It's true that UK banking system is totally wrong (which is interesting, considering that they invented modern banking). There are multiple regulations that make bankers life hard, most prominent being the anti-money-laundering regulation. Generally a completely useless regulation that doesn't protect the financial system in any way (but that's a different story). This system can be hacked though. Normally it will take a foreigner a couple weeks (if not months) to set up a business bank account. But if you will set up a personal account with that bank first, and follow up with setting up the business account later - no problems and instant service. Lesson learned - you need to know your way around, and there's plenty of people that will help you (other startups). You have to consider that London is the financial capital of the world (or used to be), hence the number of fraud and cheating is enormous. They need some ways to structure it, otherwise it would all collapse. Also, if opening a bank account is something that can kill the startup, please - what will you do when US competitors actually take notice of you?