How to open a business bank account in Canada

Opening a business bank account in Canada as a US citizen is possible and can streamline your cross-border operations. Whether you're expanding into the Canadian market, or receiving payments in CAD, understanding the proces and available options will help you make an informed decision.

This guide covers everything you need to know: the step-by-step process, required documentation, common challenges US businesses face, and practical alternatives that can save you time and complexity.

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🔍 In this article:

How Do I Open a Business Bank Account in Canada? Can I Open a Business Bank Account in Canada as a Foreign Entity? Do I Need to Be Physically Present to Open a Business Account in Canada? Document Requirements for US Businesses How Long Does It Take to Open a Business Account in Canada? Common Challenges US Businesses Face What is the Best Bank for a Business Account in Canada? What Fees Are There for Canadian Business Accounts? Frequently Asked Questions

How Do I Open a Business Bank Account in Canada?

Opening a business bank account in Canada requires thorough preparation. While the process is more complex for US businesses than for Canadian companies, following these steps will help ensure a smoother experience:

Step 1: Determine if You Need Canadian Business Registration

Before you can open a traditional business bank account, most banks will require your company to have a legal presence in Canada. You'll need to decide whether to:

• Register as an extra-provincial corporation in the province where you'll operate
• Incorporate a Canadian subsidiary under federal or provincial law

Your decision should be based on your long-term Canadian business plans and the level of activity you expect in the country.

Step 2: Choose the Right Bank and Account Type

Research Canadian banks that work with US businesses. The Big Five - RBC Royal Bank, TD Bank, Scotiabank, BMO, and CIBC - all offer business accounts for foreign entities that meet their requirements.

When comparing options, consider:

• Multi-currency support (USD and CAD)
• International wire transfer fees
• Minimum balance requirements
• Monthly maintenance fees and transaction costs
• Online and mobile banking capabilities
• Whether digital alternatives like Wise Business might better serve your specific needs

Step 3: Gather All Required Documentation

Use the document checklist from the previous section to compile everything you'll need:

• Have documents notarized or authenticated as needed
• Prepare certified translations for any documents not in English
• Organize business proof documents (contracts, invoices, comprehensive business plan)
• Ensure all personal identification is current and valid

Step 4: Submit Your Application

Most banks allow you to start the application online, though the process for foreign entities may differ from the standard online flow for Canadian businesses.

• Fill out all forms completely and accurately
• Upload or bring all required documents
• Be prepared to answer detailed questions about your business activities

Step 5: Complete In-Person Verification (If Required)

For most traditional banks:

• Schedule an appointment at a Canadian branch
• At least one director or authorized signatory must attend in person
• Bring original identification documents
• Be prepared to answer questions about your business model, revenue sources, and Canadian operations

Step 6: Wait for Approval and Bank Due Diligence

Banks will conduct Know Your Customer (KYC) and Anti-Money Laundering (AML) checks:

• Approval typically takes 3-6 weeks for US businesses
• The bank may request additional information or clarification during this period
• Respond promptly to any requests to avoid delays

Step 7: Make Initial Deposit and Activate Account

Once approved:

• Make the minimum required deposit (varies by bank and account type)
• Activate online banking services
• Set up multi-currency features if needed
• Order business debit cards and checks

Can I Open a Business Bank Account in Canada as a Foreign Entity?

Yes - you don't have to be a Canadian resident or citizen to open a business bank account in Canada. However, most Canadian banks require that your business is either registered as an extra-provincial corporation in Canada or incorporated as a Canadian subsidiary under federal or provincial law.

The banking industry in Canada is more centralized than its cousin in the US. Six banks control 90% of the retail banking industry in the country,¹ which means fewer options but generally consistent standards and requirements across institutions.

Some banks may also require at least one Canadian resident director or a local representative to facilitate the account opening process. This requirement varies by bank and business structure, so it's important to verify specific policies with your chosen institution before beginning the application.

Canada supports several types of business structures, including sole proprietorships, partnerships, corporations, and co-operatives. The banking process and requirements will vary depending on which structure applies to your US business operations in Canada.

The process is governed by the Access to Basic Banking Services Regulations under the Bank Act,² which sets out the framework for how banks must handle business account applications, including those from foreign entities.

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Do I Need to Be Physically Present to Open a Business Account in Canada?

Most major Canadian banks require at least one company director or authorized signatory to visit a Canadian branch in person for identity verification. This in-person requirement is part of strict Know Your Customer (KYC) requirements that Canadian banks must follow under federal regulations.

Rules vary from bank to bank, and some may offer more flexibility than others. You can call the bank directly for information about their specific policies, or visit one of their branches that is local to you if the bank operates in both countries.

Some US banks with Canadian operations, such as TD Bank, have branches in both countries. You may be able to start the account opening process at a US branch and complete some steps locally, though final verification may still require a visit to Canada. These cross-border banks may have more expensive fees for holding an international account and may require high minimum balances.

With Wise Business you can open an account remotely without visiting Canada. Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. This can be a practical solution for US businesses that primarily need to receive CAD payments or make payments to Canadian suppliers.

Read the guide on how to open a Wise Business account

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Document Requirements for US Businesses

All US businesses must prepare comprehensive documentation to open a Canadian business bank account. Here's what you'll need:

Personal Documents (Required for All Business Types)

• Two pieces of government-issued photo ID for all directors and signing authorities (US passport and driver's license are most commonly accepted; at least one must be a photo ID)
• Proof of residential address in the US dated within the last 90 days (utility bill, bank statement, or government correspondence)

Business Documents (Required for All US Businesses)

• Certificate of Formation or Articles of Incorporation from your US state
• EIN (Employer Identification Number) from the IRS
• Board resolution authorizing the account opening and naming authorized signatories (for corporations)
• Business plan outlining your Canadian operations and expected transaction volumes
• Proof of business activities: contracts, invoices, or supplier agreements demonstrating Canadian business presence or intent

Additional Documents (Depending on Business Structure and Bank)

The following table shows specific document requirements by business type:³

Company Type	Required Documents
Sole Proprietorship	• Trade name registration• Master business license
Corporation	• Articles of Incorporation/Association• Certificate of Status or Certificate of Good Standing from your US state• Corporate Profile Report• Business Number (if registered with CRA)• Business License
Partnerships and Limited Partnerships	• Registered declaration of partnership• Copy of partnership agreement• Trade name registration

Important Note About Document Authentication

For US businesses, all corporate documents must be authenticated and may need to be legalized depending on the bank's specific requirements. Documents not in English or French must be translated by a certified translator recognized by Canadian provincial or federal authorities.

US business owners should be prepared to provide additional documentation proving their business activities and intentions in Canada, including detailed explanations of expected transaction types and volumes.

Note: Document requirements vary by bank and business structure. Contact your chosen bank to verify specific requirements before applying.

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

Setting realistic expectations about timeframes is essential for planning. Here's a typical timeline for US businesses opening Canadian bank accounts:

• Document preparation: 1-2 weeks (gathering, notarizing, authenticating, and translating documents)
• Initial application submission: 1-3 days (for online applications)
• Bank review and KYC verification: 2-4 weeks for US businesses and other foreign entities (much longer than for Canadian companies)
• In-person verification appointment: Varies based on branch availability and your travel schedule; can add 1-2 weeks
• Account activation: 1-3 business days after final approval
• Total timeline: 4-8 weeks for most US businesses using traditional banks

Ways to Expedite the Process:

• Have all documents prepared and authenticated before starting your application
• Choose banks with demonstrated experience working with non-resident businesses
• Consider digital banking alternatives like Wise Business that offer faster approval (can be set up in days rather than weeks)
• Apply during non-peak periods if possible
• Respond immediately to any bank requests for additional information

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Common Challenges US Businesses Face When Opening Canadian Bank Accounts

Understanding potential obstacles helps you prepare more effectively:

Challenge 1: Strict KYC and AML Verification Requirements

Canadian banks conduct rigorous identity verification for foreign entities. Expect additional scrutiny compared to Canadian companies, especially if your business structure involves multiple jurisdictions.

Solution: Prepare comprehensive business documentation and be ready to clearly explain your Canadian business case, including specific customers, suppliers, or business activities.

Challenge 2: Canadian Business Registration Requirements

Most banks require that your business is incorporated or registered in Canada before opening an account. This adds time, expense, and complexity to the process.

Solution: Consider whether you truly need a traditional bank account or if a digital alternative like Wise Business meets your needs without registration requirements.

Challenge 3: In-Person Verification at Canadian Branches

Most banks require at least one director to visit a branch in Canada, meaning travel expenses and time away from your US business.

Solution: Look for US banks with Canadian operations (like TD) that may allow some steps to be completed locally, or explore digital alternatives that allow remote verification.

Challenge 4: Longer Approval Timelines

While Canadian businesses may get approved in days, US businesses typically wait 3-6 weeks. Banks need to verify foreign documents and conduct enhanced due diligence.

Solution: Submit complete, well-organized applications and respond promptly to any bank requests to minimize delays.

Challenge 5: Potential Need for Canadian Directors or Representatives

Some banks require at least one director to be a Canadian resident. Finding and appointing a Canadian director adds significant complexity.

Solution: Research each bank's specific requirements before applying and factor this into your planning timeline.

Challenge 6: Limited Digital Banking Options

Not all Canadian banks offer full digital onboarding for foreign businesses. Online account management may be available, but initial setup often requires in-person steps.

Solution: Explore fintech alternatives specifically designed for cross-border businesses.

What is the Best Bank for a Business Account in Canada?

Canada is home to five major banks, known as 'The Big Five': RBC Royal Bank, TD Bank, Scotiabank, BMO, and CIBC. Each institution has its own set of features, fees, and requirements for US businesses.

RBC Royal Bank

• Fees can be waived if minimum balance requirements are met
• RBC extends the 'Newcomers to Canada package' to business account owners, which may include cash rewards⁶
• RBC online business banking helps you manage finances remotely from the US
• Extensive branch network across Canada

TD Bank

• TD also offers five different Small Business bank account plans
• The most comprehensive TD Unlimited Business plan offers unlimited withdrawals, transfers, and deposit items
• Monthly fees may be waived for customers using TD's merchant solutions, digital services, or lending products
• TD operates in both the US and Canada, which can simplify the process for US business owners⁷⁸

Scotiabank Business Account

• Scotiabank offers same-day availability for in-branch deposits and electronic payments, with next-day availability for night deposits
• The flexible business bank account allows you to tailor fees to your transaction usage
• For US companies, Scotiabank offers a US dollar account option to help you avoid exchange rate fluctuations and currency conversion fees
• Multiple business account options with varying fee structures⁹

Business Account CIBC

• CIBC offers business account options designed for different business sizes and transaction volumes
• Small businesses can select the Basic Business Operating Account with a low monthly fee where you only pay for transactions used
• Access to transaction reporting through CIBC's Cash Management Online platform
• Ability to assign financial transactions to individuals within the business for better internal tracking
• Unlimited CIBC small business convenience cards at no additional cost
• Online and mobile banking for managing accounts remotely

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Get Canadian Account Details with Wise Business

Opening a traditional Canadian business bank account can take 4-8 weeks and often requires multiple trips to Canada, but Wise Business offers a fast, simple alternative specifically designed for US businesses with cross-border needs.

With Wise Business, you can get Canadian account details (account number and institution number) to receive CAD payments just like a local business - without needing to incorporate in Canada or visit a Canadian branch.

Some key benefits of Wise Business include:

Major local account details to receive international payments with ease No monthly account fees just a simple one-off fee for account details Receive payments from e-commerce platforms such as Amazon or via Stripe. Free invoicing tool to generate and send invoices. Create invoices using the Wise invoice generator or invoice templates. Accounting integrations, including a QuickBooks Bill Pay connection. Bill payments will be synced, matched, and categorized in QuickBooks for simple reconciliation. Access to BatchTransfer. Fast payment of up to 1,000 people.

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 40+ currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to 140+ countries.

Get started with Wise Business

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

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What Bank Fees Are There for Canadian Business Accounts?

Understanding the full cost picture is essential when choosing a Canadian business bank account. Here are the typical fees US businesses should expect:

Standard Monthly and Transaction Fees

• Monthly or annual maintenance fees: Varies by account type and bank
• Transaction fees: Fees per debit, withdrawal, transfer, or deposit
• ATM fees: Especially for out-of-network withdrawals
• Deposit fees: Some banks charge for cash or check deposits
• Minimum balance fees: Charged if you fall below the required balance

International Transfer Costs

• Outgoing international wire transfer fees: For sending money from Canada to other countries
• Incoming international transfer fees: For receiving SWIFT transfers into your Canadian account
• Intermediary bank fees: On international transfers, typically 1-3 banks between sender and recipient can each deduct fees¹³

Hidden Costs to Watch For

• Exchange rate markups: These aren't disclosed as "fees" but cost you money when converting currencies. Banks typically add 3-5% markup to the mid-market exchange rate
• Currency conversion fees: Additional percentage fees when transacting in foreign currencies
• Minimum balance requirements: These tie up your working capital and can range from a few thousand to $50,000+ for premium accounts

Additional Fees

• Stop payment fees
• NSF (non-sufficient funds) fees
• Paper statement fees (most banks charge for mailed statements)
• Overdraft fees
• Wire recall or amendment fees

When comparing accounts, calculate the total monthly cost based on your expected transaction volume, not just the base monthly fee. An account with a higher monthly fee but more included transactions may actually cost less for active businesses.

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Tax Implications for US Businesses with Canadian Bank Accounts

Opening a Canadian bank account doesn't automatically create Canadian tax obligations, but US business owners should understand the potential implications:

Canadian Tax Considerations

• Permanent establishment: Tax residency in Canada is determined by whether your business has a "permanent establishment" in the country. Simply having a bank account does not create a permanent establishment.
• Canadian income: If your business earns income from Canadian sources or has substantial business presence in Canada, you may have Canadian tax obligations
• GST/HST registration: Businesses with annual taxable revenues exceeding CAD $30,000 from Canadian sales must register for GST/HST (Goods and Services Tax / Harmonized Sales Tax)
• Tax treaty benefits: The Canada-US Tax Treaty helps prevent double taxation for businesses operating in both countries

US Tax Obligations

• Worldwide income reporting: US businesses remain subject to US tax reporting requirements on worldwide income, including income earned in Canada
• FBAR filing: You must report the existence of foreign financial accounts on FBAR (FinCEN Form 114) if the aggregate value exceeds $10,000 at any time during the year
• FATCA compliance: Canadian banks will report your account information to the IRS under FATCA (Foreign Account Tax Compliance Act)
• Subsidiary vs. branch treatment: Income earned through a Canadian subsidiary may be subject to different tax treatment than income earned through a branch or direct operations

Given the complexity of cross-border taxation, consult with a qualified accountant or tax advisor who specializes in Canada-US business taxation before opening a Canadian account and conducting business in Canada.

Disclaimer: This information is for general guidance only and does not constitute tax or legal advice. Tax rules are complex and change regularly. Consult with qualified professionals regarding your specific situation.

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Frequently Asked Questions

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

To open a business bank account in Canada as a US business, you'll need:

(1) Two pieces of government-issued photo ID for all directors and beneficial owners,
(2) Proof of US address dated within 90 days,
(3) Business registration documents such as Certificate of Incorporation from your US state,
(4) EIN from the IRS,
(5) Canadian Business Number from the CRA if you're registered in Canada,
(6) Business plan or proof of Canadian business activities,
(7) Board resolution authorizing the account opening, and;
(8) Initial deposit ranging from $25 to several thousand dollars depending on the account type and bank.

Requirements vary by bank and business structure, so verify specific needs with your chosen bank before applying.

Can a non-resident open a business account in Canada?

Yes, non-residents can open a business account in Canada. US business owners don't need to be Canadian residents or citizens. However, most traditional Canadian banks require that your business is either incorporated in Canada or registered as an extra-provincial corporation.

You'll need to meet strict Know Your Customer (KYC) requirements, and many banks require at least one director or authorized signatory to visit a Canadian branch in person for verification.⁴ Some banks may also require at least one Canadian resident director. Digital alternatives like Wise Business allow US businesses to get Canadian account details for receiving CAD payments without needing to incorporate in Canada or visit a branch.

How long does it take to open a business bank account in Canada from the US?

For US businesses using traditional Canadian banks, the process typically takes 4-8 weeks from start to finish. This includes 1-2 weeks for document preparation and authentication, 2-4 weeks for bank review and KYC verification, and additional time for in-person verification if required.

The timeline can be longer if documents need to be translated or if the bank requests additional information. Digital alternatives like Wise Business can be set up in a matter of days rather than weeks, though they serve different purposes than traditional bank accounts.

Do I need to incorporate my business in Canada to open a bank account?

Most traditional Canadian banks require that US businesses either incorporate a Canadian subsidiary or register as an extra-provincial corporation in Canada before opening an account. This provides a legal entity recognized by Canadian authorities.

However, digital banking alternatives like Wise Business allow you to get Canadian account details without incorporating or registering in Canada, which can be a practical solution for businesses that primarily need to receive CAD payments or make payments to Canadian suppliers.

Can I open a USD business account in Canada?

Yes, most major Canadian banks offer USD business accounts or multi-currency accounts that allow you to hold and transact in US dollars alongside Canadian dollars. This is particularly useful for US businesses to avoid constant currency conversions and exchange rate fluctuations. Scotiabank, RBC, TD, BMO, and CIBC all offer USD account options for businesses. Wise Business also offers multi-currency accounts with both USD and CAD capabilities.

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Summary

Opening a Canadian business bank account as a US business owner is possible and can provide significant benefits for cross-border operations. The process requires careful preparation, proper documentation, and patience.

Major Canadian banks work with US businesses that meet their registration and documentation requirements. Key challenges include in-person verification requirements, Canadian business registration needs, and longer approval times for foreign entities compared to Canadian companies.

Wise Business can offer faster setup without incorporation requirements and can be ideal for businesses that primarily need to receive CAD payments and manage multi-currency operations. Traditional banks remain the best choice for businesses needing full-service banking, access to business credit, and local credibility.

Save time and money with Wise Business

Understanding tax implications and fee structures is essential for making informed decisions about which solution best fits your specific business needs.

Ready to get started? If you need quick access to Canadian account details, explore Wise Business for a fast, simple solution designed for cross-border businesses.

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	Editor & Business Expert:
	Panna is an expert in US business finance, covering topics from invoicing to international expansion. She creates guides and reviews to help businesses save time and make informed decisions. You can read more useful business articles on her author profile.

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Sources

1. THE GREAT CANADIAN OLIGOPOLY (page 5)
2. Access to Basic Banking Services Regulations
3. Business accounts and services - RBC (Page 3)
4. Can a Foreigner Open a Bank Account in Canada? - GlobalBanks
5. Business accounts and services - RBC (Page 13)
6. What We Can Offer Newcomers to Canada - RBC
7. TD Bank Business Simple Checking Account
8. Open a Small Business Bank Account | TD Canada Trust
9. Basic Business Account | Scotiabank Canada
10. Open a Business Bank Account | BMO
11. Send money abroad and save – RBC Royal bank
12. Send money Internationally to your recipient's bank account with TD Global Bank Transfer
13. Personal Fee Schedule - TD Bank
    All sources checked November 2025.