Business bank account for startups: a guide for new businesses
Choosing a business bank account for startups is a little different from choosing one for an established firm. You have no trading history and your needs could change within a year. This guide covers timing, the eligibility rules that trip up new businesses, formation bundles and the sign-up offers available on 25 October 2026.
What a business bank account for startups needs to do
Most new businesses want an account that opens quickly, costs little while income is low, and makes records easy to keep for HMRC. Beyond that, the right business bank account for startups depends on how you're starting out.
The side-project sole trader
Still employed, with a few customers. Needs a business bank account for startups with a £0 plan, simple invoicing and a clear split between business and personal money. Transfer volumes are low.
The new limited company
Registering a company to trade or contract. Needs a business bank account for startups in the company's name, may want registration and banking done in one go, and may add a co-director.
The fast-moving launch
Taking card payments from day one, at a market stall or online. Needs Tap to Pay or payment links and possibly cash deposits.
Decide which sounds most like you before you compare. It stops you choosing a business bank account for startups for a feature you'll never use.
When to open your account
When to open a business bank account for startups depends on your structure. A limited company exists separately from you, so it needs its own account, and you can only apply once Companies House has registered it. A sole trader can usually open a business account as soon as they've decided to trade, though some providers ask you to register with HMRC first.
- 1
Decide your structure
Sole trader or limited company: it decides which business bank account for startups you can apply for. Our guide on sole trader or limited company sets out the differences; an accountant can help you decide.
- 2
Register
Companies are registered at Companies House. Tide asks sole traders to be registered with HMRC; Starling requests a UTR but doesn't require one.
- 3
Open the account before your first invoice
Opening your business bank account for startups before you invoice means customers pay the right account from day one. Zempler says 99.97% of accounts open the same day, and Monzo says about 95% of customers get account details the same day.
Eligibility rules that catch new businesses
Most business bank accounts for startups accept both sole traders and limited companies, but the small print varies. These are the rules most likely to matter if you've only just started, taken from each provider's own pages:
| Provider | Who it accepts | Worth knowing as a startup |
|---|---|---|
| Tide | Sole traders, freelancers and limited companies | Sole traders need a UK home address and HMRC registration; company directors can live in the UK or overseas |
| Starling | Sole traders, limited companies and LLPs | Company applicants must be a director and a PSC; all PSCs must be UK-resident individuals, with no corporate shareholders |
| Monzo Business | Sole traders and limited companies only | Companies must be active on Companies House, not dormant; minimum age 16 |
| Mettle | Sole traders and limited companies | No more than two PSCs, and only one owner can access the account; a temporary daily cap on new applications |
| Zempler Bank | Sole traders, companies, partnerships, LLPs and more | UK residents aged 18+ with a UK-based business |
| Revolut Business | Registered companies and partnerships | Companies must be fully incorporated and active; Revolut points unregistered sole traders to Revolut Pro |
If a co-founder owns shares through another company, check the rules before you apply for a business bank account for startups: Starling, for example, doesn't accept corporate shareholders.
Formation bundles: a company and an account together
Some providers will register your limited company for you and open the account at the same time. For founders, it's the most joined-up way to get a business bank account for startups, because there's one application rather than two.
Tide's company formation service costs a one-off £14.99, according to Tide's registration page. That includes Companies House registration, a Certificate of Incorporation, Memorandum and Articles, share certificates, PAYE registration and a Tide account on the Free plan. Co-directors can be added at no extra cost. Tide's page doesn't say whether VAT is included, so check the total before you pay.
Optional extras, such as a company secretary service and a London virtual office address, cost more. None is needed to register.
The alternative is to register directly with Companies House, then open a business bank account for startups separately. Compare the total cost, including Companies House's own fee, before you decide. Our Tide company formation guide walks through the bundle step by step.
Sign-up offers on a business bank account for startups
Because you're new to every provider, you'll often qualify for a welcome offer when you open a business bank account for startups. Offers come in three forms: cashback for meeting conditions, referral rewards that need a code from an existing customer, and a free first month on a paid plan.
| Provider | Offer | Main conditions |
|---|---|---|
| Tide | Code STARTUP200: up to £200 cashback* *T&Cs apply | New Tide members only. £75 after spending £100 on the card within 30 days, plus £125 for paying £5,000 into an Instant Saver within 7 days of opening and keeping it there for 30 days*. *T&Cs apply |
| Monzo Business | £50 business referral | Use an existing customer's link, never have had a Monzo account, and within 30 days add money and make a card payment |
| Mettle | £50 Refer a Business | Enter an existing customer's code in the app within 30 days and make one card payment |
| Starling | Refer a Friend, £25 or the amount in the referral message | Never have held a Starling account; qualifying conditions are shown in the app |
| Tide, Monzo, ANNA | Free first month on a paid plan | Tide's paid plans and Monzo Pro and Team start with a month free; ANNA offers a first month free on its Business plan |
An offer is a bonus, not a reason on its own to pick a business bank account for startups. A £50 reward won't make up for an account that charges for every transfer. Our guide to how sign-up bonuses work explains deadlines, payout times and when rewards are withheld.
New to Tide? Code STARTUP200 can earn up to £200 cashback: £75 after £100 card spend in 30 days, plus £125 for holding £5,000 in an Instant Saver for 30 days*. *T&Cs apply
Open a Tide accountTide is our featured partner. We may earn commission from referrals. Disclosure
Credit when you have no trading history
New businesses often assume an overdraft comes with the account. With many business bank accounts for startups, it doesn't, or not for every business type. From providers' own pages:
- Mettle says it doesn't currently offer overdrafts or any form of lending.
- Monzo Business offers overdrafts to sole traders only.
- Starling offers arranged overdrafts to limited companies only, with an annual fee of 1.75% of the limit or £50, whichever is higher.
- Zempler Bank offers an instant-decision overdraft on Business Go, but not yet to sole traders.
- Tide offers access to loans and other finance from a panel of lenders, subject to status.
All borrowing is subject to approval. If you think you'll need credit, ask before you apply for a business bank account for startups, not after. This is general information, not advice.
Planning for growth
A business bank account for startups should still fit in a year's time. Three changes catch people out:
Becoming a company
A sole trader account doesn't turn into a company account. Starling's terms, for example, say converting needs a new account. Plan for a second application if you might incorporate.
Adding people
Mettle allows one user and Monzo gives sole traders a team of 3. Starling says multiple directors can be added free.
Busier months
A business bank account for startups with 3 or 5 free transfers works at launch. At 40 payments a month, the per-item charges start to matter. Our free business bank account guide shows where each plan's limits sit.
You're not locked in to your first business bank account for startups. Several providers take part in the Current Account Switch Service, which moves your payments and balance for you. To see every option side by side, compare business bank accounts.
Startup checklist before you apply
Run through this before you apply for a business bank account for startups:
- I know whether I'm a sole trader or a limited company.
- If I'm a company, it's registered and active at Companies House.
- I've checked the provider accepts my business type and ownership.
- I've estimated my monthly transfers and any cash I'll pay in.
- I've checked whether I'll need an overdraft or co-director access.
Business bank account for startups: FAQs
Can I open a business account before I start trading?
Often, yes. A limited company can apply once it's registered at Companies House. Sole traders can usually apply when they're ready to trade, but some providers, including Tide, ask for HMRC registration first.
Do I need a trading history?
Not for most business bank accounts for startups. ANNA, for example, says no minimum turnover is required. Trading history matters more if you apply for an overdraft or loan.
Should a startup pick a free plan?
Many founders start on a £0 plan. Check what a free business bank account for startups charges for, and whether a paid plan would remove a charge you'd pay often.
Sources
- Tide: company registration page, pricing page and STARTUP200 terms (checked 24-25 October 2026)
- GOV.UK: set up a limited company
- Monzo: business referral scheme terms (version 2.0)
- Eligibility pages, fee documents and referral terms from Starling, Mettle, Zempler Bank, Revolut and ANNA (checked 25 October 2026)