Quizzes & Puzzles1 min ago
Business Bank Account
9 Answers
My friend was a sole trader and recently became a limited company, therefore slightly changing the name of his business. He has tried unsuccessfully, on numerous occassions to ask his bank to switch his account to the limited company. He has now submitted an application to a new bank. Previous to submitting the application he asked on the 'chat' if it would cause an issue because his bank statements show his old trading name, he explained the situation as was told it should not be a problem as long as his new trading details are the same as at companies house which they are. He has now received an email from the new bank asking for 6 months bank statements showing his business name etc as they cannot do the switch without these. He doesnt want to switch as he wants the new account to show his limited company name. Will this pose a problem? He just wants the account setting up in his limited name and he can then close the bank account with is existing bank.
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He must have asked the new bank to switch when he made the application.
I don't understand why he is having trouble changing the name on his existing bank account. It is a legal requirement that the name on the bank account should match the name registerd at Companies House. This is not an unusual thing and his bank should be very familiar with it.
What bank is he currently with? It would be better to stick with his bank if he is happy with them than to open a new account, especially if he refuses to use the switch service
Its Barclays and they have been a nightmare. He's phoned them umpteen times and just been past from pillar to post and promised phone calls which never happened. They also asked for some information regarding some new legislation which had to be posted, he's done this twice and Barclays say they've never received it. So they then denied access to his account. Eventually this was resolved but they still haven't changed the business name
Barclays never told him this when they did speak to him. Thats what he wants to do with the new bank account with the new bank. But he had an email from them saying they cant do the switch until he sends 6x month bank statements. He doesnt want a switch just wants to open a new account under his limited co name. Is he best phoning them, can they alter the application or whould he have to do a new app? thanks
He won't be able to do a switch from a sole trader account so either he has misunderstood what the new bank has said or the new bank has misunderstood the type of business account he has with Barclays.
It is understandable that the new bank wants to see six months bank accounts. He should tell the new bank that his Barclays account is a sole trader account but he is now limited and give them the bank statements they have asked for.
The information about having to open a new account is correct. He needs to go into a bank of choice telling them he wishes to open an account for a new Limited Company. Make sure he takes his Certificate of Incorporaion with him.
Advise them that he has previously traded as a sole trader and how long for. They will then require to see both bank statements for that Company and his Company accounts. If it is a new Bank ID and proof of address will need to be added to his paperwork.
Afraid I have been retired too long now to know about any new legislation, but that should be explained clearly to him.
Make sure he is speaking to one of their staff expereinced in Business Account opening. They should have a dedicated team.
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