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I have incorporated a company in December last year, and since then we started making money but had no bank account. Because of the company structure, one of the shareholders who owned more than 25% was getting rejected by all banks due to his nationality. So we lowered his shares, and opened a bank account with Tide - a bank for small businesses.

Now we want to transfer this money into the bank account but how does one declare it? Do we wipe the slate clean and just issue out a personal loan to the company, from my name? If so, how can we do it, when we can't make cash or cheque transfers? The sum is not large; I'm sure it doesn't affect the process, but for anyone curious - it is under £1,000.

If not, what is the correct, legal procedure for solving this issue?

  • I don't see how (not) having a bank account changes things for you at all.... Also why would that require someone's shares to be lowered ? Your company made money, this should have already been accounted for (accounting is there for a reason), where or how that money is located or transferred doesn't really matter that much. – xyious Mar 22 at 19:01
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    @xyious: That banks weren't willing to open an account under control of an individual with a certain nationality doesn't seem terribly surprising. One suspects the "right" solution would have been to replace their voting shares with non-voting shares to eliminate the control concern, rather than reducing their fraction of ownership. – Ben Voigt Mar 22 at 20:25
  • @BenVoigt yes but why does the bank account need to be tied to a person with a certain number of shares ? Couldn't someone else just open the bank account without changing the number of shares ? – xyious Mar 22 at 20:48
  • @xyious: I don't think this was possible. I had a look at your profile, seems you are based in the United States. Because my business is in the United Kingdom, most banks here have a "high alert/risk countries" list. I have been rejected for by almost every bank, because one of my shareholder's nationality is on that very list. So how could I have ever possibly not changed the structure of the company, when I was told I would never get an account with these banks, until "structure of my company" changed? I have no idea how to account for this! Also, I'm a beginner director. – HighFlyerPL185 Mar 25 at 0:07

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