Limited company bank accounts

A limited company bank account is typically opened by the company’s director(s). To apply, you’ll usually need to provide proof of identity, business registration details, and financial documents. Some banks may require all directors to be UK residents or for the business to have a UK-registered address. If there are multiple directors or significant stakeholders, they may also need to be involved in the application process.

The cost of a limited company bank account varies depending on the provider and the features of the specific account. Most banks will charge a monthly account fee — typically ranging from £5 to £15 — though some offer free banking for an initial period (typically one year). 

Additional costs may include transaction fees for deposits, withdrawals or transfers. Also, there may be charges for international payments or for exceeding transaction limits. Some accounts also offer extra features, such as accounting software integration, which can impact pricing.

Yes, it is illegal to use a personal bank account for a limited company registered with Companies House. A limited company is a separate legal entity, and by law, it must have its own business bank account. This is required to maintain a clear distinction between personal and business finances, ensuring compliance with legal and tax obligations.

Yes, businesses can have multiple bank accounts. There's no legal limit on the number of business accounts a company can hold, and there's nothing stopping you from having more than one account to help manage your finances more effectively. The key restriction is that a limited company cannot use a personal account for its business transactions.

The time it takes to open a limited company bank account can range from a few minutes to a few weeks, depending on the provider and how quickly you can provide the necessary documents. 

The application process itself is often quick — sometimes around ten minutes — but the review period varies. Many banks will indicate their expected processing times, so it’s worth checking before you apply.

Yes, it’s legal to transfer money from your limited company to your personal account, as long as it’s for legitimate reasons, such as paying yourself a salary or dividends. However, transfers must be properly documented to ensure compliance with tax and accounting regulations, and they can’t put the company at risk of insolvency.

Yes, multiple people can have access to a business bank account. You can set up a business account with multiple signatories, such as directors or partners, each with the ability to manage the account. This helps share financial responsibilities and ensures transparency. 

Some banks also allow limited access for employees or third parties, like accountants. Keep in mind that all signatories can withdraw funds, so it's important to clearly define roles and responsibilities.

Yes, you can open a bank account for your limited company without a credit check, although some banks may conduct one. If you have a bad credit score it could limit your options. Depending on the bank's eligibility criteria, you might not be able to open an account with them.

If your business bank account application is denied, first check for errors in your documentation, such as outdated financial statements or incorrect details. Review your credit files for any issues that might have affected the decision. If needed, update your address or close unused accounts. If the rejection is due to your industry or financial history, consider online banks or multi-currency accounts that may be more flexible.

Banks may reject a business account application due to things like operating in a high-risk sector, having foreign directors or addresses, poor credit history, or if there’s a complex ownership structure. Lack of financial history could also be a reason.