It is a good idea for most companies to have a business bank account.
As a sole trader, you might want to open a business bank account for a few reasons.
Firstly, your bank may state that a personal account is for personal use only, and may threaten to close your account if there is a large number of transactions relevant to the company.
Secondly, it might be difficult for you to tell HMRC how much money your company has earned if your personal costs are combined with your business costs. Finally, it is possible that having a dedicated bank account would make the organisation look more professional to consumers and partners.
It is important to be aware of the process of opening an account, otherwise, you could spend a lot of time selecting the wrong one for your needs.
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To open a business bank account in the UK, you need to hire a Nominee Director who must be a citizen of the UK.
What documents and information do I need to provide to open a bank account for the business?
The procedure for setting up a bank account in the UK is reasonably easy once you meet the eligibility requirements. While opening your account, make sure you have the following documents to hand out:
ID proof - This will be expected by all appointed company directors. You may use a passport, a national identity card, or a driving license.
An address proof - This could be a bill for electricity or a recent bank statement. Alternatively, utilising a tax declaration from the council.
It will also be appropriate to provide the following details of your business:
Full business address (including postcode)
The registration number (for limited companies and partnerships)
Annual turnover approximate
You would need to prove your own personal financial condition in some situations, with records to demonstrate you have a clean background of credit and banking.