How to Open a Limited Company Bank Account

Once you’ve set up your company, opening a limited company bank account will likely be high on your to-do list – and for good reason. A dedicated account helps you manage your finances properly, meet your legal obligations, and stay compliant with HMRC.

In this guide, we’ll walk you through what’s required, how to compare providers, and what to expect from the process.

Why does a limited company need its own bank account?

The whole idea behind the limited company structure is that it’s a separate legal entity. This offers you some protection, as your personal finances and the company’s finances are legally distinct.

It also means you’re legally required to keep your company’s money separate from your own. And in practice, the only way to do this is by opening a separate bank account in your company's name.

Having a dedicated limited company bank account helps you:

• Comply with the law and regulations. 
• Avoid mixing personal and business transactions.
• Make bookkeeping and tax filing far more straightforward.
• Present a clear financial picture to lenders, accountants or potential investors.

Without a dedicated account, your company finances can quickly become messy, and more importantly, not having an account isn’t really an option. Under the Companies Act 2006, a limited company must be treated as a separate legal entity. That means keeping its finances entirely separate from your own.

Documents and requirements to open a limited company bank account

Before you apply, make sure you’ve got the basics in order. Banks need to verify who you are, confirm your company’s legal status, and understand the nature of your business before they approve your application.

Here’s what most UK banks will ask for:

• Certificate of incorporation: This is the official document that proves your company has been legally formed and registered with Companies House. It includes your company number and the date of incorporation.
  
  
• Companies House registration number: This unique identifier allows the bank to confirm your company’s existence and status directly through the public register.
  
  
• Proof of identity and address for all directors: Banks must verify the identities of everyone in charge. You’ll usually need to provide a valid photo ID like your passport or driving licence, along with a recent utility bill or bank statement to confirm your address.
  
  
• Details about your business: This includes describing what your company does, the sector you operate in, and your expected turnover. Some banks want to understand how you generate income to assess risk and comply with anti-money laundering regulations.
  
  
• Information about ownership and funding sources: Banks may ask who owns or controls the company and where your initial funds are coming from. This helps them comply with Know Your Customer (KYC) and anti-fraud checks.
  
  
• Future plans and trading expectations: Occasionally, you might be asked about your business’s growth plans or how you intend to use the account. This helps the bank anticipate your banking needs and offer relevant services.

Can your limited company bank account legally be in your own name?

No, it cannot. By law, the company’s money must be held in the company’s name.

Even if you're the sole director and shareholder, you can’t keep company funds in your personal account long term. There may be short-term exceptions when you’re just starting out, but this should only ever be temporary and clearly documented.

Can I temporarily use my personal account for my limited company’s transactions?

Yes, but only in very limited circumstances. You might do so briefly when waiting for your business account to open. However, HMRC and lenders will expect to see clear separation, and you could face compliance issues if you continue with the arrangement.

Choose the best limited company bank account providers in the UK

There are plenty of options to choose from, so it’s worth comparing based on your company’s needs. Traditional high street banks offer familiarity, while newer fintech challengers often provide faster, fully digital services.

High street banks to consider

Traditional high street banks are widely recognised names you’re likely familiar with. They offer a wide branch network and in-person support alongside their online services.

Challenger banks to consider

Challenger banks are newer fintech companies that focus on fully digital banking, offering faster account setup, simpler apps, and seamless software integrations. They hold full banking licences, adhering to the same regulatory standards as traditional high street banks

Which bank is best for limited company accounts?

It depends on your priorities. If speed and flexibility matter most, fintech banks like Tide or Starling could be ideal. For more traditional support and in-branch services, a high street bank may suit you better.

Compare fees to avoid unnecessary banking costs for your limited company

Fees vary widely. Some banks offer free business banking for the first 12 or even 24 months. Others charge from day one.

Here are some fees you should look out for (and keep an eye on as your relationship with a bank develops over time):

Monthly account fees: Some banks offer free basic business accounts, while others charge per month for standard business services. What you’ll often get with the free options are premium accounts with a fee attached for added features like invoicing tools or multi-user access. 

Transaction charges: Charges for everyday activities such as sending payments, receiving money, or making direct debits can add up. Some accounts offer a set number of free transactions each month, after which small per-transaction fees (e.g. 20p–30p) apply.

ATM withdrawals and cash deposits: Many digital banks charge a fee for cash deposits (e.g. 0.5%–3%) or ATM use (e.g. £1 per withdrawal). If your business handles cash regularly, traditional banks with branch networks or Post Office deposit options may be more cost-effective.

International payments and currency exchange: If you deal with overseas clients or suppliers, look closely at foreign transaction charges, currency exchange markups, and international wire fees. Some banks charge per international transfer (plus a currency conversion fee on top). 

Fees after introductory offers expire: Many high-street banks offer free business banking for 12–24 months, but once the honeymoon period ends, monthly fees and transactional charges kick in. Understand these future costs so you're not caught off guard.

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Boost your loan approval chances with a dedicated business bank account

Having a limited company bank account improves your chances of accessing business finance. That’s because lenders want to see clear, verifiable income and spending – and that’s only possible when your business finances are separate.

Lenders are often looking for consistency, transparency and up-to-date records when reviewing loan applications. 

A steady flow of business income paid into a dedicated account helps build a clear financial history. This shows lenders that your business can generate revenue reliably and manage its cash flow.

Over time, strong and well-documented income records can improve your creditworthiness and make it easier to access funding when you need it, whether for growth, equipment, or unexpected expenses.

How does having a business bank account help me get a business loan?

Having a business bank account gives lenders a clear, organised record of your company’s income, expenses, and cash flow. This makes it easier for lenders to assess how your business is performing, determine your ability to repay, and verify your trading history. 

Why fintech banks might speed up your application process

Fintech banks typically offer fully digital onboarding, which means you can apply for a limited company bank account entirely online. There's no need to visit a branch or send paperwork by post.

Their systems often include faster ID verification, using automated checks that can confirm your identity and business details in minutes. This can lead to instant or same-day account approvals (depending on the provider).

Many fintech banks also integrate directly with accounting software and lending platforms, which makes it easier to manage your finances and apply for credit later on. In addition, some neobanks integrate with external finance providers, such as iwoca and Tide.

Quick and easy steps to open your limited company bank account today

To open a business bank account for your limited company, you’ll need a few key documents. Most banks now offer simple online applications, so getting started is easier than ever.

Here’s what you’ll need to do:

1. Gather your documents: Incorporation certificate, proof of ID, address and your Companies House number.
2. Choose a bank: Based on your company’s needs, compare features and fees.
3. Apply online: Many banks now let you complete the process digitally.
4. Wait for approval: Depending on the provider, you could get access in 1 to 5 working days.

What’s the quickest way to open a limited company bank account?

Digital-first banks often offer faster application processes. Accounts with providers such as Tide or Starling can sometimes be approved within 24 hours, assuming all required documents are submitted correctly.

iwoca’s Flexi-Loan: Fast funding for limited companies

Once your business bank account is up and running, you’ll be in a stronger position to access funding. One option is our Flexi-Loan, designed specifically for limited companies like yours.

The online application takes minutes, and loan decisions can sometimes be made within hours. There are no early repayment fees, and repayment amounts aren’t set (meaning they can flex with your cash flow).

When you apply for a Flexi-Loan, we don’t just look at your credit scores: We’ll look at the whole picture. If your business bank account shows healthy trading activity and regular income, we could be the perfect fit for you. 

Ready to apply? You can check your eligibility on our website and get your application done in minutes. Apply now> 

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