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Setting up a Business Bank Account

Limited Company FAQs for contractors, business owners and entrepreneurs

Once you’ve gone through your options and decided to form a limited company the next step is for you to open a business bank account. It is very important to choose the right type of account for your requirements. Opening a business account should be an easy and hassle free experience.

Business Bank Account FAQs

Below are some of the most common questions we are asked by limited company directors regarding business bank accounts:

Your limited company is a separate legal entity from you as an individual. Business income and expenditure should be kept separate from your personal account. Your business account is where your business income should be paid into.

You can open an account with whomever you wish. Different banks offer different services and features as part of their business bank account offerings. You should be mindful that some banks do have fees to hold an account and/or complete certain transactions.

When deciding which bank to use, you as director of your business should consider what features and services would be beneficial for you and decide your preferred banking provider accordingly.

This depends on which bank you choose. Some banks can open an account the same day for you, others can take around 5 working days. The length of time to open an account can vary from bank to bank. It is always a good idea to check what the expected turnaround time is prior to submitting an application.

Each bank has different requirements. Often banks can confirm your company details by doing a quick electronic search via Companies House, therefore do not require a copy of your certificate of incorporation or share certificates. Other banks may ask you to supply a copy of these as well as a summary of your business trading activities and expected turnover. PayStream can assist with providing any documentation the bank may need or supply figures if these are required. All banks will require a form of personal identification such as a valid passport and proof of your current address such, as a utility bill. Our teams can provide guidance regarding what will generally be accepted.

This also depends on which bank you choose. Many banks offer bank accounts with no annual or regular fees or free switching service to transfer to another bank account, meaning you can set up an account and incur no costs. In some cases, certain features with your business bank account may be chargeable. There is a wide range of accounts available, before choosing a specific provider you can request a full tariff of charges so you can be aware of any costs that may be incurred in advance.

No, some banks do offer a business bank account without performing a credit check, only an ID check. Typically as long as you have ID and a proof of address you can open a business bank account.

Many banks now offer a service where they can electronically share (with your prior consent) the transactional information from your bank account with 3rd parties such as your accountant. Providing this consent means you never need to worry about downloading and sending copies of your bank statements to us. Using this information we can help keep your company financial records up to date and provide you with daily real time accounting and tax figures.

Yes, our accounts team can guide you on which banks you can set up an account with without a UK proof of address.

If you would like to speak to our experienced accounts team, please call us on 0161 923 0201 and press option 1 and then option 1 again

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