There are various steps to be followed a number of documents to be submitted to open a business bank account in Canada. Continue reading to get a clear picture of the whole account opening process.
What is a Business Bank Account?
A personal checking account aids personal finances and helps receive salary, any other income, pay utility bills, loan repayments, rent etc. Similarly, a business bank account helps in business transactions. It is a point where all the income of the business is collected and payment to vendors are made.
A business bank account can serve a sole proprietorship, partnership firm or a limited company. In order to open a business bank account, your organization must be in line with the rules put forth by the ‘Access to Basic Banking Services Regulations under the Bank Act’
How to open a Business Bank Account in Canada?
Here are few simple steps to follow for opening a Canadian Business Bank Account:
Step 1: Research the features of the Service Provider
There are several banks in Canada that offer business bank accounts. It is important that you research the features of various bank accounts and decide which is best for your business. You must check the account maintenance fees, its presence in other countries, minimum balance to be maintained, currencies that the bank offers, net banking, support to your business, any special offers and services.
Step 2: Complete and Submit Application Form
After narrowing down on the service provider, you must complete the application process offline. Although some banks offer online applications for a few customers, the application process for a business bank account in Canada is majorly done in offline mode. You would be required to visit the branch at least once.
Along with the application form you must also submit any two Identification Proofs validating information of the business owner.
Documents Required to Open Business Bank Account in Canada
In addition, based on the nature of your organization, you must submit the following documents:
**Sole proprietors & Partnership firms **
• Business Name Registration
• Master Business License
• Professional Practice License/ Partnership agreement
**Companies **
• Incorporation certificate
• Patent
• Business Number
• License to do the business
• Tax assessment notice
• Minutes of meeting
• Notice of documents
Step 3: Collect the Banking Kit
Once the application process is complete, the sole trader or the partner or the director of the company can collect the banking kit that has cheque book, debit cards, net banking details.
You must change the default pin numbers given by the bank and you can start managing the cash flow of your business through the newly opened business bank account.
Do have a look at the **Best Business Bank Accounts in Canada
**
Opening a Business Bank Account in Canada
It is important for every business be it small or large, to have a separate business bank account. This will keep the personal finances of the owners separate from the business transactions, improves credibility of the business, showcases professionalism, smoothens accounting and bookkeeping and makes filing tax returns easy.
Have you opened your business bank account in Canada? How was the account opening process? Do share your experiences and feedback.