How to Open a Business Bank Account in the UK [2025]

Opening a business bank account is an essential step for any business owner in the UK, but the process can feel overwhelming if you’re unfamiliar with the requirements or unsure where to start.

From understanding the basics to choosing the right bank, it’s easy to get stuck. That’s why we’ve created this complete guide to provide you with a straightforward 5-step plan, starting from how to choose your account to how to set up your account quickly, along with our top picks for the best business accounts. Let’s take a look at the steps. 

Before opening a business bank account, it’s important to evaluate your business needs first, as these will help you identify the right account type in the next step. The type of account you choose affects eligibility requirements, the application process, and the services you’ll have access to. The right business account will potentially support your business activities and also save you time and money in the long run. 

Some key questions to guide your decision include:

• What is my business structure? Many banks offer business accounts tailored to specific structures like freelancers, sole traders, limited companies, and non-profits, with features and pricing structure designed to meet their unique needs.
• What is the nature of my business? If you primarily operate within the UK, a business account that supports GBP should suffice. However, if you work with international customers or suppliers, consider multi-currency accounts to simplify payments and reduce conversion costs.
• What volume of transactions do I expect? Estimate the number of transactions you will have, which can influence the fees you must pay and the service you need, such as transaction charges for SEPA and SWIFT transfer or batch payment features. 
• Do I need other services beyond a business account? Identify any additional financial products you might need, such as accounting software integration, loans, overdraft facilities, or credit cards. Keep in mind that challenger banks and fintech solutions typically only provide debit cards for business spending. 

To make this process easier, you can also create a list of the features and services you need and those you don’t to narrow down your options effectively.

Once you have a clear understanding of your business needs, the next step is to select the right account type. This decision will help you narrow down your options for both the provider and the specific account that best suits your requirements.

The following are the types of accounts that UK banks typically offer for business customers:

• Sole Trader Account: Ideal for freelancers or self-employed, this account type simplifies separating personal and business finances with essential tax and invoicing tools.
• Startup Accounts: Offers introductory benefits and essential banking services for new and small businesses, with added support for growth, often at lower fees.
• Business Current Account: Essential for daily transactions, often comes with debit card access and online banking.
• Business Savings Account: Best for earning interest on business savings, with flexible rates and terms for managing reserves.
• Accounts for Charities: Tailored for non-profit organisations, with features suited for charity operations and potential for reduced fees.

After knowing which type of account you’re going to open, you can proceed to choose a provider. Start by visiting the websites or branches of banks you’re familiar with to see if they offer the services you need. Alternatively, explore options like challenger banks and fintech providers that might better suit your needs.

Eligibility criteria are crucial when selecting a bank for your business account. Some banks require you to be an existing customer to open business and corporate accounts, and many do not offer services to companies in certain restricted industries, such as cryptocurrency or high-risk financial services, often due to regulatory or risk-related concerns.

Additionally, banks may have minimum or maximum annual turnover requirements for specific account types. It’s important to check whether your business’s revenue falls within the required range to avoid wasting time on an application that doesn’t meet the criteria.

After deciding where to open an account, the next step is to apply for a business account.

Most banks allow you to submit your application and supporting documents online via their website or mobile app. However, some may require an in-person visit to a branch.

Once your application is submitted, the bank will review your documents and may contact you if additional information is required. Approval timelines can range from within 24 hours to 3 business days or even a few weeks, depending on the provider and specific circumstances. Be sure to check for updates or follow up if you don’t hear back within the expected timeframe.

Once your application is approved, you will receive your account details and instructions for setting up your new account. This may include adding an initial deposit, activating your online banking profile, or setting up your debit card. 

Additionally, you may also need to set up direct debits or standing orders and explore tools provided by the bank, such as invoicing or budgeting features. Take this time to familiarise yourself with the account’s features and terms to ensure you’re making the most of your new business account.

Typically, the supporting documents you must provide differ depending on the type of business bank account and the bank or financial service provider of your choice. 

The following are the common information and documents you should prepare when applying for a business account in the UK:

• Business details, including a brief description of your business activities or industry, business plan, expected annual turnover, and ownership structure.
• Proof of business registration, such as a Certificate of Incorporation from Companies House, which includes the business name, date of formation, and registration number.
• Personal identification, such as a driving licence or passport
• Proof of address for both the business and the owner. Acceptable documents include recent utility bills, lease agreements, council tax bills, or bank statements showing the registered address in the UK. 
• Proof of residency, typically includes evidence such as a Biometric Residence Permit (BRP), visa, or other documents confirming that you are a UK resident.
• Financial documents, such as a financial statement or a cash flow forecast.
• Unique Taxpayer Reference (UTR), a 10-digit number issued by HMRC to identify you or your business

Opening a business bank account isn’t complicated as long as you’re well-prepared. Here are some tips to help you navigate the account opening process:

1. Research and compare providers: Take the time to research banks and compare account charges, features, and additional services to find the best fit for your business needs.
2. Understand eligibility requirements: Ensure your business meets the eligibility criteria for the account you want to open. For instance, some banks only accept limited companies, while others cater to freelancers or partnerships. Confirm any industry restrictions as well.
3. Open the account early: Avoid last-minute delays by opening your account as early as possible. This is particularly important if your business is just starting, as having a functional account is crucial for operations.
4. Seek assistance if needed: If you’re unsure about the process, don’t hesitate to contact the bank’s customer support or visit a branch. Many banks offer guidance to help you navigate the application process and choose the right account plan. 
5. Consider alternatives for flexible support: If your business often requires assistance outside standard hours, look into alternative providers like challenger banks or fintech solutions that offer 24/7 customer support or more flexible services.

Here are some of the most popular and highly-rated business accounts available in the UK.

While the process of opening a business bank account might seem challenging at first for new business owners, having a clear understanding of the steps and preparing in advance makes it far more manageable. Following the necessary steps ensures your account is set up smoothly, allowing you to focus on running and growing your business efficiently.