Publication date: 05.02.2026
My name is Irina Sidorova and I am a lawyer based in London. I have over 18 years of experience in law and prior to moving to the UK I specialized in litigation, corporate support, contract analysis and drafting, and commercial legal support. My expertise includes a detailed analysis of legislative changes and their effective application to protect clients' interests. Thanks to my strategic approach, knowledge of the law and practical experience, I help to avoid legal risks and achieve stability in legal matters.
The process of opening a business account for entrepreneurs has its own specifics and depends on the type of enterprise, ownership structure, and banking requirements. Not all entrepreneurs are required to open a separate business account, but having one significantly simplifies financial management, accounting, tax reporting, and interactions with clients and suppliers. Individual entrepreneurs under certain taxation regimes may use a personal account for operations, but legal entities, such as LLCs, are required to have a separate business account.
Question
How is a business account opened?
Answer
To open a business account, an entrepreneur needs to prepare a set of documents and meet the bank’s requirements. The main steps are:
- Bank selection – comparing conditions for business accounts, fees, online banking options, and integration with accounting systems.
- Document preparation – company charter, extract from the register, tax identification number, passport of the director or founder.
- Bank verification – checking the legal entity, confirming the rights of signatories, as well as compliance with legislation and bank requirements.
- Account opening – signing an agreement with the bank, receiving account details, setting up online banking access.
- Start of operations – depositing funds, making payments to suppliers, receiving payments from clients, and preparing for tax reporting.
Features of opening a business account
- Banks may require proof of funds, a business plan, or contracts with clients/suppliers, especially for new enterprises.
- Entrepreneurs receiving foreign payments should check currency control regulations.
- Ukrainian legislation sets mandatory requirements for accounting funds in a business account, particularly for tax reporting and audits.
- Opening a business account ensures transparency of financial transactions and reduces the risk of accounting errors or tax inspection issues.
Question
What should be done if the bank refuses to open an account?
Answer
In case of refusal, it is important to identify the reason – missing documents, non-compliance with legislation, a risky enterprise profile, or other causes. The entrepreneur can:
- Approach another bank with a complete set of documents.
- Consult a lawyer for legal support regarding proper document preparation and compliance with bank requirements.
- Challenge the refusal if it violates legislation.
- Many banks offer legal support when opening a business account and assist in preparing documents to comply with internal policies and legislation.
Important to know
Entrepreneurs can open accounts in multiple banks for convenience.
The account should be used exclusively for business operations to avoid tax violations.
Regular monitoring and maintaining accounting records through the business account allows optimizing tax planning and avoiding inspection issues.
If an entrepreneur has doubts about proper account setup or documentation, it is recommended to consult a lawyer or financial advisor for legal support.
Opening a business account is a key step in conducting entrepreneurial activities. It ensures financial transparency, simplifies interactions with clients and suppliers, allows proper accounting, and ensures compliance with legislation. Consulting a lawyer or banking specialist for legal support helps avoid account refusal, ensures document compliance, and minimizes the risk of tax inspections. Having a business account allows the entrepreneur to focus on enterprise development and effective financial management.
