Opening a business bank account is one of the major steps that one has to go through before venturing into business. It will definitely assist you to keep business and personal expenses and income separate from each other. This is vital as it will help you to kick-start a good record keeping routine which will in turn give your business credibility to both your clientele and creditors as well. A business bank account can be simply opened online. One can also opt to visit one of the many bank branches and apply from there.
Business eligible to open a business bank account
Not all business is eligible to open business bank accounts. One has to meet some conditions that various banks in Canada require. Some of the short-listed business granted this opportunity are:
- Partnership businesses
- Sole proprietorship type of business
- Unincorporated Group or Associations
- Condominium corporations
Procedure for applying for a business bank account
The business bank accounts applications forms are available on various websites of different banks. One will have to download the form, print it, fill it duly then sign it. After one is through with all theses he/she will have to attach the required documents like IDs and certificates then send it to the respective banks you wish to apply for. The following parts of the account opening form need to be fully filled:
- Business bank account application form
- An individual form that is authorized. Take note that this is to be completed by every authorized person
- Business banking resolution form. Sole proprietorship businesses don’t need to fill this.
The specific documents which require to be handed in should be in tandem with your business constitution. For instance if you are a sole proprietor, you will be required to submit a copy of the business name registration. You will be required to give a deposit cheque baring your nameand current address which should be drawn from another Canadian financial institution. Further more one is required to submit a cheque that has the full name of the business and also a personal cheque that bares the name of the authorized individual. This should be attached with the account opening form then sent to the respective bank.
Canadian authorities are hospitable enough thus any business not necessarily based in Canada are allowed to open an account with one of the banks.
Period taken to complete an application for a business bank account
Once one has submitted all the necessary information needed, it usually takes about 10 minutes to fully complete the process. This however depends on the type of account you need for instance a sole or joint account. On receipt of your application, if the banks need extra information from you they will keep in touch with you. When all the cheques have been cleared, then your account will be opened. After this process is completed you will receive your corporate or user ID along with a welcome letter from the bank. A separate mail containing your passwords will be sent to you later separately for security purposes.