Opening a business bank account in Canada separates personal and business finances, simplifies tax reporting, and builds credibility with suppliers. Major banks like RBC, TD, Scotiabank, BMO, and CIBC dominate the market, alongside digital options for faster setup.
Why Open a Business Account
A dedicated business account protects personal assets from business liabilities under Canadian law. It tracks income and expenses precisely for Canada Revenue Agency (CRA) compliance, avoiding audits from commingled funds.
Sole proprietors benefit from basic plans with low fees, while corporations access advanced features like multi-currency support and payroll integration. Non-residents face hurdles but can succeed with proper registration.
Banks offer perks such as free transactions for high balances or bundled services like loans and credit lines. Digital platforms like Wise or Venn streamline onboarding for startups, often waiving minimum deposits.
Eligibility Requirements
Canadian residents over 18 qualify easily with proof of residency. Businesses must register provincially or federally, obtaining a CRA Business Number (BN) for tax purposes.
Non-residents need a Canadian-registered entity, such as a subsidiary, plus a local address or director. Sole proprietorships require minimal docs; partnerships and corporations demand detailed ownership proof.
Incorporate via federal (Innovation, Science and Economic Development Canada) or provincial registries first. Unregistered businesses risk rejection, as banks verify legal status under FINTRAC anti-money laundering rules.
Required Documents
Gather these core items for all applicants:
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Government-issued photo ID (passport, driver's license) for owners, directors, and signatories – two forms often required.
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Proof of address (utility bill, lease) matching ID, dated within 3-6 months.
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CRA Business Number (BN) or tax filings proof.
Business-specific docs vary:
| Business Type | Key Documents |
|---|---|
| Sole Proprietorship | Business Name Registration, Master Business Licence, personal tax return |
| Partnership | Partnership Agreement, IDs for all partners |
| Corporation | Certificate/Articles of Incorporation, shareholder list, board resolution authorizing account |
| Non-Profit | Letters Patent, bylaws, director list |
Additional items include business plan, invoices proving operations, and void cheque if switching banks. Non-residents add apostilled incorporation papers.
Choosing the Right Bank
Compare Big Five banks and alternatives based on fees, features, and accessibility:
| Bank | Monthly Fee | Key Features | Best For |
|---|---|---|---|
| RBC | $6-$100 (waivable) | Unlimited transactions in premium plans, international wire support | Growing firms, exports |
| TD | $19-$125 | Digital payroll, merchant services | E-commerce, retail |
| Scotiabank | $12-$60 | Global branches, USD accounts | Non-residents, trade |
| BMO | $20-$150 | Agriculture packages, high-interest savings | Farms, professionals |
| CIBC | $4-$95 | Quick online app (30 mins), no-fee basic | Startups, sole props |
| Venn/Wise | $0-$10 | Fully online, multi-currency, no minimums | Digital nomads, fintech |
Select based on transaction volume, industry, and location – Scotiabank suits internationals with 50+ global branches.
Step-by-Step Opening Process
Start online where possible, but expect in-branch verification.
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Research and shortlist 2-3 banks matching your needs.
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Register business if unregistered – use provincial portals like Ontario's ServiceOntario.
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Collect documents digitally for upload.
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Apply via bank portal or app – input BN, ownership details, expected volume.
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Schedule branch visit for ID checks, often same-day approval.
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Deposit minimum funds (typically $100-$1,000) to activate.
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Sign resolutions naming signatories; receive debit card, cheques, online access within 1-5 days.
Online tools at CIBC or TD pre-fill forms; non-residents use video KYC where available. Approval takes 1-10 days, faster digitally.
Costs and Fees Overview
Basic accounts charge $5-$30 monthly, waived by balances ($5,000+) or transactions. Watch transaction fees: $1.25 per debit over limits, $15-$45 for wires.
Premium bundles ($50+) include unlimited e-transfers, free deposits. Overdraft protection adds $5-$10 fees. Digital banks like Wise charge 0.4%-2% FX, beating traditional 2.5%.
Negotiate waivers for new businesses; compare via bank calculators. Annual costs range $0-$2,000 based on volume.
Online vs In-Person Opening
CIBC and TD enable 80% online for residents – upload docs, e-sign, branch visit optional post-approval. RBC/Scotiabank mandate branches for corporations.
Non-residents default to in-person or notarized mail-ins. Digital fintechs (Venn) approve remotely in hours, ideal for speed.
Pros of online: convenience, pre-approvals. Cons: delays if docs rejected. Hybrid works best – prep online, finalize in-branch.
Non-Resident Considerations
Non-residents register extra-provincially or federally, appointing a Canadian director often required. Provide apostilled docs, proof of foreign operations.
Scotiabank and RBC excel here, offering non-resident plans without SIN initially. Expect higher scrutiny, 2-4 week timelines. Alternatives like Wise provide CAD accounts without full registration.
Common Pitfalls to Avoid
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Incomplete docs delay approval – scan high-res copies.
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Ignoring fees – review all schedules pre-signing.
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Wrong structure – match account to entity type.
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No BN – apply via CRA My Business Account first.
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Overlooking alternatives – fintechs cut costs 50%+.
Verify branch proximity; test online banking demos.
Post-Opening Essentials
Link accounting software (QuickBooks) for auto-reconciliation. Set up e-transfers, Interac for payments. Monitor for fraud via alerts.
Build credit with timely payments; apply for lines after 6 months. Review annually – switch if fees rise.
Canada's system prioritizes security and compliance, making business banking reliable for growth. Tailor choices to operations for optimal cash flow.
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