How to open a business bank account

Opening a business bank account is one of the quicker, easier steps in setting up a business, especially with the app-based providers, but a few small things can slow it down if you're not prepared. This guide covers exactly what you need, what to expect, and how to avoid the delays that catch people out. For which account to actually choose, see our best business bank accounts guide.

The quick answer: have your ID, proof of address, and (for a limited company) your Companies House number and director details ready. With an app-based provider, approval is often within a day. Keep the account strictly for business from the first transaction, and switching later is straightforward if you change your mind.

What you need to open an account

The exact requirements vary slightly by provider, but the core list is consistent:

• Government-issued photo ID (passport or driving licence) for you and any other directors or significant owners.
• Proof of address, usually recent, for identity verification.
• For a limited company: your Companies House registration number, plus the details of directors and anyone with significant control (broadly, those owning or controlling more than 25%).
• For a sole trader: confirmation you're registered with HMRC (or in the process of registering), and your basic business details.
• A rough description of your business, what you do and roughly how much you expect to turn over, which providers use for their own checks.

App-based providers verify most of this digitally, typically with a selfie matched against your ID document, so there's no branch appointment involved.

How long it takes

With the app-based providers, Tide, ANNA, Starling, Mettle, Revolut, Monzo, Wise, a straightforward application is often approved within a day, sometimes within hours. Traditional high-street banks can take considerably longer and may involve an appointment. If you're waiting on an account to start invoicing or get paid, that difference genuinely matters, which is one reason so many new businesses start with an app-based account.

The main thing that determines your timeline is how complete and consistent your application is. Everything ready and matching means fast approval; missing details or inconsistencies trigger a manual review that slows things down.

Sole trader vs limited company: what differs

The process is broadly similar, but there are a couple of differences worth knowing.

A sole trader account is opened in your name as an individual trading as a business, so the verification centres on you personally, plus confirmation you're registered as self-employed. It's usually the simpler of the two.

A limited company account is opened in the company's name, so alongside your personal ID, the provider needs the company's registration details and information about its directors and people with significant control. If you form your company through a provider that bundles banking (Tide, ANNA, Revolut, Wise), this all happens together in one flow, which removes the separate account-opening step entirely.

Common reasons applications get delayed or rejected

Inconsistent details. A name or address that doesn't match across your ID, your Companies House record, and your application triggers a manual review. Make sure everything lines up exactly.

Incomplete company information. For a limited company, missing or unclear information about directors or people with significant control is a common snag, have this ready and accurate.

An unclear description of the business. Providers run their own risk checks, and a vague or high-risk-sounding description can slow approval. Be clear and straightforward about what you actually do.

Applying before the company is registered. If you're opening a company account, the company generally needs to exist first (or be formed as part of the same bundled process). Trying to open a company account before the company is registered doesn't work.

Can you open an account before your company is registered?

For a sole trader, yes, in effect, since the account is in your own name. For a limited company, the company usually needs to be registered first, because the account belongs to the company as a legal entity. The neat workaround is the bundled route: providers like Tide, ANNA, Revolut and Wise form your company and open the account together, so you don't have to sequence the two yourself.

What to do if you're refused

Business account applications are occasionally declined, and it's rarely as final as it feels. The most common reasons are fixable: inconsistent or incomplete information, an unclear description of the business, or a mismatch between your details and official records. If you're refused, it's worth asking what the issue was where the provider will tell you, correcting it, and either reapplying or trying a different provider, since each runs its own checks and risk criteria. A decline from one provider doesn't mean every provider will decline you. If your business is in a genuinely higher-risk category for banking, it's worth researching which providers are more comfortable with your sector before applying, rather than collecting declines.

Keeping the account clean from day one

Once it's open, use it strictly for business. Run business income and expenses through it, and keep personal spending out. This single habit, kept from the very first transaction, is what makes your bookkeeping clean, your tax return accurate, and your records defensible if HMRC ever asks. It's far easier to do this from the start than to untangle a mixed account later.

Switching accounts later

If you outgrow your account or simply want to change, switching is more straightforward than people expect: open the new account, move your incoming payments and any direct debits across, transfer the balance, and close the old one once everything has moved. There's no penalty for starting with one provider and switching later as your needs change, plenty of growing businesses do exactly that, and some run more than one account for different purposes.

FAQs

What documents do I need to open a business account? Photo ID and proof of address for you (and any other directors), plus, for a limited company, your Companies House number and director/PSC details. Sole traders need confirmation they're registered with HMRC.

How long does approval take? With app-based providers, often within a day and sometimes within hours for a straightforward application. Traditional banks can take longer.

Can I open a business account before my company is registered? For a sole trader, effectively yes. For a limited company, the company usually needs to exist first, unless you use a provider that forms the company and opens the account together.

Do I need a UK address? Providers generally expect a genuine UK connection, a UK registered office for a company, or UK residency for a sole trader. Check the specific provider's eligibility if your situation is unusual.

Which account should I actually choose? That depends on how you'll use it, free and simple, formation bundled in, or multi-currency. Our best business bank accounts guide breaks it down by situation, with full reviews of each.