Best business bank accounts for limited companies (Ltd)

Opening a business bank account for your limited company can be quick and easy.

There’s no obligation for a new limited company to immediately open a bank account – it may be that your limited company never plans to use banking services but there are many advantages to doing so.

Do you need a business bank account for a limited company?

A limited company is a type of business structure where the company has a legal identity of its own, and the liability of the owners is limited to the capital that they have invested.

Limited companies are privately owned by one or more people, and they must be registered with Companies House, pay corporation tax and file annual accounts.

You don’t need to open a business bank account but if you do intend to deposit funds, and make and receive payments through a bank account as a limited company (which is going to be the case for most), then you will need to open a business account.

Compare business bank accounts for limited companies

Name Product Account fee Bank transfers Accounting integrations Non-Sterling transactions Overdraft Account management Key benefits
HSBC Kinetic

No monthly account fees during early access*
Free
QuickBooks, Sage, Xero
2.75%

Up to £30,000 subject to eligibility and application
App, Online
*No monthly account fees for 18 months, thereafter a monthly charge of £6.50 applies
ANNA
Free
Free up to a max. balance of £5,000 (or up to £500 paid in per month)
Free
2 free transfers per month and unlimited free transfers to Anna accounts
Xero
Free
App
Earn 1% cashback for paying with your ANNA card in selected categories. Get a 6-month free trial
Mettle by NatWest
Free
Free
FreeAgent, Xero
Unable to make international payments
App
Comes with a suite of free accounting software to integrate with
Tide
Free
£0.20
Free if both accounts are with Tide
FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero
Free
App, Online
Register your limited company for free (usually £12) and open a Tide account in one go: choose 'Register a company' from the Tide homepage menu
Starling Business Account
Free
Free
FreeAgent, Xero
Free
App, Online
Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm)
Cashplus Business Bank Account
Free
£0.30
Free for first 3 payments sent each month (£0.30 for every transfer thereafter)
Clear Books, FreeAgent, KashFlow, QuickBooks, Sage, Xero
2.99%

On invitation
App, Online
CardOneMoney
£12.50

From £0.30
N/A
2.75%
App, Online, Telephone
No monthly fee for the first 3 months
Acorn
£12.50

From £0.30
N/A
2.75%
App, Online, Telephone
Fair Everywhere Small Business Account
£12.50

From £0.30
N/A
2.75%
App, Online, Telephone
Countingup
Free
£0.20
3 free per month
N/A
N/A
App, Online
Get your first three months FREE
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Compare up to 4 providers

Can you run a limited company from a personal bank account?

The short answer is no! As a limited company is a distinct legal entity, its finances must be kept in a separate account to your personal finances.

The situation is slightly different if you’re a sole trader – you can use your own personal current account to make and receive payments relating to your business, but only if your banking provider allows this type of usage. And if your bank sees a huge volume of transactions going through your personal current account, it may still request that you open a business account.

What are the other advantages of a business bank account?

Apart from the legal requirement to open a business account if you’re going to be using banking services as a limited company, there are other advantages to having a business account.

You’ll be able to keep the business finances separate to your own, which will make them much easier to manage and monitor, especially when it comes to expense and tax reporting.

Many accounts also come with enhanced features, such as an invoicing and expense tracking tools, or the ability to integrate with accounting software.

Your chosen banking provider may also offer overdrafts, business credit cards or business loans, if you’re interested in those options.

One thing to be aware of is that unlike most personal bank accounts in the UK, business accounts often come with a monthly fee and other transaction charges. This isn’t unusual, but the level of fees being charged will be one of the things for you to compare when selecting which business account to open.

How to choose a business bank account for a limited company

It’s important that you consider all of the features and fees that come with the various business accounts out there on the market, before deciding which one to apply for.

Here are some key questions that you should look into when researching business bank accounts:

  • Does the account come with a free trial period?
  • What is the monthly or annual account fee (after any free trial)?
  • What are the fees for transactions such as direct debits, international payments or ATM withdrawals?
  • Can the account be easily managed online or through a mobile app?
  • Does the bank has a branch network, if you prefer to speak to staff in person?
  • What features does the account have e.g. invoicing or expense monitoring tools?
  • Does the account offer integration with accounting software such as Quickbooks, Xero and FreeAgent?
  • How quickly can I open the account?
  • Will I be able to open the account if I have a bad credit score?

Which banking providers offer business accounts for limited companies?

There are many business bank accounts available in the UK, both from the traditional high street banks, and from the newer digital-only banks and financial providers.

Here are some of our favourite business accounts with links to their full reviews, so you can check out exactly what they offer and which one might be best for your individual business needs:

  • Amaiz: App-based account that comes with a wide range of business banking tools that are ideal for beginners.
  • Anna: Digital-only account that features an invoicing service and 24/7 assistance.
  • CardOneMoney: Has higher fees, but you can open the account online without a credit check and it includes a cashback program.
  • Starling: A free and comprehensive digital account that offers accounting software integration.
  • Tide: Digital-only account that is designed for small businesses and freelancers.
  • TSB: Offers free business banking for the first 25 months and has a branch network.

How to open a business bank account for a limited company

Once you’ve researched and chosen which business account you’d like to go for, you’ll need to apply to that banking provider to open it. Many applications can be now be done online or through a mobile app (especially given the growing number of digital-only accounts), although some banks with a branch network might ask you to visit in person.

Every business bank account will have a slightly different application process, but here is a general list of information and documents that you should have to hand:

  • Companies House registration number for your business
  • Your business name and address
  • Your own personal details and contact information
  • A form of ID
  • Proof of address
  • Estimated business turnover
  • Personal bank or financial statements

Most business bank account providers will also carry out some kind of credit check on you, although there are a few that will let you open an account without one (but be aware these products tend to come with higher usage fees). For more information on opening a business account without a credit check, check out our guide to opening a business account with a bad credit score.

How to open a business bank account as a non-UK resident

If you’re not resident in the UK it may still be possible to open a business bank account here. We have gone further into this topic with a dedicated guide.

The traditional high street banks are likely to offer you a type of international bank account, though you will still need to provide all of your ID and address information (for your current country of residence).

The other option is to go with one of the digital-only accounts which can be opened online or through a mobile app – some of these banking providers (not all) won’t ask you for proof of address or conduct any credit checks.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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