Am I required by law to open a business bank account?

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Hey there, I own a private limited company in Wales. Every limited company I’ve ever heard of seems to have a business bank account. Is that because it is required by law you need to have one? Ta

Answers

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No, there is no legal requirement to set up a business bank account but I would strongly recommend doing so if your company is actively trading because it will make life a lot easier.

Companies have to prepare annual accounts and tax returns, and you will most likely have to operate PAYE as part of your payroll to pay yourself a director’s salary. By using a business bank account instead of a personal bank account, you will be able to keep track of your company’s income, expenditure and profits more efficiently. This will make your bookkeeping and accounting much quicker and easier.

a year ago
 

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