When getting started, the easiest option would be to use your personal banking provider. However, as convenient and simple as it may be, not every bank provides the same benefits for its business customers. There are ways to save yourself money and avoid spending more than you need on services that you won’t use. Remember to constantly consider your options and make sure to compare different banks with factors that matter most to you.
When operating as a limited company you will be required to have a separate business bank account. A business bank account is required so you can get paid. As a limited company it is completely separate from its directors and shareholders. Setting up a separate business account will allow finances to be clearly separated from your own personal finances.
Setting up a business account is quite simple. The main thing you should take into consideration is that there are a number of choices which may affect your decision as to the bank you ultimately decide to go with.
Every bank will offer different deals. You will need to consider different factors which each bank may be offering such as, interest rates, facilities and the level of service that you want from your bank.
There are several types of transactions which will be going through your business bank account. This may include:
Most of the high street banks offer business bank accounts. However, there aren’t any specialist providers specifically designed for contractors. With this in mind you will need to compare those available to find one that suits you. There are many things that you should take into consideration prior to making your decision:
Depending on which bank you choose you may need to consider any charges made by the bank. Some banks don’t charge fees for every day banking so you may not need to worry about any charges. However, many banks do charge for things like debit card use, issuing or paying cheques, transferring money and withdrawing cash.
With money laundering regulations in this country, there are minimum requirements for proving your identity and history when you open a bank account. With this in mind, you will be subject to some checks when you apply to open your business bank account. There will be several documents that you need to prepare such as your certificate of incorporation, copies of your memorandum and articles as well as details of any shareholders you have. The bank will also require proof of identity such as your passport.
Depending on the checks carried out prior to confirm your identity and the identities of others involved with your limited company, it can take between one and four weeks to open a new business bank account.
If you have any questions about setting up your business bank account please get in touch and we will be happy to talk through your options.
Here at Gorilla Accounting we have partnered with Mettle. It is the free business account by NatWest that helps small businesses start, run and grow. It’s built for small businesses, startups, limited companies and sole traders. Customers can apply for an account in minutes and connect to accounting software to help keep track of their books. The account comes with a UK account number and sort code and an in-app chat feature so that customers can speak to real people when they need help. Mettle has partnered with FreeAgent which means customers can seamlessly sync all their business transactions. FreeAgent is an industry-leading accounting software which is available for FREE for all Gorilla customers.
Click on the button below for more information and to apply.
Please note, Mettle is an e-money account provided by Prepay Solutions (PPS), a trading name of Prepay Technologies Ltd which is an electronic money institution authorised by the Financial Conduct Authority (FCA) under the Electronic Money Regulations 2011 (FRN 900010) for the issuing of electronic money. Prepay Technologies Ltd is not a Bank but any deposits with the Mettle account are protected in line with FCA regulations including the requirement to “ring fence” such deposits. Please contact Mettle for more information.
The exact business account solution that you will require will vary based on your own individual circumstances. Whilst Gorilla have partnered with Mettle, such partnership should not be deemed as either confirmation or a recommendation that Mettle is the best option for you. You are recommended to carry out your own research before opening any account including the risks associated. Please note that Gorilla may receive a referral fee should you decide to open a Mettle account.
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