If you run a corporation, you’ll need to get a business bank account to keep its finances separate to your own. There are lots of accounts to choose from, and many have functionality that makes running a business easier, such as the ability to send and track invoices. Here’s what you need to know about opening a bank account as a corporation and the accounts on offer.
Best business accounts for corporations in Canada
Best multi-currency business account for corporations:Wise Business
Best cash back business account for corporations:Vault
To determine this best list, Finder Canada analyzed 18 business bank accounts across 14 financial institutions. We compared accounts from traditional banks, digital banks, fintechs and credit unions. We narrowed down the list of accounts to the top 4 by only listing accounts that are available in all Canadian provinces.
We ranked accounts based on 18 data points within five major categories. Here’s how we ranked and weighted each product:
Fees: 40% (Monthly fee, ability to waive monthly fee (if necessary), transaction fees, wire transfer fees, NSF fees, overdraft fees)
Perks: 20% (Number of currencies you can bank in, interest rates, signup bonuses, other tailored rewards)
The Wise Business Account makes it easy to send payments all over the world. This easy-to-use website and app lets you get bank account details in 9 currencies, allowing you to receive payments in the local currency and convert it to CAD when an attractive exchange rate becomes available. And with other features such as batch payments, accounting software integrations and a multi-currency debit card, the Wise Business Account is well worth checking out.
Why it's one of the best
10+ currencies. hold funds in 10 different currencies, including CAD, USD, GBP and EUR.
70+ countries. Pay staff and suppliers in over 70 countries around the world.
Competitive exchange rates. Get the mid-market exchange rate when you send money overseas.
No monthly account fee
Mid-market exchange rate on currency exchanges
Host of payment tools to help you streamline your money management
Account opening fee
Fee when you send money
Monthly Account Fee
$0
Multicurrency Accounts
CAD, USD, GBP, EUR, AUD, HUF, NZD, RON, SGD, TRY
Currency Coversion Fee
0.43%
GIC Available
No
Best cash back business account for corporations: Vault Business Banking Account
Vault is designed to suit the needs of Canadian businesses that operate globally. It offers multi-currency accounts in CAD, USD, GBP, EUR, making it easy to receive payments, while you also get the mid-market rate on currency exchanges. You can then use your Vault account to send payments in over 35 currencies. Vault also comes with a prepaid Mastercard Corporate Card which offers 1% cash back on all spending.
Why it's one of the best
Bank in four currencies. Spend and save in CAD, USD, GBP or EUR.
Earn cashback when you spend. Earn 1% cashback when you spend on all corporate purchases with your Vault credit card.
No monthly account fee. With the Vault business account your firm can accept payments in four currencies, send transfers in more than 30 currencies, all for no monthly fee.
1% cash back on all spending
No monthly account fee
Get the mid-market rate on currency exchanges
Not available in Quebec
Fees on international wire transfers and currency exchange
Monthly Account Fee
$0
Multicurrency Accounts
CAD, USD, GBP, EUR
Currency Coversion Fee
0.35%
GIC Available
Yes
Best account with unlimited transactions for corporations: RBC Ultimate Business Account
The RBC Ultimate Business Account is designed for businesses with diverse banking needs. It offers unlimited transactions as well as 500 outgoing Interac e-Transfers per month. And with other perks like bonus Avion points and fuel savings also available, this account offers a comprehensive package for businesses with complicated banking needs.
Why it's one of the best
Catered toward businesses banking a lot. This account offers a wide variety of features that cater towards businesses that are constantly banking.
Unlimited transactions. Enjoy unlimited electronic debit and credit transactions and 500 outgoing Interac e-Transfers per month.
Large deposit limits. Get unlimited electronic cheque and Moneris deposits, plus up to $25,000 free cash deposits.
unlimited electronic debits and credits
Large monthly deposit allowance
Comes with a wide range of perks and rewards
$100 monthly fee
High balance requirement to avoid monthly fee
Monthly Account Fee
$100
Multicurrency Accounts
CAD
Currency Coversion Fee
Varies
GIC Available
Yes
Best account for online transactions: BMO eBusiness Plan
The BMO eBusiness Plan is an account for businesses that do all of their banking digitally. It supports unlimited electronic and Moneris transactions, and it's easy to manage your account via BMO online and mobile banking. So if you run an online business, the eBusiness Plan could be just what you need to manage your finances.
Why it's one of the best
No monthly account fee. You won't have to worry about paying a monthly account fee.
Unlimited transactions. Enjoy unlimited Moneris and electronic transactions so you can save more every day.
No minimum balance requirements. You can have as little or as much money in your account as you'd like without incurring any minimum balance fees.
Unlimited electronic transactions
No monthly account fee
No minimum balance requirement
Not suitable if you need to make regular cheque or cash deposits
Watch out for additional transaction fees
Monthly Account Fee
$0
Multicurrency Accounts
CAD
GIC Available
Yes
Do you need a business bank account for a corporation?
Yes. A corporation is a separate legal entity, so it’s a requirement for a corporation to have its own bank account.
To set up a corporation, you’ll need to complete articles of incorporation. You’ll also need to file a T2 Corporation Income Tax Return within six months of the end of every tax year.
What are the advantages of a business bank account?
Why open a business bank account as a corporation? There are several important reasons:
Keep your business finances separate. A business bank account ensures that you keep your business finances separate from your personal finances. This makes it much easier to keep track of business transactions.
Boost your business’ credibility. A business bank account provides added credibility to your business and allows you to build your business credit history.
Tax reporting made easier. Business bank accounts allow for easy record-keeping, which makes it much simpler to manage all your obligations come tax time.
Manage payroll and accept credit card payments. Business bank accounts often come with additional features to help you run your business.
How to choose a business bank account for a corporation
Before you start comparing corporate bank accounts in Canada, take some time to think about the banking needs of your business.
For example, are most of your transactions performed online, or do you regularly need to make cash or cheque deposits? Do you need an account with unlimited monthly transactions, or will a smaller number of included transactions be enough?
Once you know what you need in an account, you can start comparing your options. Factors to consider include:
Included transactions. Some accounts support unlimited transactions, while others have restrictions on the number and type of fee-free transactions you can perform each month. Make sure the account includes enough of the transaction types you need to help your business run smoothly.
Monthly fee. The more transactions an account supports, the higher its monthly fee will be. However, some banks waive the monthly fee if you keep your balance above a minimum level.
Other fees. Check the fine print to find out whether any other fees apply to business banking transactions you regularly perform. For example, are there any foreign transaction fees? Do fees apply to ATM withdrawals?
Online and mobile banking. The best business bank account for your corporation will offer user-friendly online and mobile banking apps. Read user reviews and check out demo videos to ensure it’ll be easy to manage your account online and from your smartphone.
Branch and ATM access. If you do a lot of in-person banking, choose a bank with convenient branch locations. Also check the size of the bank’s ATM network so you’ll be able to make fee-free ATM withdrawals.
Account features. Does the account offer features such as invoicing or expense monitoring tools? Does it offer integration with accounting software such as Quickbooks and Xero? Can you add overdraft protection?
Insurance. Make sure you open an account with a financial institution that is a Canada Deposit Insurance Corporation (CDIC) member. This means deposits of up to $100,000 will be covered if your bank fails.
Other business banking solutions. Bundling all your business banking products together with one bank can make it easier to manage your finances. That’s why it’s also a good idea to consider whether the bank also offers other products that suit your needs, such as business credit cards and lines of credit.
Customer support. Finally, check how you can access customer support and when it is available.
How do I open a bank account for a corporation in Canada?
Once you’ve chosen a business bank account, it’s time to apply to open an account. Some banks offer a completely online application process, but in many cases you’ll need to pop into a branch or finalize your application over the phone.
You’ll need to provide the following information and documents to open an account:
Your name, address, date of birth and SIN
Proof of ID
The details of anyone else who will be an account signatory
Articles of incorporation/association
Trade name registration
The names, addresses and details of any directors of your business
If your corporation is more than one year old, you may be asked to provide one of the following documents from the past 12 months:
Certificate of corporate status
Certificate of existence
Company’s annual report for the past fiscal year
Company’s most recent notice of assessment
Your current business licence or vendor permits
Current health or safety certificates
How to open a business bank account as a non-resident
It’s possible to open a business bank account in Canada as a non-resident, but there are obstacles you’ll need to overcome. Eligibility
requirements vary between banks, so you’ll need to check with the financial institution of your choice whether you’ll be allowed to open an account.
From a practical point of view, many banks will also require you to visit a branch in person to open an account. This may be an issue if you’re not based in Canada, so you may want to consider an international account with a global bank that has branches where you live.
Compare more business bank accounts in Canada
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Bottom line
If you run a corporation, it’s essential that you have a business bank account. The best corporate bank accounts in Canada make it easy to manage all your day-to-day transactions. They also give you lots of useful tools to help you run your business. There are plenty of options, ranging from accounts from the traditional big banks to newer app-based accounts, so you’ll be able to find something to suit your business. Just make sure you look at the costs and features carefully to work out which account is best for your needs.
The best corporate bank account for your business depends on your banking needs. For example, while one business might benefit from an account that supports unlimited electronic transactions, another might require different features such as free cash and cheque deposits or the ability to hold multiple currencies. Once you know exactly what you need in a business bank account, you can start comparing options to find the account that's right for you.
No. As a corporation, you're legally required to open a separate business bank account. This will ensure that business finances are kept separate from your personal finances.
Yes, most business bank accounts come with a monthly fee. However, this fee may be waived in some cases if you keep your daily balance above a minimum threshold, so check with your bank for any terms and conditions.
Some banks allow you to open a business bank account online, but many will require you to visit a branch in person to complete the application process. You'll need to provide your personal information and contact details, plus business information including articles of incorporation and your trade name registration.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
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