Company bank accounts: what opening one actually involves
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. You can check a firm’s details on the FCA Register.
FSCS protects eligible deposits up to £120,000 per person, per authorised institution.
Quick answer
Opening a company bank account is mostly about identity: the bank checks the company at Companies House, then checks the directors and anyone with significant control. App-led providers can often open an account the same day; high-street banks may take longer.
Our pick for speed if your company has a simple structure: an app-led account such as Starling, Monzo Business or Tide. Our pick if you want to talk to someone during setup: a high-street bank with branch or phone support.
Typical documents and checks
This is a general guide to what banks commonly ask for. Each provider sets its own requirements.
| Item | What it is | Why banks ask |
|---|---|---|
| Company number | Your Companies House registration number | To confirm the company exists and is active |
| Director and PSC details | Names, dates of birth and addresses | To run identity and anti-money-laundering checks |
| Photo ID and selfie | Passport or driving licence, plus a live photo | To verify each person is who they say they are |
| Business description | What you sell, to whom and roughly how much | To understand expected account activity |
| Registered office and trading address | Where the company is registered and operates | To match your Companies House record |
| Expected turnover | An estimate for the next 12 months | To set limits and spot unusual activity |
General guide only. Check each provider’s application requirements, which change from time to time.
Who it’s for
- Directors of a newly registered company
- Companies moving banks and planning the paperwork
- Companies with two or more directors deciding who signs what
- Owners who were declined once and want to understand why
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You’re a sole trader — you don’t need company checks; see accounts for sole traders
- Your company has overseas or corporate shareholders — expect a slower, manual process
- You only want to compare fees — use the comparison table instead
- You need legal advice on company structure
Full explanation
Step by step
Most applications follow the same path: confirm the company number, add directors and PSCs, complete identity checks for each, describe the business, then accept the terms. App-led providers do this in the app; high-street banks may also ask for a call.
Signatories and mandates
A mandate sets out who can make payments and whether more than one approval is needed. Decide this before you apply — it’s easier than changing it later. If you want dual approval, check the provider supports it; Allica offers two-person authorisation.
If you’re declined
Ask whether the decision was about identity checks, your sector or your structure. Fixing a mismatch with Companies House, or applying with a provider that accepts your sector, often solves it. See Limited company banking FAQs for common questions.
Choosing between providers? Read Business accounts for limited companies and the startup guide.
The catch
Every key person gets checked. Banks usually verify each director and each person with significant control (PSC). If one person can’t complete checks, the account may stall.
Your Companies House details must match. Names, addresses and SIC codes that don’t line up with what you tell the bank can trigger extra questions.
Some sectors are declined. Providers set their own risk rules; a decline isn’t always about you, and another provider may say yes.
Ready to apply? See which account fits your company first:
FAQs
How long does it take to open a company bank account?
App-led providers can often open an account on the day if checks pass. High-street banks may take longer, especially if they need extra information.
Who needs to pass identity checks?
Usually every director and every person with significant control. Each provider sets its own rules.
Can I open a company account before I trade?
Yes, many providers let newly registered companies apply before trading starts.
Why was my company account application declined?
Common reasons include identity checks that didn’t complete, details that don’t match Companies House, or a sector the provider doesn’t serve.
Can I change signatories later?
Yes, but it usually involves new identity checks. It’s easier to agree the mandate before you apply.
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