How to invest in ETFs as a business

How to buy ETFs with a business account on InvestEngine

1. Sign up for an investment account

Head to InvestEngine's website on your desktop, click 'Get started', and choose 'Business' as your investor type.

2. Pop in your email and create a password

3. Verify your account

At this stage, you'll need to verify things to prove you are a company director, that you have the right to be depositing company funds, that other major shareholders agree, and so on.

3. Create a portfolio

Once you're set up and verified, click 'Create portfolio' on your InvestEngine dashboard, then choose from the options: Do it yourself, LifePlan portfolios, or Managed for you.

If you choose either of the latter two options, your investments will be managed for you (for an annual fee).

The 'Do it yourself' option will require a little more setup as you'll have to add your own investments, so we're going to break that down further now.

4. Choose your investments

Browse the selection of ETFs. When you're happy with one, click it and then click 'Add to portfolio'.

You can do this with multiple ETFs if you'd like to spread your investments out for greater diversification.

If you're not sure which ETF is right for you, don't panic – we've got a totally free video course that'll have you sounding like Warren Buffett next time someone mentions the S&P 500. Alternatively, check out our beginner's guide to ETFs.

5. Click continue, enter your portfolio weights

Set your chosen weights for your ongoing portfolio investments.

If you only have one ETF added, this will be 100%. If you have more than one ETF, the weights must add up to 100%.

Then click 'Review and continue', and confirm again on the next page if you're happy to proceed.

6. Enter your bank details to fund your account

You can set up a recurring direct debit or make a one-off lump sum – whatever suits your cash flow. Start by clicking 'Add cash' or 'Make your 1st Top Up'.

Here, you'll be able to transfer for a one-off deposit, or set up a Savings Plan for recurring investments weekly, fortnightly or monthly.

If you turn the 'AutoInvest' option on, this will make sure your funds are automatically invested with your chosen weightings every time you make a deposit.

Is it better to invest all at once or a bit at a time? We've got an article that breaks that down.

7. Wait for your investments to go through

If you've completed all of the above, you're all set!

Now you just need to wait for your investments to be processed. This can take a couple of days of InvestEngine, or a few days if investing over the weekend.

The downsides of investing as a business

Investing sounds great – that is, until the market tanks and suddenly that "spare cash" isn't so spare anymore. Before taking the risk, a business needs to ask itself: is this money it can afford to lose?

Because if it's earmarked for payroll, rent, or tax, it's not spare. If things go south, you don't want to be explaining why the Christmas bonus has turned into a "valuable lesson in market volatility".

Stocks aren't ATMs. You can sell in a few clicks, but you might not like the price when you do. If the market's down, you could be cashing out at a loss.

Businesses don't have decades to let investments simmer. They'll need the cash sooner, which is why most skip the latest overhyped AI-blockchain-soy-protein startup and stick to low-risk index funds.

If you do invest, be aware that your capital is at risk. And diversify – even the "sure thing" can turn into a "what the heck happened?"

Tax Liability

Ah, taxes! Without them, we wouldn't have policemen, trees, or sunshine – apparently.

If your business makes money from selling investments, HMRC will come bounding over faster than a labrador at dinner time.

Limited companies pay corporation tax on profits – usually 25%. But if your taxable profits are under £50,000, you get the lower 19% rate. If you're somewhere between £50,000 and £250,000, you'll pay a gradually increasing rate due to marginal relief.

Sole traders and partnerships pay capital gains tax on investment profits. The first £3,000 of gains (as of 2025/26) is tax-free, but this allowance has been shrinking and could be reduced further in future tax years.

For trading companies, investments could also affect tax perks like business asset disposal relief (for reducing capital gains tax when selling the company). Business relief (which can lower inheritance tax on shares) generally only applies to unlisted trading companies, so most ETFs wouldn't qualify.

Or, you could just take the spare cash as a dividend – but yep, that's taxed too.

Conflicts of interest

Tempted to invest company cash in something that personally benefits you? Or maybe a mate's business? Or worse, a company you have insider knowledge on?

Yeah, don't.

Using business funds for personal gain, trading on inside information, or making dodgy investments in companies you work with can land you in serious trouble – think financial penalties, legal headaches, and a PR disaster.

Investing in your own suppliers or customers isn't necessarily illegal, but failing to disclose it properly could lead to conflict of interest concerns or regulatory issues. If you have insider knowledge, it could even be illegal insider trading.

Best bet? Keep your business and personal investments separate, or at least make sure everything is totally transparent and above board. If in doubt, get legal advice – preferably before HMRC or regulators come knocking.

And get financial advice too, if you need specific input or if you're unsure about anything.

Why invest as a business?

Got spare business cash sitting around? You could put it to work in the stock market.

The process? Pretty much the same as if you were investing personally. Open a broker account, put money into investments, hope they go up in value.

The main difference? Tax. Because of course HMRC wants its cut.

But if you have spare business cash, what should you do with it?

Option 1: Leave it in the bank

Safe, boring, and guaranteed interest. Easy to access if you get yourself in a pickle.

Option 2: Reinvest in the business

Upgrade the office. Buy new software. Bribe employees with free fruit or a dartboard. That could boost productivity and results...or just lead to increasingly competitive (and dangerous) office darts tournaments.

Option 3: Invest it in the stock market

Historically, stocks have outperformed savings accounts. There's no guarantee that will continue going forward. However, if we take the S&P 500 – a stock market index tracking the 500 biggest public companies in the US – it's averaged 10% annual returns since 1957. That return compounds over time.

Of course, stocks aren't guaranteed money. The returns have been less than 10% in many years, and in some years it completely tanks.

But over time, index funds and ETFs have a track record of being solid long-term investments.

Picking the right investment platform for your business

Finding the right broker for your business isn't a one-size-fits-all deal. It depends on your budget, what you want to invest in, and how much hand-holding you desire.

Below is a quick-and-dirty rundown of five solid options – not recommendations, or gospel, and definitely not ranked best to worst. Use this as a jumping-off point for your own research.

Broker	Fees and costs	Investment options	Regulatory protections	Customer service quality
InvestEngine	No platform fees for DIY portfolios, or 0.25% annual fee for managed approach	Access to over 760 ETFs, covering equities, bonds, and commodities	FCA regulated and FSCS protected	Online support
Lightyear*	Competitive fees for stock purchases (e.g. £1 per UK share); no platform fees	Over 4,000 stocks and ETFs across various global markets	FCA regulated and FSCS protected	Online support
Interactive Brokers	No custody fee; low trading commissions; no inactivity fee	Access to over 160 global markets	FCA regulated and FSCS protected	Telephone and online support
AJ Bell	Transaction fees of £1.50 per trade if dealing in funds or £5 for shares; annual custody charge of 0.25%	Over 2,000 funds, 450 investment trusts, and a wide range of UK and international shares	FCA regulated and FSCS protected	Telephone and online support
Interactive Investor*	£30 monthly charge for business accounts, flat-fee between £5.99 to £14.99 per month, plus trading fees.	Over 40,000 investment products, including UK and international shares, funds, ETFs, and investment trusts	FCA regulated and FSCS protected	Telephone and online support

Once you've settled on the broker for you, you'll want to set up your account.

Getting a Legal Entity Identifier

Opening a business investment account is usually straightforward, but expect a bit of admin.

You'll need the following:

• A business email
• Company number
• Legal Entity Identifier (LEI) – required only for businesses that trade in certain financial instruments, like derivatives. Many brokers do not require an LEI for basic ETF or stock investing, so check before applying.

Some platforms cover the first year's LEI fee; otherwise, expect to pay around £45 a year. Sole traders don't need one, and some brokers let businesses invest without it, so check before signing up.

Then, you'll link a business bank account, upload a recent statement, and add shareholder details.

Once verified, which may take a few days, you can deposit funds and start investing. Some platforms let businesses set up a portfolio in advance while waiting for approval.

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