In this article, we’re exploring the best business bank account in Canada.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Best Business Bank Account Canada 101
- Who Can Open a Canadian Business Account?
- Opening the Best Business Bank Account in Canada
- Frequently Asked Questions
- Ready to Explore Your Options?
Best Business Bank Account Canada 101
The best business bank account in Canada will be the one that understands your business, supports your industry, provides the services you need, and doesn’t charge you a small fortune to send transfers or maintain an account.
Of course, if you operate a high-risk business, send and receive transactions to foreign jurisdictions, or engage in regulated activities, it can be more difficult to find a suitable bank.
But, it’s not just your business activities that can make account opening difficult. In fact, it can be easier to open bank accounts in Canada for a high-risk business than it can be to open accounts for a non-resident business.
Unfortunately, many foreign non-residents are promised easy banking for Canadian businesses. But instead, they end up needing to fly to Canada just to open an account. We’ll discuss this (along with an alternative option) in more detail below.
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Who Can Open a Canadian Business Account?
A Canadian business account can be opened by a wide range of different business owners. However, there are specific requirements that make it more challenging for different business owners to open accounts than others.
Not surprisingly, the businesses that face the most challenges are those that operate outside of Canada. In most cases, this involves trying to open accounts for a Canadian LP that is owned and operated by a non-resident foreigner.
While the Canadian LP is increasing in popularity, it is still challenging to open accounts for. As a result, many business owners have had to resort to a range of different account opening and account management tactics. Several of these methods involve giving unrelated third parties control of the business bank account. We do not suggest any of these methods.
Instead, we suggest traveling to Canada in person to open accounts or reconsidering the structure (e.g. Canadian LP) that you have chosen for your business. This is especially relevant since structures offering very similar benefits (e.g. US LLC) are significantly easier to open bank accounts remotely.
That said, here is a look at the specific client groups that can open a bank account in Canada for their business.
Client Groups That Can Open a Business Account in Canada
- Canadian citizens residing in Canada
- Canadian citizens residing outside of Canada
- Foreign nationals residing in Canada
- Foreign nationals residing outside of Canada
While you could argue that this list includes anyone, it does not include individuals from (or that live in) high-risk or blacklisted countries.
Additionally, all of the client groups listed above will need to visit Canada in person in order to complete the account opening process for a Canadian business.
Opening the Best Business Bank Account in Canada
To open the best business bank account in Canada, you first need to assess your business’ banking requirements. This includes careful consideration of the business transaction activity, involved jurisdictions, future financing needs, and much more.
With this in mind, let’s take a look at the specific factor to consider when choosing the best business bank accounts in Canada.
Factors to Consider When Choosing the Best Business Bank Accounts
- Where is the business registered (Canada or abroad)
- Where is the business operating (Canada or abroad)
- What is the citizenship of the owner (Canada or abroad)
- What is the residency of the owner (Canada or abroad)
- How will the account be opened (in person or remotely)
- How much is the business able to deposit
- What specific services does the business require
- How much is the business willing to pay in fees for the account
After considering the above factors, you can then start narrowing down your options by selecting banks that match your needs. Not surprisingly, for businesses with non-resident, overseas, or high-risk factors, the number of banks available will be limited.
Frequently Asked Questions
Below are two of the most common questions that we receive from people looking into where to open the best business bank account in Canada. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Which Type of Bank Account Is Best for Business?
The type of bank account that is best for business ultimately depends on the business’s needs. However, in most cases, business owners choose to open more than one account, often a checking account and a savings account. That said, many businesses also have investment accounts, brokerage accounts, and even fixed deposit accounts to ensure that the business’ capital is always generating a return for the business owners.
Can a Foreigner Open a Business Bank Account in Canada?
A foreigner can open a business bank account in Canada. However, it depends on where the business is registered, the activities of the business, the profile of the business owner, and whether they can visit a Canadian bank in person.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.