Documentation Required for Opening a Business Savings Account in Canada

Canada has one of the world’s strongest economic structures complemented by a skilled workforce, strong trade relations, and abundant resources. All these factors sum up to make Canada an ideal business destination.

Running a business comes up with a long checklist of items to tackle. Opening a bank account, preparing financial statements, solving common cash flow problems, and choosing suppliers are some of the things that need immediate attention when setting up a business.

Opening a business banking account is the first step towards a successful venture. However, you can choose between a chequing account or a business savings account. While both have its benefits, the latter comes with some unique benefits especially when you’re just starting out.

Benefits of Opening a Business Saving Account

A business savings account comes with numerous benefits such as;

● High Interest Rates.

● No minimum balance requirements.

● Easy accessibility of your funds by linking to chequing accounts.

● Insured by CDIC (Canada Deposit Insurance Corporation)

Documents Required

Opening a business savings account in Canada is an easy and simplified procedure. Certain documents, regardless of the type of business, are compulsory to submit. All banks require two valid government IDs out of which one should have a photo of the ID holder.

Further requirements may vary from one bank to the other, and they depend on the type of business as well. Here is a list of business types and their corresponding required documentation.

Sole Proprietor Companies

● Original business name registration

● Master business license

Partnership Companies

● Original partnership registration

● Copy of partnership agreement

● Original certificate of incorporation

● Trade Name Registration, if applicable.

● Latest filing with incorporating jurisdiction that lists the directors

Corporations

Corporations (that are at least a year old) require any one of the following documents.

● Certificate of Corporate Status Issued by Corporations Canada to show that a corporation

● Certificate of Existence

● Company’s Annual Report from the past fiscal year

● Company’s most recent Notice of Assessment

● Current business license or vendor permits

● Current health or safety certificates

● Current liquor license

Frequently Asked Questions (FAQs)

1. Do I have to give any additional information to the bank?

Banks depending on their terms and conditions might need some information about the business concerned such as,

● Purpose of the account

● Transaction Understanding

● Sources of funds

● Third-party interference

● Business owner’s details

2. Is my presence required while account opening?

This feature also varies with different banks. It is advised to interact with the bank administration for guidance and requirements. Bank accounts can also be transferred to Canada from the home country.

Corporate entities and businesses that exist in Canada include sole proprietorships, partnerships, corporations, and co-operatives, thus offering huge scope for business enthusiasts. With the right documents in place, opening a business account in Canada is a painless and fast procedure.