Choosing the Best Business Bank Account for Your Limited Company
Why setting up a dedicated business account is so important and how to go about it.
Running a business is exciting, but figuring out banking can be a headache, especially when operating in multiple countries. One of the first significant steps is opening a business bank account, and that’s where things can get tricky.Narvi offers EU business banking without the hassle, making it easy to handle payments, taxes, and employees, no matter where your company operates. Our business bank accounts focus on cross-border payments, euro-to-euro business transactions, and currency exchanges — making them perfect for businesses that want to keep banking simple. Whether your company is in the UK, Denmark, the UAE, or another country outside the eurozone, Narvi Payments helps make managing your money in Europe easier.Here's everything you need to know about choosing the best business bank account for your limited company.
Do I Qualify for a Business Account? Start By Checking Your Eligibility
Wondering if your company meets the eligibility criteria for a business account with Narvi? Good news! Most limited companies, even those outside of Europe, are eligible. With everything in order, you’ll be set to open your business account hassle-free. But before you apply, it’s a good idea to know what you’ll need:- Your company’s legal status: You must officially register your business, usually as a limited company (Ltd). If you’re in the UK or another jurisdiction, you’ll need proof that your company is legally recognized and in good standing.
- Identification: Business owners and directors must verify their identities. This includes a passport or driver’s license and proof of address — here's an ID verification demo.
- Company documentation: Key documents like your company’s registration number, articles of association, and memorandum of association help confirm your business is legitimate.
- Cross-border operations in the EU: If your company handles international payments, Narvi makes sending and receiving money in multiple currencies easy.
- Compliance: To meet financial eligibility criteria, if you run what the EU considers an AML entity, your business must follow anti-money laundering (AML) rules and know your customer (KYC). Be ready to provide the necessary paperwork.
What’s Included with a Limited Company Business Bank Account?
When you open a Narvi account, you get access to powerful features designed to make banking easier. Here’s what you can expect:Euro IBAN Business Account A euro business account is a must if your company handles euro transactions, such as getting paid by Eurozone clients or covering local taxes. An IBAN simplifies payments without high monthly fees or tricky currency conversions.Coming Soon: Multi-Currency Business Account For businesses dealing with multiple currencies, having a flexible account that allows you to hold and send money in different currencies without opening separate bank accounts is a good idea.Whether you’re paying suppliers in USD, receiving payments in GBP, or sending wages in CAD, a streamlined multi-currency solution saves time, reduces costs, and removes the frustration of constant currency exchanges.European and International PaymentsQuickly send and receive payments across Europe and beyond without navigating complicated banking procedures or high international transfer fees. A streamlined payment system allows businesses to pay suppliers, employees, and partners worldwide from a single account, keeping operations straightforward.Accounting Software & API IntegrationsManaging business finances, especially with multiple currencies, can get complicated. Seamless integration with leading accounting software like Xero, QuickBooks, and Sage makes tracking business transactions easier than ever.With API integrations, businesses can automate key financial tasks, reduce manual data entry, keep records up to date, and free up time to focus on growth.Coming Soon: A Business Debit CardQuick and easy access to company funds is essential for day-to-day operations. A business debit card simplifies purchases from office supplies to travel expenses and local tax payments.Keeping business and personal expenses separate also provides better financial clarity and makes tax reporting much more manageable.Multiple IBANs for One Limited CompanyWith the ability to have multiple IBANs under a single business account, receiving payments in different currencies and storing funds for different purposes becomes effortless. This setup eliminates the need for multiple banking relationships, reducing costly errors and improving international business operations.Account FeesUnlike traditional banks, which charge for services like international transfers, maintenance, or cash deposits, a transparent pricing structure ensures that fees are straightforward and easy to understand.There are no setup costs; you won’t be charged just to keep the account open. With a focus on value, businesses can access low-cost services without unnecessary overhead, helping them grow without hidden fees.Note that free banking options exist but they typically either apply only to sole traders or are limiting in the services included.Fast and Friendly Customer SupportRunning a business comes with challenges, and sometimes, you need help fast, so having responsive and friendly customer support is essential. Whether you have a question about your account or need advice on managing finances, a dedicated support team ensures you get the answers without long wait times.How to Open a Limited Company Bank Account
Opening the best business bank account in Europe for a limited company might seem overwhelming, but it’s a smooth process with the right steps. Follow this step-by-step guide to get everything in order before applying.Step 1: Choose the Right Bank for Your BusinessA local bank might work well if your business operates within a single country. However, if you handle international transactions or multiple currencies, choosing a digital banking service that supports cross-border payments and euro transactions can help you save on fees and simplify financial management.Step 2: Gather the Required DocumentsTo open a limited company bank account, you’ll need key documents. By preparing them in advance, you’ll make the account-opening process faster and easier, helping your business get up and running without delays. They typically include:- Proof of identity: A passport or government-issued ID for company directors and shareholders.
- Proof of address: A recent utility bill or bank statement showing the address of key stakeholders.
- Company formation documents: These include the certificate of incorporation, memorandum, and articles of association. If you haven’t registered your company yet, you must do so with the appropriate government body.
- Company registration number: Assigned to your business upon official registration.
- Personal details of directors and shareholders: Full names, addresses, and dates of birth.
- Business plan (if required): Some banks may ask for a business plan, especially if you’re applying for additional services like a line of credit or loan. This should outline your company’s activities and financial projections.
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Tips for Managing Your Business Bank Account
Responsibly managing your business savings account is key to your company’s financial health. Here are some tips to keep you on track:Separate Personal and Business FinancesOnly use your limited company bank account for business-related transactions. This strategy makes tracking expenses, claiming tax deductions, and keeping your finances clear and organized much easier.Stay on Top of Account FeesBanks charge different fees for account maintenance, international transfers, and debit card usage. Make sure you’re aware of these charges and that they fit within your budget to avoid unexpected costs.Integrate with Accounting SoftwareMany business bank accounts offer native or API integration with accounting software. Automatically syncing transactions saves time and ensures your financial records are always up to date.Consider International NeedsIf your business works with clients, suppliers, or employees overseas, choose a bank that supports international payments. Look for features like multi-currency accounts, low international transfer fees, and the ability to handle euro and non-euro currencies to streamline global transactions.How to Choose the Best Bank Account for a Limited Company
There are so many banking choices out there. To make things easier, here’s a guide on the primary factors to consider when choosing the best bank account for a limited company:Credit and Financing ServicesIf you need credit or financing, selecting a bank that offers these services is essential. Look for options like business loans, lines of credit, and overdrafts, which can help with cash flow or expansion. It’s also worth checking out the application process and approval speed, along with business credit cards that can offer flexible payment options.Overdraft An overdraft can be a lifesaver when cash flow gaps arise. It allows you to withdraw more than what’s in your account, preventing bounced payments and offering a safety net for unexpected expenses. Deposit ProtectionIn the UK, the Financial Services Compensation Scheme (FSCS) offers deposit protection for up to £85,000 per account holder. If you’re in another country, like the UAE or Denmark or opening an account with a banking service in Finland, verify the deposit protection rules that apply to your business.ConvenienceLook for a bank that gives you easy access to your account through online banking and mobile apps. For businesses with frequent transactions, an easy-to-use online platform will come in handy more often than you think. Transaction LimitBanks often set transaction limits, and these can vary by account type. If your business handles a high volume of transactions, go with a platform like Narvi with flexible or no transaction limits that align with your needs. If you make frequent international payments, check the bank’s limits for those transactions to avoid disruptions.Regulatory StatusVerify that the relevant financial authorities regulate the bank. This would include the Prudential Regulation Authority or the Financial Conduct Authority in the UK. In Finland, this is done by Fin-FSA. If you’re in a non-EU country, like the UAE or Denmark, confirm that the bank complies with local regulations to ensure safe and secure financial transactions for your business.)
Narvi vs. Other Business Banking Providers
When choosing a business bank account for your limited company, it’s essential to weigh your options to get the best value. Narvi Payments offers several benefits, especially for businesses operating internationally, handling cross-border euro payments, and dealing with multi-currency transactions. Let’s see how Narvi stacks up against the competition:- Euro business accounts: Open a euro account with Narvi to easily send and receive euro payments and get access to SEPA instant payments
- Coming Soon: Multi-currency accounts: Need to deal with different currencies? Narvi lets you manage multiple currencies in one place, making international transactions hassle-free.
- International payments: Avoid high bank fees with Narvi’s cost-effective international transfers. Move money across borders quickly and efficiently.
- API integrations: Connect Narvi with your accounting software to automate everyday transactions and keep your finances running seamlessly.
- Coming Soon: Business debit cards: Get a Narvi business debit card for everyday spending and easier expense tracking.
- Fast customer support: Need help? Narvi’s responsive support team is always ready to assist.
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Enjoy Effortless Business Banking with Narvi
Narvi offers a simple, modern banking solution for limited companies, streamlining payments and business operations across the EU and beyond. With global SWIFT transfers, dedicated IBAN accounts, and easy integration, Narvi makes managing local and international transactions effortless. Choose Narvi for safe, regulated, borderless business banking.Frequently Asked Questions
Yes. Many UK-limited companies open foreign accounts to manage international transactions and reduce currency exchange risks.
Yes. If your current provider isn’t meeting your needs, you can switch. Narvi makes the transition seamless with fast onboarding.
A business savings account is legally tied to your company. It offers banking tools tailored for business operations, while a personal savings account is for individual transactions and lacks business-specific features.
Pros:
- Keeps personal finances and business finances separate for legal requirements and tax clarity
- Boosts credibility and trust with clients and partners
- Provides access to business loans, overdrafts, and credit
- Simplifies payroll, tax returns, and financial compliance
- May come with transaction or monthly fees
- Requires more paperwork to set up
- Some accounts have service limitations or added complexities
- E-wallets & digital wallets: Services like PayPal, Revolut, and Wise allow businesses to send, receive, and hold multiple currencies
- Prepaid business cards: Useful for managing expenses, though they lack full banking services
- Fintech solutions: Providers like Narvi offer flexible digital banking for businesses with cross-border financial needs
Narvi is a strong choice if you operate internationally or need multi-currency support. Banks like Santander or Zempler Bank may be better suited for UK-focused businesses. Compare options based on fees, international payments, customer service, and financing access.
A business savings account keeps company finances separate from personal finances, ensuring tax compliance and a professional image. It simplifies tracking income, managing payments, and applying for business loans. Without one, mixing funds can lead to legal and financial issues.
Limited companies should have a separate business account. Mixing personal current accounts and business finances can cause tax return issues, problems with legal requirements, and difficulties securing loans. HMRC regulations require clear financial separation.
At minimum, a limited company needs one business account for daily operations. However, multiple accounts can help with organization, such as separate bank accounts for taxes, payroll, or international everyday transactions. Narvi offers unlimited IBANs allowing companies to provide segregated bank statements and manage different income flows.
Some banks require a minimum balance to keep the account active and cover monthly fees, while digital providers like Narvi offer more flexibility. Always check with your bank for specific requirements.
Traditional banks may take days or weeks to process your application, while digital banking services like Narvi are known for a faster setup. They often allow businesses to open an account in a few hours or days, provided you submit all the necessary documents. This is especially true for companies with cross-border payments or requiring multi-currency accounts.
A limited company bank account is exclusively for business transactions, keeping finances separate from your personal account. It helps manage payments, payroll, and expenses while ensuring tax compliance and professional credibility. Many accounts also offer business-friendly features like multi-currency support and access to credit. It also helps protect personal assets from any potential liability claims that may be made against the limited company.
Updated May 8, 2025.Author
This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Narvi Payments Oy Ab or its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
- Eric Carriere is a fintech writer and entrepreneur with over a decade of experience in B2B and digital strategy. As a founder, Eric offers practical insights into solopreneurship and small business operations, helping businesses navigate the evolving fintech and SaaS landscape.
This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Narvi Payments Oy Ab or its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
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What We Offer
Narvi Payments Oy Ab is an Authorized Electronic Money Institution (EMI). Narvi’s EMI license is granted by the Finnish Financial Supervisory Authority (FIN FSA) with the registration number 3190214-6. Narvi’s license is Passportised to all European Union countries.
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