The Lemon Fool

Unincorporated members association XYZ has successfully operated a PayPal business account for accepting website payments for several years.
The account holder is a nominated individual ‘acting for and on behalf of XYZ’ via the authority of PayPal’s ‘Letter of Authorization’.
So far so good.

Out of the blue (tighter anti money-laundering rules perhaps) PayPal now want proof of business registration – something that appears impossible for any unincorporated business unless it is an LLP or registered charity. Utility bills, bank statements and local authority rates demands do not, it seems, cut the mustard. And XYZ is hardly a fly-by-night: it has existed for over 300 years and is known world-wide.

UK clearing banks must have the same issue.

Any suggestions welcome!

We have a small not for profit member's hobby club. We had the same demands and documents have been under revision for nearly a year! We cannot provide a business registration document. The account still seems to work though it's possible we may have to give up eventually?

If your association has a trust deed, use that.

Alternatively a letter explaining that "as an unincorporated formed in <England/Wales/Scotland/N Ireland> there is no means of registering, and therefore no way to provide proof of registration"

The last resort would be to provide a copy of a letter from HMRC with a tax reference number, if the association has to pay corporation tax (unlikely).

For a local club, the bank wanted to see a copy of the AGM minutes where the treasurer was elected, and our constitution. I realise your circumstances are different, but maybe you have some sort of minutes or other document that makes you look like a genuine organisation.