key steps of opening a business account:

  • Check if your business is eligible for your selected account
  • Gather required documentation and information
  • If you require legal support, don’t hesitate to reach out to our team here at IB-IA GROUP UAB
  • If your business requires more complex banking products and services, you might need to pay a visit to one of Santander’s branches prior to submitting an application
  • Otherwise, just submit an online application
  • The Santander team will get in touch if any further information is required

When it comes to onboarding, one onboarding form covers 72 banking products across 24 currencies and the onboarding process is completely digital and therefore can be completed remotely. In many cases, you’ll be supported by a relationship director and a specialist throughout the process.

If you wish to open a business account with Santander but you’re unsure how to supply the information and required documents correctly to the Santander team, our legal team here at IB-IA GROUP UAB will be more than happy to guide you through the process. We have eight years of experience in helping clients open bank accounts in Europe. We tap into our vast network of trusted partners in the European financial services industry to offer the most suitable and cost-effective solutions that improve the functioning of the businesses we serve.