Do you require business accounts for opening a company in the UK?

All Businesses and Companies operating in the United Kingdom register with the Companies House. Due to that, they have to follow certain protocols and formalities that allow them to operate as a legally functional company. People often are not aware of all these procedures. One common confusion and question is, “Do you require business accounts to open a company in the UK?”.

Well, the answer to this question depends upon the type of company that you plan to operate.

Interestingly, two possibilities exist in these circumstances.

Sole Traders:

Sole Traders mean that you are self-employed and are operating the business independently. Resultantly, you manage all the business operations, resulting in a very simple structure of your business. For Sole Traders, the United Kingdom law does not require you to own business accounts. This means that you can use your own personal accounts to make transactions for your company operating as a sole trader. However, the receipts and statements of transactions are important. Therefore, it is better to keep a safe record of them.

Limited and Public Companies:

For companies other than sole traders, whether public or private, a registered Business account is compulsory. During the registration process, you submit the official accounts of companies. Companies House officially registers these banking details as they become a part of your company’s identity in the Companies House Database. Eventually, these help file annual accounts and statements with Companies House and HMRC.

For this purpose, a separate business account is necessary for all forms of companies other than Sole Traders.

Can you use Personal accounts for Limited Companies?

No, you cannot use your personal accounts for the operations of limited companies. Instead, business accounts are a necessary requirement, while these business accounts should not be used for any transactions except those concerning the company.

How to open Business Accounts?

Opening a business account can take time and follows a specific procedure. However, Company Formation agents can help you in this regard. They are aware of the Company Registration requirements, as well. Thus, they know what’s best for your company and can suggest accordingly. They can also accelerate the entire procedure of opening a business bank account and registering a company.

Liscard Business Centre

Liscard Business Centre is a company formation service that offers different packages for company formation in the UK. If you want to register your businesses anywhere in the UK (that includes England, Scotland, Wales, and Northern Ireland), Liscard Business Centre would be pleased to help. We can help you in forming your companies in much shorter periods of time while also saving you considerable sums of money.

Registration, Documents Verification, Banking Details, Statements of Association, and Official Addresses are all managed by Liscard Business Centre.

Contact now!