Who can open a limited company bank account?

A limited company bank account is typically opened by the company’s director(s). To apply, you’ll usually need to provide proof of identity, business registration details, and financial documents. Some banks may require all directors to be UK residents or for the business to have a UK-registered address. If there are multiple directors or significant stakeholders, they may also need to be involved in the application process.

How much do limited company bank accounts cost?

The cost of a limited company bank account varies depending on the provider and the features of the specific account. Most banks will charge a monthly account fee - typically ranging from £5 to £15 - though some offer free banking for an initial period (typically one year). Additional costs may include transaction fees for deposits, withdrawals or transfers. Also, there may be charges for international payments or for exceeding transaction limits. Some accounts also offer extra features, such as accounting software integration, which can impact pricing.

Is it illegal to use a personal bank account for a limited company?

Yes, it is illegal to use a personal bank account for a limited company registered with Companies House. A limited company is a separate legal entity, and by law, it must have its own business bank account. This is required to maintain a clear distinction between personal and business finances, ensuring compliance with legal and tax obligations.

Can a limited company have more than one business bank account?

Yes, businesses can have multiple bank accounts. There's no legal limit on the number of business accounts a company can hold, and there's nothing stopping you from having more than one account to help manage your finances more effectively. The key restriction is that a limited company cannot use a personal account for its business transactions.

How quickly can I set up a limited company bank account?

The time it takes to open a limited company bank account can range from a few minutes to a few weeks, depending on the provider and how quickly you can provide the necessary documents. The application process itself is often quick - sometimes around ten minutes - but the review period varies. Many banks will indicate their expected processing times, so it’s worth checking before you apply.

Can I transfer money from my limited company to a personal account?

Yes, it’s legal to transfer money from your limited company to your personal account, as long as it’s for legitimate reasons, such as paying yourself a salary or dividends. However, transfers must be properly documented to ensure compliance with tax and accounting regulations, and they can’t put the company at risk of insolvency.

Can multiple people have access to a business bank account?

Yes, multiple people can have access to a business bank account. You can set up a business account with multiple signatories, such as directors or partners, each with the ability to manage the account. This helps share financial responsibilities and ensures transparency. Some banks also allow limited access for employees or third parties, like accountants. Keep in mind that all signatories can withdraw funds, so it's important to clearly define roles and responsibilities.

Can I open a bank account for my limited company without a credit check?

Yes, you can open a bank account for your limited company without a credit check, although some banks may conduct one. If you have a bad credit score it could limit your options. Depending on the bank's eligibility criteria, you might not be able to open an account with them.

What should I do if my limited bank account application is denied?

If your business bank account application is denied, first check for errors in your documentation, such as outdated financial statements or incorrect details. Review your credit files for any issues that might have affected the decision. If needed, update your address or close unused accounts. If the rejection is due to your industry or financial history, consider online banks or multi-currency accounts that may be more flexible. Banks may reject a business account application due to things like operating in a high-risk sector, having foreign directors or addresses, poor credit history, or if there’s a complex ownership structure. Lack of financial history could also be a reason.

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Limited company bank accounts

Limited company bank accounts, May 2026

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What is a limited company bank account?Why you need one Features How to choose What you need to open FAQs

What is a limited company bank account?

A limited company bank account is a business account held in your company's name. In the UK, opening one is a legal requirement for limited companies, keeping your business and personal finances properly separate.

Why you need a business bank account for your limited company

Because a limited company is a separate legal entity, its money must be kept separate from your personal finances. Directors are responsible for keeping clear, accurate records and reporting company income and expenses correctly, and a dedicated business bank account is the simplest way to stay organised and compliant.

You’ll need reliable records to file accounts with Companies House and submit accurate returns to HMRC.

Key benefits

Clear separation - Keep company and personal transactions distinct
Better cash flow visibility - Track income and expenses more easily
Simpler tax reporting - Maintain accurate records for filings and expenses
Avoid breaching bank terms - Some personal accounts may prohibit business use
Build company credit history - Helpful when applying for loans or trade credit
Professional credibility - Clients and suppliers can pay a company account
Useful tools - Access invoicing features and accounting software integrations

What features do business current accounts offer?

For limited companies, business current accounts provide essential tools to manage finances smoothly. From seamless online banking to integration with accounting software, business account features can help you stay organised and efficient.

Main features

Online and mobile banking: Access your account anywhere at any time
Multiple user access: Allow business partners or employees to manage finances with customised permissions
Overdraft facilities: Secure short-term credit to manage cash flow gaps
Accounting software integration: Sync with accounting platforms like Xero or QuickBooks to streamline financial management
Integrated payment solutions: Make and receive payments through multiple channels - including card payments and direct debits
Customer support: Access expert business banking advice and support when you need it

How to choose the best limited company bank account

Choosing the right limited company bank account depends on both your business needs and your banking habits. Here are the key factors to consider:

Fees and charges

Compare account fees, including monthly charges, transaction costs, and international payment fees. Some banks offer free banking for a limited period.

Eligibility requirements

Some banks require a minimum turnover or for the business to have UK-based directors. Make sure you meet the criteria before applying.

Accounting software integration

Look for accounts that sync with tools like Xero, QuickBooks, or Sage to simplify bookkeeping. This is especially useful when tax season comes around.

Payment and deposit options

Ensure the account supports the types of transactions you need, such as cash deposits, direct debits, international transfers, or card payments.

Perks and additional services

Look for extras like overdraft facilities, cashback, or free business tools that could benefit your company.

Pros and cons of a business bank account

Pros

A business account helps present a more professional image, maintaining clear separation between personal and business finances

Helps ensure you stay compliant with business regulations and prevents any issues with your bank for using a personal account for business transactions

In the event of a HMRC investigation, having separate accounts will protect your personal finances from scrutiny and ensure your business finances are accessible

Access to business-specific banking services, including expert advice, loans, and financial tools

Features like invoicing, integrations with accounting software, and budgeting tools can help streamline your business operations

Establish a credit history for your company, which is essential for future loans and credit applications

Cons

Many business accounts have monthly fees, transaction charges, or additional costs not generally associated with personal accounts

Banks may require specific documentation for your business to meet certain criteria

Managing multiple accounts could mean more paperwork, passwords, and account management

What do you need to open a bank account for a limited company?

To open an account, banks will typically require a combination of personal identification, business details and supporting documents.

Requirements vary depending on the bank, but as a general rule you’ll need:

Personal identification

Proof of identity: Passport, UK driving licence, or EU national identity card
Proof of address: Recent council tax bill, tenancy agreement, mortgage statement, or a bank/utility bill (dated within the last three months)
Proof of residency (if applicable): Non-EU citizens may need to provide a visa or evidence of indefinite leave to remain

Business documentation

Certificate of incorporation (not always required, but often useful)
Memorandum and articles of association
Estimated annual turnover as well as the number of monthly transactions you expect to go through in an average month
Details of international business activity (if applicable)

Some banks let you apply before your company is registered, while others require full incorporation. Online banks may also ask for a selfie or short video for identity verification. Having your documents ready will speed up the process.

How to set up a bank account for a limited company

Setting up a business bank account for a limited company is typically a straightforward process, but you'll need to provide the right documents and follow a few key steps.

Choose the right bank account

Compare business bank accounts based on features and fees. Consider factors such as integration with accounting software, online banking tools, and customer support availability.

Gather your documents

Proof of identity (passport or driving licence) for company directors, proof of address (utility bill or bank statement), certificate of incorporation, memorandum and articles of association and Companies House registration number

Complete your application

Most banks allow you to apply online, while some may require an in-person appointment. You'll need to provide details about your company, including its registered name, address, and the nature of the business.

Undergo checks

The bank will perform identity and financial checks to ensure compliance with anti-money laundering regulations. This may take a few days, depending on the bank.

Receive your account details

Once approved, you’ll get your business account number and sort code. You can then start using your account for business transactions, setting up direct debits, and integrating accounting software.

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About the author

Joe Phelan

Joe joined the money.co.uk team in 2024, where he helps small business owners navigate the often confusing world of business finance. His role is to cut through the jargon and create clear, actionable content that empowers entrepreneurs to make confident financial decisions.