Since the advent of the Money Laundering Regulations, the procedures for opening a business bank account take longer and have become even more tedious. Accordingly you will be well advised to tackle this matter at an early stage.

Which bank? What are the considerations?

This decision will be affected by a number of factors, ranging from your previous experience with the bank where you hold your personal account, and purely practical considerations. Some people like to have both their private and their business banking together at the same branch; others prefer to keep them very separate.

You should also consider the time it takes for cleared funds to be transferred from your client to your own personal account, and you will wish to keep this time to a minimum. The fees you invoice will be paid into your own company bank account. From there, you will transfer the funds to be used to pay salaries and dividends into our accounts and your net salary and any dividends will be transferred into your personal bank account.

You can check the various types of accounts by using our

Direct banking versus Branch banking

Direct banking differs fundamentally from branch banking. In principal, branch banking is the more expensive option because there is a larger infrastructure to be paid for than with direct banking, which the bank usually operates out of one building with a significantly lower staff to client ratio.

With direct banking, everything is done by computer, phone and post, and there is no facility to meet the bank face to face. With branch banking, you can obviously develop a more personal relationship with the bank and, if you wish, you can also bolt on to your bank account a computer banking facility. Direct banking offers a quicker turnaround in the movement of funds and your account can be accessed from any internet-connected computer.

Bank mandates

Bank mandates are set out as resolutions of a meeting of the directors of the company, and are signed on behalf of the company either by two directors or by one director and the secretary of the company. The mandate may be dated any time after the date of incorporation. Usually, Charles Fowler is required to sign the bank mandate as secretary but he will not be a cheque signatory. Proof of identity for Charles Fowler is held at the local branches of all the major banks.

Special arrangements with the Royal Bank of Scotland

We have set up ‘fast track’ arrangements with both branch and direct banking at the Royal Bank of Scotland which smoothes the way for opening new accounts. For a branch banking facility, call 0131 523 6193 and to receive a start-up pack for direct banking call 0800 783 9777.