How to open a business bank account in Canada

A business bank account helps separate personal and company finances – an essential step for managing taxes, tracking cash flow, and staying compliant with the Canada Revenue Agency (CRA).

In this guide, we’ll break down how business bank accounts work in Canada, what to consider before opening one, and how to get started.

We’ll also explore digital business account alternatives that are transforming how businesses manage their finances, offering faster setup, improved integrations, and lower fees compared to many traditional banks.

What is a business bank account?

In Canada, a business bank account is a financial account designed specifically for business use. Banks and credit unions offer it to help companies manage revenue, expenses, payroll, and taxes. Fintech providers also offer business accounts – while these aren’t traditional bank accounts, they serve similar functions and offer added flexibility for global businesses.

Separating personal and business transactions simplifies bookkeeping, supports tax compliance, and builds credibility with customers and vendors.

Do I need a Canadian business bank account?

Most Canadian-registered businesses use a business bank account (or a fintech alternative) to remain compliant with CRA guidelines, ensure proper record-keeping, and manage their finances more efficiently.¹

• Sole proprietors: Not legally required to have a separate account unless operating under a business name. However, it’s strongly recommended for tracking income, simplifying tax filing, and protecting your personal credit and reputation.

• Corporations and partnerships: Required to maintain a separate business account to comply with legal and tax obligations.

In addition, you must register for a Business Number (BN) if you:

• Collect GST/HST (once you earn over $30,000 in revenue)

• Hire employees

• Import or export goods

• Register a business name

How is a business bank account different from a personal account?

While both types of accounts allow you to deposit, withdraw, and transfer funds, business accounts include features tailored to commercial use, such as:

• Higher transaction and deposit limits to support larger business cash flows

• Multiple debit or expense cards for employees and departments

• Built-in financial reporting tools to support bookkeeping and tax prep

• Integrations with accounting software like QuickBooks, NetSuite, and Xero

These features help streamline operations, manage cash flow, and maintain the legal separation between personal and business finances.

What’s the difference between a business account and a business bank account?

A business bank account is offered by a federally or provincially regulated financial institution (e.g., RBC, TD) and includes access to lending, deposits, and in-branch services.

A business account, in contrast, typically refers to an account provided by a fintech company that operates under alternative financial licenses but not a banking license. These accounts usually offer modern tools for collecting payments, managing expenses, and making international transfers, but without some of the conventional services you’d expect from a bank.

What fintech providers like Airwallex offer is flexibility. You can expect faster onboarding, streamlined international payments, smart integrations with platforms like Xero, and tools that help you manage multiple currencies or issue employee cards, all without needing a brick-and-mortar bank.

The main difference lies in how these services are built and regulated. Banks still serve many businesses well, especially those that want loans or prefer face-to-face service. However, fintechs are changing the game for companies that want speed, digital-first tools, and global reach without the limitations of legacy systems.

How do I choose the right account for my business?

The range of business accounts offered by both traditional banks and modern fintech providers in Canada is extensive and continually expanding. These accounts come with features designed to help you streamline operations, manage cash flow, and support long-term business growth.

Of course, there are costs and limitations associated with each option, and what works for a sole proprietor may not be suitable for a growing corporation. The best account for your business depends on your structure, transaction volume, international activity, and digital needs.

Here are some key factors to consider when evaluating your options:

• Account and transaction fees: Compare monthly maintenance fees, transaction limits, and cash deposit fees to find the best option for your needs. For small or online-only businesses, a fee-free or low-cost digital account may offer the best value.

• International payment capabilities and FX fees: If you send or receive payments across borders, look for providers that offer competitive foreign exchange rates, multi-currency support, and low or no international wire fees.

• Access to credit: If you anticipate needing financing, consider whether the account provider offers business credit cards, overdraft protection, or small business loans with favorable terms.

• Digital banking tools and integrations: Ensure the platform is easy to use and integrates with your accounting software (like QuickBooks or Xero). Features like bulk payments, bill pay, and role-based user access can save you time and reduce manual errors.

• Customer support: Verify whether the provider offers live customer support, chat, or dedicated account managers, particularly if you anticipate complex financial operations.

• Branch access (if needed): While many businesses are comfortable with online-only banking, some may prefer or require physical branches for cash handling or in-person service.

Comparing business bank accounts from Canada's ‘Big Five’

If you're starting or growing a business in Canada you’ve likely considered options from the Big Five banks: Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC).² All five offer established business banking products with solid features, but the right choice often comes down to how you bank, the types of transactions you handle, and the level of flexibility you need.

Here’s a high-level snapshot of what each bank offers as of June 2025. (For the latest info, always check directly with the provider.):

RBC³

• Digital Choice Business Account: $6 CAD per month. Includes unlimited electronic debit and credit transactions, unlimited electronic checks and Moneris deposits, and 10 free Interac e‑Transfers per month.

• Flex Choice Business Account: $7 CAD per month. Includes digital and in‑branch access, 40% discount on digital transaction fees, preferred cash deposit pricing, and unlimited Moneris deposits.

• Ultimate Business Account Package: $100 CAD per month (fee waived with $75,000 CAD minimum daily balance). Includes unlimited electronic transactions and check deposits, 500 Interac e‑Transfers/month, up to $25,000 CAD in free cash deposits, and 100 paper transactions per month.

• RBC Business Essentials Savings Account: No monthly fee. Unlimited deposits, tiered interest, and two free debits per month.

• Royal Business Premium Investment Account: Designed for commercial-sized businesses, this account offers interest on balances exceeding $100,000 CAD.

• Foreign Currency Accounts: Hold business balances in USD or other currencies to avoid FX costs and simplify international transactions.

• Extras: Business Trust Accounts for professionals, Foreign Currency Accounts in USD and other currencies, online international payments in 25+ currencies, mobile check deposit via RBC Mobile app, remote deposit capture, Web Business and Express Banking platforms, payment and cash-management tools like Moneris, trade and receivables/payables solutions, and smart budgeting features powered by NOMI.

TD⁴

• TD Basic Business Plan: $5 CAD per month. Designed for small businesses with minimal monthly transactions.

• TD Every Day Business Plans A–C: $19–$72 CAD per month (Plan A fee waived with $20,000 CAD minimum balance). Each tier offers progressively higher transaction and deposit limits.

• TD Unlimited Business Plan: $125 CAD/month (waived with $65,000 CAD minimum balance). Includes unlimited deposits and transactions, free Interac e‑Transfers, and an annual fee rebate for eligible TD Business credit cards.

• TD Business Savings Account: No monthly fee. Earns interest on surplus business funds with flexible access, held in CAD.

• TD Premium Business Savings Account: Tiered interest on balances over $100,000 CAD, linked to your operating account.

• TD US Dollar Business Accounts: Available in similar tiers to CAD accounts, offering checking and savings options in USD for cross-border business activity.

• Trust Accounts: Available in CAD; designed for Canadian professionals such as lawyers and real estate agents who hold funds in trust for clients.

• Customized Commercial Banking Solutions: For mid-market and enterprise businesses in Canada, TD Commercial Banking provides tailored financing, leasing, cash management, and industry-specific services.

• Extras: Access to a dedicated Relationship Manager, remote deposit capture, fraud protection, Web Business Banking, cross-border banking with TD Bank (US), and wealth advisory services for long-term growth and succession planning.

Scotiabank⁵

• Right-Size Account for business: $6 CAD per month. Tiered per-transaction pricing: 1–15 transactions at $1.25, 16–50 at $1.15, 51+ at $1.00. Designed for cost-conscious businesses with fluctuating transaction volumes.

• Select Account for business: Four plans ranging from $20–$120 CAD per month. Monthly fee rebated with minimum balances from $20,000 to $75,000 CAD. Includes 25 to unlimited monthly transactions, up to $30,000 in cash deposits, and free Interac e‑Transfers through ScotiaOnline (limits apply).

• Scotia Professional Plan Plus Account: $38 CAD per month. Includes 110 transactions/month, free mobile check deposit, and no minimum balance requirement.

• Basic Business Account: $10.95 CAD per month (waived with $8,000 minimum monthly balance). Offers one free transaction per $1,500 in the account; available in both CAD and USD.

• Business Trust & US Dollar Accounts: Available for professionals holding funds in trust or businesses managing cross-border finances; usage-based pricing.

• Extras: Free mobile check deposits, ScotiaConnect digital banking for wires, EFTs, and payment approvals, Interac e‑Transfers via ScotiaOnline, Chase Merchant Services integration for next-day deposits, business overdraft protection, and online tax payment tools for GST, payroll, and remittances.

BMO⁶

• eBusiness Plan: $0 CAD per month. Unlimited electronic and ATM transactions (deposit content fees apply).

• Business Start Plan: $6 CAD per month. Includes seven transactions per month; excess electronic transactions are charged at $0.60.

• Business Builder Plans: Five options ranging from $22.50 to $120 CAD per month. Includes 35 to 160 transactions and $2,500 to $12,000 in free monthly cash deposits. Monthly fees waived with balances of $35,000 (Builder 3) or $80,000 (Builder 4).

• Business Current Account: $6 CAD per month. Available in CAD or USD. Usage-based pricing with $1.25 per transaction and additional fees for cash and check deposits.

• Business Trust & US Dollar Accounts: Available for professionals managing trust funds or businesses with cross-border needs. Fees are based on usage.

• Extras: Free mobile check deposit, two free Interac e‑Transfers per month ($1.50 each thereafter), unlimited internal transfers, Moneris integration for next-day deposits, BMO Debit Card for Business, BMO Online and Mobile Banking access, business overdraft protection, digital tax payment tools, and optional paper statements for $4 per month.

CIBC⁷

• CIBC Basic Business Operating Account: $6 CAD per month. Pay-as-you-go pricing with $1 per self-service transaction and $1.25 per full-service transaction.

• CIBC Everyday Business Operating Account: $20 CAD per month (self-service) or $25 CAD (full-service), waived with a $20,000 minimum daily balance. Includes 30 transactions and a deposit package of $3,000 cash, $300 coin, and 25 checks.

• CIBC Advanced Business Operating Account: $40 CAD per month, waived with a $35,000 minimum daily balance. Includes 100 transactions, Interac e‑Transfers, and a deposit package of $5,000 cash, $500 coin, and 50 checks.

• CIBC Unlimited Business Operating Account: $65 CAD per month, waived with a $65,000 minimum daily balance. Offers unlimited transactions, including Interac e‑Transfers, plus a deposit package of $15,000 cash, $1,000 coin, and 100 checks.

• CIBC US Dollar Current Account: $8 USD per month. Pay-as-you-go pricing at $1 USD per self-service and $1.25 USD per full-service transaction.

• Extras: Free CIBC Global Money Transfers to 130+ countries (up to $100,000), access to CIBC SmartBanking™ for Business, CIBC Online and Mobile Banking, Interac e‑Transfers included in account transaction limits, Business Banking Convenience Card, access to expert advice, and optional savings via the CIBC Business Investment Growth Account with 1.45%–2.85% interest.

Traditional banks vs. fintechs: Can you have both?

Traditional Canadian banks are ideal if you need lending, cash deposits, or in-branch service. But for cross-border transactions, modern fintech platforms like Airwallex can offer better rates, faster payments, and multi-currency support.

While Airwallex is not a bank, it provides a regulated business account experience with modern features like:

• Fast international transfers

• Virtual and physical multi-currency cards

• Competitive FX rates

• Real-time expense management

• Seamless integrations with tools like Xero, Netsuite, or QuickBooks

Many Canadian companies use both: a traditional bank for loans and branch services, and a fintech like Airwallex for global money movement and financial automation.

How to open a business bank account in 5 steps

To open a business bank account in Canada, you’ll need to go through a federally or provincially regulated financial institution, such as a traditional bank or credit union. Many providers also offer online applications for added convenience.

1. Research providers: Compare options based on your business’s needs, such as fees, online banking tools, international payment features, integrations with accounting platforms, and the level of customer support.

2. Gather documentation: For sole proprietors, this usually includes a government-issued photo ID and your Social Insurance Number (SIN) or business number (BN) from the Canada Revenue Agency (CRA). Corporations, partnerships, and other registered business types may also need:

   1. Articles of incorporation or registration documents

   2. Partnership agreements (if applicable)

   3. A business licence (depending on your province or industry)

   4. Details for all owners, directors, or signing authorities

3. Choose how to apply: Many financial institutions in Canada offer online and in-branch application options. Some accounts – especially for incorporated businesses – may require an in-person visit to complete identity verification.

4. Submit your documents: Upload or provide the necessary paperwork and respond to any additional verification requests from the provider.

5. Activate and set up: Once your account is approved, deposit funds, order debit or credit cards, set up authorized users, and connect your account to accounting tools to simplify financial management.

What documents are required to open a business bank account in Canada?

Opening a business bank account in Canada is typically a straightforward process, but the exact documents you’ll need can vary slightly depending on your business structure and the financial institution you choose. Banks are required to verify your identity and gather information about your business to comply with anti-money laundering and Know Your Customer (KYC) regulations.

Here’s a document checklist based on your business type:

For corporations:

• Articles of Incorporation or Certificate of Incorporation

• Business Number (BN) issued by the Canada Revenue Agency (CRA)

• Corporate Resolution or list of authorized signing officers

• Valid government-issued photo ID for all signing officers (e.g., Canadian driver’s license or passport)

• Proof of business address (e.g., utility bill or lease agreement)

For sole proprietors:

• Government-issued photo ID

• Business Number (BN) from CRA (if registered)

• Master Business Licence or provincial registration certificate (if operating under a trade name)

• Proof of business address

For partnerships:

• Partnership agreement

• Business Number (BN) from CRA

• Valid government-issued photo ID for all partners

• Proof of business address

For trusts or not-for-profit organizations:

• Trust deed or charitable registration documents

• CRA-issued BN or charitable registration number

• Government-issued ID for trustees or signing officers

• Proof of business or mailing address

5 things to consider before opening a business bank account

1. Fees and charges

Carefully review the fee structure of any prospective business account you are considering. Look for monthly maintenance fees, transaction limits and overage charges, incoming and outgoing wire fees, and other potential costs like early account closure or cash deposit fees. Understanding these fees helps ensure you’re not caught off guard – and helps you choose an account that aligns with your transaction habits.

2. Interest rates and account perks

Some business savings or checking accounts offer interest on your balance, though this is more common with savings or “interest checking” accounts. Depending on your average balance, this can provide modest returns. Additionally, review any business perks, such as discounts on software subscriptions, lower loan rates, or cash back on business card spending. These benefits can provide added value beyond day-to-day banking.

3. Digital capabilities

Look for an intuitive online dashboard, a mobile app with full functionality, and integrations with accounting platforms like QuickBooks or Xero. Consider whether the platform supports features such as bill pay, bulk payments, expense tracking, and user permissions tailored to your team's needs.

4. Customer support

Responsive support can make a big difference, especially when you're dealing with payment issues, fraud alerts, or compliance questions. Evaluate whether the provider offers live support (phone or chat), email help, or dedicated relationship managers for business clients. Strong support is especially important for businesses with complex financial operations or international exposure.

5. Scalability

The account should support your growth, not just your current needs. As your business expands, you may need higher transaction limits, access to credit or treasury services, multi-user access, or global payment capabilities. Choose a provider that offers flexibility to upgrade your account or add services as your needs evolve.

Which business accounts work best for going global?

If your business operates across borders or plans to expand into new markets, some business accounts will make managing international transactions far easier than others.

Traditional business bank accounts can support basic international transfers, but they often come with higher fees, slower settlement times, and limited currency support. That can create unnecessary friction as your business grows.

Airwallex offers a modern alternative to traditional business banking. Its global financial infrastructure is purpose-built to help Canadian businesses simplify domestic and international payments, reduce foreign exchange costs, and operate globally from a single platform.

Airwallex is not a bank but operates under regulatory licenses in Canada and globally to offer financial services for businesses.

That’s why businesses of all sizes are choosing Airwallex to manage their finances. With one account, you can access:

• Multi-currency Global Accounts with local bank details in 20+ currencies

• Low FX rates and high-speed international transfers

• Company and employee cards for spend control and expense tracking

• Integrated expense management

If your business works with international suppliers or plans to enter new markets, Airwallex gives you the flexibility to send, receive, and hold funds globally, without the overhead of setting up accounts in multiple countries.

Opening a business bank account in Canada: Frequently Asked Questions

How long does it take to open a business account or a business bank account?

Timelines vary by provider and business structure. Traditional banks may require in-person appointments and take a few business days to review and verify your documents. Some banks and digital-first providers may offer online applications and can approve and activate your business account within 1–3 business days, provided all required documentation is submitted correctly.

Do start-ups need a business account?

There’s no federal law requiring startups to open a business bank account, but it’s highly recommended. Incorporated businesses, partnerships, and registered sole proprietorships are generally expected to use a dedicated business account for legal, tax, and operational purposes. Even if you’re a sole proprietor, keeping your personal and business finances separate can simplify bookkeeping, improve credibility, and make it easier to manage GST/HST reporting or payroll.

What is the main purpose of opening a bank account?

The primary purpose is to separate your personal and business finances. This simplifies expense tracking, tax reporting, and cash flow management. It also helps with limited liability protection (for incorporated businesses) and enables access to features like business credit cards, wire transfers, and payroll processing.

Are there any benefits to a business bank account? 

Yes, including:

• Simplified tracking of business income and expenses

• Streamlined tax filing and GST/HST remittance

• Ability to issue payments to employees, suppliers, and contractors

• Integration with accounting tools like QuickBooks or Xero

• Potential access to business financing or credit facilities

• Improved credibility when working with vendors, clients, or lenders

What is the best bank to open a business account in Canada?

It depends on your needs. The Big Five banks – RBC, TD, Scotiabank, BMO, and CIBC – offer a wide range of business account options, in-person support, and bundled services like credit cards, loans, and merchant accounts. Fintech alternatives like Airwallex can offer competitive FX rates, international payment tools, and faster digital onboarding, especially for businesses with global operations.

Can a non-resident or foreign company open a business account in Canada?

Yes, but there are more steps involved. Most Canadian banks will require your company to be registered federally or provincially in Canada and to have a Canadian business number (BN) from the CRA. You’ll also need to provide incorporation documents, proof of business address, and identification for all beneficial owners and authorized signers. Some digital-first providers may offer options for non-resident directors or owners, depending on your use case; however, regulatory requirements must still be met.

Sources

1. https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/setting-your-business/sole-proprietorship.html

2. https://www.nerdwallet.com/ca/p/article/banking/big-5-big-6-banks-canada

3. https://www.rbcroyalbank.com/business/accounts/index.html

4. https://www.td.com/ca/en/commercial-banking/products-services

5. https://www.scotiabank.com/ca/en/business-banking/banking-solutions/business-bank-accounts.html

6. https://www.bmo.com/pdf/better-banking-guide-business-en.pdf

7. https://www.cibc.com/en/business/accounts.html

Disclaimer: The information in this article is based on our own online research. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [email protected].