Business Bank Account in Canada: Business Banking Guide

As a foreign business owner, opening a business bank account in Canada can have some major advantages. Not only can it help you reach a larger customer base but it can also help you unlock lower foreign exchange fees and tap into some hidden (and profitable) opportunities. More on these advantages below.

But first, let’s answer the question of whether you can open a business account in Canada if you’re a foreign non-resident.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

1. Can a Non-Resident Open a Business Account in Canada?
2. What Are the Benefits of Opening Business Bank Accounts in Canada?
3. What Types of Businesses Can Open Business Accounts in Canada?
4. What Are the Challenges of Opening Business Accounts in Canada?
5. How Do I Open a Business Chequing Account in Canada as a Non-Resident?
6. Frequently Asked Business Banking Questions
7. Do You Want Help Opening Business Bank Accounts?

Can a Non-Resident Open a Business Account in Canada?

Yes, business bank accounts in Canada can be opened by foreign non-resident business owners. Normal opening considerations apply, though there are no residency requirements. To open a business bank account in Canada you will need to provide proper documentation for the business, shareholders, and directors while also navigating opening challenges.

Naturally, if you don’t have the right information, opening a Canadian business account as a foreign non-resident can be frustrating and time-consuming. That’s why our team of banking experts has analyzed all of the financial institutions that allow non-residents to open business bank accounts.

In this article, we’ll share the information you need to know when choosing which financial institutions to apply to for your business banking needs. We’ll also share some helpful tips on how to get started.

So, if you’re a non-resident and opening a Canadian business account is something you’re interested in, keep reading!

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What Are the ​​Benefits of Opening Business Bank Accounts in Canada?

As mentioned at the start of the article, opening a business account in Canada offers foreign non-resident business owners a number of benefits. This is especially true if you have clients in Canada. However, if your business is primarily focused on bigger markets (such as the USA), a business bank account in Canada could be even more beneficial.

When you open a business account in Canada, you are able to tap into Canadian payment processing for business transactions. This is interesting for a very specific reason: US dollars. Unlike many banking jurisdictions, when you open a payment processing account in Canada, you’re able to unlock both the local currency (CAD) and US dollars (USD). This is a huge advantage for anyone who wants to sell products or services to US customers but doesn’t have (or doesn’t want to have) a US company, US bank account, and USD payment processing.

Additionally, unlike many other top banking hubs, opening a Canadian business account does not come with residency requirements. So, if you’re a foreign non-resident living and working outside of Canada, you will still be able to open an account for your business.

Here’s a look at seven benefits that you’ll be able to capture as a non-resident looking to open a business account in Canada.

Benefits of Opening a Business Account in Canada

1. No residency requirements
2. Access to Canadian customers
3. Access to low-cost USD payment processing
4. Deposit insurance on your accounts
5. Access to a stable banking sector
6. Option to open accounts remotely
7. Enhanced credibility through a strong jurisdiction

Importantly, if you’re looking to capture these benefits when you open a business bank account in Canada, you shouldn’t open an account with just any Canadian bank. We stress this because it’s important to understand which bank is best matched to your banking profile and which bank will actually accept you as a client.

In short, choosing the wrong bank could result in you paying unnecessary fees, constant account freezes, account closures, and wasted time and money in the application process.

To make sure this doesn’t happen, keep reading to find out more about what types of businesses can open accounts, what types of bank accounts are available, and how you can navigate the common opening challenges successfully.

What Type of Businesses Can Open Business Accounts in Canada?

There’s a lot of confusion surrounding the types of businesses that can open bank accounts in Canada. But, like in other countries, there are key variables in determining which businesses can open Canadian bank accounts. We share seven of these key variables below.

Variables to Consider When Choosing Where to Open a Business Account

1. The industry that you operate in
2. Where your business is registered
3. Where your business operates
4. What the account will be used for
5. Where your customers are located
6. How much you’re willing to pay for the account
7. Each bank’s internal policies

There are, of course, other variables to consider as well. But, these initial variables will ultimately shape which financial institutions will accept you. Of course, in addition to the type of businesses that can open accounts, you also need to ensure that suitable business accounts actually exist.

With this in mind, it’s important to understand the specific type of business account you not only may have access to, but also which account will best suit your business needs.

To this end, here are some of the business accounts a non-resident business owner may have access to when opening a business bank account in Canada.

Available Canadian Business Accounts (Figures in CAD):

It’s worth noting, that these types of business accounts and the associated fees and limits can all vary from bank to bank. The information outlined above is to simply give you an idea of what types of accounts could be available to non-residents interested in opening a business account in Canada.

What Are the Challenges of Opening Business Accounts in Canada?

While Canada’s five traditional banks (also known as the “Big Five”) control the vast majority of the business banking market in Canada, they all have one thing in common: they can be extremely difficult to open bank accounts with for businesses owned by non-residents.

So, if you’re considering opening a business account in Canada as a non-resident, you need to know the pitfalls and challenges that you’re going to run into. In this section, that’s exactly what we’ll be covering, including some pressing obstacles that arise when opening a business bank account.

Here’s a look at the top six challenges business owners face when opening a business account in Canada.

Challenges of Opening Business Accounts with Canadian Banks

1. Personal visit is often required
2. Intense application process due to the number of required documents
3. Business banking fees can be high for non-resident entities
4. Minimum balance requirements can be high
5. Potential limitations on transactions per month
6. Difficulty maintaining accounts from abroad

Of course, these challenges may vary depending on the bank you engage in, the type of business account you choose to open, and the type of banking products and services you are after. And, not surprisingly, some financial institutions do make it more difficult for a non-resident to open a business bank account in Canada than other banks. So, make sure you prepare by understanding the different challenges each bank and each type of account presents before applying.

In fact, even the application process can be very overwhelming, especially if you are not able to visit a bank in person. We’ll discuss this further along with the required documents in the next section.

How Do I Open a Business Chequing Account in Canada as a Non-Resident?

As mentioned, opening a business chequing (and savings) bank account in Canada as a non-resident comes with its challenges. This is primarily due to the long list of required documents and bureaucratic hoops you’ll need to jump through when opening accounts.

That said, it can still be a profitable banking solution if you can successfully open an account. With this in mind, let’s take a look at how you can actually get started with opening an account right now.

First and foremost, it is important to note that the required documents can vary not only based on the type of business you are operating but also by which bank you choose to open an account with.

However, when opening a business account in Canada most financial institutions will request four types of documents.

Requirements for Opening Business Chequing & Business Savings Accounts

• Your business license
• Certificates of business name
• If multiple owners, the partnership agreement
• Personal identification (up to two forms)

The next step is to confirm with the bank the type of business ownership you have. Why? As mentioned earlier, the documents may vary depending on the type of business. So, with that said, below we put together a list of the documents the bank may request based on the type of business you have.

Sole Proprietorship

• 2 valid forms of ID for the business owner
• Master business license
• Trade name registration

Corporation

• Business Number & License
• Certificate of Status/ Profile Report / Existence / Compliance
• Articles of Incorporation/ Association
• Corporate Annual Government Filing
• Notice of Assessment for Income Tax
• 2 pieces of ID of the corporation’s signing authorities

Partnership

• 2 valid forms of ID for the business owner
• Registered declaration of partnership
• Copy of partnership agreement
• Trade name registration

Not surprisingly, documents and regulations can differ from bank to bank so don’t be alarmed if a financial institution requests further verification of the documents you provide. They do this to ensure the documents are authentic and to make sure you’re opening a business account for the right reasons.

In addition, it’s important to note that your business will also need to meet requirements set out in Canada’s Access to Basic Banking Services Regulations under the Bank Act. 

While some financial institutions require you to present these documents in person, others may allow you to complete the opening process remotely. However, this may come with greater challenges in itself as the financial institution typically requires additional proof of identification and it may also result in account restrictions. We’re not saying opening a business account remotely in Canada as a non-resident can’t be done, we’re saying more challenges may present themselves if you’re not prepared.

Bottom Line: With the right information and knowing which financial institutions best suit your business needs, opening a business account in Canada as a non-resident can be done without too much trouble.

Frequently Asked Business Banking Questions

Below are two of the most common questions we receive from people exploring how to open a business bank account in Canada. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

Can I Open a Business Bank Account in Canada?

Yes, you can open a business account in Canada as long as you meet the bank’s opening requirements and have a suitable client profile. That said, the financial institutions available to you will depend on the industry your business is in, where your business is located, and where your business operates.

Can a Non-Resident Open a Business Bank Account in Canada?

Yes, a non-resident can open a business account in Canada as long as you choose the right bank. This is because not all Canadian financial institutions accept foreign non-resident applicants. So, bank selection will be an important factor to consider when choosing where to open accounts in Canada.

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