Setting up a bank account for a Ltd Company

[Slinkie]

Hi Folks,

I am looking to set up an ecommerce business in the near future and I want to set it up as a limited company as I currently have a 9-5 job and I want the business to be separate from myself. I want to set up a business bank account into which I'll put my initial capital etc.

What is the process I need to go through. I will look through reviews etc when picking the bank but I just want to know the process. I presume they'll want my company number, something signed by directors/ secretary etc? Can you just spread some light on the process?

Thanks

Matthew

[elainec100@cheapaccounting]

Application form and proof of ID. Some do an interview - some you can do on line and then just take Proof of id into the branch.

[Phil B]

Photo ID (Passport/Driver Lic.) then at least one utility bill that cannot usually be a Mobile phone bill, so Water, Council Tax, Bank Statement, gas, electric.

Take in your Company Reg. Cert and a copy of your Mem & Arts to be sure. Nothing to worry about but saves a wasted trip.

Phil B

[DickM]

This is the process I had to follow back in 2005, I don't think it's changed much :)


1) Choose a bank - several to choose from in UK. Most offer free-banking for a year/18 months. Alliance & Leicester, plus Abbey - who are now owned by Santander - currently boast:

FREE and UNLIMITED day to day banking*
Not offered by any other bank
Market-leading cash deal
FREE cash deposits up to £3,000 per month, then just 50p per £100 deposited
Unrivalled access and convenience
Bank online, via your mobile, over the phone or at any branch or Post Office®
Competitive interest rate
Earn 0.25% AER (variable), 0.25% gross (variable) on your whole balance
*"FREE and UNLIMITED day-to-day banking" excludes CHAPS payments, change–giving and other non-standard charges. Interest is calculated daily and applied monthly.

Whereas HSBC offer free 18 months banking.

2) Get business bank application form - paper or on-line.

3) Most application forms will require: Name & address of Limited Company, Company Registration Number; when was business established (month/year); estimated annual bankable turnover; how long have you been with current bankers (personal or existing commercial bank); brief description of your business; total number of directors; a veiled question if you are a money launderer :rolleyes:
New incorporated companies (less than 18 months old) may need to provide:
(a) a copy of Co House doc 288a - Appointment of director or secretary - for each director or secretary,
(b) a copy of Co House doc 88(2) - return of Allotment of Shares, or
A letter of confirmation of the shareholders from your accountants or solicitor.
Next: Account Holders personal details: name, DOB, address (with post code, and how long you have lived there), phone number. If it's under 3 years you come under more scrutiny! All these details are required for each director and Co Secretary, or @ least 2 directors.
(c) Sample signatures of each proposed Account Holder.
(d) One of the usual selection of CERTIFIED copies of ID docs: current valid SIGNED passport, current full UK driving licence, etc;
plus One of the selection of CERTIFIED copies of proof of address: a current utility bill, water bill, mortgage statement, etc.
(e) These items may be required: Certificate of Incorporation(of Ltd Co), Memorandum & Articles of Association, and a Statutory Statement certified by an auditor.
............... I think that's enough for now, to convince anyone not to go Ltd Company "on a whim" ;)

[David Griffiths]

Every bank is different, and I refuse to guess what they need. When you make the appointment, ask specifically what information they want you to take with you.



I had a client on the phone last week, as he had an appointment to move his account to a new bank, and was asked to bring a "letter from his accountant".

Me "No problem, what do they want me to say?"

Client "They said that you'd know what to say"

Me "But I don't. They are all different, and if I put down 20 things, I'd guarantee to miss something that they want"

Client: "I'll phone them to check" Phones back "They don't know, they just said the list says a letter from an accountant"

Me: "Well, if they don't know what they want, how on earth am I supposed to know"

Still waiting for them to make their mind up!

And references for mortgages are even worse.

[David Griffiths]

New incorporated companies (less than 18 months old) may need to provide:
(a) a copy of Co House doc 288a - Appointment of director or secretary - for each director or secretary,
(b) a copy of Co House doc 88(2) - return of Allotment of Shares, or
A letter of confirmation of the shareholders from your accountants or solicitor.


That where things start to go wrong. Most companies that we form don't have docs 88(2) or 288a. Getting that across to the bank clerk dealing with this can be great fun! "But they're on my list . . . . " and off we go again. :rolleyes:

[JamesCartwright]

If you set up a limited company with us (for £24.99) we can start the process of setting up a business bank account for you (with HSBC or Natwest - both of which offer 18-24 months free banking).



However, this is a decision that should not be taken lightly, as DickM has said. These are some good websites to loo at if you're thinking about it:

Business link:
http://www.businesslink.gov.uk/bdotg/action/layer?r.s=m&r.l1=1073858808&r.lc=en&r.l3=1073865730&r.l2=1073859215&topicId=1073865730&r.i=1073789606&r.t=RESOURCES

My squidoo lens:
http://www.squidoo.com/limited-company

Possible tax savings:
http://www.whitingandpartners.co.uk/content/company_v_sole_trader_tax_comparison.htm

http://www.smallbusiness.co.uk/channels/start-a-business/q-and-a/28850/limited-company-or-sole-trader.thtml

http://www.newmanandpartners.co.uk/resources/tax_centre/tax_calculators/incorporation.php

Disadvantages to a limited company:
http://happyaccountant.wordpress.com/2007/04/16/disadvantages-of-a-limited-company/

Another comparison:
http://www.bizhelp24.com/business-start-up/sole-trader-or-limited-company--2.html

Hope this helps, If you have any more questions I will be happy to help.

James.

[MrJasper1980]

Hi Matthew,

I've just incorporated a company through www.westone-business.com (http://www.westone-business.com) They were the most competitive on price, plus they got things done really quick and efficiently. But one of the main decisions to use them was the fact they helped me open a business account with HSBC in City of London EC4 Branch and gave me £25.00.

Now I'm not sure if they will open an account for you if you already have a company, but it's worth giving them a call and get in touch because they gave me £25.00 cash back for opening the account through them, which almost paid for the company formation costs!

As for the branch, it's one of the biggest in Europe and is one of their flagship branches. Service wise, HSBC are spot on so am really pleased so far. In process of arranging finance through them and they offer a far better service to businesses than the average branch in my opinion.