Opening a business bank account is a crucial step for new business owners, providing a clear separation between personal and business finances. My guide will walk you through the essential steps and documents needed to set up your account.
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Or read our full article on Choosing the Best Business Bank Accounts
Opening a Business Bank Account in 7 Steps
Step 1: Choose the Right Bank
Compare a range of business bank accounts, considering factors like banking fees, services offered, online banking capabilities, and customer service reputation. Research both high street and challenger banks to find the best fit for your business.
Step 2: Gather Necessary Documentation
Prepare all required documents for all directors, substantial shareholders, and any other parties involved. This includes proof of identity (e.g., valid passport or driving licence) and proof of UK address (e.g., utility bills, mortgage statement).
Step 3: Identify Account Operators and Officials
Ensure you have the details of all account operators, company officials, responsible individuals, and, if applicable, trustees or key officials who will be associated with the bank account.
Step 4: Apply for the Account
This can often be done online, in person at a bank branch, or over the phone, depending on the bank’s processes. Ensure all information provided is accurate and complete to avoid delays.
Step 5: Fund Your Account and Start Using It
Once your account is open, make an initial deposit if required. You can then start using your account for business transactions, set up online banking, and utilise additional banking services as needed.
What You Need to Open a Bank Account for Your Business
As a minimum, all business banks will require photographic identification and proof of address for all directors and any substantial shareholders.
While conditions can be simpler for challenger banks, most high street banks will also require you to provide additional documentation to verify the identity and address of those involved in the management of the business.
Here’s what you need to prepare:
Proof of ID documents
Choose one from the following documents for each individual:
Valid UK/EEA/Switzerland passport
Valid UK full/provisional photocard driving licence
Valid EU member state national ID photocard
Valid firearms certificate or shotgun licence
Proof of UK Address
Choose two from the following documents for each individual:
- Current UK full/provisional photocard driving licence
- Council Tax bill (current financial year or last 3 months)
- Bank/building society/credit union statement (last 3 months)
- Credit card statement (last 3 months)
- HMRC documentation (last 3 months or current tax year)
- Benefits Agency/local authority notification (last 12 months)
- Current tenancy agreement
- Mortgage statement (last 12 months)
- Life insurance policy (last 3 months)
- Motor insurance certificate (current year)
- Utility bill (last 3 months)
- TV Licence letter or Direct Debit schedule (last 12 months)
Business verification documents
- Certificate of Incorporation
- If using a ‘trading as’ name, a company board resolution authorising its use may be required.
Please ensure all documents are original, in-date, undamaged, and clearly show the necessary information. This preparation will facilitate a smooth process in opening your business bank account, aligning with your intent to efficiently manage your business’s financial transactions.
How Long Does it Take to Open a Business Bank Account
It typically takes about 10 working days to set up a business bank account, on average. Some providers who don’t require credit checks can get you up and running much more quickly. While others may take closer to a fortnight.
Some online providers are boasting three minutes to get your account opened but there are still identity checks to complete and bank cards to issue, in most cases, before the bank account is fully operational.
How to Open a Business Bank Account as a Non-Uk Resident
It is more complicated to open a business bank account as a Non-UK resident, since UK regulators impose strict Anti-Money Laundering (AML) regulations, one of which is a verifiable UK address. There are, however, specific providers – commonly digital-first banks – who allow those living abroad to open UK accounts.
They will typically require:
A valid passport from your country of residence
A proof of address in the country where you live
Proof of Business Address
Non resident accounts typically ask for
A substantial deposit
Monthly fee commitment
How to set up a business account in the UK
| Step | What to Do | What You Need |
|---|---|---|
| 1 | Pick the Account Type | Decide if you need a current, savings, or merchant account based on your business activities. |
| 2 | Find the Best Bank | Look at fees, services, and whether you want an online bank or a traditional one. |
| 3 | Get Your Documents Ready | Prepare ID and address proof for all directors and shareholders with significant control. |
| 4 | Know Who Needs to Provide Information | Identify all individuals who will operate or have significant control over the account. |
| 5 | Apply for the Account | Complete the application through the bank’s website, by phone, or in person. |
| 6 | Wait for Approval | It can take from a few minutes to several days, depending on the bank and your documents. |
| 7 | Start Using Your Account | Once approved, make your initial deposit if required, and begin managing your business finances. |
FAQs on How to Open a Business Bank Account in the UK
Can I open a UK business bank account online?
Yes, many UK banks allow you to open a business bank account online. This process requires you to fill out an application on the bank’s website and upload the necessary documents for verification.
Do I need a UK address to open a business bank account?
Yes, most UK banks require a verifiable UK address for opening a business bank account. This is part of Anti-Money Laundering (AML) regulations. However, some digital-first banks may offer options for non-UK residents.
Can I have multiple business bank accounts for the same business in the UK?
Yes, you can open multiple accounts for the same business. This can be helpful for managing different currencies, separating transactions, or taking advantage of various banking products.
Do I need a business bank account for a sole proprietorship in the UK?
While not legally required, it’s highly recommended. A business account helps keep personal and business finances separate, simplifying accounting and tax reporting.
How do banks verify my business information?
Banks may use electronic searches through Companies House (for registered businesses), request business documents like incorporation certificates, and require personal identification to comply with AML regulations.
What if my business is not yet registered with Companies House?
For businesses not registered, banks might still open an account based on personal ID documents, a detailed business plan, and proof of expected business activities. Registration documents will be required once the business is officially registered.
Can I open a business bank account in the UK from abroad?
Yes, some banks offer the option to open accounts remotely for non-UK residents or those currently abroad, especially digital and challenger banks. You will need to provide additional documentation to comply with international AML regulations.
