Opening a dedicated business bank account helps keep your limited company’s finances separate from your own. GOV.UK says company banking must be separate from personal banking and recommends a business bank account. Compare provider terms, fees, eligibility and deposit protection before applying.
Why Your Limited Company Needs a Separate Bank Account
Your limited company is a separate legal entity, and company funds belong to the company. Keep its banking separate from your personal banking and maintain clear records of company income, expenses and payments. Check which account your bank permits you to use for company transactions.
An accountant will also need access to a clear financial picture to prepare your annual accounts and tax returns. Mixing personal and business transactions makes this enormously more difficult and expensive.
Documents Typically Required
Banks and financial institutions typically require the following to open a business account:
- Certificate of Incorporation
- Company registration number
- Articles of Association (some banks request these)
- Proof of ID for all directors and beneficial owners (passport or driving licence)
- Proof of address for directors (utility bill or bank statement, usually within 3 months)
- Details of business activities and expected turnover
Traditional Banks vs. Challenger Banks
You have two broad categories of business bank account to consider:
- Traditional high-street banks (Barclays, Lloyds, HSBC, NatWest): Offer in-branch services, overdraft facilities, and business lending. Approval processes are often slower and more document-intensive.
- Digital business-account providers (including Tide, Starling, Monzo Business and Revolut Business): Compare online application processes, accounting integrations, fees and eligibility. Provider brands and deposit-taking banks are not necessarily the same, so check who holds the money and which protection applies.
Checking a Tide Account Through Sterling Formations
Sterling Formations may link to a Tide partner journey. Tide’s live price, account features, fees, card options, integrations, application process, and eligibility should be checked directly with Tide before applying.
Companies House registration and Tide account approval are separate processes. Do not assume that a banking account changes the statutory filing fee or that any additional benefit is available.
What to Look For in a Business Account
When comparing business accounts, consider these factors:
- Monthly fees and transaction charges
- Cash deposit facilities (important if you handle cash)
- Integration with accounting software (Xero, FreeAgent, QuickBooks)
- Access to credit facilities and overdrafts for future growth
- Customer support availability and quality
- FSCS deposit protection: the standard limit is £120,000 per eligible depositor, per authorised firm; check eligibility and shared banking licences
Frequently Asked Questions
Is it a legal requirement to have a business bank account for a limited company?
GOV.UK says a limited company’s banking must be separate from personal banking. A business bank account is the simplest way to maintain that separation. Check with your bank which account you can use for company transactions, and keep clear accounting records.
How long does it take to open a business bank account?
Account-opening times vary by provider, applicant, checks, and demand. Digital providers may complete applications online, while traditional banks may use different checks or appointment processes. Check the provider’s current requirements and service information.
Can I use a personal bank account for my limited company?
Keep company banking separate from personal banking. Many personal bank accounts restrict business use, so check the bank’s terms rather than assuming an account is suitable. A dedicated company account helps maintain a clear audit trail for company transactions.
Can I open a business bank account online?
Yes. Challenger banks such as Tide, Starling, and Monzo Business are fully online with digital ID verification. Some traditional banks also now offer online account opening for business customers.
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