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Compare limited company bank accounts
Compare the features, fees and eligibility requirements from the UK's leading limited company bank account providers.
Updated: 28th April 2026
Written by Harry Jones
Edited by Liam Gray
Best limited company bank accounts
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As a distinct legal entity, a limited company must have a dedicated business bank account to keep personal affairs separate. With over 800,000 UK companies incorporated each year, the demand for limited company bank accounts continues to grow.
Most providers accept limited companies, but compared to sole trader accounts, the intensive verification process and stricter eligibility requirements make onboarding slower. The key points of difference are features, which vary widely, and fees.
What is a limited company bank account?
A limited company bank account is a business account registered in the company’s name and used exclusively for company transactions, such as income, expenses, and tax obligations.
As a limited company is a separate legal entity, its finances must be kept apart from the personal accounts of its directors.
Most personal bank accounts prohibit business use in their terms and conditions, and the Companies Act 2006 requires directors to maintain accurate accounting records. This separation is non-negotiable, and failure to do so is a criminal offence for every officer responsible.
What do you need to open a limited company bank account?
Both banks and Electronic Money Institutions (EMIs) are legally required to carry out anti-money laundering (AML) checks when onboarding new company directors.
For limited companies, this means verifying both the business itself and every director and Person of Significant Control (PSC), which is anyone holding 25% or more of the company’s shares. The most common cause of delay is a data mismatch, such as an address that does not match the one on file with Companies House.
Business and director verification
Typically, companies need to provide:
- Certificate of Incorporation issued by Companies House
- Company registration number (most banks require registration to have been completed at least 48 hours prior)
- Registered office address
- Details of all directors and PSCs, including names, dates of birth, residential addresses, and nationality
- A description of the business, including sector, expected annual turnover, nature of trading activity, and sometimes a link to the company website
Why does verification take longer for limited companies?
Unlike sole trader accounts, which require just one person’s ID, limited companies need every director and PSC to be verified individually. The application is only as fast as the slowest signatory, and directors based abroad can add further delays.
Structure can also play a role, as corporate shareholders may trigger banks to perform additional layers of verification. The overall complexity means manual reviews are more common than with sole trader or personal accounts.
Typical timelines by provider type
Digital-first providers can typically complete onboarding in minutes for single-director companies. Multi-director companies or those requiring manual checks usually take one to three days.
High-street banks tend to take anywhere from four to 30 days. Some require a branch appointment, physical document checks, or a call with a relationship manager, and approval may arrive by post.
What to look for in a limited company bank account
| High Street Banks | Digital & Challenger Banks | |
|---|---|---|
| Onboarding & Eligibility | Rigorous. Manual vetting that can take days or weeks. Better suited to complex company structures that automated systems may reject. | Automated. AML checks are almost always automated, with onboarding in minutes for simple company structures. |
| Access | Administrative. Adding team members may require physical forms, and access for additional users is sometimes limited to read-only. | Collaborative. Native team access is more common. Co-director invitations are encouraged, and access controls are more granular. |
| Accounting | Legacy feeds. Integration with major accounting software is usually available, though syncing can be delayed. | Real-time. Real-time API integrations and native accounting tools are more common, along with automatic expense categorisation. |
| Lending | Asset-focused. Commercial loans and overdrafts are more common with larger credit limits. | Data-focused. Lending solutions are less available, but when they are, they typically rely more on real-time cash flow than credit score or balance sheet. |
| Security | Reliable. FSCS protection is guaranteed, and banks face stricter regulations than EMIs. Card readers are sometimes still used for large transactions. | Biometric. FCSS protection may be present, but not always. App security is more likely to rely on biometrics. |
| Fee structure | Fixed. Businesses can find value in handling high volumes of cash or cheques. | Flexible. More tiers are usually available with a focus on upgrading features and payment limits. |
| International transfers & spending | Traditional. For large SWIFT transfers, high street banks are a reliable option. For small, frequent transfers, there can be friction and less transparency. | Global-first. Competitive exchange rates are a key selling point, with greater transparency and multi-currency wallets built into the account, rather than offered as separate products. |
| Interest-earning potential | Lower rates. Current accounts don’t usually pay interest. If they do, rates are often stable but lower. | Competitive. Interest is a more common selling point, with access to higher rates on higher-paid plans. Interest is more likely to be paid daily. |
| Customer support | Human. UK-based call centres are a huge selling point of high street banks, as are the physical branches that you can visit. | In-app chat. While 24/7, some challengers only offer in-app chat. Dedicated managers are usually accessible on higher-paid tiers. |
| Integrated payments | Merchant bundles. Often separate contracts for card terminals (e.g., WorldPay), but reliable for high volume. | Ecosystem-led. Built-in invoicing and pay-with-link are common, as are native links to Stripe/Zettle. Transactions can appear and be reconciled in-app. |
How does FSCS protection work for a limited company?
Because a limited company is a separate legal entity, it gets its own £120,000 FSCS limit. This is independent of (on top of) any directors’ personal accounts at the same bank. However, some banking brands share the same authorised firm. If the company holds funds at two brands under one licence, the total is covered to £120,000, not £120,000 per brand.
Many accounts have balance limits of £500,000 and over. Instead of maxing these out, limited companies may want to spread funds across separately authorised firms to maximise protection.
EMI providers like ANNA safeguard funds rather than hold them under a banking licence. For an LTD company with tens of thousands in reserves, this distinction matters more than for a sole trader with a smaller balance.
Tips for opening a limited company bank account
Verify ID before you incorporate
Since November 2025, you cannot legally incorporate without first verifying your identity. Use GOV.UK One Login to get your Companies House Personal Code ready early for the application.
Gather documents from every director and PSC
Banks verify all directors and persons of significant control, even if they are living overseas. To speed up your application, ensure all parties have the relevant documents ready ahead of time.
Check FSCS status before parking large sums
If you're holding significant balances, such as VAT reserves or project deposits, confirm whether the provider is FSCS-protected. If it’s an EMI, check whether it’s partnered with a bank, otherwise your funds will be safeguarded insted.
FAQs
Can I use my personal bank account for my limited company transactions?
A limited company is a separate legal entity, which means its finances must be kept entirely separate from those of its directors. Using a personal account for company transactions would breach this requirement and could cause issues with HMRC, so it’s best to avoid mixing the two.
Which bank is the easiest to open a limited company account with?
Digital-first providers like Tide, ANNA and Zempler Bank are typically the easiest to open an account with. They’re fast because onboarding is mostly automated, and they usually don’t conduct hard credit checks.
What if my limited company has non-resident directors?
Non-resident directors can still open a limited company account, though the application may trigger a manual review and take longer to process. High street banks tend to be the most accommodating in these cases.
How does FSCS protection work for a limited company?
Your company receives its own £120,000 protection limit (entirely separate from your personal limit). However, check that your accounts are held with different banking groups, as they may contribute to the same protection limit.
Do I need a new account if I'm converting from a sole trader to a limited company?
If you’re converting from a sole trader to a limited company, you will need a new account. When incorporating, your funds move from yourself to a new legal entity, so make sure you’ve got an account in the company’s name to avoid any potential complications.
Can a limited company have more than one bank account?
Yes, your limited company can have more than one bank account. Many businesses use multiple accounts to separate tax reserves, manage currencies, or spread funds within FSCS protection limits.
Some banks limit the number of directors — what should I do?
If your board is particularly large, high street banks or enterprise-focused digital providers are generally better equipped at managing complex corporate structures. Be aware that it may take longer, as manual checks are likely during onboarding.
Written by
Harry Jones
Harry has been a Finance Writer since 2019 and has worked with leading wealth management and fintech brands.
More recently, he has built in-depth domain knowledge on modern payment systems and enjoys helping smaller businesses compare options, find better solutions, and make smarter payment decisions.