How to open a business bank account: a step-by-step guide

You can usually open a business bank account online in one sitting, as long as you have the right details to hand. This guide walks you through who can apply, the steps, what you'll be asked for, how long providers say it takes, and what tends to hold applications up.

By the Business Account Review editorial team · checked 25 October 2026 · How we check

Before you start: who can apply

Before you open a business bank account, start with how your business is set up. It decides what you'll need and which accounts you can choose from.

Limited companies

A limited company is a separate legal entity. The government's Business.gov.uk service says limited companies must have a business bank account. You'll usually need to be a director to apply, and the company must be registered at Companies House first.

Sole traders

Business.gov.uk says sole traders and normal partnerships aren't legally required to have one. Many still choose to open a business bank account to keep business money separate. Our guide on whether sole traders need a business account covers this.

According to Business.gov.uk, you can usually open a business bank account if you're 18 or over, a UK resident, and a sole trader, company director or partner. Each provider sets its own rules on top of that, so check them before you open a business bank account with anyone. Some examples from providers' own eligibility pages:

Monzo Business accepts applicants aged 16 or over, but only sole traders and limited companies.
Starling requires limited company applicants to be both a director and a person with significant control (PSC), with all PSCs living in the UK.
Mettle allows no more than two PSCs, and the person who applies must be a director and a PSC.
Tide accepts sole traders, freelancers and directors of limited companies aged 18 or over.

Business.gov.uk also notes that some banks ask for at least a year of trading, and may run a personal credit check if your business has no credit history yet. If you've just started, look for providers that let new businesses open a business bank account without trading history.

How to open a business bank account in 6 steps

The exact screens differ, but most providers follow the same pattern. Here's how to open a business bank account from start to finish.

1
Confirm your business structure
If you're forming a limited company, register it at Companies House before you apply. Sole traders should register for Self Assessment with HMRC if they need to; some providers ask for this.
2
Compare accounts
Before you open a business bank account, look at fees, how your money is protected, cash deposits, transfers and the features you'll actually use. You can compare business bank accounts side by side.
3
Check you're eligible
Read the provider's eligibility page before you try to open a business bank account there. It's quicker than being turned down halfway through.
4
Apply online or in the app
Enter your personal details, business details and what the business does. Many app-based providers ask for a photo of your ID and a selfie or short video.
5
Answer any follow-up questions
If automatic checks can't confirm something, the provider may ask for documents or proof that your business trades. Reply quickly to keep things moving.
6
Get your account details and card
Once approved, you'll get a sort code and account number, usually followed by a debit card in the post. Then you can set up payments and invoicing.

What you'll be asked for

When you open a business bank account, expect questions about you, your business and how you'll use the account. Business.gov.uk lists the typical basics:

your name, home address and proof of both
your contact details
your legal business name and the date the business started
for limited companies: the company registration number, registered address, details of all directors, and Companies House documents such as the Certificate of Incorporation

Many online providers check your identity and address electronically, so you may not need to upload anything unless those checks fail. Our guide to the documents needed for a business bank account lists what each provider asks for.

How long it takes to open a business bank account

Nobody can promise exactly how long it takes to open a business bank account, because it depends on checks. These are the figures providers publish themselves.

What providers say about opening times (checked 25 October 2026)
Provider	What the provider says
Tide	Approval may come "within minutes" if you pass automatic checks; longer if more information is needed. Card within 4 business days of approval
Monzo Business	About 95% of customers get an account number the same day, and 99% within 7 days
Zempler Bank	Account opened the same day for 99.97% of customers
Revolut Business	Aims to review your information within 24 hours of submission
Mettle	Submitting an application normally takes about 10 minutes; a temporary daily cap on new applications applies
Starling	Confirms "as soon as we can"; no timeframe published

If you need to open a business bank account by a certain date, for example before a first invoice is due, apply a week or two early to leave room for extra checks.

Choosing where to apply

Once you know how to open a business bank account, the application is the easy part. Picking the right account matters more, because switching later takes effort. Weigh up these factors before you open a business bank account.

Monthly fee

Several providers have a free plan. Check what it includes and what extra transfers cost.

Protection

A bank account means FSCS protection for eligible deposits. An e-money account means safeguarding. See bank vs e-money accounts.

Cash and cheques

Some providers don't accept cash or cheques at all. Others charge per deposit.

Eligibility

Limits on business type, owners and residency rule some accounts out.

Everyday tools

Invoicing, tax pots and accounting links can save you hours.

Switching

Not every provider supports the Current Account Switch Service.

Why applications get held up

Banks and e-money firms must check who they're dealing with before they open a business bank account. These are the most common reasons an application slows down or doesn't go through, based on providers' own published rules:

Details don't match. Your name or address differs from your ID or from Companies House records.
Expired or unclear ID. Tide, for example, doesn't accept expired ID or provisional driving licences.
Your business type isn't supported. Several providers don't accept partnerships, charities or companies with corporate shareholders.
Your industry is excluded. Providers commonly exclude gambling, crypto and money service businesses.
The provider can't see that you trade. New businesses may be asked for a business plan, contracts or invoices.

If a provider won't let you open a business bank account, ask whether there's anything you can provide to help, then try a provider whose eligibility rules fit your business better.

Opening a Tide account

Tide is our featured partner, so here's how you open a business bank account with Tide. Tide says you apply online or in the app, give details about you and your business, and pass automatic checks. If you pass, the account opens straight away; if not, Tide may ask for more information first. You'll need to be 18 or over, have a UK mobile number, and verify your identity with a selfie. Sole traders need a UK home address and HMRC registration; limited companies must be registered at Companies House. Tide isn't a bank: most Tide accounts are powered by ClearBank, so eligible deposits are FSCS-protected. Our Tide review covers its plans and fees.

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 account

Tide is our featured partner. We may earn commission from referrals. Disclosure

Your pre-application checklist

Tick these off before you open a business bank account:

I know whether I'm applying as a sole trader or a limited company.
My company is registered at Companies House (limited companies only).
I've checked the provider's eligibility page.
I have in-date photo ID and a recent proof of address.
My name and address match across my ID and business records.
I can describe what my business does and how I'll use the account.
I've checked the fees for the transfers and deposits I'll make.

Open a business bank account: FAQs

Can I open a business bank account online?

Yes. Most providers in our comparison let you open a business bank account online or in an app. Traditional banks may also offer branch appointments.

Can I open a business bank account with no trading history?

Often, yes. Some banks ask for a year of trading, but many app-based providers accept new businesses. They may ask for a business plan or contracts instead.

Does opening a business account affect my credit score?

It can. Business.gov.uk says a bank may run a personal credit check if your business has no credit rating. Ask the provider what checks it runs.

Can I open a business bank account if I live outside the UK?

It depends on the provider. Tide accepts limited company directors with a home address in the UK or overseas, while others, such as Starling, require directors to be UK residents.

How many business accounts can I have?

There's no general limit, but providers set their own. Mettle, for example, allows one account per person.

Sources

Business.gov.uk: getting a business bank account (checked 25 October 2026)
Tide: who can open a Tide account (checked 25 October 2026)
Tide: how to provide your supporting documents
Providers' own eligibility, onboarding and service information pages for Monzo, Starling, Mettle, Revolut and Zempler (checked 25 October 2026)