How to Open a Business Bank Account in the UK

Starting a business in the UK? One of the first practical steps is opening a business bank account. It helps you stay compliant, keep finances clean, and build trust with clients and suppliers.

In this complete guide, you’ll learn how to open a business bank account in the UK — including the documents required, the best banks to choose from, and how to do it as a non-resident.

Why a Business Bank Account is Essential

Even if you’re a sole trader, having a separate business account is crucial for:

Clear financial reporting
Simplifying tax returns and VAT
Maintaining professionalism with clients
Accepting card and online payments
Easier auditing and funding applications

If you’re registered as a limited company, having a business account is not just helpful — it’s legally necessary.

Who Can Open a Business Bank Account in the UK?

You can apply for a business bank account in the UK if you are:

A UK resident sole trader
The director of a UK-registered limited company
A freelancer or contractor
A partnership or LLP
A non-UK resident with a UK-based business

Each bank may have its own eligibility rules, especially for non-residents and online-only businesses.

What Documents Are Required to Open a Business Bank Account?

Here’s a more detailed list of what you’ll typically need:

🔹 Personal Identification

Passport or UK driving licence
Proof of residential address (utility bill, council tax, or bank statement)

🔹 Business Details

Registered company name
Company registration number (CRN from Companies House)
Business address and trading address (if different)
Description of business activities
Estimated annual turnover

🔹 Company Documentation

Certificate of Incorporation
Articles of Association
List of directors and shareholders
VAT registration certificate (if applicable)

🔹 For Non-UK Residents

Legal proof of your company’s UK presence
Business plan or contracts with UK-based clients
Local representative or UK office address (sometimes required)

Best Business Bank Accounts in the UK (2025 Comparison)

Here’s a comparison of top options depending on your business type:

Tip: Digital banks are usually quicker to open and offer better UX, while traditional banks provide in-person support and sometimes credit facilities.

How to Open a Business Bank Account in the UK (Step-by-Step)

Step 1: Choose the Right Bank

Consider these when choosing:

Does the bank accept your business structure?
Are you a resident or non-resident?
Do you need multi-currency support or international transfers?
What’s the fee structure?

Step 2: Prepare Your Documents

Have all documents ready in PDF format if applying online. Make sure everything matches your Companies House registration.

Step 3: Apply Online or Visit a Branch

Digital banks like Starling, Tide, or Revolut can be set up via app in minutes. Traditional banks like HSBC may need an appointment at a branch.

Step 4: Go Through Verification

This may include identity checks, proof of business activity, and AML (anti-money laundering) compliance. Some banks may ask for a video interview or call.

Step 5: Start Using Your Account

Once approved, you’ll receive:

Your account number and sort code
Debit card (sent by post or virtual)
Access to online/mobile banking
Optional tools like invoicing, accounting integration, or business loans

Can I Open a UK Business Bank Account as a Non-Resident?

Yes, but not all banks accept non-residents. Here’s what you need to know:

Options for Non-Residents:

Wise Business: Offers UK account details (GBP, IBAN)
Payoneer: Useful for freelancers and e-commerce sellers
Revolut Business: Allows access to UK banking features globally
Local UK accountants can also help with business address setup and documentation

Challenges:

Proof of UK business activity is a must
Higher scrutiny due to AML laws
Might need a UK-based director or representative

Digital vs Traditional Banks: Which is Better?

Digital banks are perfect if you want fast access and lower costs. Traditional banks are better for complex needs like loans or multi-person businesses.

Common Mistakes to Avoid

Using a personal account for business: Makes taxes and accounting messy
Applying without full documentation: Delays your approval
Not comparing fees/features: You might end up paying for tools you don’t use
Ignoring customer service: Poor support can cost you time and money later

FAQs (Frequently Asked Questions)

1. Can I open a UK business bank account online as a sole trader?

Yes. Banks like Starling, Monzo, and Tide allow sole traders to open accounts online in minutes.

2. How much does it cost to open a business account in the UK?

Many digital banks offer free accounts. Traditional banks may charge £5–£10/month after a free trial.

3. What’s the easiest bank to open a UK business account with?

Tide and Starling are among the easiest and fastest for UK-based businesses.

4. Can I open a business account in the UK without a UK company?

No. You must have a UK-registered business entity to open a business account in the UK.

Conclusion

Opening a business bank account in the UK isn’t complicated — but it does require the right paperwork, a bit of research, and choosing a bank that fits your business needs. Whether you’re a UK resident starting a sole proprietorship or an international founder setting up a UK limited company, there’s a solution out there for you.

Digital banks offer speed and ease, while traditional banks provide more hands-on support and long-term financial products. The key is to stay organized, be honest about your business activities, and choose a banking partner that supports your growth.

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💼 Ready to Open Your UK Business Bank Account? Let’s Make It Simple.

Setting up a business bank account doesn’t have to be stressful — and you don’t have to figure it out alone. Whether you’re just getting started or need help choosing the right bank, our team is here to guide you.

👉 Contact us today and get expert support tailored to your business.
Let’s get your business banking sorted — the smart, stress-free way.