How to Open a Business Bank Account in Canada as a Foreigner

How to Open a Business Bank Account in Canada as a Foreigner

When you’re ready to open a company bank account in Canada, understanding local requirements is key. Canadian banks, governed by the Office of the Superintendent of Financial Institutions (OSFI), maintain strict Know Your Customer (KYC) and due diligence procedures, particularly for non-resident companies.

This guide explains how to open a business bank account in Canada as a foreigner, including the required documents, step-by-step process, common challenges, and the best banks for international businesses.

Benefits of Having a Local Business Bank Account in Canada

Opening a local business bank account in Canada offers significant advantages for foreign companies, such as:

• Compliance with Canadian Financial Regulations: A local account helps foreign-owned entities meet Canadian banking and Anti-Money Laundering (AML) requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). 
• Access to Multi-Currency Transactions: Many Canadian banks offer multi-currency business accounts, which simplify international trade and reduce foreign exchange fees.
• Enhanced Credibility with Local Clients and Vendors: A Canadian bank account builds trust with local partners by showcasing a stable presence within the country’s financial system.
• Streamlined Tax and Payroll Management: Using a local bank account simplifies corporate tax filings with the Canada Revenue Agency (CRA).
• Access to Canadian Banking Services and Credit: Canadian banks provide access to business credit cards, merchant services, and loans, resources that may not be available to companies banking from abroad.

Can a Foreign Company Open a Business Bank Account in Canada?

Yes, a foreign company can open a business bank account in Canada, but the process and requirements depend on the company’s structure and business activities. Whether you’re opening a small business bank account or one for a large corporation, most Canadian banks require that the foreign entity either:

• Register as an extra-provincial corporation in the province or territory where it plans to operate, or
• Incorporate a Canadian subsidiary under federal or provincial law.

Non-resident business owners must also comply with Canada’s regulations. Some banks may require at least one Canadian resident director or representative. 

Business Bank Account Requirements for Non-Residents in Canada

Opening a business bank account in Canada as a non-resident involves meeting stringent regulatory and documentation requirements. Below are the core requirements:

• Business Registration: Most Canadian banks require the foreign company to register as an extra-provincial corporation or incorporate a Canadian subsidiary. Registration is done through the Canada Business Corporations Act (CBCA) or provincial authorities.
• Initial Deposit and Minimum Balance: Banks typically require an initial deposit. Some corporate accounts may have ongoing minimum balance requirements or monthly service fees.
• In-Person Verification: Many banks require at least one director or authorized signatory to visit a Canadian branch for KYC verification. Some institutions may allow remote verification for established foreign companies.

You will have to submit the following documents:

• Valid passports and government-issued IDs for all company directors, shareholders, and Ultimate Beneficial Owners (UBOs).
• Proof of residential address for all individuals listed on the account.
• Certificate of Incorporation or extra-provincial registration documents.
• Articles of Incorporation or equivalent formation documents.
• Business Number (BN) from the CRA, if applicable.
• Partnership agreements, board resolutions, or minutes authorizing the bank account setup.
• A detailed business plan outlining operations, expected transactions, and markets served.
• Invoices, contracts, or trade references that demonstrate the company’s operational presence.

Legalization and Translation of Documents for Foreign-Owned Entities

When searching for “how to open a business bank account in Canada,” foreign entrepreneurs must ensure that all corporate and personal documents comply with Canadian banking and regulatory standards. Since Canada is not a signatory to the Hague Apostille Convention, documents originating outside Canada require a specific process for legalization and authentication.

Documents must first be authenticated by the foreign country’s competent authority. Then, they must be legalized by the Canadian Embassy or Consulate in that country. 

All documents submitted to Canadian banks or regulators must be in English or French. Documents in other languages must be translated by a certified translator recognized by the provincial or federal government.

Step-by-Step Process to Open a Business Bank Account in Canada

Opening a business bank account in Canada as a foreign entrepreneur requires thorough preparation. Below is a step-by-step process:

1. Select the Right Bank and Account Type

• Research major Canadian banks, which offer business accounts tailored for foreign-owned entities.
• Compare features such as multi-currency support, online banking, international wire transfers, and minimum deposit requirements.
• Consider whether a basic business chequing account or a premium corporate account best suits your operations.

2. Register or Incorporate Your Business in Canada

• Most banks require your company to be incorporated under Canadian law or registered as an extra-provincial corporation.
• Obtain a BN from the CRA for tax purposes.

3. Gather Required Documentation

You will have to submit the following documents:

• Corporate Documents: Certificate of Incorporation, Articles of Incorporation, and CRA-issued BN.
• Identity Documents: Notarized passports and proof of residence for all directors, shareholders, and UBOs.
• Business Proof: Business plans, contracts, or invoices to demonstrate operational intent.
• Board Resolution: Authorizing the account opening (if applicable).

4. Legalize and Translate Foreign Documents (if needed)

• Non-English or non-French documents must be certified and translated by a recognized translator.
• Foreign documents must go through authentication and legalization via the Canadian Embassy or Consulate.

5. Submit the Application and Attend Verification

• Book an appointment at your chosen bank’s branch.
• At least one director or authorized signatory must appear in person for identity verification (unless remote onboarding is explicitly allowed).
• Provide all required documents.

6. Bank Due Diligence and Approval

• Banks will conduct KYC and AML checks.
• Approval timelines vary but typically range from 1–4 weeks depending on the complexity of the business structure and documentation.

7. Activate Account and Online Banking

• Once approved, deposit the minimum required funds.
• Activate online banking, multi-currency services, and corporate cards.

Best Business Bank Accounts in Canada for Foreigners

When choosing the best bank accounts for business in Canada, several factors play a crucial role. Below is a list of some of the top Canadian banks that cater to foreign-owned businesses:

Digital & Fintech Options

Foreign entrepreneurs often explore digital banking platforms that simplify account management and international transfers:

• Wise Business: Multi-currency accounts with low-cost international transfers and seamless integration with accounting tools.
• Revolut Business: Offers global payment capabilities, currency exchange at interbank rates, and multi-user access.
• Payoneer: Ideal for businesses with cross-border operations, providing international payments in multiple currencies and easy withdrawals.

Traditional Bank Options

For companies that require robust business services or local credibility, traditional Canadian banks offer comprehensive packages:

• Royal Bank of Canada (RBC): Extensive branch network, global banking support, and tailored services for foreign-owned businesses.
• Toronto-Dominion Bank (TD Canada Trust): Known for strong business account packages, international wire transfer options, and flexible credit facilities.
• Bank of Montreal (BMO): Provides competitive fee structures, cash management solutions, and dedicated relationship managers for corporate clients.
• Canadian Imperial Bank of Commerce (CIBC): Well-suited for SMEs and startups, with robust digital banking tools and personalized service.

Common Challenges When Opening a Bank Account in Canada as a Non-Resident

Opening a business bank account in Canada as a foreigner can be a complex process. Here are the most common challenges:

• Strict KYC and AML Checks: Canadian banks conduct detailed verification. Non-residents may face additional scrutiny, especially if their business structure or transactions involve multiple jurisdictions.
• Requirement for a Canadian Business Presence: Many banks prefer or require that the business is registered in Canada, such as incorporating a Canadian subsidiary or obtaining a BN from the CRA.
• In-Person Verification: Most banks require at least one company director or authorized signatory to visit a branch in Canada for identity verification. Remote account openings are limited.
• Longer Approval Timelines: While local businesses may have accounts opened within days, foreign-owned companies can expect approval timelines of 3–6 weeks, particularly if additional due diligence is required.

Tips to Get Your Business Bank Account Approved Faster

While you may find a complex process when searching for “how can I open a business account in Canada,” there are strategic tips that can help, such as:

• Incorporate a Canadian Entity Early: Having a local company structure with a BN from the CRA can significantly reduce verification delays.
• Prepare All Required Documentation in Advance: Ensure your corporate documents are certified, notarized, and, if necessary, translated into English or French.
• Select Banks with Non-Resident Expertise: Choose from major Canadian banks that have dedicated international business banking teams and faster onboarding processes for foreign clients.
• Provide a Detailed Business Plan: A clear outline of your operations, revenue projections, and Canadian market strategy reassures banks about the legitimacy of your business.

Alternatives to Traditional Business Bank Accounts in Canada

For foreign entrepreneurs facing challenges with traditional banks, alternative banking and financial solutions in Canada can provide flexible, fast, and cost-effective options. These alternatives include:

• Fintech Business Accounts: Platforms like Wise Business, Revolut Business, and Payoneer offer multi-currency accounts, competitive FX rates, and global payment solutions. These accounts allow foreign entities to receive payments in CAD, USD, or EUR without the lengthy onboarding process.
• Online-Only Banks: Some digital banks, like Koho Business or Neo Financial, provide online account setup, lower fees, and easy integration with accounting software.
• Payment Service Providers (PSPs): Platforms such as Stripe Treasury and PayPal Business can act as quasi-business accounts by enabling companies to accept and hold funds in CAD. 
• Foreign Currency Accounts with Global Banks: If opening a Canadian account proves challenging, foreign-owned businesses can use global banking networks like HSBC Global Business or Citi International.
• Virtual IBAN Services: Providers like Airwallex and WorldFirst offer virtual IBANs for CAD, enabling international businesses to collect and send funds while maintaining currency flexibility and compliance.

Tax and Compliance Rules for Foreign-Owned Bank Accounts in Canada

Understanding tax and compliance requirements is a critical step of how to open a Canada business bank account process. when opening a business bank account in Canada as a foreign entrepreneur. 

• Corporate Tax Obligations: Canadian corporations are subject to a federal corporate tax rate of 15%.
• GST/HST Registration: Businesses with annual taxable revenues exceeding CAD 30,000 must register for Goods and Services Tax (GST) or Harmonized Sales Tax (HST).
• International Tax Compliance: Canada complies with OECD’s CRS and U.S. FATCA, requiring banks to report account details of foreign-owned businesses to relevant tax authorities.
• AML and KYC Rules: Canadian banks follow the PCMLTFA, which requires strict due diligence on foreign entities.

How Commenda Supports Global Banking and Tax Compliance

Opening and managing a business bank account in Canada as a foreign entity can be challenging due to strict KYC, AML, and tax reporting rules. Commenda simplifies this process by offering end-to-end support tailored to international entrepreneurs.

• Entity Setup and Compliance: Commenda assists with Canadian company incorporation, ensuring your business structure meets local bank requirements.
• Document Preparation and Legalization: Our experts guide you through document legalization, notarization, and certified translations, ensuring all corporate and personal documents are bank-ready.
• Bank Selection and Application Support: We identify the best Canadian banks for foreign-owned businesses and prepare complete application packages to minimize delays.
• Tax and Regulatory Guidance: Commenda provides ongoing tax advisory and compliance support, including GST/HST registration, annual filing preparation, and guidance on cross-border tax obligations.
• Audit-Ready Recordkeeping: With our digital document management platform, all key compliance records, bank documents, and tax filings are securely stored and readily accessible for CRA audits or bank reviews.

Ready to get started? Book a demo with Commenda today. 

Frequently Asked Questions (FAQs)

1. Can a non-resident open a business bank account in Canada?

Yes, non-residents can open a business bank account in Canada, but most banks require the business to be registered.

2. What documents are required to open a business bank account in Canada as a foreign company?

Typically, you need:

• Certificate of Incorporation (federal or provincial).
• Articles of Incorporation and corporate resolutions.
• Two pieces of government-issued ID (passport for foreign directors).
• Proof of address for all directors and beneficial owners.
• CRA business number and tax registration documents.
• Business plan or proof of business activities.

3. Do I need a local director or representative to open a business account in Canada?

While some banks require a local director, others allow foreign-owned companies to open accounts if the business is registered and meets KYC requirements.

4. Can I open a business bank account in Canada online without visiting?

Most Canadian banks require at least one director to visit the branch in person for identity verification. However, some fintechs like Wise Business and Payoneer offer remote setup options.

5. Which banks in Canada allow foreign-owned or non-resident businesses to open accounts?

Major banks such as RBC, TD Canada Trust, Scotiabank, BMO, and CIBC offer business accounts for foreign entities, provided they meet documentation and registration requirements.

6. How long does it take to open a business bank account in Canada for a foreign entity?

The process typically takes 1–4 weeks, depending on the complexity of the business structure and the bank’s compliance checks.

7. Are there minimum deposit or balance requirements for foreign-owned business accounts in Canada?

Yes, most banks require a minimum deposit or balance ranging from CAD 5,000 to CAD 50,000, depending on the account type and bank.

8. Can I open a multi-currency or USD/EUR business account in Canada?

Yes, most major banks offer multi-currency accounts that allow transactions in USD, EUR, and other major currencies.

9. What are the tax implications of holding a business account in Canada as a foreign company?

Opening a bank account does not automatically create tax obligations. However, if your company earns income in Canada, you may need to register for corporate tax with the CRA.

10. What should I do if my business documents are not in Canada’s official languages?

Documents must be translated into English or French by a certified translator and notarized before submission.

11. Are fintech alternatives like Wise or Mercury accepted for doing business in Canada?

Yes, fintechs like Wise and Payoneer are widely used for cross-border transactions, but they may not fully replace a traditional local bank account for tax or regulatory purposes.

12. What are common reasons business bank accounts get rejected for foreign entities in Canada?

Common reasons include incomplete documentation, high-risk business activities, lack of Canadian registration, or failure to pass KYC/AML checks.

13. Do I need to register a company locally before applying for a business bank account in Canada?

Yes, most Canadian banks require a locally registered business (federal or provincial) before account approval.

14. Will opening a business bank account in Canada trigger local tax obligations?

Not by itself. Tax obligations depend on whether your company earns income in Canada or has a permanent establishment.