Setting up a Business Bank Account
After establishing your limited company with Companies House, you may also need to apply for a business bank account. Some businesses will not transact with other businesses who do not have a business bank account. Therefore, it maybe necessary for you to set one up. So we thought we’ll help with making it easier for you by informing you of what you need to know and which bank to choose.
Picking the right bank for you comes first before we discuss anything else. There are many UK commercial banks to choose from like HSBC, Barclays, Natwest, etc. Different banks may have different packages available to businesses and for the purpose of this article, I’ll be relating to you the packages offered by HSBC and my experience of setting up a business account with them, since I have done so in the past.
While other banks may differ, HSBC had three packages; Local Branch Banking for those who want to do all their banking in a bank branch; Telephone Banking for those who want to do their banking over the phone; Internet banking for those who wanted to do it all online. Some chargeble services may be cheaper in one package compared to another. Deciding which package to go with will depend on the needs of the business and how it operates.
Now you need to fill out the bank’s application, submit it and then the bank will review it before creating the account. Filling out the form will take some time so do not rush and fill it in accurately otherwise there may be some delays to your application if there are mistakes. After submitting your application, the bank may contact you by phone for further information or clarification so don’t be alarmed. You will also need to visit a local branch to provide proof of your identity and address. After completing all this, the bank will review and let you know the outcome which in most cases is good. For me, it took a few months from start to finish so don’t leave it to the last minute otherwise you may experience unwanted complications with your business.
So that’s everything you need to know about picking a bank and applying for a business bank account.