Keep your business and personal money separate from day one. A business bank account makes tax filing easier, looks professional to customers, and helps you track business expenses accurately.
- Limited companies
- Must have a separate business bank account - company money cannot be mixed with personal funds.
- Sole traders
- Not legally required, but strongly recommended. Most personal account terms prohibit business use.
- Partnerships
- Should have a separate partnership account to track shared income and expenses.
- Typical features
- Business debit card, online banking, accounting software integration, invoicing tools.
What you need to open an account
Banks need to verify your identity, address, and business details. Gather these documents before you apply:
- Personal ID
- Passport or UK driving licence for all directors/partners/owners
- Proof of address
- Utility bill, bank statement, or council tax bill dated within last 3 months
- Company details (limited companies)
- Company registration number, registered address, details of shareholders owning 25%+
- Business details (sole traders)
- Trading name (if different from your name), description of what you do, expected turnover
Choosing the right account
Compare accounts based on your business needs:
- Monthly fees
- £0-30/month. Some accounts are free for the first year or permanently free with limited transactions.
- Transaction limits
- Free accounts often cap transactions. Check if the limit covers your expected activity.
- Accounting integration
- Direct feeds to Xero, QuickBooks, FreeAgent save hours on bookkeeping.
- Card payments
- If taking card payments, check merchant services fees and integration.
- Overdraft facility
- Useful for managing cash flow gaps. Compare rates and arrangement fees.
The application process
Most banks let you apply online. The process typically takes:
- Online applications: 10-30 minutes to complete, decision within 1-5 working days
- In-branch appointments: 30-60 minutes, often same-day approval
- Complex businesses: 2-4 weeks if the bank needs additional checks (high-risk sectors, overseas connections)
Some banks offer instant account numbers for online applications, letting you start receiving payments immediately while full verification completes.
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Check what documents you need
Use the UK Finance checklist to see exactly what your chosen bank requires for your business type.
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Compare business accounts
Look at monthly fees, transaction limits, and whether the account integrates with accounting software you use.
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Gather your documents
Get your ID, proof of address, and business registration details ready before applying.
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Apply online or book an appointment
Most applications take 10-30 minutes online. Complex businesses may need an in-branch appointment.
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Set up online banking
Download the banking app, set up security features, and connect to your accounting software.
Legal basis
Primary legislation and key regulations
Browse UK legislation (opens in a new tab) legislation.gov.ukOfficial guidance
Set up a business bank account (opens in a new tab)
Official guidance on business bank accounts.
GOV.UK
Get ready to open a business account (opens in a new tab)
Checklist of what documents you need based on your business type.
business-account-opening-guide.ukfinance.org.uk
Running a limited company - accounts (opens in a new tab)
Record-keeping requirements for limited companies.
Companies House