The Difficulties of Opening a Bank Account

More people than ever start businesses online, as e-commerce sellers, consultants, agencies or digital nomads. Many of them discover that forming the company is the easy part. Opening a business bank account is where things slow down: long questionnaires, requests for documents a new company does not have yet, and sometimes a refusal with no explanation.

This is not personal. Banks and payment institutions operate under strict anti-money laundering (AML) rules and are fined heavily when their controls fail. Understanding why they ask what they ask is the best way to get approved. Below are the main difficulties in 2026 and what you can do about each.

1. Compliance and anti-money laundering checks keep getting stricter

Regulators expect banks to know exactly who their customers are, where their money comes from and whether their transactions make sense. Failures are expensive. In the UK, the Financial Conduct Authority fined Starling Bank about GBP 29 million in October 2024 and Monzo about GBP 21 million in July 2025, in both cases for financial crime controls that had not kept pace with rapid customer growth.

In the EU, a new AML package was adopted in 2024. The EU Anti-Money Laundering Authority (AMLA) started operating in Frankfurt in 2025, and the directly applicable AML Regulation applies from 10 July 2027, bringing one rulebook for customer due diligence and beneficial ownership across the EU. The result for business owners is more questions at onboarding and more reviews afterwards.

2. A long list of requirements

A compliance team checks every application against its rules. For a company account you will typically need:

• certificate of incorporation and constitutional documents (articles or memorandum and articles);
• register of directors and shareholders, and details of every beneficial owner;
• passport and proof of address for directors and beneficial owners;
• a description of the business, website and main clients and suppliers;
• any licence your activity requires.

Documents often need to be recent, certified or apostilled, and in some cases translated. Missing one item can put the application on hold.

3. Limited financial history and shareholder information

A new company has no statements, no accounts and no track record. Banks therefore look at the people behind it. They may ask for personal bank statements, proof of the source of funds you will put into the company, or a CV showing your experience in the field. If ownership runs through other companies, they will want documents for each layer up to the individuals who ultimately own and control it.

4. The bank does not understand your business

If the bank cannot see how you make money, it cannot assess the risk, and the easiest answer is no. Vague descriptions such as "consulting" or "trading" are a common reason for refusal. A clear explanation of what you sell, to whom, in which countries and through which channels makes a real difference.

5. Your account has to be worth it for the bank

Every new client costs the bank money to onboard and monitor. If the expected volumes are small and the risk profile is complex, some banks decide the account is not worth it. This is why traditional banks often turn away small non-resident companies, while EMIs and payment institutions built for online businesses are more open to them.

6. Stricter rules for offshore and non-resident companies

Companies whose owners live in another country, or that are incorporated in low-tax jurisdictions, receive enhanced due diligence. Expect questions about why you chose the jurisdiction, where the company is managed and where it pays tax. Some institutions do not accept certain jurisdictions or nationalities at all, so applying to the right institution matters as much as the quality of the application. If you are planning an offshore structure, read what to know before setting up an offshore company.

How to get a business account approved

1. Choose the right type of institution. Traditional banks, EMIs and payment providers have different risk appetites. Compare them in traditional banking v digital payment solution providers.
2. Prepare a short business profile. What you sell, target countries, expected monthly incoming and outgoing volumes, average transaction size and main counterparties.
3. Show where the money comes from. Contracts, invoices, a pipeline of clients or proof of your own funds.
4. Have a working website. With terms, a refund policy and contact details that match the company.
5. Keep ownership simple and documented. Every layer must be traceable to individuals.
6. Answer questions fully and consistently. Inconsistencies between forms and documents are a frequent cause of refusals.
7. Consider a multi-currency account. If you trade internationally, a multi-currency business account often fits better than a single local account.

Digital institutions are now the normal route for many new companies. See the benefits of digital banking and digital banking trends for 2026.

The easier route: open the account with your company

WeForm forms companies online in six jurisdictions, and every package includes payment account opening assistance. We introduce your company to supported banks, EMIs and payment service providers that accept newly incorporated companies and offer multi-currency accounts, processing and collections. Account opening is fully remote and typically takes 3-14 business days. The final decision always rests with the institution, but a complete, well-prepared application gives you the best chance. Learn more about our banking services or start your company.

FAQ

Why was my business bank account application rejected?

Common reasons are an unclear business model, missing or inconsistent documents, unexplained source of funds, a high-risk activity or a jurisdiction or nationality outside the institution's risk appetite. Banks are often not allowed to give detailed reasons.

Can a newly formed company open a bank account?

Yes. Many EMIs and some banks onboard new companies. Expect to rely on your personal profile and business plan instead of trading history.

How long does it take to open a business account?

With institutions we work with, typically 3-14 business days once all documents are submitted.

Do I need to travel to open the account?

Not with the institutions we introduce clients to. The process is fully remote.