Having a dedicated business bank account makes it easy to manage your business finances, including payroll, invoicing, end-of-year taxes, inventory, and more.
To choose the right business chequing account, compare features like minimum monthly balance requirements, the number of transactions you’re allowed to make, and monthly fees. Also consider whether the bank offers a business savings account that you can easily connect to your chequing account.
Key Takeaways
- Start by comparing the features you need in a bank account.
- Gather the documents you’ll need, like your ID and business licence.
- Be prepared to pay an opening deposit if required.
What do you need to open a business account in Canada?
No matter what type of business you own, you’ll need to provide personal information like your address, date of birth, and social insurance number. You’ll also need to show an official form of ID, like your driver’s licence, Permanent Resident Card, or passport.
If the bank requires a minimum deposit, it will be due at the time you open the account as well.
Beyond that, the specific documents you’ll need will depend on the type of business you’re running.
Sole proprietorship
If you own the business yourself, here’s what you’ll need:
- Master business licence
- Trade name registration
Partnership
If you own the business with someone else—either a partnership or a limited partnership—you’ll need the following documents:
- Signed copy of your partnership agreement
- Registered declaration of partnership
- Trade name registration
Corporation
If you own a corporation—meaning you’ve filed articles of incorporation—you’ll need to provide ID for each person who’s named on the bank account, plus the following:
- Articles of incorporation/association
- Trade name registration
If you’ve been incorporated for more than 12 months, you’ll also need to provide one of the following:
- Certificate of Status
- Certificate of Existence
- Certificate of Compliance
- Corporate profile report
- Annual government filing
- Business license
- Notice of Assessment
How to open a business bank account in Canada
Before you can open a new business bank account, you’ll need to choose the type of account you want and select a bank.
List the features you want in a bank account
Before you choose a business bank account, think about how you’re going to use it. Will you have a lot of transactions every month? Do you need a high-interest savings account connected to a chequing account? Write down the non-negotiables before you start shopping around.
Consider things like:
| Business need | Banking features |
|---|---|
| Flexibility while you get a new account off the ground | $0 or low opening deposit $0 or low minimum balance Low monthly fees |
| Ability to handle high volume | High transaction limits or unlimited transactions |
| International transactions | Ability to convert currency and transfer funds internationally |
| Financial assistance | Access to line of credit or business credit card |
| Assistance with banking questions | Excellent customer service |
| Easy access to funds | Business debit card |
Choose a bank account that has those features
Once you have an idea of what you need from an account, compare accounts from several different banks to find the one that fits your business best.
Choose from one of the four main types of business bank accounts:
- Chequing account: Use this for everyday transactions, like purchasing inventory and supplies or paying vendors
- Savings account: Earn interest on the money you have set aside to cover unexpected expenses
- Trust account: Set up a trust if you handle money on behalf of a client or another business
- Foreign currency account: Use a foreign currency account if you expect to have a lot of international transactions
Check out our guide to the best business bank accounts in Canada when you’re ready to compare accounts.
Start the application process online, over the phone, or in person
Some banks may require you to visit a branch in person to open a new business bank account. Others allow you to complete the process online or over-the-phone. These banks could be good options if you live outside of Canada or there isn’t a branch near you.
In some cases, you’ll be able to start the process of opening an account online or over the phone, but you’ll need to visit a branch in person to activate the account.
How long does it take to open a business bank account?
In some cases, you’ll be able to use your business bank account the same day you open it, but to be safe, prepare to wait about 7–10 days before you can access any funds that you deposit. Also, be aware that if there’s an issue processing your application or verifying your documents, the process can be delayed.
How much do you need to open a business bank account?
The amount you’ll be required to deposit can vary based on the bank you choose and the type of account you’re opening. In some cases, you’ll be able to open a business bank account with no deposit.
Why should I open a business bank account?
Having a business bank account has a ton of benefits, including:
- Making it easy to separate your business finances from your personal funds
- Simplifying payroll, invoicing, and end-of-year tax filing
- Adding legitimacy to your business
- Helping improve your business credit score
Best business bank accounts
The best business bank account is the BMO eBusiness Plan—you get unlimited deposits and unlimited electronic transactions, plus there’s no monthly fee. But all of Canada’s big 5 banks offer solid business banking options Here’s a little about what they offer:
| Bank name | # of business chequing options | Lowest chequing account fee | Starting interest rate for business savings |
|---|---|---|---|
| BMO | 6 | $0 | 0.80% |
| RBC | 3 | $6 | 2.55% |
| TD | 5 | $5 | Variable |
| CIBC | 4 | $6 | Subject to change |
| Scotiabank | 4 | $6 | 3.5% |
$75 GeniusCash + Unlimited transactions for $0 + Ding-free non-affiliated ATM usage.
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Which Canadian bank is the best for small business?
BMO is an excellent bank for small business—their eBusiness chequing accounts have no monthly fees, unlimited transactions, and unlimited deposits. However, all of the Big 5 banks offer competitive small business bank accounts, so research to find the one that best fits your needs.
Which bank account is best for a small business?
The BMO eBusiness Plan is excellent for small businesses because there are no transaction or deposit limits and zero monthly fees. But depending on the needs of your business, you may find that another bank account offers more attractive features or more competitive rates.
How do I open a bank account with a business name?
If you’re trying to open a bank account using a business name instead of your own name, you’ll need to show documentation proving the legitimacy of your business—like your trade name registration. But keep in mind that you’ll also need to show proof of your own identity.
Do I need a business CRA account?
You’re required to have a business account with the Canada Revenue Agency (CRA) if you have a payroll account or Goods and Services Tax (GST) account. You also need a business CRA account if you have an incorporated business (or a corporation).
Can I use my personal bank account for my small business in Canada?
If your business has a name that’s different from yours, you need a separate business bank account. If you run a business under your own name, it’s technically legal to use your personal bank account—but it’s not recommended because it will be difficult to keep your personal and business finances separate.
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