Setting up a business bank account is the basic necessity for your business, right from the start. Although it’ll be a bit difficult to manage it along with your personal account, however, it will keep your business legally safe and protected. Keeping a separate account for your business will not only help you to keep track of your business’s finances but will also enhance the professionalism, credit opportunities, and purchasing power of your business.
Let’s start by understanding the business bank accounts to open a business bank account online.
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Understanding Business Bank Account:
A Business bank account is somehow similar to your personal account and it’s available for all types of businesses. If you are going to own a limited company, you’re legally bound to open one. Though as a self-employed, you can maintain your business transactions separate from your personal account.
Key Takeaway: With a business bank account you get a business credit card and can avail government schemes for business loans like bounce back loan schemes and other government schemes. Nowadays these schemes are for the businesses affected by Covid-19.
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Documents required to Open Business Account Online:
The documents required to open a business account online may vary from bank to bank. As every bank has its own procedure to validate its customers. But generally, you’d be required to submit the following:
- Documents showing identification details
- Documents that prove your UK address
- Documents for your company address
- A registration document from companies house
- Registration form of the business
How to Open Business Account Online?
Online banking service provides you the opportunity to manage your finances using a computer, tablet, or smartphone round the clock.
To set up a business bank account online, you need to visit the websites of various banks and sign up to their online banking portal to avail of online banking services. It is recommended to compare different banks to find out their banking charges, interest rates, and other details as per your banking needs. Therefore, the more information you get about banks, the better your choice will be.
Most banks will require a meeting in person to open your account and to provide you access to online banking services. Then, you need to provide all the required documents and photographs to your respective bank. You should remember that the bank will conduct a one-to-one meeting (at least once) with your business’s representative in the UK to sign the bank mandate for opening your business account.
If you are opening a business account for your limited company, the bank will need the details about your company’s directors and shareholders. In case, if your shareholders or directors are overseas, you should mention this to your bank before opening the account.
After opening your bank account, you can use the local bank branch and online banking services for your banking needs.
Key Takeaway: Many banks allow you to integrate your accounting software (Quick books, Free Agent, Xero) online with them to avoid uploading transactions manually. This software will automatically record your banking transactions online for accounting purposes.
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Quick Wrap up:
You can easily open a business account online after selecting your bank. Simply visit the branch where you want to open your account. Provide the relevant documents. And that’s it you are done. Normally, it’ll take around three weeks to three months to open a business bank account but it may vary from bank to bank.
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Disclaimer: This blog provides general information on setting up an online business account.