Does a limited company need a separate business bank account?

Why keeping money separate matters

• Legal separation — company money is company property. Mixing it with your own can blur the line and lead to director's loan account issues.
• Bookkeeping — a clean account makes records accurate and much quicker to prepare.
• Tax — HMRC expects clear records; mixed accounts make returns harder to support.
• Dividends — you need reliable figures to know whether there are enough profits.
• Credibility — customers expect to pay the company, not an individual.

What do banks usually ask for?

Each bank sets its own requirements, but you can usually expect to provide:

• The company name and registration number
• Details and identity checks for directors and significant shareholders
• The registered office address and, often, a trading address
• Directors' home addresses
• A description of what the business does and expected turnover

Banks may ask more questions for some sectors or if directors live outside the UK. Approval is always the bank's decision.

Can I use a registered office service address with my bank?

You can usually give a registered office service address as the company's registered office on an application, but the bank will normally also want the directors' residential addresses and may ask where the business actually operates. Policies vary, so check with the bank. Our guide can I use a registered office address for my bank? covers this in more detail.

Bank statements and cards are usually trading correspondence. Our registered office service handles official post only, so ask your bank to send correspondence to an address where you receive general post.

When should I open the account?

As soon as possible after incorporation — ideally before the company starts trading — so every transaction runs through it from day one. If you paid any set-up costs personally before the account was open, record them so the company can reimburse you.

Good habits from day one

• Pay all business income into the company account.
• Pay business costs from it, not from personal cards.
• Pay yourself only through salary, declared dividends or recorded expenses and loans.
• Connect it to your bookkeeping software.

See what records to keep and how a director can pay themselves.

In short

In practice, a limited company should have its own bank account. The company is a separate legal entity, so its money is not the director's money, and an account in the company's name keeps company and personal finances separate. That makes bookkeeping, tax returns and dividend decisions much easier, and avoids director's loan account problems. No single law requires a business account, but many personal account terms do not allow business use. Banks set their own requirements and usually check the identity and home addresses of directors and significant shareholders. You can generally give a registered office service address as the registered office, but bank policies vary. Open the account soon after incorporation.

Frequently asked questions

Can I use my personal account for the company?

It is strongly discouraged. Company money belongs to the company, and mixing accounts makes records unreliable and may breach your bank's terms.

Will the bank accept my registered office address?

Usually as the registered office, but banks also ask for directors' home addresses and may ask about trading premises. Each bank decides.

Sources and official guidance

• GOV.UK: Running a limited company
• GOV.UK: Company and accounting records
• GOV.UK: Taking money out of a limited company
• GOV.UK: Registered office address

This guide is general information about UK rules as at 3 October 2026. It is not legal, tax or financial advice.