What documents do I need to open a business bank account in Canada?
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- Updated On:29-Nov-2022
- Replies:1
Short Answer
You are required to submit a number of documents to open a Business Bank Account in Canada based on the nature of your organization. You could be a sole trader, a partner in a firm, or a director of a registered company, learn the documents that are required to open a business bank account in Canada .
Detailed Answer
**Business Environment in Canada **
Canada boasts of a healthy business environment with cultural diversity, low corporate tax rates, trade pacts that offer preferential access to global and diverse markets, and stern intellectual property protection laws. If you are thinking of penetrating the Canadian business environment and are looking to open a business bank account in Canada, check out this article.
**What is a Business Bank account? **
Unlike personal savings or a transactional account, which is used to aid personal finances, a business bank account is opened in the name of the business and is used for the sole purpose of the transaction of a business. Sole proprietors, partnership firms, and limited companies are eligible to open a business bank account.
Benefits of a business bank account
- It is imperative to segregate one’s personal transactions and business transactions for accountability
- It is mandatory for businesses that are incorporates
- Exhibits professionalism and credibility
- It simplifies the bookkeeping and accounting process.
- Makes tax filing uncomplicated
- Easier to apply for loans
**Business Bank Account - Mode of application **
The application can be made both online and offline. However, this depends on the banking service provider, your citizenship, and your residential status.
Eligibility Criteria to Open A Business Bank Account
Your organization should meet the requirements set down by the ‘Access to Basic Banking Services Regulations' under the 'Bank Act’.
Documents Required to Open A Business Bank Account in Canada
It is vital for every business entity, be it a sole trader or a partnership firm, or a registered company to have a separate business bank account for bookkeeping and a bonafide accounting process.
It is important for a sole trader to disclose his/her trade name registration and license. In addition to this, a partnership firm needs to submit its partnership agreement. Similarly, a company has to submit its certificate of incorporation, business number, and documents stating the name of its directors.
So let's find out what documents are required to open a Business Bank Account in Canada.
Two Identification Proofs validating information of business owners, preferably issued by the Government of Canada. Apart from this, specific documents are to be presented, based on the nature of your organization:
For Sole proprietors
- Business Name Registration
- Master Business License
- Professional Practice License
** For Partnership firms **
- Partnership Agreement
- Business Name Registration
- Master Business License
**For Corporations **
- Certificate of Incorporation
- Patents
- Business Number
- License to do the business
- Tax assessment notice
- Minutes of meeting
- Notice of documents
Please note that any one of the documents must clearly list the names of the directors.
What are the things to consider for Opening A Business Bank Account?
Before you choose a service provider, here are a few factors that you need to keep in mind:
- Account keeping fee
- Its global presence (In case you look to expand your business in other countries)
- Minimum balance
- Advice for company owners
- Business support
- Available currencies
- Online banking options
- Customized services and features
Have you tried opening a business bank account in Canada? How did you find the experience?
Do have a look at the **Best Business Bank Accounts in Canada
Canadian Business Bank Account
Canada flaunts its robust banking and financial services sector. Apart from connectivity to Canadian customers, and ease of transactions, one can rely on the stability of Canada’s banking sector and open a business bank account with an institution of their choice.
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Discussion (0)
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No it is not compulsory for sole proprietor in Canada to open a business bank account. But, you can easily open one by submitting the necessary documents and completing the formalities.
For international students to open a bank account i Canada, they are required to submit the application form of the service provider, along with identification proof such as study permit, passport, traveler's cheque etc.,
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