Business bank account: useful, not mandatory

A business account is used for the income and expenditure of your business. This allows you to keep business and personal payments separate. Read here to find out what you need to keep in mind.

Is a business bank account compulsory?

Whether a business bank account is compulsory depends on the legal structure of your business. In practice, you will need a business account if you have a BV (private limited company), an NV (public limited company), a vereniging (association), or a stichting . Banks usually open an account in the name of the legal entity for these legal structures.

Do you have an eenmanszaak or a partnership, such as a VOF, maatschap, or CV? In that case, a business account is usually not compulsory. You may also be able to use a personal account, but always check your bank’s terms and conditions. Many banks do not permit business use of a personal account.

Business account or personal account?

As an entrepreneur, you must keep proper records. The Netherlands Tax Administration needs to be able to see which income and expenditure relate to your business.

A business account makes it easier to keep business and personal payments separate. This gives you a clear overview and saves time when doing your accounts. Do you work together in a VOF, maatschap, or CV? In that case, a business account is often particularly useful. You can then use a single account for joint income and expenditure.

Are you unsure whether to choose a personal account or a business account? Ask yourself how many business transfers you expect to make. The more payments you receive and make, the greater the benefit of a business account.

Benefits of a business account

A business account gives you a clear overview. You can see at once which income and costs relate to your company. The benefits of a business account are:

• Clarity: you keep personal and business payments apart. This makes things clear for you, your accountant, and the Tax Administration.
• Time savings: you can do your bookkeeping more quickly if you link the account to an accounting software package.
• Professional image: your customers see the name of your business on a payment rather than your personal name.
• Tax benefit: you can usually claim the costs of a business account as business expenses.

When is a business account especially useful?

A business account is often a good choice if you:

• send many invoices
• receive payments often
• work with other business owners
• have an accountant
• want to keep your bookkeeping as simple as possible

Can you use a personal account for business purposes?

You may only use a personal account for your business if your bank permits it. Many banks state in their terms and conditions that a personal current account is intended solely for personal use. If the bank notices a lot of business transfers on your personal account, they may contact you and ask you to open a business account instead.

How do you open a business account?

Before you open a business account, you will need to give the bank some details. They will always ask for a copy of a valid identification. They will also need information about your business and may sometimes ask for an extract from the KVK Business Register. The other documents needed will vary depending on the bank and the legal structure of your business.

Therefore, you should check in advance what details you need to provide. This will help you avoid delays in your application. Many banks allow you to open an account online.

Why does a bank ask so many questions?

When you open a business account, a bank carries out checks on its customers. This is a legal requirement. For example, the bank wants to know what your business does, where your income comes from, what you will be using the account for, and who owns the business. These checks help banks prevent money laundering, fraud, and other forms of financial abuse.

The more accurately you provide the requested information, the quicker the bank can assess your application.

Can a bank reject the application?

Yes, a bank is free to decide whether to offer a business account to a new customer. A bank may, for example, reject your application if:

• the bank identifies an increased risk of fraud or abuse
• your activities do not comply with the bank’s policy
• the bank does not have enough information about you and your business

If your application is rejected, you can try opening an account with another bank. If you disagree with the decision, contact the bank. You can also make a complaint (in Dutch).

Special circumstances

Sometimes, there are extra points to keep in mind when opening a business bank account.

You are a young entrepreneur

Are you under 18 and do you run a business? If so, there are 3 ways in which you can open a business bank account. Read more about a business account for a young entrepreneur.

You are an entrepreneur based abroad

Do you have a business in the Netherlands but live abroad? In that case, you can often open a Dutch bank account. A Dutch business account is not compulsory. Would you like a business account? Banks usually require your business to be registered in the KVK Business Register.

Your visiting address is shielded

Some entrepreneurs have a shielded visiting address in the Business Register. In that case, the bank may ask more questions. The bank does this to check whether there are any risks. If the check is positive, you can usually still open a business account.