How to Open a Business Account with HSBC

A well-established traditional bank can offer excellent solutions to any business looking to streamline financial workflows, manage inherent risks and invest in sustainable growth. If you’re in search of such services, you may want to consider HSBC, one of the world’s most prominent banking institutions.

What You Need to Know About HSBC

Established in 1865 in Hong Kong, today HSBC serves around 40 million clients (including more than 2 million business clients) in 63 countries across the globe by providing personal, corporate and private banking products and services. Europe’s largest bank prides itself on having been able to adapt to numerous changes and survive several internal and external crises as these experiences have helped to accumulate expertise that can be shared with clients in any corner of the world.

HSBC consists of the following divisions:

• Commercial banking which serves small, medium-sized and middle-market businesses
• The global banking and markets division provides investment banking and financing products for corporate and institutional clients; for markets and securities services, it provides services in equities, credit and rates, foreign exchange, and other
• The wealth and personal banking division serves customers whose aim is to effectively manage, protect and grow their wealth
• Group service centres were established in developing countries for cost-cutting purposes (for example, customer centres and software engineering centres in India)

Why Choose HSBC

HSBC is trusted by millions around the world for many reasons, to name a few:

• In 2019, Euromoney named HSBC the world’s best bank for small and medium-sized businesses
• A vast network of branches is a benefit to those who prefer face-to-face customer service
• Local customer service by phone
• A wide network of experts advising on capital investments, risk management, domestic and international payments, and more

However, you shouldn’t only glance at the surface when choosing the most suitable solution for your business. Take the time to learn more about every type of business account HSBC has to offer and the requirements the bank may have for you so that eventually you can employ the banking tools to grow your business to new heights.

Types of Business Bank Accounts

HSBC aims to satisfy the needs of every kind and size of business and organisation which is why there are several types of business accounts you can choose from. Take your business size, the complexity of operations and budget into consideration to select the best option.

The HSBC Kinetic Current Account is designed for sole traders and single director shareholder businesses who can benefit from the following advantages:

• No monthly account fee for the first 12 months from the account opening date (6,50 GBP (approx. 7,30 EUR) a month thereafter)
• Plenty of perks, such as up to 30% off business broadband with TalkTalk Business and discounted flexible office space from WeWork
• 1,000-10,000 GBP (approx. 1,100-11,000 EUR) loans with a repayment term of 1-10 years
• You can apply for this account via the HSBC mobile application and it only takes several minutes to submit the details
• 24/7 online bank (browser and mobile)
• The account also enables you to keep track of your cashflow and categorised spending by displaying a monthly breakdown

Eligibility criteria for opening a Kinetic Current Account:

• Legal business structure – Sole Trader or Limited Company
• Tax residence – an applying business must be a tax resident in the UK (not the Channel Islands or the Isle of Man)
• For mobile banking purposes, an iPhone 6 or newer or Android handset is required

The HSBC Small Business Banking Account is available to small businesses (including non-profit organisations) and offers the following benefits:

• No monthly account fee for the first 12 months from the account opening date (8 GBP (approx. 9 EUR) a month thereafter)
• An ability to make payments of up to 25,000 GBP (approx. 28,000 EUR) per day via the HSBC mobile application
• Euro, dollar, or other foreign currency current accounts for 17 GBP (approx. 19 EUR) or currency equivalent a month
• The Tomorrow Ready Hub for business insights and resources
• A mobile application to make payments, view balances and transactions and manage standing orders and direct debits
• The account can be synced with Sage, a cloud-based small-business accounting software, to enable seamless invoicing, administration of VAT and other taxes

The following businesses are eligible for a Small Business Banking Account:

• Any legal business structure, except for a Sole Trader and a Limited Company with a single director
• Borrowing needs of up to 100,000 GBP (approx. 112,000 EUR)
• There’s no need to be supported by a relationship manager

The HSBC Charitable Bank Account enables small and medium-sized charities and non-profit organisations with a charitable purpose to carry out everyday banking activities. Notable advantages:

• Lower prices of banking products and services
• Monthly statements
• Business internet banking and mobile application enable online account management
• Widely available HSBC UK branches are convenient to those organisations who still operate by using cash and cheque and prefer face-to-face service
• Global Payments, HSBC’s preferred supplier of card merchant services, provides a variety of products and services to charities and non-profit organisations that want to accept payment cards and online payments

What makes an organisation eligible for the HSBC Charitable Bank Account:

• The organisation must be registered as a non-profit organisation
• The organisation must not engage in activities to benefit its shareholders or to generate profit
• It must not be a political party that field candidates for elections unless it’s a political activity or non-political campaigning activity supporting its non-profit purpose

The HSBC Business Banking Account is designed for those businesses that have the need to borrow more than 100,000 GBP (approx. 112,000 EUR). The benefits include the following:

• Free banking – no account maintenance fee and free standard transactions on the primary account – for 12 months (10 GBP (approx. 11 EUR) thereafter)
• No annual fee for Visa commercial cards for the first 12 months available for you and your employees (32 GBP (approx. 36 EUR) per year for each card thereafter)
• Business loans and overdrafts you can apply for to continue to grow your business
• HSBC UK Business Banking mobile application to scan and deposit cheques and perform other account-related actions
• The account can be synced with Sage, a cloud-based small-business accounting software, to enable seamless invoicing, administration of VAT and other taxes
• International payments for over 60 currencies
• Euro, dollar, or other foreign currency current accounts for 17 GBP (approx. 19 EUR) or currency equivalent a month

Your business is eligible for the HSBC Business Banking Account if:

• It’s a small or medium-sized business or a non-profit organisation that requires support through a dedicated relationship manager
• It has the need to borrow more than 100,000 GBP (approx. 112,000 EUR) domestically and internationally

The HSBC Corporate Bank Account is designed for large business and includes the following benefits:

• A dedicated relationship director with commercial expertise
• Business support and resources through the digital HSBC Knowledge Centre
• The availability of two online banking solutions depending on your business banking needs
  • Business Internet Banking is designed for smaller but busy organisations that require access to flexible services
  • HSBCnet designed for larger organisations with complex business transactions
• An ability to make credit card payments online

Your business is eligible for opening a Corporate Bank Account if:

• It’s a business or non-profit organisation with an annual turnover above 10 mill. GBP (approx. 11 mill. EUR)
• Your business probably trades internationally, has larger transactional volumes, and may require more complex lending structures

It’s important to note, even when you have free banking or are in your fixed price period, charges for specific services still apply at a regular price. Therefore, you should carefully check the pricing list supplied by HSBC and make sure it suits your budget before signing an agreement. For instance, cheque services may cost 4-20 GBP (approx. 4,50-22 EUR), depending on a specific service.

Requirements for Businesses

To apply for any of the HSBC business accounts, you’ll have to supply the following information:

• Full registered business address, including postcode
• Contact details (landline number, mobile number, email address)
• Companies House registration number, if you run a Limited Company or a Partnership
• An estimated turnover
• Full names and dates of birth of all founders, partners and directors
• Telephone number and email address of every founder, partner and director
• Current personal address (and previous address if a person has lived there less than three years) of every founder, partner and director
• Account numbers of those founders, partners and directors who already use HSBC services
• Details of debit/credit cards of every founder, partner and director

When it comes to providing personal information of the stakeholders, if you’re opening a business bank account for a large business, you’ll need to provide details of any person owning at least 25% of the business.

Typically, you’ll have to supply the following documents:

• ​​Proof of identity of the founders, shareholders and directors (passport or a national ID card)
• Proof address of every founder, partner and director (a current bank statement, utility bill, or council tax bill displaying a full name and registered address)
• Proof of address of the business, including contact details
• A document displaying the turnover, or estimated turnover, of your business, and the invested amount

The Process of Opening a Business Account With HSBC

The process of opening a business bank account with HSBC varies depending on the chosen type of account. If you intend to open a Kinetic Current Account, the application can be completed online in several minutes. However, if you require more complex financial products and services, you may need to visit a local branch to discuss available options and eligibility.

You’ll save time by leaving the closure of the old account to the HSBC team as they take care of the following steps:

• ​​Contacting your old bank to inform them about your decision to close the account
• Transferring your balance and all automated payments over to HSBC
• Closing your old account on your chosen date
• Automated redirection of any future payments to the new bank account

If you already have a business bank account elsewhere and wish to switch to one of HSBC business accounts, the first thing you need to do is open a Business Current Account with HSBC. Only then the HSBC team will take care of the switching process.

You can initiate the new Current Account Switch Service if:

• The annual turnover of your business doesn’t exceed 6,5 mill. GBP (approx. 7 mill. EUR) and your business employs less than 50 people
• You run a charity with an annual income of less than 6,5 mill. GBP (approx. 7 mill. EUR) or a trust with a net asset value of less than 6,5 mill. GBP (approx. 7 mill. EUR)

If you wish to open a business bank account with HSBC, our team here at Regulated United Europe  will be delighted to assist you. 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.