What documents do I need to open a business bank account?

There are several benefits to opening a business bank account. In addition to keeping your business and personal finances separate, many accounts sync with accounting software and come with invoicing tools to make it even easier to manage your tax returns and cash flow.  

But before setting up a business bank account, it’s important to understand how the process works and what documents you need to provide.

Business bank account requirements

Business bank account requirements can vary depending on the provider and the type of business you run – whether that’s a limited company, sole trader or partnership. But the list below should give you an idea of what you usually need to provide:

Proof of ID

All providers ask for a form of identification, such as a UK passport or driving licence. These must be original documents, not copies. If you’re opening your account in person, take your documents into your local branch. For online applications, you can often take a photo of your ID and upload it along with a selfie. 

If you’re setting up as a limited company, you need to provide proof of ID for all directors, shareholders and people with significant control. If you’re setting up as a partnership, each partner must provide proof of ID.

Proof of address

Most providers also ask for proof of address. This can be a utility bill, a mortgage statement, a council tax bill or an invoice from a supplier, as long as it’s no more than three months old. Other options include correspondence from HMRC or a letter from your accountant.

Again, you may need to provide this for all directors of the company.

Business verification documents

You often need to provide a document to confirm the name of the business owner, the business’s trading name and the business address. Again, documents can include a recent utility bill, an invoice from a supplier, correspondence from HMRC or a letter from your accountant. 

Limited companies and partnerships should show their certificate of incorporation, while partnerships should also show their partnership agreement. You may need to provide tax and VAT registration documents, too.

Sole traders should provide their self-employed registration or tax return as evidence of the business. 

What details do I need to provide to open a business bank account?

As well as the above documents, the application form typically asks for:

• The trading address of the business

• Your residential address for the past three years

• Companies House registration number, if applicable

• Date of incorporation, if your business is a limited company

• Tax information and business turnover

• Names, dates of birth and addresses for all directors or partners

• Details of financial arrangements, such as mortgages, loans and credit cards

Eligibility criteria for opening a business bank account

The criteria vary, but generally you need to meet the following requirements:

• You must be at least 18 years old

• Your business must have been trading for at least six to 12 months

• You must have registered your business in the UK

• Your business must meet a certain annual turnover 

• You, as the applicant, must be a sole trader or a director of the company

• All directors must be UK residents

Although many banks require you to be a UK resident due to strict anti-laundering regulations, you may still be able to open an account if don’t live in the UK. Many of the newer so-called challenger banks have more lenient criteria, while some of the big high street banks, such as Lloyds and HSBC, have international arms. 

Who can open a business bank account?

Rules around who can apply for a business bank account depend on the business structure:

• As a limited company or partnership, only a director can apply

• If you run a general partnership, either of the two partners can apply

• If you’re a sole trader, only you can open the account

Note that limited companies must open a business bank account. Sole traders don’t legally need a business bank account, but it can be worth opening one.