For many business owners, a business bank account is a fundamental part of their company’s operation. Apart from being a legal requirement for limited companies, business bank accounts are essential in facilitating business transactions by enabling companies to make deposits, receive payments, pay wages and do much more. A business bank account does not only increase the credibility of your business but it also paves the way for future financing opportunities such as overdraft facilities and loan requests.
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Find a financial institution that will provide an account most suited to your business needs. Most high street banks and building societies offer dedicated business banking services for customers with a certain amount of annual turnover. Others provide free practical advice on improving your business performance and increasing revenue potential. Essentially, it will be practical to look for extra features such as free business banking, business debit card, business support and guidance, Internet and telephone banking, and other benefits that may be useful for your company.
Apply online and provide details of your company. Once you have found a suitable business bank account provider, visit its website and read though the application notes. You will need to have your contact details and those of your business partners. If you prefer to apply in person or by telephone, contact the bank’s nearest branch or its business banking department.
Provide documentary evidence to support your application. Once your application has been received, you will need to provide evidence to prove your eligibility for a business bank account. If you made an online application, the bank’s nearest branch will usually contact you to arrange a suitable appointment time to discuss your application in person. You will most likely be required to provide your current business plan, which will prove the feasibility of your business, along with your VAT registration certificate and a Certificate of Incorporation if you are a limited company.
Provide proof of identity and give evidence of residency. Banks are required to conduct identity checks under money-laundering laws as part of the application process, so along with your business details, you and everyone else involved in the running of the business will be required to provide your personal details and prove your identities. You will generally be asked to provide your current passport or driving licence and recent utility bills as proof of your current residential address. If you already hold a personal bank account with your chosen bank, you will not normally need to provide this evidence.
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