Opening a Business Bank Account in Canada: A Complete Guide

If you’re an Indian SaaS startup, freelancer, or e-commerce exporter aiming to work with Canadian clients, you might wonder if you need a business bank account in Canada. The answer varies based on your operations, but having a local Canadian bank account can enhance your credibility with Canadian buyers.

The need for business bank accounts in Canada is increasing as India–Canada trade grew 3.2% to USD 8.6 billion in FY25. With this growth, more Indian businesses are looking to tap into the momentum and want reliable ways to receive payments.

In this guide, we will explore what it takes to open a business bank account in Canada, what you must prepare, and how to avoid common pitfalls.

Why a Dedicated Business Bank Account in Canada Is Essential

If you plan to receive payments from Canada, having a separate business bank account is more than a good practice.

Below are the key benefits and legal necessities of maintaining a separate business bank account in Canada:

• Keeping personal and business finances apart helps maintain accurate records of business revenue and expenses crucial for tax filing and compliance. 
• Operating through a business-bank account sends a strong message that you run a serious, professionally managed enterprise. This builds trust with Canadian clients, suppliers or partners.
• Business accounts open the door to banking services tailored for companies: business loans, lines of credit, merchant services, business credit cards, higher transaction limits, and more. 
• With a dedicated account, you get cleaner records of money coming in and going out. That clarity helps you manage cash flow, plan expenses, track profitability, and avoid mixing funds.
• Corporations and partnerships are typically required to maintain a separate business bank account to ensure accountability and proper financial segregation.

Different Types of Canadian Business Bank Accounts Available

Business Chequing Accounts

These accounts are built for day-to-day business activity like receiving payments, paying bills and managing cash flow. Banks usually offer multiple tiers based on how often you transact starting from basic plans for low activity to unlimited transaction plans that support high-volume operations.

Best for: Agencies, SaaS firms, e-commerce sellers and growing freelancers.

Business Savings Accounts

These accounts are meant to keep reserve funds separate from day-to-day expenses. They allow you to earn interest on surplus money while keeping the capital accessible for future investments, tax planning or emergencies.

Best for: Businesses that want to build reserves and maintain financial stability.

Specialised Business Accounts

Many Canadian banks offer custom accounts for sectors like agriculture, non-profits, healthcare professionals and incorporated consultants. They often come with customised fee structures, relevant financing options and tools aligned with industry-specific operations.

Best for: Established businesses that require more than a standard chequing or savings account.

Types of Canadian Business Accounts

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Eligibility and Requirements for Non-Resident Businesses in Canada

• Canadian business registration is usually required: Most foreign entities must register their business or set up a subsidiary in Canada before applying for a business account. Without a registered presence, banks often reject applications.
• A Canadian resident signatory or director is commonly needed: Banks prefer and sometimes mandate at least one Canadian-resident authorised signer or director. This acts as a compliance anchor for KYC and AML checks.
• Proof of Canadian address often mandatory: Banks regularly ask for a Canadian business address or residential address for signatories. This becomes difficult if you operate entirely from India.
• ID documents issued in Canada are preferred: In addition to international passports, banks frequently request Canadian-issued documents such as a driver’s licence or PR card. This creates a hurdle unless you have a local representative or plan to relocate.
• Identity verification may require in-person presence: Even if initial steps are completed online, several banks require at least one in-branch visit to finalise account activation.

Supportive Programs Limited but Worth Exploring

Some newcomer-focused programmes offer slightly more flexibility, although most are designed for individuals rather than businesses:

Step-By-Step Guide to Opening Your Canadian Business Bank Account Online

Step 1 – Research and Select a Bank

Start by shortlisting two to three banks based on their support for non-resident businesses and online application capability. Review their policies for Indian companies and confirm if they accept international documents. This initial research helps you avoid application delays and redirects later.

Step 2 – Gather Required Documents

Before applying, collect all personal and business documents in one place. Banks usually ask for identification (passport and address proof), business registration documents, and ownership details. If your business isn’t registered in Canada yet, you may first need to set up a subsidiary or register your existing business in a Canadian province before applying.

Step 3 – Initiate the Online Application

Most banks allow applicants to begin the process online through a secure portal. You will be asked for basic company details, ownership structure, information on the services or products you offer, and your estimated transaction volume. At this stage, the bank assesses whether your business falls under a low-risk category and whether additional compliance checks are required.

Step 4 – Identity Verification

Even if the application begins online, Canadian regulations require verification of identity. Depending on the bank and province, this may involve a video-based KYC procedure or an in-person appointment at a branch. Non-resident applicants should be prepared for stricter scrutiny, especially if no Canadian-resident signatory or local address is available.

Step 5 – Fund and Activate Your Account

Once the bank approves your application, you will be asked to deposit the minimum required amount to activate the account. After activation, you can set up online banking access, payment credentials, and multi-user permissions if you operate with a team. 

Step 6 – Explore Newcomer Banking Programs

Some banks offer dedicated programs for individuals applying from abroad or planning eventual relocation. For example, Scotiabank’s StartRight, ICICI Bank Hello Canada, and SBI Canada Bank support newcomers and accept certain international documents. While these programs are not direct business banking solutions, they can help establish a financial base in Canada, especially if you plan to appoint a local representative later.

CHECKLIST

Use this list to stay organised while applying online:

•  Shortlist 2–3 banks that support non-resident businesses
•  Review their eligibility criteria and account types
•  Gather ID documents passport and address proof
•  Assemble business registration and incorporation documents
•  Confirm if a Canadian address or director is required
•  Begin the online application on the bank’s official portal
•  Complete verification video KYC or in-person visit
•  Deposit initial funds to activate the account

Related Read :How to Open a US Bank Account from India

Essential Documents for Your Business Account Application

Personal Documentation

• Personal Identification

A valid government-issued photo ID is mandatory. This may include:

• Passport
• Canadian driver’s licence
• Permanent Resident (PR) Card
• Proof of Address

Banks often ask for proof of current residence. This can be from Canada or, in some cases, from India if applying through a newcomer program. Accepted documents may include:

• Utility bill
• Bank statement
• Lease agreement or official correspondence
• Work or Study Permits (if applicable)

If you are opening the account under a temporary status in Canada, a valid work permit or study permit may be required.

Business Documentation

• Business Registration Documents

You must provide proof that the business is legally registered in Canada. This could be a Certificate of Incorporation or a Business Name Registration issued at the federal or provincial level.

• Articles of Incorporation or Partnership Agreement
  
  These documents outline the structure of the business, list the directors or partners, and clarify ownership and decision-making authority. 
• Canada Revenue Agency (CRA) Business Number (BN)

Most banks ask for a CRA Business Number to identify the business for tax purposes. It is commonly required when setting up a business account in Canada.

Understanding Fees, Charges, and Potential Hidden Costs

Before opening a business bank account in Canada, it’s important to understand the full range of fees you may encounter:

• Monthly Service Fees: Most business accounts come with a fixed monthly fee that varies based on the account tier and included features. Higher-tier plans may offer more free transactions or added services. Some banks waive the fee if you maintain a minimum daily balance.
• Transaction Fees: Banks often charge per transaction whether it’s a debit, cheque, transfer, or electronic payment. Basic plans usually have lower monthly fees but higher per-transaction costs. It’s important to estimate your monthly transaction volume so you don’t pay more than necessary.
• Overdraft Protection Fees: Overdraft protection can help manage cash flow gaps, but it comes with costs. Banks may charge a usage fee plus interest on the amount overdrawn. This feature is useful but should be monitored to avoid unnecessary charges.
• International Transfer Fees: Sending or receiving international wires often involves multiple layers of fees including charges from the Canadian bank, the intermediary bank, and sometimes the bank abroad. Currency conversion markups can add to the cost, making this a key consideration for Indian exporters and freelancers working with Canadian clients.
• ATM and Point-of-Sale Fees: Withdrawing cash from ATMs outside your bank’s network may trigger additional charges, and some payment terminals can also apply extra fees depending on the network or transaction type.

Managing Your Canadian Business Account from Abroad

• Rely on online and mobile banking:  Most Canadian banks offer secure digital platforms that let you monitor transactions, approve payments, and handle routine banking remotely. Using these tools as your primary interface ensures you stay connected to your account at all times.
• Use multi-currency or internationally integrated accounts: Selecting an account that supports multiple currencies or integrates with global payment platforms helps reduce conversion hurdles and makes it easier to receive payments from clients in Canada and other markets.
• Plan international transfers through correspondent banking channels: When moving money between India and Canada, using correspondent banking relationships can streamline transfers. These networks help reduce delays and create more predictable settlement times across borders.
• Regularly track foreign exchange rates and transfer limits: Since FX costs and transfer caps can affect your cash flow, monitoring them allows you to schedule transfers at favourable rates and avoid unexpected charges that may impact profitability.
• Explore specialised cross-border payment platforms: Many digital payment tools are built for global businesses and can handle invoicing, collections, and currency conversion more efficiently than traditional banking alone. Using these platforms can streamline how you receive payments from clients abroad and reduce manual effort.

How Razorpay MoneySaver Export Account Simplifies Cross-Border Payments for Your Business

Razorpay’s MoneySaver Export Account is built specifically for Indian businesses wanting to receive international payments without the usual complexity of foreign banking. Here’s how it streamlines your cross-border payment process.

Accept International Payments Through Cards and Local Bank Transfers

It allows you to accept payments from global clients through international cards and local bank transfers such as ACH, SEPA, FPS, and SWIFT. This flexibility helps your clients pay in the method they prefer while you receive funds directly into your Indian account.

No Need to Maintain a Foreign Bank Account

All international payments settled through the MoneySaver Export Account are credited to your Indian bank account in INR. This removes the need for maintaining overseas accounts or handling separate banking compliance for foreign jurisdictions.

Lower Fees with No Forex Markup

International bank transfers processed via MoneySaver come with transparent pricing and no forex markup. This helps reduce the overall cost of receiving payments from abroad up to 75% compared to traditional banks.

Automated FIRC/eFIRC for Compliance

Razorpay automatically generates FIRC/eFIRC documents for every export-related payment. This ensures you stay compliant with RBI and export documentation requirements without manual effort.

Conclusion

Selecting the right Canadian business bank account is an important step toward long-term success. Opening an account as an Indian entrepreneur becomes much easier when you understand the requirements, prepare the right documents, and pick a bank that supports non-resident applicants. Being clear about eligibility, fees, and verification steps helps you avoid delays and make confident decisions.

Once your account is active, using online banking tools, multi-currency features, and reliable cross-border platforms makes it simple to manage everything from India.

FAQs

1. Can I open a Canadian business bank account from India?

Yes, you can start the application online from India, but most banks will require in-person verification or a legal presence in Canada to complete the process.

2. Is Canadian residency required to open a business bank account?

No, Canadian residency isn’t required, but opening an account as a non-resident can be challenging. Many banks allow it, but may require an in-person visit or a Canadian resident as an authorised signatory.

3. What documents are needed for non-residents to open a business bank account in Canada?

Non-residents usually need a valid passport, Canadian business registration documents, articles of incorporation (for corporations), and ID for all authorised signers. 

4. Can I open a Canadian business bank account entirely online?

You can start the process online with many banks, but full account approval usually requires in-person identity verification. 

5. What are the common fees for Canadian business bank accounts?

Typical fees include monthly service charges, per-transaction fees, electronic transfer charges, overdraft fees, and international wire fees. 

6. How can Razorpay MoneySaver Export Account assist with Canadian business transactions?

Razorpay MoneySaver Export Account helps Indian businesses receive payments from Canadian clients without needing a Canadian bank account. You can accept international bank transfers and cards in your client’s local currency, while receiving settlements in INR.