UK limited company and personal bank account
I don't think there is a legal requirement that you need a separate bank account. Just remember that you can only take money from your LLC as salary (paying tax), as dividend (paying tax), or as a loan (which you need to repay, including and especially if the LLC goes bankrupt). So make very sure that your books are in order.
Use a limited company. Use the HMRC website for help on limited companies and get a good accountant for doing your taxes. Mixing your website income and personal income  may make you pay a higher tax rate. You can take out expenses from the limited company, which are tax deductible. But if you group it in personal income it wouldn't be tax deductible. In a personal capacity you are 100% liable if your business goes bust and you owe debt. But for a limited company you are only liable for what you own i.e %age of shares. You can take on an investor if your business booms and it is easier if you do it through a limited company rather than through a personal endeavour. In the US, you would probably look at a certificate of deposit (CD).   I imagine there is a similar financial product in the UK, but don't know first hand.   I think it is wise to be risk averse in this situation, but be aware that your interest rate will be dismal for guaranteed returns. Before answering specific question, you are liable to pay tax as per your bracket on the income generated. I work with my partner and currently we transfer all earning on my personal bank account. Can this create any issue for me? If you are paying your partner from your account, you would need to maintain proper paperwork to show the portion of money transferred is not income to you. Alternatively create a join Current Account. Move funds there and then move it to your respective accounts. Which sort off account should be talk and by whose name? Can be any account [Savings/Current]. If you are doing more withdrawls open Current else open Savings. It does not matter on whos name the account is. Paperwork to show income matters from tax point of view. What should we take care while transfering money from freelance site to bank? Nothing specific Is there any other alternative to bank? There is paypal etc. However ultimately it flows into a Bank Account. What are other things to be kept in mind? Keep proper record of actual income of each of you, along with expenses. There are certain expenses you can claim from income, for example laptop, internet, mobile phone etc. Consult a CA he will be able to guide and it does not cost much. or just input it in my accounting software along with receipts, and   then when I'm doing taxes this would go under the investment or loses   (is it somewhere along that line)? Yes, this. Generally, for the long term you should have a separate bank account and charge card for your business. I started my business (LLC) by filing online, and paying a fee for a   registration, and that makes it a business cost right? Startup cost. There are special rules about this. Talk to your tax adviser. For the amounts in question you could probably expense it, but verify. "You manage this account just as any other account. ""Petty cash"" refers to accounts where the cash money is intended for ad-hoc purchases, where you store an amount of cash in your drawer and take it out as needed. However, other than naming it ""petty cash"", there's nothing petty about it - it's an account just as any other. Many choose to just ""deduct"" the amount transferred to ""Petty Cash"" account and not manage it at all. Here the amount matters - some smaller amounts can fall under ""de minimis"" rules of the appropriate regulatory authority. Since you told nothing about where you are and what your business is - we can't tell you what the rules are in your case. If you track the usage of this account (and from your description it sounds like you are) - then the name ""Petty Cash"" is meaningless. It's an account just like any other. Since you have an employee dealing with this cash you should establish some internal audit procedures to ensure that there's no embezzlement and everything is accounted for. You will probably want to reconcile this account more often than others and check more thoroughly on what's going on with it. Since its a ""personal finance"" forum, I'm assuming you're a sole proprietor or a very small business, and SEC/SOX rules don't apply to you. If they do - you should have a licensed accountant (CPA or whatever public accountancy designation is regulated in your area) to help you with this." "have a bank account here, you need to have a credit history, That is wrong, whoever informed you that. You don't need a credit history to open a bank account. Some banks allow you to open no frills accounts without a credit history. I myself opened an account, with Barclays, with my NI card, job contract and probably my passport too and I amn't from the EU. Also, the bank that allowed me to open the account, doesn't allow me to wire transfer (my) money to another (UK) account, and claims that ll the bank have the same policy for ""cash accounts"", is that true, I mean, is there an actual law that for some reason donesn't allow you to transfer your funds? Why? Did you read the T&Cs. Chances are that other the account is with a different bank. And it always is fishy, atleast for banks because of heightened money laundering regulations, for people opening accounts and starting to transfer money to accounts with other banks. After you have banked with them for certain time, you can ask them to upgrade you to a current account which allow these services. Secondly because it might be a no frills account and they aren't allowed to charge fees, they might disallow transfers to other banks. And banks generally don't charge fees for no frills accounts so certain services are disallowed, which cost them money. NB:- I have had a cash account for 4-5 years with Barclays and I used to transfer money to other banks, but I probably never tried transferring money just after opening an account." Work under UK umbrella company.  By this you are thinking of creating a new legal entity in UK, then its not a very great idea. There will be lot of paperwork, additional taxes in UK and not much benefit.  Ask UK company to remit money to Indian savings bank account   Ask UK company to remit money to Indian business bank account Both are same from tax point of view. Opening a business bank account needs some more paper work and can be avoided.  Note as an independent contractor you are still liable to pay taxes in India. Please pay periodically and in advance and do not wait till year end. You can claim some benefits as work related expenses [for example a laptop / mobile purchase, certain other expenses] and reduce from the total income the UK company is paying No, thanks to the principle of corporate personhood.  The legal entity (company C) is the owner and parent of the private company (sub S).  You and C are separate legal entities, as are C and S. This principle helps to legally insulate the parties for purposes such as liability, torts, taxes, and so forth.  If company C is sued, you may be financially at stake (i.e. your investment in C is devalued or made worthless) but you are not personally being sued.  However, the litigant may attach you as an additional litigant if the facts of the suit merit it.  But without legal separateness of corporations, then potentially all owners and maybe a number of the employees would be sued any time somebody sued the business - which is messy for companies and messy for litigants.  It's also far cleaner for lenders to lend to  unified business entities rather than a variety of thousands of ever-shifting shareholders. Note that this is a separate analysis that assumes the companies are not treated as partnerships or disregarded entities (tax nothings) for tax purposes, in which case an owner may for some purposes be imputed to own the assets of C.  I've also ignored the consolidated tax return, which would allow C and S to file a type of corporate joint return that for some purposes treats them similarly to common entity. For the simplest variation of your question, the answer is no.  You do not own the assets of a corporation by virtue of owning a few of its shares. Edit:  In light of your edit to include FB and Whatsapp, and the wrinkle about corporate books.  If sub S is 100% owned by company C, then you do not have any inspection rights to S because you are not a shareholder.  You also do not have virtual corporation inspection rights through company C.  However, if a person has inspection rights to company C, and sub S appears on the books and financial records of C, then your C rights will do the job of seeing S information. However, Facebook is a public company, so they will make regular public filings and disclosures that should at least partly cover Whatsapp.  So I hedge and clear my throat by averring that my securities training is limited, but I believe that the SEC filings of a public company will as a practical matter (maybe a matter of law?) moot the inspection rights.  At the very least, I suspect you'd need a proper purpose (under DGCL, for example), to demand the inspection, and they will have already made extensive disclosures that I believe will be presumptively sufficient.  I defer to more experienced securities experts on that question, but I don't believe inspection rights are designed for public companies. You could, but the bank won't let you... If you're a sole proprietor - then you could probably open a personal account and just use it, and never tell them that is actually a business. However, depending on your volume of operations, they may switch you on their own to business account by the pattern of your transactions. For corporations, you cannot use a personal account since the corporation is a separate legal entity that owns the funds. Also, you're generally required to separate corporate and personal funds to keep the limited liability protection (which is why you have the corporation to begin with). Generally, business accounts have much higher volumes and much more transactions than personal accounts, and it costs more for the banks to run them. In the US, some banks offer free, or very low-cost, business accounts for small businesses that don't need too many transactions. I'm sure if you shop around, you'll find those in Canada as well. "When I left the UK four years ago, free banking is still an option and I'm pretty sure it still is.  Therefore, you have chosen to have a bank account with a 5.00/month charge.   In return for this charge, you will be eligible to receive certain benefits.  For example; reduced borrowing costs, discounted mortgage rates, free overdraft on small amounts, ""rewards"" for paying household bills by direct debit, and things of this sort.   Amongst these benefits may be preferential savings rates.  However, from HMRC's point of view it will be the extra perks you are paying for with your monthly charge.  You have chosen to pay for the account and HMRC is not interested in how you choose to spend your money, only in the money you earn. While I agree with you that it does have an element of unfairness, the problem is how would you divide the cost amongst the various benefits." "The shares are ""imputed income"" / payment in kind. You worked in the UK, but are you a ""US Person""? If not, you should go back to payroll with this query as this income is taxable in the UK. It is important you find out on what basis they were issued. The company will have answers. Where they aquired at a discount to fair market value ? Where they purchased with a salary deduction as part of a scheme ? Where they acquired by conversion of employee stock options ?    If you sell the shares, or are paid dividends, then there will be tax withheld." "I think the ""right"" way to approach this is for your personal books and your business's books to be completely separate. You would need to really think of them as separate things, such that rather than being disappointed that there's no ""cross transactions"" between files, you think of it as ""In my personal account I invested in a new business like any other investment"" with a transfer from your personal account to a Stock or other investment account in your company, and ""This business received some additional capital"" which one handles with a transfer (probably from Equity) to its checking account or the like. Yes, you don't get the built-in checks that you entered the same dollar amount in each, but (1) you need to reconcile your books against reality anyway occasionally, so errors should get caught, and (2) the transactions really are separate things from each entity's perspective. The main way to ""hack it"" would be to have separate top-level placeholder accounts for the business's Equity, Income, Expenses, and Assets/Liabilities. That is, your top-level accounts would be ""Personal Equity"", ""Business Equity"", ""Personal Income"", ""Business Income"", and so on. You can combine Assets and Liabilities within a single top-level account if you want, which may help you with that ""outlook of my business value"" you're looking for. (In fact, in my personal books, I have in the ""Current Assets"" account both normal things like my Checking account, but also my credit cards, because once I spend the money on my credit card I want to think of the money as being gone, since it is. Obviously this isn't ""standard accounting"" in any way, but it works well for what I use it for.) You could also just have within each ""normal"" top-level placeholder account, a placeholder account for both ""Personal"" and ""My Business"", to at least have a consistent structure. Depending on how your business is getting taxed in your jurisdiction, this may even be closer to how your taxing authorities treat things (if, for instance, the business income all goes on your personal tax return, but on a separate form). Regardless of how you set up the accounts, you can then create reports and filter them to include just that set of business accounts. I can see how just looking at the account list and transaction registers can be useful for many things, but the reporting does let you look at everything you need and handles much better when you want to look through a filter to just part of your financial picture. Once you set up the reporting (and you can report on lists of account balances, as well as transaction lists, and lots of other things), you can save them as Custom Reports, and then open them up whenever you want. You can even just leave a report tab (or several) open, and switch to it (refreshing it if needed) just like you might switch to the main Account List tab. I suspect once you got it set up and tried it for a while you'd find it quite satisfactory." There are no legal restrictions on doing this. If you're living in the UK, just open an account like any other resident of the UK would. You don't have much choice other than to open an account in your business name, then do a money transfer, as @DJClayworth says.  You will not  without providing your name and street address and possibly other information that you may consider to be of a private nature. This is due to laws about fraud, money laundering and consumer protection. I'm not saying that's what you have in mind! But without accountability of the sort provided by names and street addresses, banks would be facilitating crimes of many sorts, which is why regulatory agencies enforce disclosure requirements. You would need to pay taxes in India on your salary. It is not relevant whether the funds are received as INR or GBP. The taxes would be as per normal tax brackets. Note that if your company is not deducting any taxes, you would need to keep paying Advance Taxes as per schedule, else there would be penalty. Depending on your contract with the UK Company, there are certain expenses you can claim. For example laptop / net connection / etc if these are not already reimbursed. Consult a CA and he would advise you more on any tax saving opportunity.