Business Bank Account for Startups UK: Best Options for New Companies

Key facts: business bank accounts for startups

• No UK business bank account provider requires a minimum trading period for a standard current account - accounts can be opened on the day of incorporation
• Starling Business, Monzo Business, and Tide activate startup accounts within minutes using automated Companies House API verification
• NatWest explicitly welcomes startup applications and offers an 18-month free period - the longest among CMA9 banks
• A limited company must be registered at Companies House before a business account can be opened in the company name - registration takes 24 hours and costs £50
• Startup accounts opened at digital-first providers can be switched to a CMA9 bank later using CASS if lending facilities become needed

Business bank account for startups: what to look for

A startup business bank account needs to be: fast to open (so trading can begin immediately); free or low-cost (to preserve startup capital); connected to accounting software (for MTD compliance and investor-ready bookkeeping); and capable of receiving and making payments immediately on activation.

The secondary requirements that become relevant as the startup grows include: overdraft or credit facilities (not available at digital-first providers); multi-user access for co-founders and finance teams (available at Starling, Monzo Pro, and CMA9 banks); and integration with payment gateways including Stripe and GoCardless (supported by all major providers via standard bank account details).

For most startups in the first 12 to 18 months, a free digital-first account provides everything required. For startups that have secured investment and need to demonstrate a CMA9 banking relationship to investors or grant bodies, a NatWest or Lloyds account may be preferable despite the monthly fee after the free period.

Business bank account for startups: provider comparison

Source: CMA Open Data API and provider published rates, 09 Jun 2026. No minimum trading period required at any provider listed. Source: CMA Open Data API, 09 Jun 2026.

How to open a business bank account for a startup limited company

A startup limited company can open a business bank account on the day of incorporation. Companies House registration takes 24 hours online and costs £50. Once the certificate of incorporation and 8-digit company registration number are issued, the account application can begin.

For digital-first providers, the process is: download the app (Starling or Monzo), start the business account application, enter the company registration number (the provider pulls company details from the Companies House API automatically), complete identity verification for all directors using in-app photo ID and selfie, and wait for approval - typically minutes for single-director companies. The account is operational immediately on approval.

For CMA9 banks, the process is similar but takes 3 to 7 business days due to additional manual review steps. NatWest has a dedicated startup account opening pathway that streamlines the process for new companies. The 18-month free period at NatWest represents significant cost saving over the startup phase relative to other CMA9 banks with 12-month free periods.

Pre-revenue startup: does a bank account require turnover

No. All major UK business bank account providers open accounts for pre-revenue startups with no trading history and no minimum turnover. The account opening decision is based on identity verification and anti-money laundering checks, not on the financial performance of the business.

A startup that has incorporated today, has no clients, no revenue, and no filed accounts can open a business bank account at Starling, Monzo, Tide, Mettle, or any CMA9 bank today. There is no requirement to demonstrate prior trading activity, a business plan, projected revenue, or any financial track record. This applies equally to sole traders registering for Self Assessment before their first invoice.

Startup business bank account and investor requirements

Some investors, particularly angel investors and early-stage VCs, expect startups to have a dedicated business bank account separate from the founders' personal accounts before or at the point of investment. The account is typically used to receive the investment proceeds, hold working capital, and provide a clear financial record for the company.

Investors rarely specify which bank the startup must use, but some grant bodies and public funding programmes specify that funds must be received into an account at a recognised bank. A Starling or Monzo account is a recognised bank account for these purposes - both are FCA-authorised banks. E-money accounts (Tide, Revolut) may be less suitable for receiving investment proceeds where the grant or investment terms specify a bank account specifically.

For startups going through accelerators or applying for Innovate UK grants, checking the specific banking requirements in the grant or accelerator terms before opening an account is advisable. Most will accept any FCA-authorised bank account.

Startup sole trader account versus limited company account

Sole traders are not legally required to have a business bank account - HMRC does not mandate separation of personal and business finances for sole traders. However, keeping business and personal finances separate is strongly advisable for accurate Self Assessment record-keeping, MTD compliance, and professional presentation to clients and suppliers.

A sole trader can open a business account without incorporating a limited company. The application uses personal identity documents (passport or driving licence), proof of address, and an HMRC Unique Taxpayer Reference. There is no Companies House registration number as there is no limited company. Starling, Monzo, Tide, and Mettle all support sole trader business accounts with the same features as their limited company accounts.

Limited companies are legally required to have a business bank account separate from the directors' personal accounts. Company funds must not be mixed with personal funds. Opening a dedicated company account on the day of incorporation ensures clean financial records from the start, simplifying the first set of statutory accounts and the first corporation tax return.

Startup business account: what documents you need

To open a business bank account for a startup limited company, the following documents are typically required: the Companies House certificate of incorporation (issued automatically when the company is registered); the 8-digit company registration number; valid photo ID (passport or UK driving licence) for every director; proof of address dated within 3 months for every director; and a description of the business activity and estimated annual turnover.

For a startup with a single director, digital-first providers complete the verification automatically using the Companies House API - the director only needs to provide their ID and complete a facial verification selfie in the app. No physical document submission or branch visit is required. CMA9 banks may request document uploads to their online portal and conduct a manual review, extending the process to 3 to 7 business days.

Startup business account and corporation tax

A limited company startup is liable for corporation tax on its profits from the date of incorporation. The company must register for corporation tax with HMRC within 3 months of starting to trade. Having a business bank account from day one means all income and expenditure flows through a single account from the start, simplifying the first corporation tax return and providing a clear audit trail for HMRC if required.

For startups expecting VAT-taxable turnover above the £90,000 VAT registration threshold (as at 09 Jun 2026), VAT registration and a VAT direct debit to HMRC must be set up. The VAT direct debit authorises HMRC to collect VAT payments directly from the business bank account on the due date. This requires a business account with a valid direct debit capability - all the accounts in the comparison table above support HMRC VAT direct debits.

British Business Bank and startup financing

The British Business Bank (BBB) supports startup financing through several programmes. The Start Up Loans programme provides government-backed personal loans of up to £25,000 per director at a 6% fixed interest rate for 1 to 5 years. Funds are paid directly into the business bank account on approval. The BBB also backs Innovate UK SMART grants and Enterprise Finance Guarantee loans through accredited lenders.

Most BBB-backed funding requires the startup to have a dedicated business bank account separate from personal accounts. For Start Up Loans, the loan proceeds must be paid into an account solely for business use - a personal account is not acceptable. An FCA-authorised bank account satisfies this requirement. All the accounts in the comparison table above are suitable for receiving BBB-backed funding.

Frequently asked questions

What is the best business bank account for a startup?

Starling Business and Monzo Business are the most suitable startup accounts for most new businesses: both accept day-one startups with no trading history, open within minutes, are permanently free, and are FSCS-protected FCA banks. Mettle (NatWest) is also permanently free and includes FreeAgent accounting software. NatWest is the strongest CMA9 option for startups with its explicit startup welcome and 18-month free period.

Can I open a business bank account before my startup has any revenue?

Yes. No UK business bank account provider requires any minimum turnover, trading history, or revenue before approving a standard business current account. The account can be opened on the day of incorporation, before the first client, and before the first invoice. The opening decision is based on identity verification and AML checks only.

Do I need a business bank account as a sole trader startup?

HMRC does not legally require sole traders to have a separate business bank account. However, keeping business and personal finances separate is strongly advisable for accurate Self Assessment record-keeping and MTD ITSA compliance from April 2026. Several providers offer permanently free sole trader business accounts with no minimum balance or minimum trading period.

How long does it take to open a startup business bank account?

Digital-first providers activate startup accounts within minutes to hours. Starling and Monzo use automated Companies House API verification for limited companies. CMA9 banks take 3 to 7 business days. The Companies House registration itself takes 24 hours and must be completed before a limited company account can be opened.

Can a startup get an overdraft with a business bank account?

Digital-first accounts (Starling, Monzo, Tide) do not offer overdraft facilities for new business accounts. CMA9 banks including NatWest, Lloyds, and HSBC offer overdraft facilities for qualifying businesses, typically requiring a trading history and satisfactory credit assessment. Pre-revenue startups are unlikely to qualify for an overdraft at any provider. Startup financing alternatives include Innovate UK grants, SEIS/EIS investment, and startup loans from the British Business Bank.