Best Business Account for Limited Company UK 2026

Running your business finances through a personal current account is not just bad practice when you operate as a limited company; it is actively dangerous. A limited company is a separate legal entity under UK law. Mix the company's money with your own and you create VAT record-keeping problems, muddle your annual accounts, and risk eroding the liability protection that makes the limited company structure worth having in the first place.

UK business banking options have improved considerably. Starling, Monzo, and Mettle offer full-featured accounts with no monthly fee. Allica pays a competitive interest rate on balances that would otherwise sit idle. WorldFirst and Wise cover multi-currency without a monthly charge. Revolut received a full UK banking licence in March 2026, bringing FSCS protection to its business accounts for the first time.

Below you will find seven options rated specifically for limited companies. Each section covers fees, FSCS status, accounting integrations, and eligibility, the details that matter when you are running a company, not just a side project.

Starling Bank Business Account

Starling earns the top spot for most UK limited companies. No monthly fee, no charge per UK Faster Payment, no ATM fee at UK cash machines, and FSCS protection up to £85,000 from a full banking licence. Very few accounts hit all four of those marks at zero cost.

Make 10 transfers a month or 200 and the cost is identical: zero. Tide caps free transfers at five per month on its standard plan before a 20p per-transfer charge kicks in. Most traditional banks charge per transaction even on paid plans. Starling does not restrict volume at any tier.

What you get

• No monthly account fee and no charge per UK Faster Payment
• FSCS protection to £85,000 (full UK banking licence)
• Free ATM withdrawals in the UK
• Spaces feature for ring-fencing VAT, PAYE, and Corporation Tax
• Xero, QuickBooks, and FreeAgent integrations at no extra cost
• Apple Pay, Google Pay, iOS and Android apps
• Overdraft on application (for companies trading 24 months or more)

Starling for limited companies

Starling accepts sole-director limited companies, multi-director limited companies, and LLPs. The application is completed online and typically takes a few hours, sometimes less. You will need your Companies House registration number, proof of identity for each director, and your business address.

Cash deposits are handled via the Post Office, and the Post Office charges a handling fee (not Starling), but that is standard across digital-first banks. If your business regularly handles cash, you should factor in that cost.

Best for: Limited companies of any size looking for a zero-cost, FSCS-protected account with strong accounting integrations and no restrictions on transfer volume.

Watch out for: No built-in invoicing. Cash deposits via Post Office carry third-party handling fees. Overdrafts require 24 months of trading history.

Allica Bank Business Rewards Account

Most limited companies collect VAT from clients and hold it for up to a quarter before paying HMRC. Add PAYE reserves and a Corporation Tax provision, and it is routine for a small Ltd company to carry £20,000 to £50,000 in tax funds that could be earning interest. Allica is the account built for exactly that pattern.

The integrated savings pot pays up to 4.33% AER (variable). On £30,000 in reserves, that comes to roughly £1,300 per year in interest. That money would otherwise earn nothing in a standard business current account.

What you get

• No monthly fee (£25/month if average balance falls below £10,000)
• Up to 4.33% AER on integrated savings pot
• FSCS protection to £85,000
• Dedicated UK relationship manager
• Apple Pay and iOS app
• CASS (Current Account Switching Service) available

Allica for limited companies

Allica is designed for established SMEs, not early-stage startups. If your average monthly balance is likely to stay above £10,000, the account is effectively free and the interest rate makes it the most rewarding current account on this list.

The account requires switching via CASS and maintaining at least 15 monthly transfers to access the headline interest rate. For an active limited company, those conditions are straightforward to meet.

Best for: Established limited companies with cash reserves of £10,000 or more that want to earn a competitive interest rate on tax reserves and working capital.

Watch out for: £25/month charge if the average balance drops below £10,000. Best suited to established businesses rather than early-stage companies. Android app not yet available.

WorldFirst World Account

WorldFirst is a strong option for limited companies that trade internationally, exporting to European or US clients, importing goods from overseas suppliers, or paying contractors in foreign currencies. The World Account lets you hold and receive payments in over 70 currencies from a single account.

There is no monthly fee. Currency exchange uses competitive rates close to the mid-market rate, which compares favourably to the margins most high street banks apply to international transfers.

What you get

• No monthly fee
• Local currency accounts in 70+ currencies
• Competitive FX rates for international transfers
• Designed for importers, exporters, and e-commerce businesses
• Receive overseas payments directly to local currency accounts

WorldFirst for limited companies

WorldFirst is not a full UK bank. It operates as a payment institution, which means deposits are not covered by FSCS. Funds are safeguarded in accordance with FCA regulations, but this is not the same as the government-backed compensation scheme. If your company holds large sterling balances domestically, you may want to pair WorldFirst with an FSCS-protected account for those reserves.

For the international payments use case, WorldFirst competes directly with Wise and consistently offers competitive pricing on high-volume currency transactions.

Best for: Limited companies with significant overseas revenue or costs that need multi-currency accounts without a monthly fee.

Watch out for: Not FSCS-protected. Less suitable as a primary domestic UK account for companies with minimal international activity.

Mettle Business Account

Mettle is NatWest's digital banking offshoot. The headline feature is a free FreeAgent subscription bundled into the account. FreeAgent normally costs £228 per year for a limited company plan. Switching to Mettle turns that fixed cost to zero.

For a freelancer or small limited company that already uses FreeAgent for VAT returns, payroll, and self-assessment, Mettle effectively pays for itself before any banking features are considered.

What you get

• No monthly fee (optional Mettle+ at £4/month for auto-invoicing)
• FreeAgent accountancy subscription included free
• Xero and QuickBooks integrations also available
• NatWest-group backing
• Apple Pay, Google Pay, iOS and Android apps

Mettle for limited companies

There is an important eligibility restriction: Mettle is open to sole traders and single-director limited companies only. If your limited company has two or more directors, Mettle is not available to you.

Mettle operates as an e-money institution rather than a bank. That means deposits are safeguarded separately from NatWest's own assets in line with FCA requirements, but they are not covered by the FSCS compensation scheme.

There is also no cash deposit facility. If your company takes any cash payments, Mettle is not suitable as your primary account.

Best for: Single-director limited companies that use FreeAgent. The free accountancy subscription delivers more value than any other perk on this list for the right user profile.

Watch out for: Single-director limited companies only. Not FSCS-protected (e-money safeguarded). No cash deposits. Not suitable for high-cash-volume businesses.

Revolut Business Account

Revolut received a full UK banking licence in March 2026. That matters because it makes Revolut's Business accounts FSCS-protected for the first time, with deposits are now covered up to £85,000, bringing Revolut into the same protection tier as Starling and Monzo.

The Business Basic plan costs £10 per month. That is the lowest entry point on Revolut's business tier, and it already includes multi-currency accounts, virtual cards, spend controls, and up to five team members. Paid plans also offer multi-user access with configurable permissions, a feature most free accounts do not support.

What you get

• Basic: £10/month; Grow: £30/month; Scale: £90/month; Enterprise on request
• FSCS protection to £85,000 (full banking licence since March 2026)
• Virtual cards for online subscriptions and team spending
• Multi-user access and spend controls
• Xero, QuickBooks, Sage, and FreeAgent integrations
• Apple Pay, Google Pay, iOS and Android apps

Revolut for limited companies

Revolut accepts limited companies, LLPs, and PLCs. Multi-director companies are fully supported, and each director can be given individual access with role-based permissions. For limited companies that have employees or multiple directors managing spending, Revolut's permission controls are more granular than most alternatives.

The monthly fee makes Revolut a poorer choice for a newly formed single-person limited company with minimal transactions. But for a company with three or more employees making regular international payments and needing team spend management, the cost is easy to justify.

Best for: Growing limited companies that need multi-user access, multi-currency accounts, and spend controls. Strong pick for tech companies, agencies, and businesses with international suppliers.

Watch out for: Monthly fee starts at £10. International transfers above £15,000/month on the Grow plan incur FX margins above the interbank rate. Cash deposits not available.

Wise Business Account

Wise is built around multi-currency and international payments. The Business account has no monthly fee and lets you hold balances in over 40 currencies. The debit card earns 0.5% cashback on spending, which is unusual for a business account with no monthly charge.

For limited companies with international contractors, overseas suppliers, or clients paying in foreign currencies, Wise offers mid-market FX rates with transparent per-transfer fees, consistently cheaper than high street banks and competitive with WorldFirst on most corridors.

What you get

• No monthly fee (one-off £50 for Advanced features)
• 0.5% cashback on card spending
• Hold and send payments in 40+ currencies at mid-market rates
• Xero, QuickBooks, and FreeAgent integrations
• Apple Pay, Google Pay, iOS and Android apps
• Batch payment uploads for paying multiple suppliers at once

Wise for limited companies

Wise operates as an e-money institution (Wise Payments Ltd) rather than a bank. Deposits are safeguarded under FCA rules, but they are not covered by FSCS. For limited companies holding large tax reserves in sterling, this is worth considering. Pairing Wise with an FSCS-protected account for domestic sterling balances is a common setup for internationally active companies.

Wise accepts limited companies across all director configurations. The online application is straightforward and fast. There is no credit check for the standard account.

Best for: Limited companies with regular international payments or overseas contractors who want competitive FX rates and no monthly fee.

Watch out for: Not FSCS-protected (e-money safeguarded). The Advanced features one-off fee of £50 covers bulk payment uploads and additional user access. Less suitable for cash-heavy businesses.

Monzo Business Account

Monzo's Business Lite account is free, FSCS-protected, and takes most applicants from application to a working account within hours. It does not restrict transfer volumes. For a newly formed limited company that wants a quick, reliable, fully protected account with no monthly cost, Monzo competes directly with Starling.

The paid Business Pro plan at £9 per month adds expense tracking, accounting integrations, and virtual cards. For a one or two-person limited company that handles its own bookkeeping, the free Lite plan often covers everything needed.

What you get

• Lite plan: free; Pro: £9/month; Team: £25/month
• FSCS protection to £85,000 (full UK banking licence)
• Free UK Faster Payments with no volume cap
• 24/7 in-app support
• Pots for separating VAT and tax funds
• Apple Pay, Google Pay, iOS and Android apps

Monzo for limited companies

Monzo accepts sole-director and multi-director limited companies. The Companies House registration number is required during the application. Approval for the Lite plan typically happens the same day.

Accounting integrations (Xero, QuickBooks, FreeAgent) require the Business Pro plan at £9 per month. If accounting integration is a priority, Starling offers it at zero cost on the free plan, making Starling the stronger choice for integration-focused users. Monzo's advantage over Starling is its 24/7 in-app support and slightly faster typical approval time.

Best for: Newly formed or early-stage limited companies that want a free, FSCS-protected account that is quick to open and easy to use.

Watch out for: Accounting integrations are locked behind the paid Pro plan (£9/month). Cash deposits not supported. No overdraft on the Lite plan.

What About Traditional Banks?

Barclays, HSBC, Lloyds, and NatWest remain relevant for certain limited company profiles. Traditional banks offer overdraft facilities, relationship managers, branch access, and cheque handling, all of which digital-first accounts either cannot provide or restrict to higher-tier paid plans.

The tradeoffs are significant. Applications take three to ten working days, compared to hours for digital accounts. Monthly fees apply from the outset or after a short introductory period. Technology integrations with accounting software are weaker. For a limited company that mainly transacts electronically and values speed and zero cost, the digital options above are consistently better.

Where traditional banks make more sense: property companies that handle high-value cash flows, businesses that regularly deposit cash at branch, companies needing a substantial unsecured overdraft from day one, or directors whose personal banking relationship with a specific bank provides preferential business account terms.

FSCS Protection vs E-Money Safeguarding

For personal accounts, this distinction rarely matters. Ltd companies are different. VAT collected from clients, PAYE withheld from payroll, and Corporation Tax provisions can sit in the business account for weeks or months before being paid to HMRC. Holding £30,000 in a safeguarded account is a different risk profile from holding £3,000.

FSCS-protected accounts

Starling, Monzo, Revolut (since March 2026), and Allica all hold full UK banking licences. If the bank becomes insolvent, the Financial Services Compensation Scheme pays back deposits up to £85,000. This is a government-backed guarantee. For a company holding £40,000 in tax reserves, this protection is meaningful.

E-money safeguarded accounts

Wise, Mettle, and WorldFirst operate as e-money institutions or payment institutions. They are required by FCA rules to keep client funds separated from their own company assets in a dedicated safeguarding account with a regulated bank. If the institution fails, those segregated funds are returned to customers ahead of other creditors.

Safeguarding is not the same as FSCS. There is no government-backed guarantee, and the recovery process in an insolvency scenario can take longer. In practice, the distinction is most important for companies holding large balances over extended periods, not for companies that move money through the account quickly.

How to Choose the Right Account for Your Limited Company

The right account depends on your company's specific transaction profile, not just the headline fee. Use these criteria to narrow the options:

• You want zero cost and full FSCS protection: Starling or Monzo Lite. Both are free, both are fully licensed UK banks. Starling is stronger if you need accounting integrations at no cost.
• Your company holds significant cash reserves: Allica Bank. The interest rate on balances makes it the most financially rewarding account on this list for cash-heavy companies.
• You trade internationally: WorldFirst (high volume, no monthly fee) or Wise (multi-currency, cashback, no monthly fee). Use alongside an FSCS account for domestic reserves.
• You want FreeAgent included free: Mettle. But you must be a single-director limited company to qualify.
• Your company has multiple directors or employees: Revolut Business. Multi-user access, spend controls, and configurable permissions on all paid plans.
• You need an overdraft from day one: Consider a traditional bank (Barclays, HSBC) alongside a digital account for everyday transactions.

Opening a Business Bank Account as a Limited Company

All business bank accounts for limited companies require a Companies House registration number. You cannot open a business current account before your company is formally incorporated, though some providers allow you to start an application in advance.

For digital accounts, the typical application steps are:

1. Your Companies House registration number and company name
2. Proof of identity for each director (passport or driving licence, selfie verification)
3. Registered business address
4. Estimated annual turnover
5. Nature of business (SIC code; note that some sectors face additional review)

Digital accounts typically approve applications within a few hours to one business day. Traditional banks take three to ten working days and may require an in-branch appointment or video call.

Sectors including gambling, cryptocurrency, and money services businesses face additional scrutiny or outright decline from some digital-first providers. If your SIC code falls into a flagged category, check eligibility before applying.

Frequently Asked Questions

Do limited companies legally need a business bank account?

Yes, in practice. A limited company is a separate legal entity under UK law, which means it must keep its finances separate from the personal finances of its directors. While there is no single law that says "you must have a business bank account", commingling funds creates serious problems for accounting, tax reporting, and the liability protection that the limited company structure is designed to provide. Every accountant and Companies House guidance recommends having a dedicated business account.

Can I use a personal bank account for my limited company?

Most personal account terms and conditions prohibit using the account for business purposes. Beyond the terms breach, using a personal account for company transactions creates VAT record-keeping problems, complicates self-assessment, and undermines the legal separation between you and your company. It is not recommended in any circumstance.

Can multiple directors access the same business account?

Yes, for most providers. Starling, Monzo, and Revolut all support multi-director access. Mettle is the exception: it is restricted to single-director limited companies. For companies with multiple directors, check the access and permission settings before applying, particularly if you need separate spending limits for each person.

What is the difference between FSCS protection and e-money safeguarding?

FSCS protection means the government guarantees your deposits up to £85,000 if the bank fails. E-money safeguarding means the institution keeps your funds in a segregated account with a regulated bank, separate from the institution's own assets. If the e-money institution becomes insolvent, you should eventually get your money back, but without the speed or certainty of the FSCS scheme. For large, long-held balances, FSCS protection is preferable.

Can a limited company get an overdraft?

Yes, though availability varies by provider. Starling offers arranged overdrafts for limited companies that have been trading for at least 24 months. Traditional banks (Barclays, HSBC, Lloyds) offer overdraft and credit facilities more broadly, though application requirements are stricter. Revolut and Monzo do not currently offer business overdrafts on their standard plans.

Which business accounts support Xero and QuickBooks integration?

Starling, Revolut, and Wise all support Xero and QuickBooks at no extra cost. Mettle includes FreeAgent free and also supports Xero and QuickBooks. Monzo's accounting integrations require the Business Pro plan (£9/month). Allica's accounting integration options are more limited, and it is best paired with a dedicated accounting platform if you use complex bookkeeping software.