Setting up a business bank account
Why do I need a business bank account?
If you are operating as a limited company, then you have to set up a business bank account so you can get paid. A limited company is a separate legal entity from its directors and shareholders, and so the company’s money needs to be traceable throughout every stage of any financial transaction, and so it has to be clearly separated from your own personal finances and those of any other directors you might have.
What will I use a business bank account for?
The types of activitygoing through your account will usually include:
- Paying your own salary
- Paying monthly NI & PAYE taxes
- Paying annual Corporation Tax
- Paying dividends to shareholders
- Receiving money from clients for your work
- Quarterly VAT payments, if registered
- Claiming for your personal expenses
What will I need to set a business bank account?
All banks have to comply with stringent regulations around money laundering, which means that they have to carry out a series of checks before opening a new account. You will need to take all of the documents you received when your company was registered with you – for example, most banks like to see an original copy of your certificate of incorporation, as well as a copy of your memorandum and articles, and any share certificates that have been issued. They will probably also ask to see your passport, to confirm your identity, proof of address and 3 months recent bank statements.