In this piece, we look at the typical steps you will need to make to open a new business bank account.
If you run a limited liability company, you must open a separate business bank account. If you’re a sole trader (or in a partnership), it will always be beneficial to open a separate account, although this is not a legal requirement.
Choosing a business account
You should spend some time comparing business bank accounts before signing up. Some of the main things worth considering are:
1) Although it may be convenient to use your personal bankers for your business account, they might not offer the best service.
2) Several banks offer free banking for at least two years, so you should try to find an account with no (or low) transaction charges
3) You might think of opening a separate business deposit account for your tax savings (VAT, corporation tax, etc.) which can earn interest before you settle your liabilities. Alongside these key points, you should also read our full guide to choosing a business bank account.
Opening a business bank account
Once you have chosen your business bankers, you will typically go and visit a small business banker who will take your through the account opening process. Increasingly, however, much of the process can be completed online.
Here are the key pieces of information you will need for the application process (whether online or in person). With either application method, the bank will need to see copies of your key business and personal proofs of ID.
1) Business details – including company registration number (if you are limited), company address and related details, the date the business was established, and predicted turnover details.
2) Personal details – to prove your identity you will need passport / driving licence numbers, bank details, and past addresses and residential information.
Of course, if you are switching business accounts, have all your current details to hand.
Your bank will tell you exactly what ID you need to produce to complete the application process.