Canada is one of the most leading business destinations for both local and international investors especially with its economy reaching its peak. Many people have clients and customers over the border in Canada, or work with Canadian partners and other business connections which is the main reason why they are looking forward to having a business bank account in a local Canadian bank that provides their customers with various payment methods consisting of low-cost, transparent fees and security.
It might seem easier to just run all your business transactions through your business bank account, but opening a business bank account is not as easy as it might appear at first sight. Having a business bank account is a must for almost every well-developed business. That's why it's worth comparing all the choices precisely. Nowadays, there are plenty of low-fee options for businesses to choose from. Potential investors will undoubtedly examine all their resources and try to obtain the best of them.
If you are a Canadian or are doing business with Canadian customers stay tuned with the rest of this article to find out all about Canadian business bank accounts and easier alternatives.
Cross-border payments can often be expensive, time-consuming, and take a long time to clear. If you want your business developed, owning a separate business account is a must. Business bank accounts make it easy for you to hold funds and use them to pay local taxes or other obligations. They give your business a more professional look, and provide you with security and better year-end accounting.
Most Canada’s top banks offer business bank accounts for international businesses. Whichever bank you apply to, will require two valid forms of identification, one of which is your photo ID and the other should be a government-issued document, like a passport or drivers’ license. In addition to what has been said, an identity check and a master business license might also be needed to complete the registration process.
If you are running a business in the US you might also be able to open a USD business account at your local branch as some Canadian banks have branches in the US and offer business bank accounts there.
Looking for the best alternative in the European Union? Visit: Best alternative to a business bank account in the European Union
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 Canadian 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 Canadian 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 Canadian bank, you could use PayPax. PayPax offers a bank-like account which works almost like a local Canada 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 Canada.
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. With PayPax low and transparent fees, your customers will be able 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 online payment gateway 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 Canadian bank.