Are you looking for how to open a business account online in UK? You are at the right place and all you need to do is to read carefully as we proceed. If you run a business in the United Kingdom, you'll need a business bank account. We'll look at where you may open a business bank account online in the UK, as well as the fees and services available.
Online Business Bank Accounts UK
There’s a growing list of online banks that support business accounts offering a variety of features to help your business. For example, Wise offers accounts for ecommerce businesses, Starling Bank offers Euro and USD business accounts in the UK, Revolut gives you access to over 150 currencies and a payment gateway, and Tide pays the incorporation fee on your behalf and give you a free business account.
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Types of Business Entities in the UK
The type of business account you have will be determined in part by the size and scope of your company. In general, there are three sorts of businesses you can start in the United Kingdom. A sole proprietorship is the first option. This is the most fundamental sort of business. It's perfect for people who run very modest businesses.
There are also business partnerships. This occurs when a group of people decides to form a corporation. The revenues of a partnership are shared among the members. A partnership might be a small business or a large corporation.
There is also a limited firm. A limited company is one in which the business owner's liability is passed to the company. The home of a business owner, for example, cannot be auctioned if the firm fails on a debt. The most popular types of enterprises are limited firms.
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Why Open a Business Bank Account?
Sole proprietors do not need a bank account. A personal checking account is a possibility. A limited corporation must have a business bank account. This simplifies your administrative tasks because you can keep your personal and business bank accounts separate. A good bank account also has a number of other benefits. They are as follows:
Organisation. Having a separate bank account makes it easier to keep track of your finances.
For tax purposes. You can make paying taxes easier if you establish a business bank account.
Acceptance of credit and debit cards. You can accept these cards in your business if you have a business bank account.
You exude professionalism. When new individuals see money moving into your business bank account, they will have more faith in you.
We accept checks. A professional bank account, like credit cards, will make it simple for you to accept customer checks.
Financing for businesses. If you have a business account with a bank in the UK, you can acquire a business loan.
Best Banks for Business Account in the UK
The United Kingdom is the world's financial capital. There are around 300 banks in the country. Small banks in small towns and rural areas are among them. Others are some of the world's largest financial institutions. HSBC, Barclays, Lloyds, Royal Bank of Scotland, and Standard Chartered are among the largest banks in the United Kingdom.
There are various types of banks in the United Kingdom. Investment banks deal with large corporations and investors. Goldman Sachs and Morgan Stanley are two examples of such firms. Private banks include Coutts and HSBC Private Bank. These divisions benefit the wealthy. There are retail banks such as HSBC and Barclays.
Online banks, often known as neo banks, are a relatively new sort of bank in the United Kingdom. These are banks or fintechs that operate entirely online, with no physical locations and minimal paperwork. They allow you to open a business account in the United Kingdom online. Some of them will provide you with a free online business bank account in the United Kingdom. Revolut, Monese, Monzo, Starling Bank, and Wise bank, formerly TransferWise, are the largest online banks in the United Kingdom.
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Wise Business Account
In the United Kingdom, Wise Business Account provides a free business account. It's a zero-fee multicurrency business account with business tools and features like the ability to invoice customers, low-cost international money transfers, and QuickBooks and Xero connectivity. Other characteristics Wise Business MasterCard has the ability to receive and hold more than 55 currencies and is linked to numerous currency accounts. You may also pay like a local business and save money on currency conversion by setting up local business accounts details such as Euro and USD in minutes without having an address in those countries.
Is it possible for me to have multiple Wise business accounts? You can have many Wise accounts if you run multiple enterprises. All of your accounts will be available with a single login.
Notable Features
- Wise for e-Commerce Businesses enables you to handle your ecommerce payments and withdraw money from platforms like as eBay, Shopify, Amazon, and Stripe.
- With the real exchange rate, you may pay foreign invoices, vendors, and workers in over 80 countries and 50 different currencies. It is less expensive than traditional institutions and even PayPal.
- Local bank information is available for ten different currencies, including the US, Euro, and Australian dollar.
- After uploading a spreadsheet with details for each transfer, you can make batch payments to up to 1,000 persons in one click.
This will benefit e-commerce businesses. Wise has joined the Amazon payment service provider program, so any company selling on Amazon can now use Wise to receive sales earnings in a variety of currencies. You can also connect your Wise business account to eBay and Stripe.
Wise Business Account Fees
There are no monthly fees with Wise. However, there are fees for certain services, such as:
- Getting local bank details: £16 (one-time fee)
- Card replacement: £3
- ATM withdrawals over £200/month: 2%
- Convert your currency using your card: 0.33%-3.5%
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Monese Business Account
Monese is a British online bank that allows you to open a business account even if your company is registered outside of the European Economic Area.
You will be given a business account number and sort code that will allow you to send, receive, hold, and spend money in other countries. When you open a Monese business account, you can deposit up to 50,000 GBP. After three months, you can apply for a higher plan with a $100,000 maximum limit.
Can I have many Monese company accounts? You can have both a personal and a business account, which you can manage via the Monese app. Your Monese app allows you to track your spending and receive notifications for both accounts.
Notable Features
- You can use the Monese app to send electronic invoices to customers and add invoice details like products and services, due date, and reference name.
- You can send and receive payments like a local using the UK Faster Money network.
- You can get a Monese debit MasterCard for your company.
- Deposits into your Monese business account are accepted at Post Offices and PayPoints.
- Link your Monese account to PayPal to keep track of your PayPal balance and transactions.
Through its relationship with Iwoca, Monese offers business financing. To be eligible for the loan, your company must have a minimum turnover of 10,000 GBP and be registered in the UK for the previous three months.
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Monese Business Account Fees
- Business account: £9.95 monthly
- Overseas ATM fee: £4
- Cash deposits at PayPoints: 2.5% with a minimum fee of £1
- ATM withdrawals after 6 free withdrawals: £1/withdrawal
Monzo Business Account
Monzo provides free business accounts to help UK small businesses manage their finances. It is one of the greatest small business accounts in the United Kingdom. If you're a lone trader or a limited company by shares (Ltd) based in the UK and a tax resident in the UK, you can apply for a business bank account. The account comes with free, quick UK bank transfers, a Monzo business debit card, fee-free international spending, and £85,000 in FSCS insurance.
Can I have multiple Monzo business accounts? You can only have one Monzo business account at this time.
Notable Features
- Payment links – a way for businesses to request payment with Monzo Business. Customers can pay from the same link.
- Monzo Pots is a savings feature that allow you to separate money from business account balance. The money can be for savings or tax.
- You can integrate your account with Xero, FreeAgent, QuickBooks or export your transactions to another accounting tool.
- You can let customers pay by cards, Apple Pay or Google Pay.
Monzo Business Account Fees
- Business Lite account: Free
- Monzo Business Pro account: £5 monthly
- Cash deposits at PayPoint: £1
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Tide Business Account
Tide is a new business finance platform that has quickly established itself as the leading provider of digital business banking services in the United Kingdom. The bank's main advantages are free card payments, free transfers between tide accounts, free replacement cards, and a £1 ATM withdrawal fee. It does not impose a monthly maintenance fee on freelancers.
Is it possible for me to have many Tide business accounts? Registered firms can open up to four current accounts, each with its own account number. You may also connect up to five businesses to the same Tide app and switch between them.
Notable Features
- At the same time, you can form a limited company and open a business account. Tide pays your incorporation charge and provides you with a free business account.
- You can connect your account to accounting software like as Xero, QuickBooks, Sage, and others.
- You can examine and download transactions by inviting business partners, coworkers, or your accountant.
- Free business MasterCard with no fees or commissions to use in the UK and overseas.
Tide Business Account Fees
Tide offers three plans with the following charges:
- Free Plan: £0.00 monthly
- Plus Plan: £9.99 +VAT monthly
- Cashback Plan: £49.99 +VAT monthly
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Revolut Business Account
The multicurrency business account from Revolut allows you to hold and spend money in 28 different currencies. Despite having an EU banking license, Revolut serves business customers as an e-money institution. Its main advantages are that it simplifies bookkeeping and automates operations by integrating with popular programs like as Slack, Dropbox, and Xero. It also provides you with business debit cards. This account, like the others we've described, is aimed for small and medium-sized businesses.
Can I have multiple Revolut business accounts? The web app's multi-business account feature allows you to manage numerous Revolut business accounts.
Notable Features
- The Revolut multicurrency account allows your business access to over 150 currencies as well as local bank data, including US and EUR.
- Your business can accept payments directly from your website using the Revolut Payment Gateway.
- Accounting software like Xero, QuickBooks, and Sage, as well as productivity apps like Zapier and Slack, can be integrated into your business account.
- The bulk payment tool allows your company to send several payments to suppliers, vendors, employees, and others in an efficient and convenient manner.
Revolut Business Account Fees
Revolut charges a range of fees for freelancers and business accounts, ranging from £0 to £100.
- Revolut Freelancers Account: Free (£0), Pro(£ 7), Ultimate(£25)
- Revolut Corporate Account: Free (£0), Grow(£25), Scale (£100), Enterprise (Custom Pricing)
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Starling Bank Business Account
For solo proprietors, freelancers, startups, partnerships, and limited liability corporations, Starling Bank offers free business accounts. The account includes an overdraft, a Euro business account, a USD business account, and a business toolkit that includes HMRC tax calculations, VAT forms, and more. The FSCS protects your money up to £85,000 in a fully regulated UK business bank account called Starling.
Is it possible for me to have many Starling business accounts? You can open as many business accounts as you want, as long as they are all for different businesses. You cannot open a second business account for the same company.
Notable Features
Starling Bank Business Account Fees
There are no account opening or monthly maintenance fees at Starling Bank.
- USD business bank account in UK: £5/month
- Euro business bank account in UK: £2/month
- Business toolkit: £7/month
- Business payments: £10/month
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Video Guide: Open Business Account Online UK
Conclusion on How to Open Business Account Online In UK
If you are a freelancer or have a registered business in the UK, whether it is a sole proprietorship, startup, partnership, or limited company, you can open a business bank account online with the UK banks we reviewed here. It's worth noting that many of the banks on this list offer free business bank accounts. A business bank account will make it much easier to manage your company's money, file taxes, and apply for business funding.