How to Open a Business Bank Account in Canada - A Full Guide

If you’ve opened - or are planning on opening a business in Canada, you need a business bank account to keep your personal and company finances separate. This makes it easier to manage your accounts, analyze your profits, and file your taxes.

The right business account for you depends on your situation - including whether you’re in Canada already or not, the type of business you run, and how you intend to grow your company in future. This guide covers some key considerations, including a look at the providers to check out when it’s time to decide which one’s for you.

There’s no legal barrier to opening a business account in Canada as a non-resident. However, banks set their own eligibility requirements, which in practise means your options might be limited if you aren’t a resident, and don’t intend to become one any time soon.

If you’re non-resident at the moment, but are moving to Canada in future, it’s good to know that some banks have a newcomers to Canada service, which is designed to help immigrants - including incoming entrepreneurs - get their finances in order. This may be an option if you’re looking for a traditional bank account prior to your move. You can also opt for an online multi currency account for your business, which you could open more or less wherever you’re based, and operate across US and Canadian dollars, as well as a range of other currencies, to help your business have global reach.

One last option if you’re a non-resident but already have a business in the US - check whether your current bank operates in Canada, or has partner banks in Canada. Many global banking brands operate across the border - if you already bank with one of them, this may make it easier to transfer your account when you’re ready.

Some traditional banks do allow you to open a business account online in Canada - however, you may be restricted in which accounts you can select, and the services you can access may be limited. Some banks will require you to open a personal account with them prior to applying for a business account online.

If opening an account online is your priority, you may be better off choosing a fintech alternative to a traditional bank account. We’ll cover some options in a moment. As these business accounts are operated entirely online, you can get your account opened digitally, and manage your money via a website or app.

The exact process you need to follow depends on your chosen bank and the exact account you want - as well as whether you’re intending to move to Canada or not.

There are several different models for opening bank accounts - some accounts can be opened entirely online, by submitting your paperwork digitally. Others - like the Royal Bank of Canada - may allow you to get started opening a personal account online before you get to the country, but you’ll need to call or visit a branch to open a business account in Canada. Check out the options available to you based on your personal situation and the provider you’ve chosen.

In most cases, whether you’re applying in person or online, you’ll need to provide a similar set of details and paperwork:

Details of the owner, applicant and/or signatories to the account, including name, nationality, birth date and address
Personal identification for the business owner - directors and major shareholders may also need to provide this, based on the entity type
Details of the business including trading name, address, type, profit figures or forecasts
Your business documentation, based on entity type - business licenses, registration numbers, partnership agreements or articles of incorporation for example

Most banks have a checklist online showing the documents required by entity type, which makes it much easier to see what’s expected of you. As well as the paperwork, you may also need to hand over a minimum opening deposit amount to get your account up and running. Check the details for your account before you get started.

Before you choose a bank account you’ll need to check out all the fees and charges you’ll need to pay - read the small print carefully and don’t expect charges to be the same as those you’re used to.

You can usually find an account which doesn’t charge you an opening fee. In fact, some banks will even offer perks to new account holders, to entice you their way. That doesn’t mean there are no fees to worry about though. Read the full terms and conditions and look out for minimum opening balance requirements, service or fall below fees, transaction costs and early closure penalties in particular.