Why you need a company account
A limited company is a separate legal entity, so its money must be separate from yours. Mixing funds causes bookkeeping problems and can lead to director loan issues. See director loan accounts.
What you will need
- Certificate of incorporation and company number.
- Photo ID and proof of address for each director and significant shareholder.
- A description of what the company does and expected turnover.
- Your registered office address and business address.
- Sometimes, articles of association and a business plan.
Confirmation statement due?
We file your yearly confirmation statement for a fixed fee. The £50 Companies House fee is included.
Order a confirmation statementGet accounts quoteTypes of provider
| Type | Typical pros and cons |
|---|---|
| High street bank | Branch support, but slower onboarding |
| Online or challenger bank | Quick set-up and app features, fewer branches |
| Business accounting bank | Integrates with accounting software |
What to compare
- Monthly fees and transaction charges.
- Software integration with Xero, QuickBooks or FreeAgent.
- Cash deposit options if you handle cash.
- Overdraft and savings options.
- Customer support.
After opening
Connect the account to your bookkeeping software so transactions flow in automatically. This makes year-end accounts much easier. See accounting software.
Keep personal and business apart
Pay yourself by salary, dividend or repayment of a director's loan. Do not use the company card for private spending.
Frequently asked questions
Is a business bank account a legal requirement?
There is no law requiring it, but in practice you need one to separate money properly and to pay HMRC.
How long does it take to open?
Online providers can take a day or two once documents are verified. High street banks can take longer.
Keep reading
Articles of Association Explained for UK Companies
Articles of association are your company's rulebook. They set out how directors and shareholders make decisions. Most small companies use the standard model articles, which can be amended by special resolution.
Bookkeeping and softwareWhy Good Bookkeeping Matters for Micro-Entities
Bookkeeping is the day-to-day record of your income and spending. Done regularly it makes your accounts faster and cheaper, protects you from penalties and shows you where your money is going.
Directors and structureHow to Pay Yourself as a Limited Company Director
A director can take money from a limited company as salary, dividends, expense reimbursements and loan repayments. Each has different tax rules, so mix them with care.