Opening a business bank account in the UK can be easy as long as you know what you want from an account. Whether you’re a small business, a sole trader or a larger business with employees, a business bank account can help you run things more smoothly. Discover what you need to know about opening a business bank account in the UK so you can grow your business without hassle.
Revolut Business Account (Basic)
7.9 GreatIt’s quick and easy to open an account online with Revolut. Simply select whether you want to open a corporate account or a freelancer account and enter a few details including your email address. If you’re looking to open a corporate account, there are 4 different pricing plans to choose from. If you’re just starting out, the Basic plan has a small monthly fee and might suit your business initially, though it has a limited range of features. Alternatively, if you’re after a freelancer account, Revolut Pro is a simplified business account for freelancers, sole traders and side-hustles.
Tide Business Bank Account (Free)
8.9 GreatYou can open a Tide business account online in a matter of minutes. Simply state whether you want to open an account as a registered company or a sole trader and have your mobile phone ready to verify your identity. You’ll need to provide your email address and a few personal and business details. There are 4 plan types to choose from, including one with no monthly fee. If you’re a director of a limited company you can also register your limited company and open your account in one go. You'll only pay a registration fee of £14.99 instead of £50.
The key difference between a business bank account and a personal current account is you can open it in your business name, so it can receive payments made out to your company name.
A business bank account can also be really handy, as it allows you to separate your personal finances from your company’s money. Some business bank accounts can also help you issue invoices, run your payroll – useful if you have employees – and make it simpler to file your accounts and tax return.
Other than that, a business bank account is much the same as your current account. You can make payments from it, accept payments into it and possibly have an overdraft facility, too.
"If you want to open a business bank account fast, it’s easy to do so with an online-only bank account. An ever-increasing number of digital banks are entering the market, meaning there’s a wide range of accounts to choose from.
Opening a business bank account with a traditional high street bank can often take a few weeks. Yet many online-only business bank accounts can be up and running the same day. Some providers, such as ANNA and Tide, even say your account can be opened within a matter of minutes. The application process is straightforward, and you’ll usually need to provide a few personal and business details. You’ll often be asked to take a photo of your driving licence or passport (and perhaps a selfie) so the provider can verify your identity. But once you’ve done that, your account could be ready to go.
Of course, you won’t have any branch access with an online-only bank account, but most banking transactions can be carried out online anyway. Depending on the account, you might be able to pay in cash deposits at any Post Office or Paypoint location, though a fee usually applies. If this is important for your business, be sure to pick an account that allows this and has the lowest fees."
You can open a business bank account in the UK if you are a sole trader, a limited liability partnership or you run a business registered with Companies House.
Whether you are eligible to open a business account with specific banks and building societies could also depend on their criteria. For example, you may need to meet their turnover requirements.
If you aren’t a UK resident, things are a little bit more complicated, depending on whether you live in the UK or where your company address is registered.
You don’t need to be a UK resident to open a business bank account in the UK. If you are a sole trader, you may need to prove you live in the UK and pay taxes to HMRC through self-assessment. If you are a business owner, your company address needs to be in the UK.
It is possible to open a business bank account in the UK if you don’t live here, but it can be tricky. Banks will be concerned about the possibility of money laundering and fraud. To get around this, your bank may only offer you an account if you are the director of a UK business registered with Companies House. Some banks may also insist on meeting you before you can open an account.
When you are ready to open a business bank account, you’ll need to show a variety of documents to prove who you are, what your business does and who runs it.
Your bank will want proof of your ID and possibly anyone who will access the account or owns part of the business.
You will be asked to provide:
You’ll most likely also be asked for proof of address for yourself and your business. This can be one of the following:
Your bank will also want to verify your business to comply with financial regulations. You’ll need to provide:
Think a business bank account is for you? Follow these simple steps to find your ideal account and get it up and running.
Opening a business bank account in the UK is relatively straightforward, as long as you have the correct documents to hand and know what type of account would suit your business. If you live outside the UK, the process is slightly more complicated but still possible.
A business bank account can help you run your small business or side hustle more smoothly by separating your work finances from your personal money. However, it’s important to research accounts and check eligibility requirements before submitting your application. Check out our guide for the best business bank accounts in the UK.
Discover key the differences between Mettle and Tide bank accounts and what is likely to be best for you.
We run the numbers on 2 digital business accounts to help you decide which is best for your needs.
Learn more about the best business bank accounts in the UK and find the best one to manage your company finances.
Find out whether the Cashplus or Tide business account could be the better option for you.
Learn more about the key differences between the Tide and Revolut business bank accounts and which is likely to suit you better.
In this guide, you’ll learn the key differences between the Tide and Starling business bank accounts and which one is most likely to suit you.
NatWest offers a range of business banking options including current accounts, savings accounts and business insurance, as well as specialised accounts for startups and charities.
Mettle is a spin-off venture from parent bank NatWest – find out more about what this business banking app has to offer small businesses.
Thinking about opening a Starling business account? Take a look at our analysis to find out if it’s suited to your company.
Is Tide’s current account for businesses right for your company? We take a closer look at all of the fees and features of a Tide account.