Opening a business account in Canada is easy. Whether you’re a sole proprietor or you operate a larger business that includes payroll and employees, a business bank account can help you manage your day-to-day business finances smoothly.
Keep reading to discover everything you need to know about how to open a business bank account in Canada, including options that let you open an account online.
How do I open a bank account for my business? Easy! Just follow these five steps:
Learn more about each step below.
The first thing you need to before opening a business do is work out exactly what you need from an account.
How many transactions do you need to perform per month? What type of transactions are they? Do you do most of your business banking online, or do you also need an account that accepts regular cash and cheque deposits?
Once you know exactly what you need in an account, it’s time to compare your options.
Compare business accounts that match your needs. Other features to consider is if the attached spending card offers cashback, whether there are business saving tools such as GICs or high-interest business savings accounts, or the possibility of credit and loan options as your business grows.
The right business account for you to open will support all the transactions and features your company requires regularly — at the lowest monthly fee.
From major banks and credit unions to digital banks and fintechs, you’re spoiled for choice when looking to open a business account in Canada.
When you’ve found the right account, it’s time to open your business bank account. While some banks will require you to book an appointment at your nearest branch to complete the process, many banks and all fintechs allow you to open a business account online.
The documents needed to open a business account in Canada vary between banks. But you will typically need to supply personal information as well as information about your business.
You’ll need to provide your name, date of birth, address, contact details and SIN. You’ll also need to provide two forms of identification, such as a driver’s licence and passport.
Please note that anyone getting signing authority on the account will need to provide this information.
The documents you’ll need to provide will vary depending on your business structure.
Check the bank or fintech’s application requirements so you can prepare the necessary paperwork in advance. When you open a business account online, you’ll need to upload copies of these documents wo your online application.
Once you’ve opened a business account, the next step is to set up online and mobile banking. Be proactive and create a secure password for online banking and never download a mobile banking app from anywhere but the official app store for your phone.
Your financial institution will also mail out a debit card linked to the new account, along with other paperwork. Follow the instructions to activate your card. You can also often order multiple cards for employees if necessary.
The final step is to use your new business account to manage your day-to-day business transactions. Set up automatic bill payments and preauthorized debits to pay your suppliers.
Remember to provide your new account details to clients and customers so they can pay you. Use your debit card to pay for essential business purchases. And track your spending and manage cash flow via online or mobile banking.
If you’re using accounting or expense management software, and the business account is compatible with it, make sure to link your new account to your software. Doing that as soon as you can will save you a lot of time on administration later on.
Yes, it’s definitely possible to open business account online with both banks and fintechs. In fact, it’s becoming more common to open a business account online, including at some of Canada’s Big Five Banks, like RBC and CIBC.
Fintechs and online-only banks also allow you to open a business account online. You simply need to provide your personal and business details in an application form, then upload proof of ID and any required documents.
Online business bank accounts are best suited to businesses that do most of their banking digitally. Some providers that offer online business accounts include Airwallex and Jeeves and Tangerine.
It’s also worth mentioning that some banks openly market online business account applications, but, in practice, require you to visit a bank branch at some point in the process. In that case, you’ll typically be able to submit an online application, but you’ll then need to visit a branch to prove your identity and provide your business documents.
Here’s a summary of select banks and fintechs that let you open a business account online in Canada:
| Business account | Monthly fee | Open online |
|---|---|---|
| RBC Digital Choice Business Account | $6 | |
| Airwallex Business Account | $0 | |
| Jeeves Business Account | $0 | |
| Loop Global Business Banking Account | $0 | |
| RBC Flex Choice Business Account | $7 | |
| Wise Business | $0 |
A business bank account is used to manage your day-to-day business transactions. You can use it to accept payments from customers, pay suppliers, and make purchases using a linked debit card.
The key difference between a business bank account and a personal chequing account is you can open it in your business name. This means it can receive payments made out to your company name.
A business bank account also allows you to separate your personal finances from your company’s money. Some business bank accounts can also help you issue invoices, run your payroll — useful if you have employees — and make it simpler to track business spending and file your tax return.
The short answer is, yes — if you run your own business, you should open a business bank account. That’s especially true if you make many business purchases and have frequent deposits of business income into your account.
The main reason to open a business account is to keep your personal finances separate from your business’s finances for tax-reporting and accounting purposes. Plus, depending on the structure of your business, having a separate business account may be a legal requirement.
You can open a business bank account in Canada if you run a sole proprietorship, partnership, small business or corporation. You’ll need to be the age of majority in your province, and your business needs to be registered and operate in Canada.
However, some banks and financial institutions have additional eligibility criteria. For example, you may need to meet transaction requirements to qualify for some accounts, while other business accounts are only available to licensed corporations.
It’s also possible for non-residents to open business bank accounts in Canada. However, the exact eligibility requirements concerning residency status can vary from one bank to another, so check with your chosen bank first.
Opening a business bank account in Canada is relatively straightforward, as long as you know what type of account would suit your business. Once you understand your business banking needs, it’s important to compare accounts and check eligibility requirements. Then you can gather the necessary documents and open a business bank account online or at your nearest branch.
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