Limited company banking FAQs
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.
Quick answer
Answers to the banking questions limited company directors ask most. The theme here: the company is a separate legal person, so its money, protection and debts are separate from yours.
If you only read one thing: a limited company must have a business bank account in the company’s name, according to Business.gov.uk.
Who it’s for
- Directors of newly incorporated companies
- Contractors with a personal service company
- Companies with two or more directors
- Sole traders about to incorporate
Who should skip it
These are general points to weigh up, not advice. These FAQs may not be what you need if:
- You’re a sole trader — see sole trader banking FAQs
- You need tax or legal advice — speak to an accountant or solicitor
- You want a provider comparison — see accounts for limited companies
- Your company has complex overseas ownership
The catch
Company rules protect the company, not always you. Personal guarantees, director’s loans and dividends all have rules. Check GOV.UK and speak to an accountant.
Full explanation
Where to go next
Read Business accounts for limited companies, Company bank accounts: opening one and Business credit cards for limited companies. Contracting? See Business accounts for contractors.
FAQs
Does a limited company need a business bank account?
Yes. Business.gov.uk says limited companies must have a business bank account.
What documents do I need?
Business.gov.uk lists Companies House registration documents, your Certificate of Incorporation, details of all directors, your company number and registered address.
Is company money protected separately from mine?
Yes. A limited company has its own FSCS limit of £120,000 per banking licence, separate from its directors’ personal limits.
See also: FSCS in 2026: £120,000 for deposits, £85,000 for investments
Can I pay company money into my personal account?
Company money belongs to the company. Pay yourself through salary, dividends or documented director’s loans — check GOV.UK for the rules.
Do all directors need to pass identity checks?
Usually, along with anyone with significant control. Each provider sets its own requirements.
Can two people be required to approve payments?
Some accounts support it. Allica offers two-person authorisation.
Do limited companies get Section 75 on cards?
Usually not. Section 75 often doesn’t apply to business cards, especially for limited companies.
Will I need to give a personal guarantee?
For some borrowing and cards, yes. American Express says new Business Gold cards are backed by a business personal guarantee.
Can a company switch banks?
Yes, using the Current Account Switch Service if eligible — Business.gov.uk says turnover under £6.5 million and fewer than 50 employees.
Compare accounts for limited companies:
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