Do you have to have a 'business' bank account for a Right to Manage Ltd Company

[Deleted User]

We are 3 flat owners who have set up a Ltd Right to Manage company to take over the maintenance of our flats.

This is a very small concern and we envisage paying a monthly amount in each and paying out as and when needed ie building insurance, repairs etc.

My question is do we have to have a business account given the very small usage and turnover that will be on the account.

The issue is that there are two directors on the RTM company one of whom doesn't think he will pass a credit check as he has moved around a fair bit.

For example could we open a savings account

cono1717

There is no legal requirement to open and operate a business bank account for a limited company. However, you will find it very difficult to trade and manage your business successfully without one. A separate account will allow you to effectively record and trace all business income and expenditure

phill99

As above. It is almost impossible to operate a Ltd company through a personal bank account. Banks wont tolerate it and it will create serious problems for auditing.

[Deleted User]

We are not thinking personal banking account but a business savers account like Santander offer.

We will have very little useage so not like running a normal business with multiple incoming and outgoings.

Aquamania

You can have any type of bank account(s) you wish - subject to the terms & conditions of such bank account - or indeed not have a bank account at all.

However, as already mentioned, you may have difficulty in operating if you do not have a suitable bank account. Only you can make that call.

Edit: If your concern regarding opening a current account relates to the creditworthiness of one of the directors appointed, are you certain similar credit checks will not affect the application of the alternative account you are considering?