How to Open a Business Bank Account in Canada

Opening a Business Bank Account in Canada is one of the first real steps toward making your business official in the Great White North. It separates your personal and business finances, makes bookkeeping cleaner, and builds credibility with suppliers, customers, and the CRA.

The process is fairly straightforward, but it does require a bit of preparation. Taking the time to set it up properly early on can save you a lot of administrative headaches down the line.

So with that being said, let’s take a look at how to open a Business Bank Account in Canada, so you can manage your money more efficiently as a Canadian business owner.⁵

How to Open a Business Bank Account in Canada (Step By Step)

What You’ll Need:

• Personal identification (Passport, U.S. or Canadian/U.S./U.K. Driver's License)¹
• Business registration documents¹
• Business number (BN)¹
• Partnership or incorporation documents¹
• Business address and contact information¹
• Operating name registration¹
• Ownership information¹
• Initial deposit¹

Step 1: Start Your Application Online

Most major banks in Canada let you begin the process online, which is ideal for busy entrepreneurs. In certain cases, you may be able to conduct the entire process online. You’ll usually need to upload personal identification, business registration documents, and contact information through a secure portal.²

Step 2: Submit and Wait for Processing

After you’ve uploaded all the required documents, the bank reviews your information to verify your identity and business details. This step usually doesn’t take long, and once everything is confirmed, you’ll receive instructions on the next steps to finalize your account.²

Step 3: Visit a Branch to Finalize

Even if you start online, an in-person visit is usually required to verify your identity and activate the account. Bring all original documents with you.²

Step 4: Receive Your Account Details

After verification, your account is activated. You’ll receive your account information and can start making transactions right away. Document requirements may vary depending on whether you’re a sole proprietor, a partnership, or a corporation.²

How Long Does It Take to Open a Business Bank Account in Canada?

Opening a business bank account often takes between a few hours and a few days, depending on the bank and your preparedness. Some banks issue a business account number immediately once your application is accepted, though full activation may take longer if identity verification is required.² In many cases, you’ll need to visit a branch to finalize the process.

The timeline also depends on whether your legal documents are in order and whether all parties who will sign must be present. If you’re missing paperwork or need extra verification, banks may delay activation by a few days.

If you come prepared, with IDs, incorporation papers, and business registration, you can usually expect the process to wrap up within one business day or two in most major Canadian cities.

Compare Business Bank Accounts Canada: What To Watch Out For

When you’re setting up a business, it’s essential to choosethe right bank account, which can make a real difference to how smoothly things run day to day. The account you pick affects everything from how much you’ll pay in fees to how easily you can manage payments and track your finances.

It’s worth comparing your options carefully so you end up with a setup that works for your business, not against it. Here’s what you need to consider when comparing Business Bank Accounts in Canada: \

Monthly Fees and Transaction Limits¹

Most Canadian business accounts charge monthly fees, but some waive them if you keep a minimum balance. Others use a per-transaction pricing model, which can add up if your business handles a lot of deposits or withdrawals. We recommend looking closely at transaction limits to avoid surprise charges.¹

Transfers, Payments, and Extra Services

Consider the cost and availability of Interac e-Transfers, cheque processing, and merchant services for card payments. If your business works with clients or suppliers outside of Canada, foreign exchange services are also important to factor in.³

Digital Tools/Online Banking

The quality of online banking platforms, mobile apps, and accounting software integrations can make a big difference in efficiency. Look for features like invoicing tools, real-time transaction tracking, and seamless payment options. A strong digital setup can save hours of administrative work each month.³

Wise Business Could Help Your Company Save on Global Payments

Business Bank Accounts vs Business Credit Cards

Getting your business finances set up in Canada often starts with understanding the different roles your bank account and credit card play.¹ A bank account keeps your business funds organized, helps you manage daily transactions, and builds a financial foundation. A business credit card, though, gives you flexibility and helps with short-term expenses, earning rewards, and helping establish your company’s credit history.

It’s essential to understand the difference between the two so it’s easier to decide when (and why) you should use each one.² Keep in mind, it may be difficult to obtain a business credit card in Canada if you do not have a Canadian credit score. If you’re relocating your business from the United States, it’s important to mention that U.S. Credit history does not apply in Canada.⁶

Notable Canadian Business Bank Accounts

The Canadian market is dominated by the "Big Five" banks, which are the most notable options and the most experienced in handling foreign business entities. Toronto-Dominion (TD) Bank is known for its extensive cross-border presence and provides U.S. Dollar Business Accounts to simplify matters. The Royal Bank of Canada (RBC) also offers a variety of U.S. Dollar Business Accounts and International Trade Solutions for firms working in imports and exports.

Understanding Legal and Tax Implications

Running a business means money flows in and out constantly, and keeping it all straight can get messy fast. A dedicated business bank account makes it easy to separate personal and business finances, which is critical for incorporated companies to protect personal assets¹. Even for sole proprietors, having a separate account simplifies bookkeeping and gives a clear picture of income and expenses.²

Taxes are another reason to keep things separate. Every deposit, payment, and interest earned needs to be reported to the Canada Revenue Agency³. A clean record of payroll, supplier payments, and other transactions makes filing taxes less stressful and reduces errors.⁴

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments. Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Use Wise Business >>

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers
• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local
• Business Debit Card: Invite your employees to order a debit card for free, and pre-set their spending limit. Add them to your Business account with controlled access and track their spending in one place.
• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local
• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met
• Free invoicing tool: Generate and send professional invoices
• No minimum balance requirements or monthly fees: Canada based businesses can open an account for free. Learn more about fees here

Final Thoughts

Getting a business bank account can feel like a difficult step to take, but it’s one of the smartest things you can do for your business. Having a dedicated account keeps personal and business finances separate, which makes bookkeeping easier and protects you legally if your business is incorporated.¹ At the end of the day, setting up a business account can be the foundation that keeps your money organized and your business thriving.

FAQs

Can I open a Business Bank Account as a new startup without revenue?

Yes, new businesses can open a business bank account in Canada even if they haven’t generated revenue yet. Banks mainly want to verify your legal business registration, personal identification, and business structure.¹ Startup accounts are especially common for incorporated businesses or sole proprietorships that are in the early setup phase.⁴

Are there special accounts for freelancers or solo entrepreneurs?

Freelancers and solo entrepreneurs often don’t need the same transaction volume as larger businesses, so many banks offer small-business accounts designed for this group.¹ Such accounts usually have lower monthly fees, fewer transaction limits, and access to basic merchant services.² Some banks also provide integrated tools for invoicing or tracking expenses, which is helpful if you manage finances alone.³

Sources:

1. TD Small Business Bank Accounts | TD
2. How to Open a Business Bank Account | Scotiabank
3. Open a Business Bank Account | RBC Royal Bank
4. Business Accounts | National Bank of Canada
5. How to Open a Business Bank Account | BMO
6. Best Canadian Business Bank Accounts, Credit Cards & More | Reinvest Wealth