Muloot Explains: How to open a business bank account?

If you’re setting up a limited company in the UK, it’s a requirement to maintain separate financial records and transactions. One key way of doing this is to have a separate business bank account. With it, you can send and receive money internationally, schedule regular payments, and in most cases, link up your accounting software for easy money management.

While opening a business account is commonplace, the process to do so can be stringent and lengthy — especially for non-standard businesses. Companies must meet regulatory requirements and undergo background checks to prove the legitimacy of operations and the individuals involved.

To get operations up and running, it’s in your best interests to open a business account quickly and efficiently. In this segment of Muloot Explains, we’re going to run through the process of opening a business bank account in the UK.

Choosing the best business bank account

Most financial providers out there offer corporate bank accounts. So how do you know which one is right for your company? Each provider will offer a range of standard features, and often a handful of unique services too. It’s wise to ask yourself a few key questions when beginning your search to understand what you need from your business bank account and how you’ll use it. These questions could include:

• Do you need to send and receive payments from abroad?
• Do you want online banking or is human customer service a priority?
• Do you need additional FX services?
• Do you need to access overdrafts or take out loans?
• Do you meet the eligibility criteria of your preferred provider?
• Do they charge fees/what are the interest rates?

Doing your research will save you time and prevent you from needing to switch accounts in the future.

How to open a business account

Once you’ve found your preferred provider and established you meet the eligibility criteria, you can begin the application process, which typically includes the following steps.

1. Submit your application

You'll be asked to provide personal identification information (PII) when completing your application, so make sure to have these items to hand:

• Proof of ID (a passport or driving licence)
• Proof of address (as a UK resident)
• Proof of residency (if you’re from outside the EU)

You’ll also need the name of your company and tax number, as well as the PII of the individuals in your business, and some of your key financials.

2. Credit and fraud checks

Once you’ve submitted your application, banks carry out credit and fraud checks to understand the legitimacy of your business, most notably Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. The bank will also need to understand why and how you intend to use the account, whereby they’ll review the complexities of your business and the risks involved.

3. Getting onboarded and set up

If your account application has been accepted, you’ll receive your account details and debit card. To get started, set up online banking and log into your account. From there, you can add money to your account and begin using the features.

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

Banks have the right to approve or refuse your application for a business bank account. This could be because you failed the AML and KYC checks, or for the bank's own preferences. How long it takes to open a business bank account can vary from days to months, depending on the complexity of your company structure or other delays out of your control.

Opening a business account with Muloot

Opening a business account with Muloot is simple and can be done in 7 easy steps. Make sure you have all the relevant information ready to be inputted in your application so the process goes as smoothly as possible.

1. Start your application by selecting whether you’re opening a personal or business account.
2. Next, you’ll be given an overview of our features and fees.
3. You’ll then be asked to confirm your eligibility for a Muloot account.
4. Input some basic details to create a user account to access Muloot Money securely.
5. Then add your personal, citizenship and residence details.
6. Followed by details of the business you represent.
7. And finally how you plan to use your Muloot Money account.

Our financial experts will personally review your application, meaning we’re equipped to make complex judgement calls regarding account applications from non-standard businesses, which might have been refused elsewhere.

Contact us to find out more about joining Muloot.

Want to find out more about Muloot? Get in touch with our dedicated customer service team, or register for an account.