How to Open a Business Bank Account in the UK

Opening a business bank account is an essential step in setting up and managing your UK limited company. It helps separate personal and business finances, supports tax compliance, and is often required by suppliers, investors, or clients.

In this article, we explain who needs a business bank account, what documents are required, and how Dragonfly Associates assists UK-based and international clients—subject to agreement.

Do I Legally Need a Business Bank Account?

If you run a UK limited company, the company is a separate legal entity. This means it must:

• Have its own bank account
• Keep its financial records separate from your personal accounts
• Receive income and pay expenses under the company name

While not strictly a legal requirement, failing to open a business account can cause issues with accounting, tax filing, and credibility. Sole traders are not legally required to open a separate account, though it is still recommended.

What Are the Benefits of a Business Account?

• Professionalism: Accept payments under your company’s name
• Clarity: Keep personal and business transactions separate
• Accounting: Simplifies bookkeeping and financial reporting
• HMRC Compliance: Avoids confusion when preparing tax returns
• Business Loans: A formal account is usually required for financing

Dragonfly Associates encourages all clients to open a dedicated business bank account as early as possible.

What Documents Do You Need?

To open a business bank account in the UK, you’ll typically need:

• Certificate of incorporation
• Memorandum and Articles of Association
• Proof of business address (e.g. registered office address)
• Proof of identity and address for directors and PSCs
• A business plan or expected turnover (sometimes)

Requirements may vary between banks. We provide document bundles for clients during formation where applicable.

Can Non-UK Residents Open a Business Account?

Yes, but the process is more complex. Some traditional banks require:

• In-person verification in the UK
• UK-based directors or business partners
• Extra documentation for non-resident shareholders

However, several online banks and fintech providers (such as Wise, Tide, Revolut, Payoneer, and others) offer solutions for non-UK residents.

Dragonfly Associates helps clients explore their banking options and provides referrals to suitable providers, subject to service agreement.

Choosing the Right Bank

You can choose between:

• High street banks (e.g. Barclays, Lloyds, HSBC, NatWest)
• Digital-only banks (e.g. Tide, Starling, Monzo Business)
• Fintech platforms with global features (e.g. Wise Business, Payoneer)

Factors to consider:

• Monthly fees
• Online access and app features
• International transfer capabilities
• Deposit protection (FSCS cover)
• Integration with accounting software

We help clients compare options and prepare documents for application.

Frequently Asked Questions

How long does it take to open a business bank account?

It varies. High street banks may take 1–3 weeks. Online providers often approve accounts within a few days.

Can I use my personal account for business?

No, not if you operate through a limited company. This may lead to accounting and tax issues.

Do I need to visit the UK to open an account?

Not always. Some banks allow remote onboarding, especially digital banks. For traditional banks, a UK visit may still be required.

Set Up Your Business the Right Way

A dedicated business bank account is essential for professionalism, legal separation, and smooth financial operations. Whether you’re UK-based or overseas, the right support makes the process faster and simpler.

Dragonfly Associates provides guidance, documentation, and introductions to banking partners as part of our business formation and compliance services, depending on your plan.

Ready to open your UK business account? Contact us today.