How to Open a UK Business Bank Account for a Limited Company in 2027 and 2028

A UK limited company is a separate legal person, so its money has to go through an account in its own name. A UK business bank account lets the company take payments, pay suppliers and staff, deal with HMRC and keep its finances apart from the directors' personal money. It is also one of the first things payment processors, marketplaces and customers check, which is why it pays to understand how to open a UK business bank account properly the first time.

This guide explains how to open a UK business bank account for a limited company in 2027 and 2028: the documents banks ask for, why the Companies House register matters so much, the difference between banks and e-money accounts, what works for non-resident directors, how deposit protection works, how long it takes, and the most common reasons applications are refused. If you also run a US LLC or a Canadian corporation, see our guides on opening a US business bank account and opening a business bank account in Canada.

Banks and e-money providers change their eligibility rules often, especially for non-resident directors. Use this guide to prepare, then check each provider's current requirements before you apply. This is general information, not legal, tax or financial advice.

Why the Companies House record decides most applications

UK banks don't just read your application form. They pull the company's record from the Companies House register and compare it with what you tell them. Before you apply anywhere, check your company and make sure the register shows:

• the exact company name you will use on the application;
• the correct registered office address, one that actually receives post;
• every current director and every person with significant control (PSC);
• no overdue accounts or confirmation statement; and
• no proposal to strike off and no move to the Companies House default address.

If the register shows a problem, fix it first. A strike-off notice, overdue filings or a default registered office address will stall or end almost any application. Our guides on filing annual accounts and filing a confirmation statement explain how to bring the record up to date.

Identity verification for directors and PSCs

Companies House now requires directors and people with significant control to verify their identity. Banks increasingly expect this to be done, and a verified record makes their own checks easier. Our Companies House identity verification guide explains how to get a personal code.

The documents UK banks ask for

Most UK banks and online providers ask for a similar set of information. Prepare it before you start.

A Corporation Tax Unique Taxpayer Reference (UTR) isn't usually needed to open the account. HMRC sends it by post a few weeks after incorporation, so you can add it to your records later. Our guide to filing a CT600 explains how the UTR is used.

Banks versus e-money business accounts

In the UK you will be offered two kinds of business account. They look similar in an app, but they are regulated differently.

Many companies use both: a bank account for deposit protection and lending, and an e-money account for speed, international payments and cards.

Online accounts used by UK companies trading internationally

For companies that sell abroad or have non-resident directors, providers such as Wise and WorldFirst offer business accounts with UK and foreign receiving details, and Payoneer is widely used by marketplace sellers. Eligibility depends on the directors' countries, the industry and the business model, and changes over time, so check the current terms before applying.

Non-resident directors: what works

Non-resident founders form UK companies every day, but opening the bank account is where many get stuck.

• Many high-street banks and app-based banks require at least one UK-resident director, or a UK address for the directors.
• E-money providers are often more accessible to non-resident directors, especially when the company trades internationally.
• A genuine UK registered office that receives and forwards post helps, as does a UK trading address if you have one.
• Consistency is everything: the directors' names, dates of birth and addresses must match the Companies House record and their ID exactly.
• Identity verification with Companies House should be completed before you apply.

Biz E-Formations Inc. provides UK company formation, registered office addresses and help opening a UK business bank account for non-resident founders.

How to open a UK business bank account: step by step

1. Check the Companies House record and correct anything wrong.
2. Complete identity verification for directors and PSCs.
3. Choose a provider whose eligibility rules fit your directors' residency, industry and expected volumes.
4. Start the application with the exact company name and number.
5. Add every director and PSC, including those who won't use the account.
6. Verify identity in the provider's app with a passport and a live selfie.
7. Describe the business clearly: products, customers, countries and monthly volumes.
8. Answer follow-up questions quickly. Applications left unanswered are often closed.
9. Fund the account and set up users, cards and payment approval rules.

FSCS deposit protection

Eligible deposits at UK-authorised banks and building societies are protected by the Financial Services Compensation Scheme (FSCS). The protection limit is £120,000 per eligible depositor, per authorised firm, from 1 December 2025. Most small companies are eligible depositors.

Money held with an e-money institution isn't covered by FSCS deposit protection. Instead, the provider must safeguard customer funds, usually by keeping them in a separate account at a bank. Safeguarding protects you if the provider fails, but it works differently from deposit insurance, and claims can take longer. If the company holds large balances, consider keeping part of them in an FSCS-protected bank account, and take advice if you are unsure.

The questions you'll be asked

UK providers must meet anti-money laundering rules, so expect questions such as:

• What does the company sell, and to whom?
• Which countries are your customers and suppliers in?
• What turnover do you expect in the first year?
• How much will go in and out each month?
• Where will the money that funds the account come from?
• Will you make or receive international payments, and in which currencies?
• Does anyone other than the directors control the company?

Specific answers get approved faster. "Bookkeeping services for UK small businesses, about £6,000 a month, paid by bank transfer" works far better than "professional services".

How long it takes

Applications usually stall because of an out-of-date Companies House record, missing PSC details or names and addresses that don't match, not because of the provider's own processing.

Fees to compare

For companies that receive money from abroad, the exchange rate margin is often the biggest cost. Ask for a sample conversion before you choose.

Why UK applications get rejected

If you're refused, ask whether the provider can tell you why, fix the issue, and wait before reapplying. Don't run company money through a director's personal account as a workaround. It weakens limited liability, causes tax problems and breaks most personal account terms.

Keeping the account open

UK providers review business accounts regularly and react to changes on the register. To keep the account in good standing:

• File on time. Overdue accounts or a confirmation statement can trigger strike-off action, and banks act quickly when they see it. Our guide to late filing penalties explains the costs.
• Keep the register accurate. Report director, PSC and address changes promptly.
• Tell the provider about changes before it finds them on the register.
• Reply to review requests quickly and keep current documents ready.
• Watch the register. Company Monitor alerts you the moment anything changes on your company's Companies House record, so you can act before the bank does.

Protecting the account from fraud

• Verify payment details by phone before paying a new supplier or changing bank details. Invoice redirection fraud is one of the most common business scams in the UK.
• Use separate logins for each person, with approval rules for large payments.
• Turn on two-factor authentication for every user.
• Watch for register changes you didn't make. A new director or address on your record can be the first sign of company identity theft.
• Never share one-time passcodes, even with someone claiming to be from your bank.

Practical scenarios

A UAE-based founder with a UK limited company

The founder formed a UK company with a registered office service. The high-street banks required a UK-resident director, so the founder completed Companies House identity verification, made sure the register showed the correct PSC, and opened an e-money business account instead.

A new UK company refused because of the register

The company's application was declined because the register still showed a former director. Once the termination was filed and the record was updated, a second application with a different provider was approved within days.

A marketplace seller with a held balance

A seller's payouts were held because the company's registered office had been moved to the default address. After a valid address was set on the register and the bank and marketplace were updated, the payouts resumed. Our guide on funds held by PayPal, Stripe, Wise or Amazon explains why.

Checklist

Opening an account for a brand-new company

A company incorporated last week has no trading history, no accounts and no credit record. Providers know this, but they will look harder at the people behind it and at your plans. To help a new company's application:

• Write a one-page plan: what you sell, who your customers are, how you'll find them, and expected income and costs for the first year.
• Show evidence of activity: a website, signed contracts, letters of intent, supplier quotes or a list of existing clients.
• Explain where the starting money comes from, for example director's savings or an existing business.
• Apply to providers that welcome start-ups; some high-street banks have dedicated start-up accounts, and e-money providers often onboard new companies quickly.

Choosing the right account for your type of business

Different businesses need different features. A quick guide:

Receiving payments from processors and marketplaces

If customers pay through PayPal, Stripe, Amazon, eBay or other platforms, the payout account must be in the company's name, and the company name, number and address on the platform must match Companies House. Platforms check the register too, and a mismatch, a strike-off notice or a default registered office address can lead to payouts being held. Update the bank and every platform at the same time whenever the company's details change.

Linking accounting software

Most UK business accounts connect to accounting software, which saves hours at year end and makes it easier to file accounts and the CT600 accurately. Before choosing a provider, check that it supports bank feeds to the software you use, and whether it exports statements in a format your accountant can import.

If you're refused by several providers

Repeated refusals usually point to one underlying issue. Work through this list:

1. Re-read the Companies House record line by line: name, office, directors, PSCs, filings.
2. Check identity verification is complete for every director and PSC.
3. Look at the business description through a compliance officer's eyes; make it specific.
4. Consider the sector and countries; choose providers that serve them.
5. Ask for help. Biz E-Formations Inc. helps founders prepare complete applications and choose suitable providers.

Features worth having

Beyond the basics, these features save time for most limited companies:

• Multiple users with permissions, so a bookkeeper can view and prepare payments while a director approves them.
• Payment approval rules for amounts above a limit.
• Invoicing and payment links, so customers can pay straight into the account.
• Receipt capture, matching photos of receipts to card transactions.
• Tax pots or savings spaces to set money aside for VAT and Corporation Tax.
• Exportable statements in formats your accountant uses.
• Currency accounts if you invoice in euros or dollars.

Adding a second account or switching

Many companies start with one provider and add a second account later, for example an FSCS-protected bank account to hold reserves, or a currency account for international customers. Opening a second account follows the same checks, so keep the Companies House record and your document folder up to date. If you switch your main account, update every place the old details appear: customers' records, payment processors, marketplaces, HMRC Direct Debits, payroll and suppliers. Keep the old account open until the last payments have moved across.

Moving money between the company and directors

Once the account is open, money should only move between the company and its directors for clear, recorded reasons: salary through payroll, dividends declared from profits, expense reimbursements backed by receipts, or a documented director's loan. Paying personal bills from the company account, or company bills from a personal account, creates a director's loan account balance that your accountant must report and that can carry tax charges if it isn't repaid in time. Keeping these flows tidy also reassures the bank during periodic reviews, because the account activity matches the business you described when you applied.

Business credit and lending

If the company may need an overdraft, a loan or a credit card later, keep that in mind when choosing where to bank. E-money providers rarely lend, while banks consider lending based on the company's track record with them: regular income, filed accounts and a well-run account. Opening an account with a bank early, even if you mainly use an online provider, builds that history. Lenders will also check the company's credit file and its record at Companies House, so filing accounts on time matters for credit as well as compliance.

Key takeaways

• UK banks check the Companies House register; correct it before you apply.
• Declare every director and PSC and complete identity verification.
• Non-resident directors often start with an e-money account.
• FSCS protects eligible bank deposits up to £120,000 per depositor per firm; e-money is safeguarded instead.
• File on time and monitor the register to keep the account open.

Related guides

• How to form a UK company
• Companies House identity verification
• How to fix the Companies House default address
• How to check a UK company before doing business
• How to open a US business bank account for an LLC
• How to open a business bank account in Canada

The bottom line

Opening a UK business bank account is mostly about the company's public record. Make sure Companies House shows the right name, registered office, directors and PSCs, with no overdue filings, then apply with consistent details and a clear description of the business. Non-resident directors will often find an e-money provider the fastest first step. Biz E-Formations Inc. can form your UK company, provide a registered office and help with your business bank account application.