How to open a business account in Canada

Learn how to open a business bank account — including how to open a business account online — in five simple steps.

Opening a business account in Canada is easy. Whether you’re a sole proprietor or you operate a larger business that includes payroll and employees, a business bank account can help you manage your day-to-day business finances smoothly.

Keep reading to discover everything you need to know about how to open a business bank account in Canada, including options that let you open an account online.

5 steps to open a business bank account in Canada

How do I open a bank account for my business? Easy! Just follow these five steps:

  1. Assess your business banking needs. Decide what features you need, so you get access to the banking services your business needs without paying for what it doesn’t.
  2. Compare business bank accounts. Look at banks and fintech business accounts to narrow down your options.
  3. Apply to open a business account online or at a branch. Apply to open a business account online or at a bank branch, submit your documents and get approved.
  4. Set up online banking and activate your card. Sign up for online and mobile banking and start linking your accounts.
  5. Start your business banking. Start moving your money and tacking your business transactions from your account.

Learn more about each step below.

Step 1: Assess your business banking needs

The first thing you need to before opening a business do is work out exactly what you need from an account.

How many transactions do you need to perform per month? What type of transactions are they? Do you do most of your business banking online, or do you also need an account that accepts regular cash and cheque deposits?

Once you know exactly what you need in an account, it’s time to compare your options.

Step 2: Compare business bank accounts

Compare business accounts that match your needs. Other features to consider is if the attached spending card offers cashback, whether there are business saving tools such as GICs or high-interest business savings accounts, or the possibility of credit and loan options as your business grows.

The right business account for you to open will support all the transactions and features your company requires regularly — at the lowest monthly fee.

Business bank accounts you can open online

From major banks and credit unions to digital banks and fintechs, you’re spoiled for choice when looking to open a business account in Canada.

1 - 7 of 7
Name Product CAFSA-BUS Monthly Account Fee Multi Currency Accounts FX Fee Corporate Credit Card Accounting Integration Offer
RBC Digital Choice Business Account
Finder Score: 4 / 5: ★★★★★
RBC Digital Choice Business Account
$6
CAD only
Varies
Quickbooks, Sage, Xero
Get unlimited electronic debit and credit transactions, unlimited electronic cheque deposits, unlimited Moneris deposits and 10 free outgoing Interac e-Transfer transactions per month.
Sole proprietorships and corporations accepted.
Airwallex Business Account
Finder Score: 3.8 / 5: ★★★★★
Airwallex Business Account
$0
CAD, USD, GBP, EUR + 17 more
0.5% - 1%
Quickbooks, Xero + more
Sign-up and get a $500 bonus in FX conversions. Open and manage multiple global accounts with no monthly fees. Send and receive payments in 16 different currencies and avoid costly conversion and transaction fees.
To be eligible, you'll need to have a registered Canadian corporation.
Jeeves Business Account
Finder Score: 3.9 / 5: ★★★★★
Jeeves Business Account
$0
CAD, USD, EUR, GBP + 2 more
From 0.20%
Quickbooks, Xero
Issue unlimited pre-funded corporate cards in local currencies, send payments to 150+ countries, and manage global expenses all from one platform.
To be eligible, you'll need to have a registered corporation and a revenue of at least $50,000/month.
RBC Flex Choice Business Account
Finder Score: 4 / 5: ★★★★★
RBC Flex Choice Business Account
$7
CAD
Varies
Quickbooks, Sage, Xero
Bank both digitally and in-branch and only pay for what you use. No minimum or maximum transaction limits.
Sole proprietorships and corporations accepted.
Loop Global Business Banking Account
Finder Score: 3.7 / 5: ★★★★★
Loop Global Business Banking Account
$0
CAD, USD, GBP, EUR
0.1% - 0.5%
Quickbooks, Xero
Eliminate FX fees with a Loop credit card. Spend in CAD, USD, GBP and EUR and earn points to use toward travel and experiences. Get up to a $1M credit limit.
To be eligible, you'll need to have a registered Canadian corporation and provide proof of an active business (bank statements, contracts with suppliers, financial or CRA statements, etc.)
Wise Business
Finder Score: 3.8 / 5: ★★★★★
Wise Business
$0
CAD, USD, GBP, EUR + 6 more
0.48%
Quickbooks, Xero + more
No hidden charges, high rates or monthly fees. Get the mid-market exchange rate. Pay employees, get paid and manage your cash flow in over 70 countries.
To be eligible, you'll need to have a registered Canadian corporation.
Vault Business Banking Account
Finder Score: 3.8 / 5: ★★★★★
Vault Business Banking Account
$0
CAD, USD, GBP, EUR
0.25%–0.45%
Quickbooks, Xero
Earn 1% unlimited cashback on your Vault multi-currency corporate credit card. No currency limitations. Set up accounts in CAD, USD, GBP and EUR, enjoy $0 local transfers.
To be eligible, you'll need to have a registered Canadian corporation.
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Step 3: Apply to open a business account online or at a branch

When you’ve found the right account, it’s time to open your business bank account. While some banks will require you to book an appointment at your nearest branch to complete the process, many banks and all fintechs allow you to open a business account online.

What is required to open a business bank account in Canada?

The documents needed to open a business account in Canada vary between banks. But you will typically need to supply personal information as well as information about your business.

Personal details

You’ll need to provide your name, date of birth, address, contact details and SIN. You’ll also need to provide two forms of identification, such as a driver’s licence and passport.

Please note that anyone getting signing authority on the account will need to provide this information.

Business documents

The documents you’ll need to provide will vary depending on your business structure.

  • Sole proprietors will need to provide a business registration or trade name registration
  • Partnerships will need to provide a partnership registration, partnership agreement, trade name registration or Master Business Licence
  • Corporations will need to provide multiple documents, such as articles of incorporation/association, trade name registration, notice of assessment for income tax, certificate of corporate status and certificate of existence

Check the bank or fintech’s application requirements so you can prepare the necessary paperwork in advance. When you open a business account online, you’ll need to upload copies of these documents wo your online application.

Step 4: Set up online banking and activate your card

Once you’ve opened a business account, the next step is to set up online and mobile banking. Be proactive and create a secure password for online banking and never download a mobile banking app from anywhere but the official app store for your phone.

Your financial institution will also mail out a debit card linked to the new account, along with other paperwork. Follow the instructions to activate your card. You can also often order multiple cards for employees if necessary.

Step 5: Start your business banking

The final step is to use your new business account to manage your day-to-day business transactions. Set up automatic bill payments and preauthorized debits to pay your suppliers.

Remember to provide your new account details to clients and customers so they can pay you. Use your debit card to pay for essential business purchases. And track your spending and manage cash flow via online or mobile banking.

If you’re using accounting or expense management software, and the business account is compatible with it, make sure to link your new account to your software. Doing that as soon as you can will save you a lot of time on administration later on.

Can I open a business account online?

Yes, it’s definitely possible to open business account online with both banks and fintechs. In fact, it’s becoming more common to open a business account online, including at some of Canada’s Big Five Banks, like RBC and CIBC.

Fintechs and online-only banks also allow you to open a business account online. You simply need to provide your personal and business details in an application form, then upload proof of ID and any required documents.

Online business bank accounts are best suited to businesses that do most of their banking digitally. Some providers that offer online business accounts include Airwallex and Jeeves and Tangerine.

It’s also worth mentioning that some banks openly market online business account applications, but, in practice, require you to visit a bank branch at some point in the process. In that case, you’ll typically be able to submit an online application, but you’ll then need to visit a branch to prove your identity and provide your business documents.

Which banks and fintechs allow you to open a business account online?

Here’s a summary of select banks and fintechs that let you open a business account online in Canada:

Business accountMonthly feeOpen online
RBC Digital Choice Business Account$6
Airwallex Business Account$0
Jeeves Business Account$0
Loop Global Business Banking Account$0
RBC Flex Choice Business Account$7
Wise Business$0

What is a business bank account?

A business bank account is used to manage your day-to-day business transactions. You can use it to accept payments from customers, pay suppliers, and make purchases using a linked debit card.

The key difference between a business bank account and a personal chequing account is you can open it in your business name. This means it can receive payments made out to your company name.

A business bank account also allows you to separate your personal finances from your company’s money. Some business bank accounts can also help you issue invoices, run your payroll — useful if you have employees — and make it simpler to track business spending and file your tax return.

Should I open a business bank account?

The short answer is, yes — if you run your own business, you should open a business bank account. That’s especially true if you make many business purchases and have frequent deposits of business income into your account.

The main reason to open a business account is to keep your personal finances separate from your business’s finances for tax-reporting and accounting purposes. Plus, depending on the structure of your business, having a separate business account may be a legal requirement.

Who can open a business account in Canada?

You can open a business bank account in Canada if you run a sole proprietorship, partnership, small business or corporation. You’ll need to be the age of majority in your province, and your business needs to be registered and operate in Canada.

However, some banks and financial institutions have additional eligibility criteria. For example, you may need to meet transaction requirements to qualify for some accounts, while other business accounts are only available to licensed corporations.

It’s also possible for non-residents to open business bank accounts in Canada. However, the exact eligibility requirements concerning residency status can vary from one bank to another, so check with your chosen bank first.

Bottom line

Opening a business bank account in Canada is relatively straightforward, as long as you know what type of account would suit your business. Once you understand your business banking needs, it’s important to compare accounts and check eligibility requirements. Then you can gather the necessary documents and open a business bank account online or at your nearest branch.

FAQs about how to open a business bank account

Business banking scores

★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor

Finder scores, in blue, are based on our expert analysis. We assess multiple key categories broken down into 19 different data points for 45 business accounts from banks and other financial institutions.

To find out more, read our full business banking methodology.

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To make sure you get accurate and helpful information, this guide has been edited by Romana King as part of our fact-checking process.
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Written by

Writer

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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Co-written by

Publisher

Chelsey Hurst is a publisher at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature. See full bio

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