How to Open a Business Bank Account After Registering a Company
Why You Need a Business Bank Account in the UK
Once you’ve registered your company, opening a business bank account in the UK should be one of your first priorities. Having a dedicated business account not only helps separate your personal and business finances, but also simplifies tax management and boosts your company’s credibility.
Many UK banks and digital providers offer tailored business banking solutions, including features like invoicing tools, multi-currency support, and seamless integration with accounting software—all designed to make running your business easier.
Legal and Financial Benefits
Easier Tax Compliance
Keeping your personal and business finances separate makes it far easier to track income and expenses. This helps ensure accurate reporting to HMRC and reduces the risk of errors when filing returns or preparing financial statements.
Enhanced Professionalism
Using a dedicated business account signals to customers, suppliers, and partners that you’re running a serious and structured business. It also makes your company appear more trustworthy and established—especially when making or receiving payments.
Access to Business Finance
Business accounts often come with additional financial tools, such as overdraft facilities, credit lines, and access to business loans. These can provide essential support for managing cash flow or funding future growth.
Looking to register your company before setting up a business account? Formations Wise can help you get started quickly and affordably.
Requirements for Opening a Business Bank Account
Before you apply for a business bank account in the UK, it’s important to gather all the required documents. Most banks and fintech providers will ask for the following:
- Proof of company registration – Your Companies House registration number. Check your company registration details
- Proof of identity – Passport or UK driving licence for directors and major shareholders.
- Proof of address – Recent utility bill, bank statement, or council tax bill (typically dated within the last three months).
- Business details – Nature of your business, estimated turnover, and expected transaction volumes.
- Memorandum and Articles of Association – Required for limited companies, outlining your business structure.
Keep in mind that specific requirements can vary depending on the bank or provider, so it’s best to check directly with your preferred bank before applying.
Choosing the Right Business Bank Account
When selecting a business bank account, consider the following factors:
- Traditional Banks vs. Digital Banks
- Traditional banks (e.g., Barclays, HSBC, Lloyds) offer physical branches and face-to-face services.
- Digital-only banks (e.g., Tide, Starling Bank, Monzo Business) provide online account management and often lower fees.
- Challenger banks like Metro Bank offer a hybrid approach with both online services and branch access.
- Monthly Fees and Transaction Charges
- Some banks charge monthly account fees, while others offer free banking for a limited period.
- Look out for charges on cash deposits, electronic transfers, and international payments.
- Online Banking and Integrations
- Ensure the bank offers seamless online banking and integrates with accounting software like Xero, QuickBooks, or The Balance App.
- Customer Support & Extra Services
- Check the availability and quality of customer support—some banks offer 24/7 service, while others operate within limited hours.
- Additional perks may include:
- Business loans and overdrafts
- Financial health check-ups
- Access to mentoring programmes and networking events
Tip: Compare providers before committing. Many digital banks are built with small businesses in mind and offer quicker setup with fewer documents required.
