How to open a business account online in Canada? : Your complete guide

Starting a business in Canada is an exciting venture, but setting up the financial side can feel daunting. One of the first, and most crucial, steps is opening a business bank account.

Are you among the many entrepreneurs searching for a streamlined, online solution? You're not alone. Many are looking to bypass the complexities of in-person banking processes.

This guide cuts through the complexity, offering a clear path to opening your business account online in Canada, addressing common hurdles, and highlighting efficient strategies. We’ll also introduce you to the Wise business account that you can use for all your cross-currency requirements at the mid-market exchange rate.

Can I open a business account online in Canada?

Yes, you absolutely can! Many Canadian financial institutions now offer online application processes for business accounts, however the extent of 'online' varies.¹^,² Some have a completely digital onboarding experience², while others may require some in-person verification, particularly for larger or more complex businesses³,⁴.

Understanding the shift to online banking

The digital revolution has significantly impacted the banking sector, leading to a greater emphasis on online services.

This shift offers convenience, reduces paperwork, and can often speed up the account opening process. This is a significant advantage for busy entrepreneurs.

Get your Wise multi-currency business account in a few clicks

Opening a business account at Wise is free, online and easy! With Wise, you don’t lose money to monthly subscriptions or have it held up as minimum balance. You pay only for what you use. Here’s what you get for the essential and complete version for a one-time fee of 55 CAD:

You can always upgrade from the essential features to avail all Wise business features for a one-time payment of 55 CAD

Experience owning a Wise business account
with our demo >>>

It only takes a few minutes to set up your multi-currency account, and make the most of the mid-market exchange rate.

Step 1. Enter information relevant to yourself and your business.
Step 2. Share essential information about your business. This includes

• Business registration
• The business registered and trading addresses
• The industry you’re in
• Online presence
• Name, date of birth, country of residence - for all stakeholders
• Documents proving ownership of the business

Step 3. Enter essential information to verify your identity
Step 4. Set up and make a transfer as indicated on your account. Alternatively, you could pay the one-time fee and get account details in over 10 currencies.
Step 5. Wise sends you a confirmation email within 10 working days.

In case you add team members to the business account, they will need to be verified too.

Wise's has been reviewed and appreciated on public platforms such as:

• Trustpilot Canada: 4.3/5 stars with 256,776+ reviews
• Play Store Canada: 4.7/5 stars with 1.28M+ reviews

What do I need to open a business bank account online in Canada?

Before you begin the online application, gather the necessary documents. The specific requirements depend on your business structure:

• Sole pProprietorship: You'll generally need your Certificate of Business Registration (if applicable, depending on your province and business name) and a government-issued photo ID¹.
• Partnership: You'll need the Partnership Registration certificate and the partnership agreement¹.
• Corporation: You'll need your Articles of Incorporation, and possibly a Certificate of Good Standing, depending on the bank and the age of your corporation⁷.

Having these documents ready will ensure a smoother application process.

How do I open my business account with CRA?

Registering with the Canada Revenue Agency (CRA) is crucial for tax compliance.⁶ You'll need a Business Number (BN), which acts as a unique identifier for your business.

You will use your BN for several federal, provincial, and municipal government programs, including a variety of CRA program accounts.

• You can register for a BN and other CRA accounts by phone.
• Call 1-800-959-5525, to get a BN.⁶
• Linking your business bank account to your CRA account allows for easy tax payments and management.

Step-by-step instructions: opening your business account online

While the exact steps vary between banks, the general process is as follows:

1. Select a bank: Research and choose a bank that suits your business needs - more on this below.
2. Visit the bank's website: Navigate to the business banking section and find the online application for business accounts.
3. Fill out the application: Provide accurate information about your business and yourself or partners/directors.
4. Upload dDocuments: Scan and upload the required documents as listed above.
5. Verification: The bank may require further verification, potentially through a video call or in-person visit.
6. Account activation: Once approved, your account will be activated, and you'll receive your account details.

What is the best bank for a small business account in Canada?

Choosing the right bank is critical. Here's a brief overview of some major Canadian banks offering business accounts:

• Alterna Bank: Alterna Bank claims to take only 10-15 minutes to apply online.⁹
• BMO: Provides a range of business accounts, with online application options available⁵.
• CIBC: Offers online applications for business accounts, streamlining the process⁵.
• RBC Royal Bank: Provides various business banking solutions, with a hybrid online/in-person approach for some accounts⁴.
• Scotiabank: Boasts a fully digital onboarding process for certain business accounts².
• TD Canada Trust: Offers a range of business accounts with varying features and fees. Some aspects of account opening may require a branch visit³.

Can I open a bank account online without going to the bank in Canada?

Yes, but with caveats. While many banks offer online applications, the need for in-person verification depends on the bank's policies and the type of business. Some fully digital options exist, but you may encounter hybrid models.

Can I open a business bank account online with bad credit in Canada?

This is a significant challenge. Traditional banks often have strict credit requirements. However, options might exist:

• Credit Unions: Some credit unions may be more lenient with credit checks.
• Online Payment Platforms: While not traditional bank accounts, some platforms offer business-friendly features.

It's crucial to be upfront about your credit situation and explore all available avenues.

Wrapping up

Opening a business bank account online in Canada is increasingly accessible, offering convenience and efficiency. By understanding the requirements, gathering the necessary documents, and choosing the right bank, you can streamline the process. Even with challenges like bad credit, alternative solutions may exist. Taking this essential financial step empowers you to manage your business finances effectively and sets the stage for growth.

Experience owning a Wise business account with our demo >>>

Sources:

1. Scotiabank Business Account Opening
2. Scotiabank Digital Onboarding
3. TD Business Banking
4. RBC Business Accounts
5. CIBC Business Accounts
6. CRA Business Registration
7. CRA Business Register
8. CW Bank How to Open a Business Account
9. Alterna Bank