If you’ve got spare or idle cash currently sitting within your business, you could put it to better use by investing it. Find out all the basics about business investing accounts and our top picks.
Running a business gives you complete control over your finances, and as it’s become much easier and more accessible, a strategy that’s grown in popularity is to invest cash held by your business.
Only a few UK platforms offer investing accounts for businesses and we’ve rounded up our top picks of the best business investing accounts.
Low, flat fees 40,000+ stocks Invest online or the ii app
We analysed all popular share dealing platforms in the UK using 35 data points and combined this with our expert insight from using the apps. The platforms we've selected as best for each category offer stand-out features or a unique combination of elements for a specific aspect of investing. If we show a "Promoted for" pick, it's been chosen from among our partners and is based on factors that include special features or offers, and the commission we receive. Keep in mind that our picks may not always be the best for you – it's important to compare for yourself. More details in our full methodology.
Offers a low-cost, easy-to-use platform with zero platform fees for their self-managed portfolio of exchange-traded funds (ETFs) or cash equivalents (like MMFs), making it an attractive option for companies looking to be aggressive or conservative with invested cash. InvestEngine will even give you a Legal Entity Identifier (LEI) number free of charge for a year if you don't already have one.
A stellar option for businesses that want their uninvested cash balances to work harder, offering high-interest Money Market Funds (managed by BlackRock) alongside access to over 6,000 global stocks and ETFs with transparent, low fees.
Ideal for businesses with larger investment balances (typically over £50,000) thanks to its fixed-fee structure, which means fees don't increase as your portfolio value grows. The ii Company Account allows you to invest in UK shares and international equities, funds, ETFs and investment trusts. You can also add up to 4 nominated people to place trades and manage the account on behalf of the company
Pros
Flat monthly fee is good value for large portfolios
Getting a Limited Company Dealing account from AJ Bell means access to a well-established, reputable platform offering a vast range of investment options including shares, funds, trusts, bonds, and gilts, backed by award-winning research and helpful customer service. There's no limit to how much you can invest, you just need to maintain a minimum balance of £100 and you can get started investing with your business from £25 a month or a £250 initial investment.
One for the more aggressive companies, IBKR has the asset choice and resources for those seeking global market access and sophisticated trading tools. Its low per-trade costs make it attractive for high-volume investors, but the platform isn't as intuitive as some other options.
Pros
Low fees
Demo account available
Lots of trading tools and learning resources
Huge range of access to investments and global markets
Here’s a simple, 4-step process for getting your company’s cash invested:
Select a platform. Choose a regulated UK platform like the ones in this guide and complete a business account application. This is typically done online and involves providing company and director details.
Get an LEI number. If you don’t have one, you must register for a Legal Entity Identifier (LEI). Some platforms can help you do this during the onboarding process.
Fund the account. Once approved, you can transfer your surplus business cash from your company’s business bank account to the new investment account.
Choose your investments. Select the funds, shares, or other investments that align with your company’s strategy, risk tolerance, and investment horizon.
What is a business investing account?
A business investing account, often called a Corporate Dealing Account or Company Investment Account, is basically a brokerage account held in the legal name of your limited company (or other legal entity).
It allows your business to invest its surplus cash into financial markets, separate from the owners’ personal finances. All capital gains, dividends, and interest are owned by the company and subject to Corporation Tax.
What can you invest in?
Most UK business investing accounts offer a diverse range of assets to help you diversify your company’s portfolio:
Bonds and gilts. Debt securities issued by companies (bonds) or the UK Government (gilts), generally viewed as lower-risk investments.
Money Market Funds (MMFs). Highly liquid, low-risk funds that aim to provide returns slightly higher than a standard savings account.
Essential requirements for a business account
To open a company investment account in the UK, your business will typically need to meet the following criteria and provide documentation:
Legal structure. Must be a UK-registered Limited Company. Some providers may also accept Limited Liability Partnerships (LLPs). Sole traders must use a personal account (like a GIA).
Directors and owners. Details for all directors and beneficial owners.
Business details. Company registration number, registered address, and nature of business (SIC code).
Bank account. A UK business bank account, which is used to fund the investment account.
Legal Entity Identifier (LEI). This unique code is a mandatory requirement for any limited company that trades shares or other financial instruments on a regulated exchange.
Pros and cons
Pros
Potential to generate interest or profit on business cash
Tax-efficient way to invest while keeping money in the business
Maximise idle business cash and put it to work
Everything can be done digitally with some platforms
Cons
Investments can rise or fall in value
Tax advice from an accountant is usually best
You need to get an LEI
Accessing the funds outside of the business can be complex
Our expert says: What is a LEI Number?
"A Legal Entity Identifier (LEI) is a unique, 20-character alphanumeric code required by regulatory bodies for any legal entity (like a UK limited company) that wants to trade financial instruments on a regulated exchange.
It was introduced following the 2008 financial crisis to create a global, transparent system for identifying parties in financial transactions. Without a valid LEI, your limited company will be unable to execute trades on most major platforms. Getting one is a straightforward process through an authorised Local Operating Unit (LOU) and involves a small annual fee."
Investing surplus business cash can be a powerful strategy for driving long-term company growth. By choosing a platform with low fees and investment options that suit your company’s risk profile, you can transform idle capital into a performing asset.
Remember, your company’s investments are still subject to Corporation Tax, and professional financial advice is highly recommended before starting out.
FAQs
No, typically not. Most UK investment platforms require the account holder to be a separate legal entity, such as a UK Limited Company or LLP.
Sole traders must invest through a personal account, such as a general investment account (GIA) or ISA, and profits will be taxed under personal income and capital gains rules.
Any profits your company makes (e.g., capital gains, dividends, or interest) are treated as company income and are subject to corporation tax.
This is different from personal investing, where you might pay income tax or capital gains tax (CGT). It might be worth speaking with a qualified business accountant to understand the specific tax implications for your company.
Investment returns are generally earned over the long term. Most financial experts advise only investing cash that your business is certain it won’t need for at least 5 years. This time horizon allows the company to ride out inevitable short-term market volatility and increases the probability of achieving a positive return.
The vast majority of UK investment platforms require the business to be a separate legal entity, which means a UK-registered Limited Company (Ltd) or a Limited Liability Partnership (LLP).
If you operate as a sole trader, you are legally inseparable from your business, and you must use a personal investment account (such as a GIA or ISA).
Absolutely. Investment platforms do not usually impose a minimum turnover or size restriction on the company. If your business is a UK Limited Company, you can open an account.
However, you should only invest money that your small business is certain it will not need for at least 5 years to weather market fluctuations. The initial funding minimums can vary widely between platforms (some have a £0 minimum, others require a few hundred quid).
The ‘best way’ to invest depends on your company’s risk tolerance and timeline. However, for most businesses, there’s no one-size-fits-all approach and you may need some advice if you’re struggling with where to begin.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
George is a deputy editor at Finder. He has previously written for The Motley Fool UK, Nasdaq, Freetrade, Investing in the Web, MoneyMagpie, Online Mortgage Advisor, Wealth, and Compare Forex Brokers.
He's focused on making personal finance and investing engaging for everyone. To do this he draws from previous work and his Level 4 Diploma for Financial Advisers (DipFA), sharing what he’s learnt. When he’s not geeking out about money, you’ll find him playing sports and staying active.
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