How to open a business bank account

If you’re launching a business, one of the first things you’ll need to do is to get a business bank account. As soon as you need to pay, or take payments, on behalf of your company, a business account is an essential tool to keep your finances as simple and streamlined as possible. Plus many business accounts have some excellent extra features which can help you save time on admin, and reduce the risk of bookkeeping errors.

This guide walks through how to open a business bank account, and also touches on Wise Business as an ideal account for businesses trading around the world, with no ongoing fees and ways to send, spend, exchange and receive payments in global currencies with the mid-market rate.

Table of contents
Things to know before opening a business bank account Types of business accounts Features Business types Documents needed Fees Duration Steps to setting up a business bank account Opening a global business account FAQs - Opening a business account in Australia

Sign up for the Wise Business account! 🚀

Things to know before opening a business bank account

Before we look at how to open a business bank account we’ll start off with a few common questions and things to know while you decide which account to pick.

Types of business accounts available

Before you open a business bank account you’ll need to choose the right type of account for your specific needs. There are business accounts from banks, and also options like Wise Business which isn’t a bank, but offers multi-currency accounts and card services for companies of all sizes.

Business accounts can be designed to meet the needs of companies of different sizes, and companies working in different niches. You’ll often find business accounts aimed at startups and small businesses split aside from companies which are more established or have a higher turnover for example. This allows the provider to focus their features on things which suit that specific business type.

You’ll need to browse a few different business account types and providers to see which options suit your needs best - choosing from transaction accounts, deposit and saving accounts, and specialist accounts for international trade or specific business types for example.

👆Are you small business looking to open a business bank account? Read this guide to opening a small business account in Australia to learn more.

Business account features to look for

The business account features which matter will depend on your company type. You’ll often find things like these which can help make your life a little easier when it comes to managing your business finances:

• Ways to receive customer payments from banks and with cards
• Payment options to send money domestically and internationally
• Integrations with accounting software to make bookkeeping simple
• Debit and expense cards to make business spending easier
• Invoicing and expense management tools
• Overdraft facilities or ways to apply for credit and loans
• Batch payment facilities to make lots of transfers at a time - useful for running payroll for example
• Analytic tools to help you see how your business is performing

Business types that might need a business bank account

While legislation does change around the world, you’ll usually find it is essential to have a business bank account if you have a partnership, company or a trust. That’s the case in Australia¹, and in many other countries too. If you’re a sole trader, having a business account isn’t compulsory, but it is recommended.

Documents needed to open a business bank account

While different banks can have their own processes, you’ll normally be asked for the following information:

• Personal and contact details of the account representative
• Information about company directors and beneficial owners
• Business name, company type and registration number
• Business registered address
• Business trading address if different to your registered address
• Details about your business activities

There’s also likely to be a verification step, which is a legal requirement in most cases, to prevent fraud and keep accounts safe. This might mean the bank or account provider asks you to provide your ID document - like a passport - and proof of address. You might also be asked to provide some documents about your business, which can depend on the entity type and the country you’re registered in.

Potential fees for setting up a business bank account

Banks often don’t have an upfront fee for setting up a business bank account but there are likely to be monthly charges and transaction fees. These costs can include ATM fees, international transfer fees, fees for depositing cash, and foreign transaction fees for card spending. It’s crucial that you read through the fee schedule before you sign up to any business account so there are no surprise costs once you start to transact.

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

If you’re eligible to open a business account online, the application process is usually very swift as long as you have all your paperwork handy. You’ll then need to wait to be verified which may be instant or may take a day or two depending on the provider and your entity type.

If you need to visit a branch to open your account, ask before you start to learn more about how long the process will usually take. Branch opening can still be fairly efficient, but banks have different processes so it may take a while to get sorted.

👆Read more about the best business accounts in Australia here.

Process - Setting up a business bank account

The exact process you’ll need to follow when setting up a business bank account will depend on the bank or provider you select and where you are. Some banks offer a fully digital application process, but it’s common to need to visit a branch.

Here’s an outline of the basic steps that you can expect when opening a business bank account:

Step 1: Choose your preferred account and check eligibility

Once you’ve researched different bank and specialist business accounts, you can shortlist a few and check the eligibility criteria which apply. Compare your shortlisted options based on their convenience and cost, looking at things like minimum balance requirements, ongoing maintenance charges, feature availability and online reviews of the provider. This should help you pick your favourite option from your shortlist.

Step 2: Gather the required documents and information

Once you’ve decided which account to open you’ll need to look more closely at their application process. In all cases you’ll be asked to provide some documents and information, but what’s needed does vary a lot depending on where you live, where your business is registered and the entity type. You can expect to need your own ID and proof of address, and also ID and information for all beneficial owners - that is anyone with a large stake in your business. You’ll also need business registration information or documents depending on entity type.

Step 3: Submit your application

It’s time to get your application in. Some banks let you apply online, but some do ask you to go to a branch in person for this step. Fully digital services like Wise Business can manage the end to end process remotely for convenience. You’ll need to apply by giving your personal and contact information and details about your business - you’re guided through this by online prompts or bank staff.

Step 4: Get verified by the bank or provider

Now it’s over to the bank or provider to check your documents and verify your account. This can happen instantly in some cases, but it may take a day or two, particularly for more complex entity types.

Step 5: Receive your account paperwork and start to transact

Once your business account has been verified you’ll be sent all the account materials, like any linked cards or passbooks, in the mail, and can start to transact.

Opening a global business account - Wise Business

Wise Business is an online account that empowers freelancers, startups, and established businesses to manage their global finances with ease. It allows business to make payments, receive money, and spend funds globally at the mid-market exchange rate, making money transfer less expensive than it needs to be.

Opening a Wise Business account is a quick and entirely online process:

1. Sign Up: Begin by registering for a Wise Business account. If you already have a personal Wise account, you can simply select "Open another account" from your profile and create a business account.
2. Provide Business and Personal Details: It only takes a few minutes to set up your Wise Business account. You just need to enter some details about yourself and your business.
3. Verification: Wise Business may need to verify your account and the provided details before processing transfers. This is a standard procedure to comply with financial regulations. While we’re not a bank, but we are regulated like one.

Use this guide to start your research for the best business account for your unique needs - and remember, banks aren’t the only option. Compare your preferred bank account against provider business accounts like Wise Business to see which one suits your business the best in terms of flexibility, costs and convenience.

Once your account is set up, you'll gain access to:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, Quickbooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

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FAQs on opening a business account in Australia:

What will I need when opening a business account in Australia

Opening a business bank account in Australia is usually quite straightforward, though there are several important checks that need to be made, and several mandatory pieces of information and documentation that you’ll need to provide.

Different Australian banks will have slightly different lists on what they require, but typically all of them will require the following:

• An Australian Business Number (ABN) or Australian Company Number (ACN)
• The full business name and address
• The contact details of any company directors
• ASIC registration status
• Date of incorporation
• The nature and purpose of the business
• Identifying documents of the person making the application

Once you have made sure that you’ve acquired all of the above information, setting up and opening the account should not be a problem. Providers will check and verify your documentation, before carrying out various eligibility checks to make sure your business is a suitable candidate for one of their accounts.

Do you need an ABN to open a business bank account?

If you have a business registered in Australia you’ll have an ABN or an ACN which you’ll need to provide to the bank or account service when you set up your business account. If you’ve registered your company in another country, the registration information needed may vary. Check the details in the country your company is registered in to learn more.

Can I open a business bank account online in Australia?

You might be able to open a business bank account online with a bank, depending on your particular circumstances. Usually online account opening is reserved for relatively simple business entity types, which are registered in the same country that the bank or provider is based in. So for example, if you want to open a business bank account online in Australia, you’re likely to be able to do so only if you’re a sole trader or have up to two directors in your company, and if you’re registered in Australia with a valid ABN or ACN.

If you don’t meet the requirements to open online with a bank you can also choose a specialist fully digital provider, like Wise Business which has accounts you open and manage through an app or with your laptop. More on that later.

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Sources:

1. Australian government - business bank accounts