What you need before you walk into a bank

A Canadian business bank account requires two things upfront: proof that your business exists as a legal entity, and proof of your identity. The first part depends on what kind of business you are running. If you are a sole proprietor (you own the business by yourself and have not registered it formally), you need a Social Insurance Number and a piece of government ID. If you have registered your business — as a corporation, partnership, or cooperative — you need the registration documents from your province or the federal government.

The second part is straightforward: bring a government-issued photo ID like a driver's license or passport. Some banks also ask for a second piece of ID, such as a utility bill or lease agreement showing your current address. Call the bank branch you plan to visit and ask what they want to see; requirements vary slightly between institutions.

You will also need to decide what kind of account fits your business. Most banks offer a basic business chequing account, which lets you write cheques, receive deposits, and pay bills online. Some businesses also open a separate savings account to set aside money for taxes or operating costs. Start with chequing unless you have a specific reason to add savings.

Key Takeaways

  • Sole proprietors need a Social Insurance Number and government photo ID; incorporated businesses need their registration documents and photo ID.
  • Different banks charge different monthly fees for business accounts, ranging from nothing to over $30 depending on the number of transactions you make.
  • You can open an account in person at a branch, online through the bank's website, or sometimes by phone, though in-person is fastest for first-time business owners.
  • The account usually opens within one business day if you explore in person with all required documents.

Sole proprietors: registering your business name first

If you operate under your own name — for example, "Jane Smith, Consulting" — you can open a business account with just your Social Insurance Number and ID. The bank will set up the account in your name and you can start using it when ready.

If you want to operate under a different name — "Smith Consulting Inc." or "The Corner Bakery" — you have two paths. You can register that name with your province (or federally, if you plan to operate across Canada), which gives you a registration number and official documents. Or you can operate as an unregistered business name, which is legal but means you have no formal protection over the name and the bank may ask more questions. Most banks will open an account for an unregistered business name if you bring a signed declaration stating that you are the owner, but call ahead to confirm.

Registration takes a few days to a few weeks depending on your province. You can register online through your provincial government's business registry website — search "[your province] business name registration" — or through the federal Corporations Canada website if you want federal registration. The cost is usually between $50 and $200.

Incorporated businesses: what documents the bank needs

If your business is a corporation, partnership, or cooperative, you have already gone through a registration process. The bank will ask for the documents that came out of that process. For a federal corporation, this is your Certificate of Incorporation. For a provincial corporation, it is your Articles of Incorporation or Certificate of Incorporation — the name varies by province. For a partnership or cooperative, bring your partnership agreement or cooperative bylaws.

The bank also needs to know who is authorized to sign cheques and make decisions on the account. This is called a signing authority. You will need to list the names and titles of the people who can access the account, and you may need to provide their Social Insurance Numbers. Some banks require that at least two people sign off on large transactions, while others let one person control everything — this is your choice when you set up the account.

Bring the original registration documents or certified copies. If you only have photocopies, ask your accountant or lawyer whether they are certified, or contact the government office that issued them to request certified copies. Some banks will accept uncertified copies as long as you bring the originals to verify, but do not assume — call first.

Where to open the account: banks, credit unions, and online options

You have three main choices: a traditional bank branch, a credit union, or an online bank. Each has different costs and features.

Traditional banks like Royal Bank, TD, Scotiabank, and Bank of Montreal have branches across Canada and offer in-person service. They usually charge a monthly fee for business accounts — typically $15 to $35 depending on how many transactions you make — though some waive fees if you keep a minimum balance. They offer cheque books, debit cards, online banking, and phone support. Opening an account in person takes about 30 minutes and the account is usually live the same day.

Credit unions are member-owned financial institutions that operate in most provinces. They often charge lower fees than banks — sometimes nothing for the first year — and may offer more flexible terms if you are new to business. You become a member when you open an account. Service varies by credit union, so compare the ones in your area.

Online banks like Tangerine, EQ Bank, and Simplii offer low or no monthly fees and can be opened entirely online. The tradeoff is that you cannot walk into a branch if you need help, and some do not offer cheque books. These work well if you rarely need to deposit cheques and are comfortable managing your account through an app or website.

The step-by-step process for opening in person

Opening an account at a branch is the most straightforward route for a first-time business owner. Call the branch ahead of time and ask if you need an appointment or if you can walk in. Some branches require appointments during busy hours.

Bring all your documents: your government photo ID, your business registration documents (if applicable), and a second piece of ID showing your address. Bring a list of anyone else who will have signing authority on the account, along with their Social Insurance Numbers if the bank asks for them. If you are opening the account for a corporation or partnership, bring the names and titles of all directors or partners.

A bank representative will ask you questions about your business: what you do, how much money you expect to move through the account each month, and whether you need any additional services like a business credit card or a line of credit. Answer honestly — this helps the bank set up the right account for you. They will then prepare the paperwork, you will sign it, and the account opens. You will receive a debit card, online banking login, and sometimes a temporary cheque book on the spot.

Opening online or by phone

Many banks now let you start the process online. You upload photos of your documents, answer questions about your business, and the bank reviews your process. This usually takes one to three business days. Once approved, you may need to visit a branch in person to verify your identity and sign final documents, or the bank may mail you a package to sign and return.

Some banks offer phone applications for business accounts, though this is less common than online. Call the bank's business line and ask whether they offer phone applications. If they do, they will walk you through the process and tell you what documents to have ready.

The advantage of online or phone is convenience — you do not have to take time off work. The disadvantage is that it takes longer (usually three to seven business days from start to finish) and you cannot ask questions face-to-face. Choose this route if you are comfortable with the process and do not need the account to open when ready.

Monthly fees, minimum balances, and what to compare

Business accounts are not free. Most banks charge a monthly fee that covers a certain number of transactions — usually 20 to 50 cheques, deposits, and online bill payments per month. If you go over that limit, you pay extra per transaction. Some banks charge a flat fee regardless of how many transactions you make.

A few banks waive the monthly fee if you keep a minimum balance in the account — often $2,000 to $5,000. This can be a good deal if you naturally keep that much money in the account anyway, but do not tie up money just to avoid a fee.

Before you open an account, compare the fee structure of at least two or three banks. Ask specifically: What is the monthly fee? How many transactions are included? What does each extra transaction cost? Is there a minimum balance requirement? Do they charge for cheque books, wire transfers, or other services you might need? Write down the answers and pick the one that fits how you actually plan to use the account.

Frequently Asked Questions

Can I use my personal bank account for my business?

Legally, yes — there is no law against it. Practically, it creates problems. Your accountant will have a harder time tracking business income and expenses at tax time. If your business is sued, a court may look at your personal account as part of the business, which could put your personal savings at risk. A separate business account costs $15 to $35 per month and solves both problems.

Do I need to register my business name before opening a bank account?

Not if you operate under your own name. If you want to use a different business name, you can either register it first (takes a few days to weeks) or open an account as an unregistered business name (faster, but ask the bank first). Registration gives you legal protection over the name, so it is worth doing if you plan to build a brand.

What if I do not have a Social Insurance Number yet?

You need one to open a business account in Canada. If you are a Canadian citizen or permanent resident, you can request one from Service Canada online or at a Service Canada office. Processing usually takes a few weeks. If you are not yet a resident, talk to the bank about whether they can open an account with a different identifier while you wait.

How long does it take to open an account?

In person at a branch: usually the same day, sometimes within an hour. Online: one to three business days for approval, then you may need to visit a branch or sign and return documents by mail, adding another few days. By phone: similar to online. If you need the account open quickly, go in person.

Can I change the signing authority later?

Yes. Contact your bank and ask to update the account authorization. You will need to sign new paperwork. This usually takes a few business days to process.