What is a business bank account?

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Whether you’re freelancing, launching a new startup, or looking for a bank account for an established business, there are several different options available to company owners and entrepreneurs in Ireland. This page is designed as a guide to how business accounts work, including the services they offer, what you need to open a business bank account, and how to find the right account for you.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

A business bank account is a financial product used by businesses of all types and sizes. It works similarly to a personal bank account, covering the most important day-to-day banking needs. Companies can track their incomings and outgoings and keep on top of any outstanding payments.

Having a dedicated business account has the benefit of making it easier for a company to manage its accounting and tax reporting. Having a separate account in a company’s name can give a professional impression to suppliers and clients. It also provides a clear view of their cash flow, which ultimately makes it easier for them to manage their expenses effectively. 

Just like personal accounts, business current accounts offer extra services in line with the company’s needs, such as business loans and credit cards. All of this can support a business in its early stages or streamline processes among large international corporations.

You can open a business bank account whether you’re a sole trader, in a partnership, or running a limited company. Sole traders are not legally required to have a business account, and many freelancers or self-employed people manage perfectly fine with a personal bank account. However, from an organisational standpoint, it can be helpful to separate business finances from personal funds.

Any size or type of business can open a bank account in Ireland, and some are actually legally required to do so. Businesses that can open a bank account include: 

• Freelancers
• Sole traders
• Partnerships
• Limited companies

Limited companies must legally have a business bank account to maintain clear financial records. In general, the higher the risk of mixing personal and business-related expenses and transactions, the greater the need for a dedicated account.

When you’re comparing business bank accounts in Ireland, you might pay attention to the name of the account. A business startup account will have different features compared to a standard business current account. And then there’s a business savings account, which is something entirely different. You can find out more about the differences on our current account vs. savings account page.
The main features of a business bank account include the following:

• Pay bills, transfer funds, and receive payments quickly and easily through online banking, direct debits, standing orders, and card transactions.
• Business debit card, such as a Visa or Mastercard debit card for everyday purchases and ATM withdrawals – both in Ireland and abroad.
• Online and mobile banking, so that you can log in to and manage your account 24/7 from a computer, smartphone, or tablet. You may also be able to make contactless payments using a smartphone.
• Overdraft facility to manage cash flow and cover short-term expenses.
• Cash and cheque handling. You can deposit cash and cheques at branches, partner locations, or dedicated deposit machines.
• Bulk payments. This is where you pay employees or suppliers in one go by uploading a payment file.
• Business support services. Some banks offer their customers advice and dedicated business banking teams to help you manage the money in your business.
• Second business account. Some business account providers allow you to open an additional current account to separate different aspects of your finances.

As you sometimes find with personal current accounts, business account providers can also offer incentives to encourage you to switch to them, such as cashback specifically for freelancers.

Yes, you are likely to face some fees with a business account, and they can vary widely depending on the account and provider you choose.

Most business bank accounts in Ireland come with a quarterly account maintenance fee. This ranges from €4.50 at AIB to €15 at the Bank of Ireland (correct as of March 2025). There may also be a fee of around €0.10 for each transaction your business makes, including debit card and credit card purchases. 
Other fees you may come across include:

• ATM withdrawal
• Cheque lodgement
• Paper or counter transactions
• Cash lodgements (coins and notes)

Generally speaking, the larger your business, the higher the fees you’ll probably face. Larger companies are more likely to need costly services for processing several actions in one go, such as bulk SEPA direct debits or credits. And if your business operates internationally, be aware that fees for transactions in currencies other than euros are typically higher.

You might be offered extra support and lower fees if you’re just starting out with a new company. Many banks in Ireland are keen to support new businesses, so they may waive fees for a limited time when you first open your account.

There are several online platforms, such as Wise, that can reduce the amount you have to pay on transactions outside the EU. While you’ll still have to pay a fee, the exchange fee is often lower than what you’d have to pay on a foreign transaction with a more traditional bank. 

Another advantage of using online platforms is that you can usually avoid the hassle of having to set up a bank account in another country. You don’t need a local address, which is often the main condition of high-street banks.

If you’re a sole trader or freelancer, you might be able to avoid some of the fees associated with more traditional business accounts. This is partly because there are fewer barriers for smaller companies to open a business account with an online provider, and the costs with these accounts are usually lower.

The online bank N26 offers a standard business account with zero maintenance fees, which might cover the most basic business banking needs, but anything more than these minimum services might force you to upgrade to the paid version. It’s worth noting that these online accounts are usually not open to limited companies.

Also, while a particular business account offers savings potential in some areas, there may be potential extra costs in others. For example, account provider Wise may be appealing due to its lower international transaction fees, but it does charge a one-time setup fee for the account and may require a payment for a debit card linked to the business account.

As we’ve seen, no two business accounts are the same. That’s why it can help to clarify a few points before opening a business bank account:

• Fees. Check what charges apply. Depending on your account usage, the monthly fees, transaction fees, and ATM withdrawal charges can soon add up.
• Account features. You might compare your current business needs with the features offered by different accounts. Do you need online banking? Would an invoicing feature make your life easier? Asking questions like these can help you find the right account for your business.
• Application process. Different banks have different application processes. Some offer quick and easy online applications, while others may ask for more paperwork.
• Your business type. If you have a startup, you might benefit from a specialist startup account. On the other hand, a limited company may appreciate the further-reaching support of a traditional current account from a high-street bank.
• Restrictions. It can be tempting to opt for a fee-free business account, but they sometimes come with additional fees hidden in the small print. Plus, with their targeting of smaller businesses such as freelancers, they might not be able to offer the services you’ll need if your business grows.
• How you access your account. Finally, you might think about how you want to manage your money. Digital banks tend to offer excellent mobile and online banking options, and you can usually get an impression by looking at their website. Traditional banks are generally able to provide in-person options, support, and advice.

Remember, businesses also have the option of using a savings account, such as a demand deposit account or a fixed term deposit account, and they work similarly to personal savings. While you wouldn’t use this kind of account for everyday banking, it might be suitable if your business is looking to earn interest on its funds. Savings interest is usually subject to Deposit Interest Retention Tax (DIRT), but the advantage for companies is that those already paying corporation tax may be exempt.

If you’re a sole trader, opening a business bank account is usually fairly straightforward and can often be done digitally. However, larger limited companies or partnerships may have to visit a bank branch and meet with an adviser. This all depends on the particular bank’s procedures. 

Some digital banks let you apply and submit your verification information completely online. Standard banks in Ireland will usually insist on at least one in-person meeting. It can take anything from two days up to a few weeks before your business account is up and running.

To open a business bank account in Ireland, you’ll generally need the following:

• A valid photo ID and proof of address
• For limited companies: A Certificate of Incorporation and a copy of your company’s constitution
• Proof of registration with the Registration of Beneficial Ownership (RBO)

Copies of these documents may be sufficient if you don’t have access to the original. As always, it can be helpful to check directly with your chosen bank to clarify what they ask for.

With Raisin Bank, you can easily open and manage one or more online savings accounts, all from a single login. Take advantage of competitive interest rates on fixed term deposit accounts and start getting more from your money! Eligible funds of up to €100,000 (or the country equivalent) per account holder, per financial institution, are protected should anything happen to your chosen bank. Register for a Raisin Account for free to get started.