How to open a business account in Canada

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.

5 steps to open a business bank account in Canada

How do I open a bank account for my business? Easy! Just follow these five steps:

1. Assess your business banking needs. Decide what features you need, so you get access to the banking services your business needs without paying for what it doesn’t.
2. Compare business bank accounts. Look at banks and fintech business accounts to narrow down your options.
3. Apply to open a business account online or at a branch. Apply to open a business account online or at a bank branch, submit your documents and get approved.
4. Set up online banking and activate your card. Sign up for online and mobile banking and start linking your accounts.
5. Start your business banking. Start moving your money and tacking your business transactions from your account.

Learn more about each step below.

Step 1: Assess your business banking needs

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.

Step 2: Compare business bank accounts

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.

• Monthly fee

  While many business bank accounts in Canada — especially from traditional banks like RBC and CIBC — come with a monthly fee, there are several low-fee or free business accounts from fintechs like Airwallex and Jeeves. The monthly fee on some account can also be waived if you meet minimum monthly balance requirements.

  Keep in mind that while opening a free business bank account can seem like a nice way to save money, you need to ensure you’ll still have access to the banking features you need. That said, make sure you’re not paying for features you don’t use.

• Transaction and deposit limits

  Business bank accounts offer varying transaction and deposit limits and fees, so make sure you choose to open one that fits your regular transaction needs.

  Basic accounts place a limit on the number of monthly transactions with an additional fee for excess transactions. Premium accounts support unlimited transactions, but with higher monthly fees.

  Many bank accounts offer unlimited electronic transactions. For example, the RBC Digital Choice Business Account offers unlimited electronic debit and credit transactions, no limit on electronic cheque deposits and unlimited credit and debit transactions through Moneris for $6/month.

  Will you need to deposit cash often? Consider an account that offers free cash deposits, like the RBC Ultimate Business Account which offers up to $25,000 cash deposits for free per month.

• Other fees

  Check the fine print for details of any other fees that may apply to your account. For example:

  • If your business accepts cash payments, how much cash can you deposit each month without incurring additional fees?
  • If your business operates globally, will you be charged any foreign transaction fees?
  • Are there any fees for specific transactions, such as sending an Interac e-Transfer or making an ATM withdrawal?

• Access to multiple currencies

  In an increasingly global marketplace, you may need access to affordable currency conversions and money transfers. Let’s say you’re an ecommerce site based in Canada that sells in the US, you’ll need access to payment management in USD. In that case, look into opening a multicurrency business account, like Wise Business or other fintechs that specialize in multicurrency business accounts.

• Access to your account

  Consider how you’ll be able to access and manage your funds. Do you do all your banking online, or do you want a bank that offers convenient branch and ATM access?

  Look for an account that comes with user-friendly online and mobile banking apps. And if convenient in-person access is important for your business, compare bank ATM and branch networks.

• Expense management software compatibility

  Some bank accounts are designed to be linked up with your business’s accounting or expense management software. For example, the RBC Digital Choice Business Account is compatible with Quickbooks, Sage, Xero.

  While not an essential feature, having an account that is compatible with your expense management software can really increase your administrative efficiency as time goes on.

• Customer support

  Check how you can get in touch with your bank if you have any problems with your account. Can you talk to a real person over the phone, or will you need to access help via live chat or email?

  Check whether the customer support team is available during hours that are convenient for you.

Business bank accounts you can open online

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.

1 - 7 of 7

Product CAFSA-BUS	Finder Score	Monthly Account Fee	Multi Currency Accounts	FX Fee	Corporate Credit Card	Accounting Integration	Offer
RBC Digital Choice Business Account	Finder score 9 Excellent	$6	CAD only	Varies		Quickbooks, Sage, Xero	Get unlimited electronic debit and credit transactions, unlimited electronic cheque deposits, unlimited Moneris deposits and 10 free outgoing Interac e-Transfer transactions per month.	Sole proprietorships and corporations accepted.	Go to siteMore Info Compare	loading Fetching your data...
Airwallex Business Account	Finder score 8.8 Great	$0	CAD, USD, GBP, EUR + 17 more	0.5% - 1%		Quickbooks, Xero + more	Sign-up and get a $500 bonus in FX conversions. Open and manage multiple global accounts with no monthly fees. Send and receive payments in 16 different currencies and avoid costly conversion and transaction fees.	To be eligible, you'll need to have a registered Canadian corporation.	Go to siteMore Info Compare	loading Fetching your data...
Loop Global Business Banking Account	Finder score 8.7 Great	$0	CAD, USD, GBP, EUR	0.1% - 0.5%		Quickbooks, Xero	Eliminate FX fees with a Loop credit card. Spend in CAD, USD, GBP and EUR and earn points to use toward travel and experiences. Get up to a $1M credit limit.	To be eligible, you'll need to have a registered Canadian corporation and provide proof of an active business (bank statements, contracts with suppliers, financial or CRA statements, etc.)	Go to siteMore Info Compare	loading Fetching your data...
Jeeves Business Account	Finder score 8.9 Great	$0	CAD, USD, EUR, GBP + 2 more	From 0.20%		Quickbooks, Xero	Issue unlimited pre-funded corporate cards in local currencies, send payments to 150+ countries, and manage global expenses all from one platform.	To be eligible, you'll need to have a registered corporation and a revenue of at least $50,000/month.	Go to siteMore Info Compare	loading Fetching your data...
RBC Flex Choice Business Account	Finder score 9 Excellent	$7	CAD	Varies		Quickbooks, Sage, Xero	Bank both digitally and in-branch and only pay for what you use. No minimum or maximum transaction limits.	Sole proprietorships and corporations accepted.	Go to siteMore Info Compare	loading Fetching your data...
Wise Business	Finder score 8.8 Great	$0	CAD, USD, GBP, EUR + 6 more	0.48%		Quickbooks, Xero + more	No hidden charges, high rates or monthly fees. Get the mid-market exchange rate. Pay employees, get paid and manage your cash flow in over 70 countries.	To be eligible, you'll need to have a registered Canadian corporation.	Go to siteMore Info Compare	loading Fetching your data...
Vault Business Banking Account	Finder score 8.8 Great	$0	CAD, USD, GBP, EUR	0.25%–0.45%		Quickbooks, Xero	Earn 1% unlimited cashback on your Vault multi-currency corporate credit card. No currency limitations. Set up accounts in CAD, USD, GBP and EUR, enjoy $0 local transfers.	To be eligible, you'll need to have a registered Canadian corporation.	Go to siteMore Info Compare	loading Fetching your data...

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Finder Score for business bank accounts

To make comparing even easier we came up with the Finder Score. Interest rates, account fees and features across 20+ business bank accounts and 15+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the account - simple.

Read the full methodology

Step 3: Apply to open a business account online or at a branch

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.

What is required to open a business bank account in Canada?

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.

Personal details

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.

Business documents

The documents you’ll need to provide will vary depending on your business structure.

• Sole proprietors will need to provide a business registration or trade name registration
• Partnerships will need to provide a partnership registration, partnership agreement, trade name registration or Master Business Licence
• Corporations will need to provide multiple documents, such as articles of incorporation/association, trade name registration, notice of assessment for income tax, certificate of corporate status and certificate of existence

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.

Step 4: Set up online banking and activate your card

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.

Step 5: Start your business banking

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.

Can I open a business account online?

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.

Which banks and fintechs allow you to open a business account online?

Here’s a summary of select banks and fintechs that let you open a business account online in Canada:

What is a business bank account?

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.

Should I open a business bank account?

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.

Who can open a business account in Canada?

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.

Bottom line

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.

FAQs about how to open a business bank account

• Can you do online banking for a business account?

  Yes. Most banks offer online business banking portals that are separate to their personal online banking services. You can use online business banking to send payments, track your spending and manage cash flow.

• What is the quickest way to open a business bank account?

  The quickest way to open a business bank account is to apply online. You can provide your personal information as well as upload your business documents and proof of ID, and it often takes less than 30 minutes to apply.

• Can I open a TD business account online?

  If you're a sole proprietor, you can apply for a TD business account online. But if you're not a sole proprietor, you will need to book a phone appointment with a TD Business Banking Specialist to open an account.

• What is the best account to open for a business?

  The best business bank account depends on your banking needs. For example, if your business frequently accepts cash payments, you'll need an account that doesn't slug you with extra fees for making cash deposits. But if your business operates solely online, you'll need an account that supports a suitable number of digital transactions.

  You'll also need to consider factors such as how many transactions you need to make each month, and whether the account comes with a monthly fee.

• Can I open a business bank account immediately?

  It depends. If you're an existing customer with the same bank and you're opening a business account as a sole proprietorship, it may be possible to open an account within minutes. But if you're a new customer or have a more complicated business setup, it may take a couple of business days for your application to be approved.

• Can I open a business bank account in Canada as a non-resident?

  Yes, it is possible to open a business account as a non-Canadian resident. However, not all banks will allow this, while you may also need to satisfy additional requirements to qualify for an account. Check with your bank of choice to find out whether they offer non-resident business accounts.

To make sure you get accurate and helpful information, this guide has been edited by Romana King as part of our fact-checking process.

Written by

Tim Falk

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

Co-written by

Chelsey Hurst

Publisher

Chelsey Hurst is a publisher at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature. See full bio