Limited Company Bank Accounts
Compare our Best Limited Company Bank Accounts
Having a dedicated business account for your limited company will keep you on the right side of the law and make your life as a business owner easier. The crucial part is finding an account that works for you.
- Compare bank accounts for limited companies with NerdWallet
- You must have a business bank account if you run a limited company
- A separate account makes it quicker and easier to manage your business’s finances
Every limited company is legally required to have a business bank account to keep your personal finances and those of your business separate. The real bonus is that these accounts can offer an array of tools and features designed to make the general running and oversight of your business much simpler too. Choose from our pick of the best limited company bank accounts below and apply now.
Our Top Business Accounts for Limited Companies
Each of these products may be one of a range offered by the provider. Always check terms & conditions for suitability before applying. Commission earned affects the table sort order. Only affiliated products are shown. Other products are available. Read our guide to ratings.
Provider | Product Name | Monthly Fee | UK Card Purchase Fees | UK Bank Transfer Fees | |
|---|---|---|---|---|---|
 | Lite Business Account Best Online | Free | Free | Free | |
 | M Account for Business Best All-Rounder | Free | Free | From free | |
 | Business Bank Account Best for Ethical Banking | Free | Free | Free | |
 | Business Account Best Business Support | Free for 12 months | Free | From free | |
 | Business Bank Account Best for Taking Payments | Free | Free | Free |
Our Best Limited Company Bank Account Providers
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, unlimited access to the Go Get Paid app – a fast, simple and secure way to get paid which integrates with your accountancy software.
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 (subject to status)
- 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, by phone, in branch or via app (mobile banking subject to eligibility)
- 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
- Must have an annual turnover between £400k- £6.5m
- Must have a straightforward and clearly defined ownership structure
- Must be at least 18 years old and be based and operate in the UK – including business owners
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 a standalone business bank account used specifically to manage the finances of a limited (or ‘Ltd’) company. Everything related to your business should go through the account, including transactions, payments, taxes and bills, but nothing else.
Do limited companies have to have a business bank account?
If your business is set up as a limited company, you are legally obliged to have a dedicated business bank account. This is because a limited company is considered in law to be a separate legal entity, meaning that its finances must be kept separate from those of its owners and shareholders. Your business will be a limited company if you’ve registered it as ’Limited’ with Companies House.
How could a business account benefit your limited company?
Beyond the legal requirement, there are many ways a business bank account can benefit your limited company:
- Keeps finances apart: A clear divide between your own finances and those of your business makes it easier for you to manage both.
- Simpler to monitor: Tracking payments, cashflow and performance is quicker and easier with everything in a single account.
- Faster filing: Saves time compiling accounts and filing taxes, as all relevant incomings and outgoings are already recorded in one place.
- Helpful tools: Payment, invoicing and payroll tools, along with accounting software, are often integrated into business accounts.
- Enhances credibility: It looks more professional if your business name is on payments and invoices.
- Borrowing options: You may get access to an overdraft and it could be easier to get a business loan.
- Credit history: It can help build your company’s credit profile, improving the chance of getting credit in the future.
» MORE: What are the benefits of a business bank account?
Business owner insight
“I hadn’t initially considered becoming a limited company but have always had a separate bank account for business. I think it makes accounting quite difficult if you don’t. My first account wasn’t really compatible with the different accounting softwares, so I moved to one where I could integrate easily with Xero. It was simple to open and I haven’t had any problems.”
Susan Bonnar, founder of The British Craft House
Finding the best account for your limited company
The best limited company bank account for you will depend on your business’s needs and priorities. For example, if your customers mainly pay in cash, you’ll almost certainly want a business account that allows you to deposit cash. Or if you already use certain accounting software, you’ll probably want to make sure it’s compatible and can be integrated with your new account. Checking for relevant charges, particularly for different transactions and features, is vital too.
Key factors to consider
- Eligibility: Check if there’s a minimum turnover your company needs to qualify or if you need to have been trading for a certain length of time.
- Features & tools: Some accounts have more, or less, than others. Whether you want help with invoicing or to make and take international payments, check what’s offered.
- Fees: Compare charges, including monthly fees, plus charges on transactions and payments. Some accounts have no regular fees, or allow a certain amount of transactions fee-free before charges apply.
- In-person or online: Some accounts are online only, so think carefully whether you’re comfortable banking online or prefer the option to speak and bank face-to-face.
Other features to think about
Some additional features that could be important to you, but some limited company accounts will offer and others won’t, include:
- Cash and cheque deposits
- International transactions
- Multi-user access
- Invoicing tools
- Payroll software
- Free accounting software
- PoS software and technology
- Business overdrafts
- Business loans and other funding option
- Creditbuilding tools
How to open a limited company bank account
Applying for a limited company business account through NerdWallet is quick and easy.
- Compare the accounts for limited companies above to find the one that best suits you.
- Click the ‘See Deal’ button and you’ll head straight to your chosen provider’s website.
- Apply directly with the provider – you don’t need to complete anything for us.
» TAKE ME TO: NerdWallet’s best limited company bank accounts
What you’ll need
When opening a business account, having the following ready is likely to save you time:
- Registration documents: your business’ Companies House registration number and certificate of incorporation.
- Proof of your identity: your passport or driving licence
- Proof of your address: bank statements or utility bills
- Proof of business address: also utility bill or similar (if it’s different to your residential address)
- Contact details: contact numbers and email address for you and your business
- Business details: including when you commenced trading, past and/or forecast revenue, plus your business’s tax status
Need more help choosing the best account?
Check out our reviews of the best limited company bank account providers:
Our other business account roundups
Limited company bank account FAQs
No, you cannot use a personal bank account to manage the finances of a limited company. Having a separate dedicated business bank account is a legal requirement for a limited company.
Yes, a limited company can have multiple bank accounts. This may be with the same provider, if they allow, or different.
Depending on the provider, opening a business account as a limited company could take a matter of minutes or it could take several days and perhaps weeks. It’s usually quicker to open an online business account than an account with a high street provider.
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