For almost everyone starting a business, setting up a bank account is a must. A business account can help make your finances easier to manage and gives you the most accurate picture of your taxes.
Australia is one of the most lucrative nations on the planet. If you are a business owner, there are chances you would be working with suppliers, contractors, or clients in Australia. Doing business in Australia requires setting up a business bank account through a specific procedure. Opening a business bank account you no longer have to pay high currency conversion fees, instead you can keep your money in AUD to pay local expenses with clear funding and easy tracking of payments. However, opening a local business bank account in AUD isn’t always the simplest thing to do.
This article will provide you with a clear outline of Australian banks, as well as a few ideas for what to think about when choosing your payment system provider.
Just like any other important decision that needs to be made, opening a bank account in Australia has its own process and it varies depending on the bank you have chosen. The first step would be choosing the bank which suits your requirements the most. This happens by making a close comparison between your available options. Both non-residents and residents of Australia can apply for a bank account, but keep in mind that having an Australian Business Number (ABN) or Australian Company Number (ACN) is a must. You may wonder how you can get these numbers, to which the answer is by registering your business with the Australian tax office and ASIC, the Australian business regulatory body.
The documentation required for opening a bank account in Australia depends on the type of business you are running. Sole trader, partnership, a public or private company, and trusts are among some of the business structures organized by the Australian government. If you wish to open a foreign currency account you must first apply for a ‘regular’ business account.
For most Australian banks, your physical presence is needed for the completion of the process of opening an account. Nonetheless, there are some which allow you to do this online in order to speed things up.
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Business is always better when your transactions and payments go smoothly and there are no barriers on your way. With bank accounts there comes some difficulties which might block the smoothness you are searching for.
Bank accounts will charge you with high banking service costs and extra fees monthly. You might not come across using bank service each month, thus, there's no point in spending money every month on small-business banking services you’re not using or paying relatively high small-business bank account fees and not getting the small-business banking services you need.
Most Australian banks will give you the permission to open a business bank account without the need for a citizenship or residency proof, but there is still room for variation from bank to bank. Therefore you need to keep an eye open for the regulations and terms of agreement of the bank you are initiating an account in. There are also banks which require your physical presence for the initial application process. Those with no obligation for your physical presence will definitely come with much stricter rules and regulations regarding the kind of transaction and the amount of money you can transfer.
The fees for Australian bank accounts vary greatly. They can be anything from $5 per month to $125 depending on the type of account you want, the number of transactions you’ll need each month, and your minimum monthly balance. You might also be charged extra with some accounts charging a fee to receive a SWIFT payment.
Instead of bending over backwards to open a business account in a local Australian bank, you could use PayPax. PayPax offers a bank-like account which works almost like a local Australian bank account, so you can accept payments in over 150 different countries and currencies for a low, transparent fee. You can withdraw funds or if you prefer you can hold them in your PayPax account and use them to manage currencies, and pay contractors, suppliers, or remote employees in Australia.
Setting up a business PayPax account is super easy and free of cost. As soon as you verify a personal account it turns into a business account on which you’ll be able to view your account details and share them with clients through your email or social media.
Most business owners and clients tend to work with businesses that have a local bank account or something similarly effective. A PayPax account brings you the chance to attract more clients by building trust and as a result expanding your business. PayPax low and transparent fees, enables your customers to save money on foreign currency conversions and cross-border payments. Instead of leaking money on poor exchange rates, your clients can have the opportunity to exchange their money with mid-market exchange rates provided on PayPax along with an accurate and up to date currency converter which allows you to find out the exact amount of money before even starting to exchange. No matter where you or your business are located, using PayPax global payment system you can have a hassle-free experience of transfer, without having to deal with high and extra charged fees, minimum balance requirements, and strict regulations of a local traditional Australian bank.