How to open a business bank account in the UK

If you’re setting up a new business, one of the first things to look into is opening a business bank account.

In this guide, we’ll cover everything you need to know on how to open a business bank account in the UK. This includes types of accounts, costs to consider and a step-by-step guide to the process.

Plus, a look at the best business bank accounts in the UK, including Wise Business.

Does my business need a business account?

Not every type of business needs a dedicated business account. Although there are benefits to having one, which we’ll look at in just a moment.

The one key exception is if you run a registered limited company in the UK. A limited company is a legally separate entity from you, so you’re required to have a separate bank account¹.

You don’t need a business bank account if you are:

• A sole trader
• A freelancer
• Doing gig work.

What are the benefits of having a business account?

One of the main advantages of having a dedicated business bank account is that it allows you to keep your personal and business finances separate. Your bank may also place limitations on what you can do with a personal account, so upgrading to a company account can give you more options and allow your business to grow.

Further benefits of opening a business bank account include:

• Saving on admin time when it comes to submitting tax returns to HMRC
• Helping you build a credit rating for your business
• Giving you access to business tools, resources and support, along with finance and credit
• Making your business appear more professional to clients and customers.

UK business bank account for non-residents

There aren’t any laws or restrictions preventing non-residents from opening a business bank account in the UK². However, it may not be as straightforward as it would be for UK residents.

You might find that most banks will require company directors to be actually living in the UK when they apply. This is down to the UK’s strict anti-money laundering regulations, which can make it difficult for banks to accept applications from overseas business owners².

Your best chance is with one of the major UK banks, such as NatWest or HSBC (which has an international presence).

You can also try digital providers such as Revolut or Tide. These mobile banks only require the business to have a physical presence in the UK, or have a company registered with the UK’s Companies House, in order to open a business bank account. You don’t actually have to live in the UK to be eligible.

The last option to explore is opening an international account, one which accepts GBP along with other currencies your business trades in, such as Wise Business.

💡Learn more about Wise Business

Can I open a business bank account in the UK with a foreign corporate entity?

It can be quite tricky to open a bank account in the UK for a foreign corporate entity. But if you already bank with a large global institution in your home country, you may find that they can help you set up an account with their UK business.

Your first port of call should be some of the UK’s major banks, such as HSBC, Lloyds, Barclays and Natwest. These are more likely to offer international accounts, along with specialist UK business bank accounts for non-residents.

If you need a more flexible and quick to open business account, you could benefit from a Wise Business account.

Read more about the requirements to open a Wise Business account

Opening a business bank account UK - Types of accounts

There are a variety of different business bank accounts to choose from, depending which bank you go for. Most fall under the following categories:

• Startup business bank accounts. These are usually for new or small businesses, or for freelancers and sole traders. Some come with a fee-free period and business support tools, to help you get your venture off the ground.
• Business bank accounts for growing and established companies. These accounts are often categorised by turnover, with limits and charges based on the size of your business.
• Community and not-for-profit accounts. If you run a charity, social enterprise, club, school or other non-profit, most UK banks offer a dedicated everyday account with low or no fee banking.

Many banks also offer multi-currency accounts, for businesses wanting to trade overseas.

Can you open a business bank account in the UK with a bad credit history?

It can be difficult to open a business bank account in the UK with a bad credit history, but it’s not impossible. If you have a detailed business plan, you may be able to make a convincing case for your suitability as an applicant by arranging a meeting with your chosen bank.³

Most banks will carry out credit checks, but not all do. Digital banking solutions such as ANNA and Tide⁴ only carry out ‘soft’ credit and identity checks to comply with UK anti-laundering regulations. This could mean your application stands a greater chance of success, even if you have a poor credit history.

Alternatively, some UK high street banks may offer ‘basic’ bank accounts, designed for applicants with a bad credit score.

Best business bank accounts in the UK

Ready to open your UK business account? Let’s run through a few of your options, at high street and digital banks.

Below are some of the best UK business accounts in terms of overall service quality and other factors, according to an independent 2025 survey by business insight consultancy BVA BDRC.⁴

Monzo Business Bank Account

The popular app-based challenger bank Monzo has a Business Bank Account used by over 700,000 businesses in the UK.⁵

It’s FSCS protected, and Monzo itself is a fully FCA regulated bank. It’s rated the best for overall service quality in the BVA BDRC survey, and came out on top for online/mobile banking services too.

The Monzo Business Bank Account is only available to Limited Company Directors and sole traders. It’s quick to apply online or via the app, with Monzo claiming that 90% of its business accounts are opened the same day.⁵

There's a free Lite plan, along with Pro (£9/month) and Team (£25/month)⁶ - with each paid plan offering an increased number of features and services.

Core features of the free Lite plan include:

• 24/7 customer support
• Free, instant UK bank transfers
• Accept contactless payments
• International payments
• Digital receipts
• Spending insights
• Instant Access Savings Ports
• Sole trader loans and overdrafts (if eligible).

Mettle by NatWest

The digital bank account from NatWest scored highly for service quality in the BVA BDRC survey, and was also voted Best Business Banking Provider at the 2025 British Bank Awards.⁷

Mettle is designed for sole traders and small businesses (with up to two owners) with a balance limit of £1 million.⁷ It offers FSCS protection on eligible deposits.

The account has no monthly or transaction fees, only an optional add-on of Mettle+ for £4 a month.⁷ This offers features such as on-the-go quoting and instant conversion to invoices.

Standard Mettle features include:

• Customisable invoices
• Sync with accounting software
• FreeAgent software included
• Send invoices from your phone
• Earn interest on savings
• Auto-match payments to invoices
• Automatically save for tax
• Invoice tracking
• Cash deposits
• Upload receipts.

One of the only things you can't do with Mettle however is send or receive international payments.

Starling Bank Business Current Account⁶

Voted the best for service quality, online banking and overdraft services, Starling Bank is a digital-only fintech solution used by over 500,000 UK businesses.⁸

The Starling Business Current Account is FSCS regulated and offers 24/7 customer support via app, email or phone. It’s free to use with no monthly fees, although you can customise it with paid-for extra features such as the Business Toolkit for invoicing or EUR/USD accounts.⁸

The free digital-only account is for sole traders, Limited Companies and LLPs. When you open a Starling Business account it comes with the following standard features:

• A Mastercard debit card
• Multi-director access
• Integration with accounting tools
• Receipt capture for tracking expenses.

Handelsbanken Business Current Account

A relative newcomer to the best-rated business banks list, Nordic bank Handelsbanken scored highly across the board - on service quality, SME overdrafts/loans, relationship/account management and in-branch service.

The Handelsbanken Business Current Account is available in a range of currencies, and offers access to an account manager and relationship team at your local branch. The account is FSCS protected and has a £25/month account fee⁹ - this covers the more dedicated service you get at the bank compared to other providers.

Handelsbanken is a popular choice among established businesses looking for long-term banking relationships,⁹ although it doesn’t say whether SMEs and sole traders meet its eligibility requirements.

To open an account, you’ll need to book an appointment for a face-to-face meeting.⁹

Features of the Handelsbanken Business Current Account include:

• Local and international payments
• Dedicated account manager
• Overdrafts (subject to eligibility).

Tide Business Current Account

Fintech platform Tide has a popular Business Current Account which it says is used by 10% of all SMEs in the UK - and over 1.5 million contractors, freelancers and scaling businesses worldwide.¹⁰

Its digital only account is free to open and has no monthly fees, although you can choose to upgrade to a Smart, Pro or Max account for extra features and services. Pricing for these ranges from £12.49 to £69.99 a month.¹¹

Tide isn’t a bank, but is backed by one - ClearBank. This means it is able to offer FSCS protection on eligible deposits.¹⁰

Features of the free Tide Business Current Account include:

• Interest on savings
• 24/7 in-app chat support
• Invoicing
• Managing business expenses
• Payment tools
• Companies House registration service
• Loans and finance (if eligible, on application)

Tide also has optional paid add-on services, such as Accounting and Payroll.

How to open a business account online

You can apply for a business account online in most cases, either starting your application from scratch or using the Current Account Switch Service. This has the benefit of guaranteeing that the switch will be complete within 7 days. Some banks may require you to visit the branch in person to verify your ID or provide further information.

To apply for a business account online, you’ll usually need to provide:

• The details of all partners, directors or members of the business - including recent home addresses
• Full details of your business, including contact details and trading/registration addresses in the UK
• Details of your company’s cash flow or forecasts
• Your registered company number with Companies House (limited companies only).

You’ll also need to be 18 or over, and the owner or director of the business, in order to apply for a UK business account.

It’s a good idea to check the requirements to open a business bank account from your particular bank before starting the process. So, head to your chosen bank’s website for details of the documentation and details you’ll need, or give the bank a call. You can find information about the Current Account Switch Service here.

How long does it take to open a business bank account?

It can take as little as 7 days if you use the Current Account Switch Service, but it could take anywhere from 4 weeks to 3 months otherwise. It may be quicker if you use a digital-only provider.¹²

How much does it cost to open a business account?

Opening a business bank account shouldn’t cost you anything, but there are usually monthly fees to pay once you’re up and running. If you’ve chosen a startup account, you may benefit from a fee-free period. It’s always worth checking and comparing the fees between business bank accounts very carefully before starting the application process.

To give you an idea of the fees involved with having a UK business bank account, let’s compare costs between some of the most popular providers - including Wise Business.

Bank	Monthly fee	Send/receive money locally	Receive money from abroad	Send money abroad
Monzo	Free	Free	1%¹³	Varies
Mettle by NatWest	Free	Free	N/A	N/A
Starling Bank	Free	Free	0.4% + delivery fees + £5.50 for SWIFT payments¹⁴	Free for GBP, 2% for EUR¹⁵
Handelsbanken	£25⁹	Unavailable	Unavailable	Unavailable
Tide	Free	£0.20¹¹	20p/transfer + 1.50% FX fee¹¹	20p/transfer + 1.50% FX fee¹¹
Wise Business	One-time fee of £45	From 0.33%	Free in 8+ major currencies	From 0.33%

Open a Wise Business account UK

If you're a business who is tapping into the global market or simply needs to pay vendors and suppliers abroad, you could benefit from a multi-currency business account.

Wise Business offers:

• No monthly fees - just one-off fee upon registering
• No FX mark-up - always get the mid-market exchange rate
• Quick to open and fully online
• Receive international payments
• Hold money in different currencies
• Earn a return on the money you hold¹⁶

Besides all that you can get to know the Wise Business company formation solution, where you can create a limited company in the UK and open a Wise Business multi-currency account in one go.

Get started with Wise Business 🚀

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So, that’s pretty much it - all the essentials you need to know on how to open a business bank account in the UK.

If you’ve got your paperwork in order and the right details to hand, it should be relatively straightforward. Good luck!

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Sources used for this article:

1. HSBC Business - Do I need a business bank account?
2. Finder - Business bank accounts for non-UK residents
3. Money.co.uk - How to get a business bank account with bad credit
4. BVA BDRC - Business banking service quality - Great Britain
5. Monzo - Business Banking
6. Monzo Business Banking - Plans pricing
7. Mettle - Home
8. Starling Bank - Business Account
9. Handelsbanken - Becoming a customer
10. Tide - Home
11. Tide - Pricing
12. Business.gov.uk - Opening a UK business bank account
13. Monzo - Business Account Fee Information
14. Starling Bank - Send money abroad
15. Starling Bank - Help - How much does it cost to receive a euro payment into your GBP current account?

Sources last checked 29-Aug-2025