The right limited company bank account can get a new business started on the right foot, or make your life easier if you are looking to switch to a new provider. Every limited company is legally required to have a business bank account, so it’s essential to find one that works for your business. Compare our best limited company bank accounts.
Our Top 5 Best Limited Company Bank Accounts
Monzo Lite Business Account
Free
Free
Free
n/a
- Available to sole traders, or the director of a registered limited company by shares (Ltd)
- Must be based in the UK
NerdWallet's Review Summary
Monzo’s Lite, Pro, and Team accounts may all be suitable for your limited company, but if you want to keep costs low, the Lite account has no monthly fee and includes free basic UK transactions.
Most accounts are opened the same day, the mobile app receives great reviews and limited companies can get overdrafts of up to £5,000. If you opt for either paid account, these can be integrated with Xero, FreeAgent, Sage or QuickBooks.
Limited company eligibility: Applicant companies must be active, have a director and person of significant control listed on Companies House and not earn the majority of their income through interest or investment. Applicants should be UK tax residents. Limited companies by guarantee are not supported.
For further details, read NerdWallet’s Monzo Business Account Review.
Key features:
- Organise with pots: Set aside money for taxes or instant access savings in just a couple of clicks, organising your business’s money and earning interest.
- Take payments: Monzo account holders can accept card and contactless payments via smartphone, or send customers payment links.
- International capabilities: Send money to over 70 countries and receive money in over 40 currencies. Conversion fees of 1% (capped at £1,000) apply.
- FSCS Protection: Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
NerdWallet's Pros & Cons
Pros:
- Free account available.
- No fees for basic transactions.
- Highly rated mobile app.
- Simple international payments.
Cons:
- No loans available for limited companies.
- No accounting integration with Lite account.
- No branches.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Virgin Money M Account for Business
- Available for eligible businesses with up to £1m annual turnover
- Must be based and operated in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
- All owners, directors, senior managers and account signatories must be over 18 years old
NerdWallet's Review Summary
Virgin Money offers four different business bank accounts for limited companies, including the M Account for Business. This account has no monthly fee and no charges for basic UK transactions.
Cashback can be earned on debit card purchases, loans and overdraft facilities are available, and the account can be integrated with accounting software from Xero, QuickBooks and Sage.
Limited company eligibility: Limited companies applying for the M Account for Business should have an annual turnover below £1 million, be based in the UK and be controlled by persons over the age of 18. If your turnover exceeds this limit, you can apply for a Virgin Money Business Current Account or Business Choice Account.
For further details, read NerdWallet’s Virgin Money Business Account Review.
Key features:
- FSCS protection: Your limited company’s deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
- Cashback: Earn 0.25% cashback on debit card purchases with the M Account.
- Startup guidance: Opening an account gives your limited company access to Virgin Startup, with online masterclasses, mentoring and events to help your business grow.
- Nice extras: Get a three-month free trial of Xero or QuickBooks, discounts on business insurance products and monthly £4 Costa Coffee vouchers for a year.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Free basic transactions
Cons:
- No branches in Southern England, Wales or Northern Ireland
- Annual turnover must be below £1 million
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
The Co-operative Bank Business Bank Account
NerdWallet's Review Summary
The Co-operative Bank’s Business Bank Account offers a socially responsible choice with the added bonus of no monthly fee and free basic transactions. Other perks include free access to merchant services software, the Co-op’s Go Get Paid payment request tool, and accountancy integration.
Limited company eligibility: Limited companies wanting to apply must have shown positive net worth in their last accounts, and never been subject to insolvency or the intention to dissolve. Directors must not have been disqualified at any time either.
For further details, read NerdWallet’s The Co-operative Bank Business Account Review.
Key features:
- Clear conscience: Offers ethical-led banking
- Discounts: 12 months access to Clover payment terminals for £1 a month
- Borrowing: Standard overdraft limit of £250,000
- FSCS protected: Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
NerdWallet's Pros & Cons
Pros:
- No monthly fees
- Free basic transactions
- Manage online, via app, by phone or in branch
- Bank is rated Excellent on Trustpilot
Cons:
- Mixed reviews for mobile app
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Barclays Business Account
Review Summary
Barclays offers a range of business accounts aimed at different businesses, including limited companies. Its standard Business Account has no monthly fees for 12 months, free basic transactions and offers free access to accounting software. All options are available in terms of account management, including a vast high street branch network.
Limited company eligibility:
To be eligible for a Barclays Business Account you must be at least 18 years old and have the right to permanently live in the UK.
For more details, read NerdWallet’s Barclays Business Account review.
Key features:
- Account access: You can manage your account online, over the phone, via the Barclays app or in Barclays branches.
- Free dashboard: See all the information relevant to your business in one place with the free SmartBusiness Dashboard.
- Credit facilities: Barclays offers a range of business borrowing options, including overdrafts, loans and mortgages.
- FSCS Protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons
Pros:
- Free basic transactions
- Free access to FreshBooks accounting software
- Sector-specific business support
- Wide network of branches across the UK
Cons:
- Monthly fee of £8.50 after one year
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Tide Business Account – Free
- For registered business accounts: Must be a director of a UK company registered with Companies House.
- For sole trader accounts: Must be a UK-based sole trader or freelancer with a valid UK home address and be registered with HMRC
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold a compatible device registered to a UK App or Google Play store
NerdWallet's Review Summary
Tide offers a range of business bank account options for limited companies, including an account with no monthly fees. If you apply through NerdWallet, the normal 20p charge for bank transfers is waived for a year too. Tide may also be a great option if your business takes a lot of payments, with options for charging via card reader, smartphone, online or through payment links all available.
Limited company eligibility:
To apply for a Tide business account, you must be at least 18 years old, have a UK mobile phone number and be able to access a UK app store. As a director of your company, you’ll also need a valid home address, either in the UK or abroad, and be registered with Companies House (Tide can help you do this, if you’re not.)
For more details, see NerdWallet’s Tide business account review.
Key features:
- Quick set up: Most Tide accounts are up and running in a matter of minutes
- Point of sale: Tide provides a range of point of sale (POS) tools, including card reading machines, payment links and the facility to take contactless payments.
- Borrowing options: Tide offers business loans potentially for up to £20 million.
- FSCS protection: Your eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme with a new Tide business account.
NerdWallet's Pros & Cons
Pros:
- No monthly fee on free account
- Free bank transfers for 12 months if you apply via NerdWallet
- Variety of payment-taking options
- Fast account opening
Cons:
- No branches
- Business overdrafts not offered
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
What is a limited company bank account?
A limited company bank account is simply a business bank account for use by a limited company. While a personal bank account allows you to manage your money, a business bank account allows you to manage your business’s finances. In particular, a limited company account should allow you to:
- Check and organise your limited company’s balance and statements.
- Make payments and receive payments from your limited company.
- Access banking support from your bank account provider.
It should be noted that, while there are business bank accounts explicitly designed for use by sole traders or startups, business accounts tend not to be solely marketed towards limited companies. That is because limited companies are eligible to open business bank accounts with most providers.
Do I need a business bank account for my limited company?
A limited company is legally required to have a dedicated business bank account. The company’s money needs to be kept separate from your personal funds and this means you MUST have a bank account for your limited company.
Beyond the legal requirement, there are many benefits of a business bank account:
- Tax simplification: Paying and calculating taxes can be an administrative headache, but having a dedicated bank account for your limited company makes tracking transactions and profits much simpler. In addition, many bank accounts for limited companies include free accounting software, or are compatible with third party software.
- Look professional: Having a business bank account in your company’s name will make it appear more professional and trustworthy to customers, suppliers and partners.
- Business features: Limited company bank accounts include features purpose-built for business customers like you. By opening one, you could benefit from tools for expense management, invoicing, point of sale (PoS) and more.
For more information, explore the benefits of a business bank account.
Limited company bank account features
As standard, a limited company bank account should include:
- online and app-based banking
- basic transactions, like UK transfers, Direct Debits and standing orders
- some form of customer service, either over the phone, in branch or via chat
- integration for accounting software and other third-party applications
In addition, most business accounts offer extra features. You might find that some limited company accounts offer:
- Creditbuilding tools
- Cash and cheque deposits
- International transactions
- Business loans and other funding options
- Multi-user access
- Invoicing tools
- Payroll software
- Free accounting software
- PoS software and technology
- Business overdrafts
How to choose a limited company bank account
With many options to choose from and many different features to consider, choosing a limited company bank account can seem difficult. Luckily, using NerdWallet’s simple comparisons, you can easily find the account that’s right for your limited company. Consider the following points:
- Costs: Your first instinct might be to pick an account with no monthly fee. But it’s important to consider how individual transaction fees add up. For example, if your business frequently deposits cash, it might be worth prioritising cheap cash deposits over low monthly fees.
- High street or challenger: Some people like being able to bank in person. If you want the option of heading into a branch and sorting out your account face-to-face, it’s worth avoiding challenger banks like Monzo and Starling.
- Features and perks: Think about the extras you need, or want, from your limited company account.
- Eligibility: Make sure you are eligible for an account before you start the application. Otherwise, you might wait days only to hear that you have been rejected and are back to square one.
- Time to apply: After these steps, you should be ready to pick and apply for a limited company bank account.
How to open a limited company bank account
- Find the best account for your limited company by using NerdWallet’s comparison cards above.
- Click See Deal to begin the application process for your chosen account.
- Proceed with your application. Remember, you will probably need proof of identity (such as a passport or driving licence), proof of address (bank statement or utility bill) and company details (Companies House registration documents).
- Wait for your chosen provider to approve your application.
For a more in-depth guide, explore our guide to opening a business bank account.
Pros and cons of limited company bank accounts
Pros:
- Having a dedicated account and regularly using it will help your business improve its business credit score, improving its chances of securing loans and credit.
- If you have a limited company, a business bank account is a legal requirement. As such, opening a bank account for your limited company is a must.
- Having a dedicated limited company bank account makes your business’s finances easier to manage, helping with taxes and balancing the books.
- Most limited company accounts include features and perks designed to make your work easier. From accounting tools to discounted insurance, most accounts have something to boost your business.
Cons:
- Limited company bank accounts might take some time to open. This is because most require more paperwork during the application process than personal or sole trader accounts.
- Unlike personal bank accounts, limited company bank accounts usually cost money. This comes either in the form of monthly fees or transaction charges.
NerdWallet’s Other Business Bank Account Roundups
Limited company bank account FAQs
A limited company is a common business structure in the UK. It is a legally distinct entity from its owner (or owners). This means the business accrues and is responsible for paying off its own debts, rather than the owners.
However, a limited company’s owners must run the business responsibly by keeping records, filing accounts and ensuring the business pays the correct taxes.
If you want to know more, explore our guide to choosing a company structure.
For a limited company, you need to open a business bank account. You also need to make sure that your business is eligible to open the account you choose. All of the business bank accounts listed in our roundup can be opened by limited companies, and their eligibility requirements are listed under their review summaries.
Yes, as you are legally required to use a distinct business bank account for a limited company. In addition, many providers forbid account holders from using their personal account for business purposes.
Limited company bank accounts vary significantly in cost. Many accounts have no monthly fees, or lengthy free trials, and free basic transactions. This means they can be maintained for essentially no cost.
Meanwhile, some more sophisticated accounts can cost hundreds of pounds per year, though they often contain niche features or are designed for large businesses.
Most providers can open a business bank account in a matter of days, with some online providers able to open a business bank account in just minutes.
If you need a business bank account opened today, opt for an account with a challenger bank like Monzo, as they tend to be quicker than traditional high street providers. You can also check our list of instant business bank accounts for more information.
Limited companies can open a dedicated business savings account. Some business bank accounts include savings capabilities, such as savings pots, but opening a dedicated business savings account could earn more interest for your limited company.
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Do I Need a Business Bank Account?
What are the Benefits of a Business Bank Account?
