How to Open A Business Account in Canada
If you’re looking to leverage your business in Canada, opening a business bank account in the country is one vital aspect of achieving your business goals. Canada is a country of opportunities for workers, students and entrepreneurs. So, it’s not surprising if you also want to take advantage of the reliability of the banking system in the country.
Here’s our simple guide on how you can enjoy the benefits of opening a business account in Canada.
Meet the Eligibility Requirements
Opening a business account in Canada is simple, especially if you meet the eligibility and have all the required documents to submit. To apply for a business bank account in Canada, here are the things you should know.
1. Be Familiar with the Basic Banking Services Regulations
Your company should meet the requirements stated in the Basic Banking Services Regulations under the Business Act. The Bank Act includes all the necessary information, such as the regulations and conditions you need to accomplish before opening a bank account in Canada.
Once you confirm that your business follows all the regulations and understand your accountability for opening a Canadian bank account, the process will be more straightforward. All you need starting from here is to present the documents to process your application.
2. Know the Documents to Submit
Upon understanding the policy of the Canadian banking system and checking if your business is qualified, it’s time to know the papers to submit to your chosen bank. The general document to present for all types of companies in the business owner’s two valid identification forms. Usually, you can bring one government-issued ID and one valid photo ID.
Furthermore, aside from the identification proof, your company will also be required to submit particular documents depending on your business type.
For Sole Proprietorship
If you’re running a business alone, the bank will require you to submit two additional requirements. You need to present your company’s trade name registration along with the master business license.
In terms of operating a corporation, you need to submit seven additional documents, including:
– Your company’s business license and number
– Your company’s Notice Assessment for Income Tax
– Your company’s Certificates of Compliance, Status and Existence
– Your company’s Articles of Association/ Incorporation
– Your company’s Profile Report
For Limited Partnerships and Partnerships
If you’re running a business in partnership with other individuals, the documents you need to submit aside from the valid ID’s are:
– Your company’s Trade name registration
– Your company’s Registered declaration of partnership
– A copy of your company’s partnership agreement is also necessary
Know Which Bank to Choose
After completing all the required documents, the challenging part is choosing the best bank for your business. Although Canada offers a plethora of reliable banks, it’s essential to know which bank is ideal to leverage your business.
In the banking industry of Canada, there are five major banks that you can trust for saving and investing your business money. However, although these top companies dominate the industry, it’s recommended to do comprehensive research for each company. It will help you determine a suitable partner for you.
Top 5 Canadian Banks to Open Business Account
-Royal Bank of Canada
-Canadian Imperial Bank of Commerce
-The Bank of Montreal
– The Bank of Nova Scotia
Know the Respective Fees
Opening a bank account in Canada or other countries requires you to pay banking charges and fees. Most of the fees charged by banks anywhere in the world include fees for maintenance, ATM transactions, foreign transactions, chequebook transactions and debit transactions. You should consider these banking fees when looking for an ideal bank for your business. It will help you prevent investing in Canadian banks that do not cater to your needs.
Frequently Asked Questions When Opening a Business Account in Canada
If you still have questions regarding the application of a business account in Canada, here are some of the FAQs that might help. You can also seek recommendations from the total.law Canadian lawyers to understand more of the process, eligibility and requirements of opening a business account.
Do I need to be a permanent resident to open a business account in Canada?
Non-residents of Canada are eligible to open a business account in the country. However, some banks have different residency guidelines for this matter. So, it’s essential to check the bank’s policies before applying.
Can I open a business account in Canada even if I’m not in the country?
Some Canadian banks allow you to open an account online even if you’re currently not in the country. But, it can also vary depending on the bank’s regulations regarding this matter.