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.

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

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

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.

FAQs