Table of Contents
This guide explores how to open a business bank account in the UK, including the documents you need, how to apply and how long it might take.
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Opening a business bank account in 5 steps
Step 1: Compare accounts with NerdWallet
Finding the right business bank account is the best place to start when you need to set up a new account.
Use NerdWallet’s simple and clear business account comparison page to evaluate different accounts. For each product, we’ve explored fees, offers, features and more, so readers can easily pick the right account to set up.
Think about what matters most to you when picking your account. You might want to avoid paying monthly fees by picking the best free business bank account, or you might prioritise online access by looking for the best online business bank account.
Step 2: Check your eligibility
Every bank account’s key eligibility criteria are clearly listed on NerdWallet’s comparison page, so you can quickly and easily make sure it’s the right fit for your business.
Different providers and accounts might have eligibility criteria based on things like:
- Business structure: Whether you need an account for a sole trader, limited company or some form of partnership, you should check that your chosen account can cater for your business’s structure.
- Annual turnover: Maximum or minimum limits apply to certain accounts.
- Business lifespan: Some accounts are specifically designed for new or well-established businesses, and may have eligibility requirements based on how long a business has been trading.
- Prohibited industries: Many providers will prohibit companies from certain industries from opening business accounts. Commonly prohibited industries include gambling and weapons manufacturing.
In addition, the business and its owners or directors often need to be aged 18 or above and based in the UK.
Step 3: Begin your application
If you have found the right account and confirmed your business’s eligibility, it is time to apply. Click the ‘See Deal’ button and you will be taken to the application page for the relevant account.
Once the page has loaded, click ‘Apply Now’ or similar to start your application.
This application process usually starts with entering some basic personal information such as your name, contact details and basic company information. You may also be required to create a login and password with your provider.
Step 4: Provide your documents
As part of the account opening process, you will need to provide information about what your business does and the people who run it. This is one of the most complex parts of opening a business bank account, so here is a guide to what you might need.
What do I need to open a business bank account in the UK?
Proof of ID documents
- proof of ID, such as a driver’s licence, passport, or ID card
- contact details, such as your phone number and email address, both personal and business (if applicable)
Proof of UK address
- proof of personal address in the UK, such as a recent bank or credit card statement or council tax bill
- proof of a business address in the UK, such as a recent utility bill, signed lease agreement or a trading licence from a local government authority
Business verification documents
- projected annual turnover from your business plan (or a realistic estimate)
- Companies House registration number or certificate of incorporation if you run a limited company
- the number of employees you have, if applicable
- your business’s tax status – you may need to provide your Unique Taxpayer Reference (UTR) or your National Insurance number
You may also be asked to provide proof that your business is up and running. For example, an invoice as proof of completed work or your registration with an official industry body. The provider you choose will be able to give more details about what it can accept as proof.
Step 5: Wait for your account to open
After you apply, the bank will process your application. They may contact you if they need extra information or additional documents.
If you’re accepted for a business account, you should receive your account number and sort code, as well as your debit card, within a few days. You can then start using your business bank account.
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How to open a business bank account – FAQs
If you run a small business or a startup in the UK, you could be eligible for a business bank account.
Some banking providers have business accounts designed specifically for startups or sole traders, while others offer a more general account suitable for small business owners.
It’s worth checking eligibility criteria across a number of providers to see which accounts are suitable for your business.
Whether you can open a business bank account depends on whether you meet the eligibility criteria for your chosen provider. It’s worth checking these carefully and making sure you have all the required information to hand before applying to open an account. If you are eligible, it should be fairly straightforward to open a business account.
You may wish to switch your business bank account to a different provider if you are unhappy with the quality of service provided by your current provider or have found a better deal elsewhere.
In other cases, your business circumstances might have changed, meaning you have different requirements for your business bank account. Switching can be simple thanks to the Current Account Switch Service. It’s free to use, covers more than 50 UK banks and guarantees a streamlined switch between providers.
Setting up a business bank account can take anywhere from a matter of minutes to a few weeks. It all depends on your business’s circumstances and the provider you choose.
Digital banks may offer speedy application processes and even same-day opening in some cases. However, this depends on the provider, how quickly your documents can be processed, and whether the provider needs more information from you. If you want to open an account quickly, check out our list of the top instant business bank accounts.
It is possible to get a business bank account if you have bad or no credit history. Some providers offer accounts with no credit checks.
Business accounts for those with bad or no credit may have limited features. For example, you may not be able to access an overdraft or earn interest on your money even when you’re in credit.
Yes, you don’t need to be a UK resident to open a business bank account. However, it can be more difficult to set up a business bank account if you don’t live in the UK.To help with your search, use NerdWallet’s list of business bank accounts for non-UK residents.
Banks are often cautious when providing accounts to companies from overseas, due to concerns of potential money laundering and fraud.
It may be possible to open a UK business bank account from overseas, but it will depend on your provider.
Some providers will allow you to open a business bank account from overseas, as long as you are the director of a company registered with Companies House and can prove you have a UK residential address.
About the Author
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