How do I open a business bank account? Watch our video for some useful guidance.
Your business will need its own bank account as it is a separate legal entity. You can then use this bank account to pay for all your business bills and transactions, for example:
- Your salary
- Dividends
- Payments to HMRC for VAT, Corporation Tax and PAYE/NI
- Repaying your personal expenses, e.g. mileage
- Paying other business bills, e.g. mobile phones and travel expenses
How do you choose your bank account?
It may be easier using the bank that you already have your personal account with, but that doesn’t always mean the best solution. Here are a few things you should consider:
- Bank Charges – Usually free for the first year then you pay monthly fees and charges depending on transactions.
- Online Banking – Check you can get online access to statements and can make payments online without extra charges.
- Phone Banking – Can be convenient if you aren’t near your local branch but have enquiries.
- Location and bank manager – Having a face-to-face approach, asking about any other enquiries. A helpful bank manager can be very useful.
- Interest paid to you – Check the rates you’ll receive back on any cash in your account.
When you’ve chosen the bank, you can set up the account.
Where do you do this?
You will usually need to go into the bank to do this as there are some security procedures that you’ll need to follow. However, ring first or apply online as there is often a delay in getting an appointment as start-up managers deal with a lot of businesses.
What do you need to do it?
You’ll need all the company details, Certificate of Incorporation that Companies House issued you, your Memorandum, Articles of Association and Share Certificates – you’ll have received all of these when you registered the company.
The bank will also need to do some security checks on you personally – they’ll need to see some photographic ID (passport or driving licence) and proof of address.
If you would like to learn more, please get in touch.