Opening Canadian Bank Account: GEOS Guide for Corporate Global Expansion

Opening a corporate bank account is one of the first real steps in doing business in Canada. Without it, payments stall and daily operations get messy. Foreign-owned companies also face strict approval checks, so knowing what to expect keeps expansion moving.

Canada’s banking sector is concentrated but stable. While the country has 88 banks, most foreign companies work with the “Big Five,” which handle the majority of corporate onboarding. This guide explains the process and what is required to open a business account in Canada.

Why Open a Corporate Bank Account in Canada?

A Canadian corporate bank account is one of the first real steps for a foreign-owned subsidiary. It keeps business and personal money separate, makes taxes easier to manage, and shows partners the company is ready to operate locally.

It also lets the business run day to day. With the right account, companies can:

• Send and receive payments in Canada
• Pay suppliers and track cash flow
• Qualify for loans or credit once activity is established

Canada’s banking system makes expansion easier. Businesses benefit from:

• A strong, well-regulated financial system
• High investor trust in the market
• Banks known globally for safety and reliability. Banks like RBC, the largest in Canada, are recognized worldwide for their safety and reliability.

The process to open a bank account in Canada is straightforward for most businesses, with clear requirements and support from major banks.

Simply put, a company can exist without a bank account, but real operations in Canada usually require one.

Local expert insight

For foreign-owned entities, corporate banking in Canada often works more like a compliance review than a quick administrative step.

Types of Canadian Bank Accounts for Foreign Businesses

When opening a Canadian bank account, most foreign companies begin with a business chequing account for everyday activity. Chequing accounts support direct deposit, bill payments, pre-authorized payments, debit purchases, and Interac e-Transfer transactions, which are widely used across Canada.

Many Canadian banks offer unlimited transactions or lower transaction fees, depending on the monthly account fee and minimum balance required. However, many business accounts do not require a minimum bank account balance, making them accessible for new businesses.

Business chequing accounts also usually include a debit card for purchases, ATM access, and connection to digital banking tools. Customers can easily check their bank account balance online or through mobile banking platforms.

Some companies open a savings account alongside their operating account. Savings accounts can earn interest on funds held in Canadian dollars. In some cases, higher daily closing balances qualify for bonus interest or a higher annual interest rate.

A tax-free savings account is generally designed for a Canadian citizen rather than a corporation. Even so, understanding how different account types work helps foreign owners plan cash management and consider tax implications under Canadian tax laws.

In addition to traditional chequing and savings accounts, some Canadian banks offer international bank account options. These accounts, including virtual bank accounts, are especially useful for companies that need to manage cross-border transactions between the US and Canada without a physical presence in Canada. If you do not plan to move to Canada but require an account for international business or cross-border payments, opening a virtual bank account can provide convenient access to Canadian banking services.

Across many Canadian banks, business clients typically compare:

• Monthly fees, annual fees, and possible annual fee rebates (some banks offer a promotional annual fee rebate on credit card annual fees for the first year, sometimes up to a specific amount, as an incentive for new clients)
• Free transactions or bundled service fee structures
• Requirements such as a Canadian mailing address, immigration documents, or proof of incorporation
• Access to an eligible credit card account or other credit once activity and credit history develop

Choosing the right bank account in Canada depends on how the business plans to move money, manage balances, and scale operations.

Financial & Banking Environment in Canadian Banks

Canada’s banking system is highly regulated. When understanding what is required to open a business account, it’s important to be mindful of strict anti-money-laundering rules and beneficial ownership requirements. They shape how businesses open and use corporate bank accounts throughout the country.

A coordinated federal framework supports financial stability, consumer protection, and financial-crime prevention. OSFI supervises banks and insurers to keep them financially sound. FCAC focuses on consumer protection and fair market conduct. FINTRAC enforces anti-money-laundering and counter-terrorist-financing rules under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Because of this system, opening a bank account is closely tied to AML and know-your-customer checks. In practice:

• Banks must verify identity and core business details.
• Records must be kept and account activity monitored over time.
• Businesses must confirm legal existence and identify people with significant control through beneficial ownership.

Recent regulatory changes can also affect timing. Amendments to the PCMLTFA in 2024 expanded the range of regulated entities. Discrepancy reporting rules expected in October 2025 will increase pressure to keep beneficial ownership and registry information aligned. FINTRAC guidance also stresses verifying ownership accuracy and checking federal corporate registries in higher-risk situations.

Canadian banks, therefore, apply strict onboarding reviews. Foreign shareholders or directors often lead to extra due diligence. Clear and complete documentation can speed up approval, while missing or inconsistent details may slow it down.

Canadian regulations also apply to foreign banks operating in Canada. For U.S. citizens, accounts held in Canadian banks are considered accounts in foreign banks by the IRS, which may trigger additional reporting obligations.

Local expert insight

Most delays are not caused by Canada being difficult. They happen because foreign companies underestimate how detailed ownership and control verification must be. Preparing transparent ownership records in advance can make onboarding much easier.

Banking Setup Essentials for Foreign Companies

In practice, banks expect a company to be properly registered or incorporated before it applies for a corporate account, and they have specific eligibility requirements that must be met before proceeding with the application process. RBC notes that once a business is registered or incorporated, it can open a business chequing account. Scotiabank follows a similar approach and asks for:

• Owner information and core business details
• Government identification
• Proof of the business name

Most Canadian banks require identification documents such as a passport and proof of address to open an account. You must be 18 or older to open many online bank accounts in Canada. Banks may also require a Canadian address or proof of intent to establish one, especially for non-resident companies.

Another related step involves CRA identifiers. The Canada Revenue Agency (CRA) explains that a Business Number (BN) serves as a standard identifier for a business or legal entity. Businesses need a BN in certain situations, including:

• Incorporating a business
• Registering for CRA program accounts, such as payroll or GST/HST

The CRA also notes that federal incorporation through Corporations Canada automatically provides a BN and a corporation income tax program account. Some provinces issue a BN during provincial registration or incorporation as well.

Local expert insight

Banks usually expect corporate documents to match registry filings exactly. Even small differences in names, addresses, or signing authority can slow the review process. Understanding what is required to open a business account in Canada and making sure every detail lines up can help prevent delays.

Core Requirements Banks Typically Expect

Banks usually ask for a set of basic documents when you open a business account. Most requirements include:

• Government-issued photo ID
• Business registration or incorporation documents, such as articles of incorporation or proof of the legal business name
• Ownership details for anyone who owns at least 25% of the business
• Extra company records, depending on how long the business has been operating

Non-resident owners or directors may also need to provide immigration papers, such as work or study permits, depending on the bank’s requirements.

The exact list can vary slightly by bank, but the overall expectations are similar. For example, Scotiabank asks for articles of incorporation or association and the names, addresses, and occupations of people who own at least 25% of the business.

RBC highlights photo ID along with registration documents such as articles of incorporation, a certificate of existence, or a master business licence. TD also provides a checklist that includes registration documents and accepted identity options.

Ownership, Control, and Compliance Documentation

Canadian compliance standards place a strong focus on beneficial ownership. FINTRAC defines beneficial owners as the individuals who directly or indirectly own or control 25% or more of a corporation or other entity. 

Beneficial owners must be real people, not other corporations or legal entities. Because of this, layered ownership structures often need to be traced through several levels to identify the people who ultimately own or control the business.

When identity verification rules apply, reporting entities must collect and record key beneficial ownership details. For corporations, this usually includes:

• The names of all directors
• The names and addresses of individuals who own or control at least 25% of the shares
• Information that explains the ownership, control, and overall structure of the organization

FINTRAC also requires reasonable steps to confirm that this information is accurate. This can involve reviewing official documents or checking government registries.

Extra rules apply in higher-risk situations. For corporations incorporated under the Canada Business Corporations Act, FINTRAC guidance requires consulting Corporations Canada’s database and reporting any material discrepancies within 30 days. Record-retention requirements also apply.

Local expert insight

Clear ownership charts and simple explanations help reduce friction during compliance reviews, especially when a parent company is based outside Canada.

Director and Signing Officer Verification

Foreign-owned subsidiaries often face stricter identity and signing authority checks before a corporate bank account can be activated. Canadian compliance rules focus on verifying the real people who act on the company’s behalf and documenting their relationship to the business.

Approved verification methods may include government ID checks, credit-file checks, dual-process verification, reliance models, and some forms of remote document verification when identity details are confirmed, for example, through a selfie or live video stream.

Some banks may also check credit history as part of the process, but a lack of Canadian credit history does not necessarily prevent account opening for new or foreign-owned companies.

To understand what is required to open a business account in Canada, most banks typically ask for:

• Passport or other government-issued photo ID
• Proof of residential address
• Verification of directors or authorized signing officers
• Certified or notarized documents when items are signed outside Canada, depending on the bank and risk profile

Banks differ on how “remote” business onboarding really is. Some let you start online, then require a branch visit to complete identity checks. Others promote fully online applications for certain business accounts.

• RBC: You can apply online and receive an account number, but RBC notes you may still need to visit a branch to verify identity and activate the account.
• Scotiabank: The process may differ for non-residents or non-Canadians without a work or study permit. In those cases, you may need to work directly with a branch representative.
• CIBC: CIBC promotes an online business account application and notes you may be able to complete the process without visiting a banking centre, suggesting remote onboarding can be possible for some account types.

On remote verification more broadly, banks may rely on electronic identity checks where appropriate. Canada’s consumer regulator also notes that accounts can be opened in person, electronically, or by telephone, as long as the institution can properly confirm identity.

Local expert insight

Foreign directors should plan early for authentication and verification steps. Delays often happen when documents need certification, notarization, or cross-border validation before the bank can complete onboarding.

Step-by-Step: Corporate Bank Account Opening Process in Canada

Opening a corporate bank account in Canada takes a few clear steps. Understanding what is required to open a business account helps foreign-owned companies prepare early and avoid delays. Here’s what to expect from start to finish.

Step 1: Incorporate the Canadian entity

You generally can’t open a bank account or a corporate bank account until the business is legally formed. Most Canadian banks require a personal visit to open a bank account, although some may allow online applications. Most foreign companies choose one of two structures:

• Canadian subsidiary (most common): A separate local corporation taxed in Canada. Profits can usually move back to the parent efficiently through dividends, often with treaty-reduced withholding (around 5%) and home-country relief like the U.S. dividends received deduction or Canada’s exempt-surplus rules. (RBC bank is a popular choice for foreign-owned subsidiaries due to its onboarding support.)
• Canadian branch (less common): An extension of the foreign parent that reports profits directly to the home office. Canadian tax still applies, along with a treaty-level branch profits tax (often about 5%). Early losses may offset home-country income, but the setup creates permanent establishment exposure and extra compliance, so many companies later convert the branch into a subsidiary.

Considerations:

• Choosing the right structure early can simplify banking, tax reporting, and profit repatriation. Most companies settle on a subsidiary for long-term stability, even if they begin with a branch during the early stages of expansion.
• Wire transfer services are available for sending and receiving international payments, which can be important for cross-border business operations, especially when a Canadian bank account is not yet established.

Step 2: Appoint Authorized Signing Officers

Banks need to know who can operate the account. RBC references different onboarding paths for single-owner/single-signatory scenarios versus multi-owner or multi-signatory businesses. This aligns with the idea that banks evaluate signing authority as part of setup.

Step 3: Prepare a Complete Banking Onboarding Package

A strong package typically includes:

• Corporate registration/incorporation documents and proof of business name.
• Owner information and identification.
• Beneficial ownership details and ownership structure information.
• Expected transaction profile and evidence of legitimate business activity, which compliance programs use to understand risk.

Step 4: Select the Right Banking Partner

Canadian banks may support non-resident businesses, but each sets its own onboarding rules, document checks, and in-person verification steps. Digital-only providers can simplify remote access and pricing, yet they may restrict certain transaction types or hands-on support.

Compare options based on how the account will actually be used:

• Sending and receiving cross-border payments without heavy routing delays or high wire fees
• Holding and converting multiple currencies at predictable FX spreads
• Monthly account fees, minimum balance required, and per-transaction charges that match expected volume. Some accounts have a monthly account fee, may require a minimum balance, and may offer a monthly fee rebate if certain conditions are met, such as maintaining a specific balance or enrolling in a rewards program.
• Whether directors must appear in person or can complete onboarding remotely
• Availability of real branch support if the bank freezes a payment or needs verification

Step 5: Complete Compliance Review and Activate the Account

Activation can still involve a few extra steps after you apply. Some Canadian banks may ask directors to visit a branch to confirm identity and fully activate the account, even if the application started online. Ongoing monitoring rules can also lead to follow-up questions or requests for more documents, especially when ownership details or expected account activity are unclear.

Regulatory guidance places strong focus on confirming beneficial ownership, particularly for higher-risk or complex structures, and expects reasonable verification measures to support accuracy. 

In practice, clear records, transparent ownership, and a simple explanation of how the account will be used help avoid delays and repeated information requests during onboarding.

In-Person vs Remote Banking Access

Remote onboarding in Canada depends on the bank and the customer’s risk profile. Some institutions let you start the application online but still require a branch visit to verify identity or activate the account.

Non-residents without a Canadian work or study permit may also need to work directly with a branch representative instead of finishing the process fully online. Approval can take several days to a few weeks, especially when extra verification is required. Digital-first options can make remote management easier, but they may come with trade-offs:

• Limited or no in-person support if issues come up
• Transfer caps or service limits that affect scaling operations
• Extra compliance checks for cross-border ownership or higher-risk activity

Some banks also offer international bank account solutions, including virtual accounts, which are designed to facilitate cross-border transactions for businesses that do not have a physical presence in Canada.

With online banking platforms like RBC Online Banking and the RBC Mobile app, businesses can conveniently view their bank account balance online, providing real-time access to account information anytime and anywhere.

Across Canada’s financial sector, technology such as digital onboarding, AI-based risk review, and open-banking data sharing is becoming more common. These tools can speed up access to accounts or credit, but banks still must meet strict KYC, AML, privacy, and cybersecurity rules under laws like PIPEDA and the PCMLTFA.

Canadian bank accounts are also protected by deposit insurance through the Canada Deposit Insurance Corporation (CDIC), which safeguards eligible deposits up to a certain limit.

Because of that, many institutions keep at least one in-person verification step for higher-risk or international customers, even when most of the process happens online. In practice, the balance between remote convenience and branch verification usually depends on ownership structure, transaction risk, and regulatory scrutiny, not just the bank’s technology.

Common Mistakes Foreign Companies Make in Canada Banking

Foreign-owned companies often run into delays for a few predictable reasons:

• Applying before the entity is registered or incorporated, so required corporate documents are not available yet.
• Providing incomplete beneficial ownership details or ownership structures that are hard to verify.
• Submitting records with mismatched names, dates, or addresses that trigger extra compliance review.
• Not preparing enough documentation to confirm who owns and controls the business under AML and KYC rules.

Most delays come down to missing or inconsistent information rather than the bank itself. Clear ownership details and complete corporate records usually prevent repeat document requests during onboarding.

Understanding what is required to open a business account in Canada can help foreign companies avoid these common issues. Reviewing bank account questions or FAQs on a bank’s website also provides useful guidance on documentation and eligibility before starting the process.

Practical Tips for Faster Account Approval

Foreign-owned entities can improve approval odds by:

• Preparing corporate documents and identity documents upfront.
• Providing a clear ownership chart and beneficial ownership details that identify individuals with 25% or more ownership/control.
• Aligning names, addresses, and signing authority across corporate records and registry information.
• Explaining expected business activity and transaction patterns to support risk assessment and record accuracy.

FAQs: Corporate Banking in Canada for Foreign-Owned Companies

Opening a corporate bank account in Canada often raises practical questions for foreign-owned companies. These quick answers cover what to expect and what is required to open a business account in Canada.

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

Yes, but banks may require branch involvement for non-residents depending on immigration status and risk profile. Some banks allow online initiation, with in-branch verification to activate the account.

2. Do you need a Canadian director?

No. There is no single legal rule that requires a Canadian resident director just to open a business bank account. Banks mainly look at identity verification, signing authority, and clear beneficial ownership disclosure under KYC and AML rules. Requirements can still vary by institution.

Separate corporate laws may require resident Canadian directors for certain federal or provincial incorporation types, but that is different from banking onboarding. In practice, some banks still prefer a Canadian resident director or local authorized signer to complete verification and handle compliance, even when the law does not strictly require one.

3. How long does the process take?

It depends on the bank and how complex the verification is. Some applicants can get an account number online in under 15 minutes, but the account may still need a branch visit to finish identity checks and activation. Full approval often takes a few days to a couple of weeks, especially if the bank asks for more documents or runs an extra compliance review.

Simple ownership details and complete paperwork tend to keep the process moving, while complex structures or missing information can slow things down.

4. What most affects approval?

Complete documentation and clear beneficial ownership have the biggest impact. Banks must identify the individuals with significant control and verify that information, especially for higher-risk or complex structures. Accurate, consistent records are also a core compliance expectation during onboarding.

All in all, approval depends on whether the bank can confirm who owns and controls the business and whether the documents match.

How GEOS Simplifies Corporate Banking Setup in Canada

Canadian banks expect clear documents and matching corporate records. They also look closely at ownership details. GEOS helps organize incorporation, prepare banking-ready paperwork, and make sure everything meets Canadian onboarding rules.

Is Canada the Right Market for Your Expansion?

Canada offers a stable business environment and a trusted banking system. Invest in Canada points to strong fiscal health, steady economic performance, and a long-standing reputation for banking safety and investor confidence 

Statistics Canada data also shows foreign-controlled firms hold about 15% of total assets and more than one-quarter of operating revenues in Canada. International businesses are already operating here at meaningful scale.

Canadian onboarding rules centre on transparency and verification:

• Beneficial ownership rules require identifying the real individuals behind ownership and control and confirming that information through reasonable checks.
• Companies that treat banking as part of a planned compliance setup, rather than a last-minute task, typically move through review with fewer delays.

Taken together, Canada offers both long-term stability and a clear path for foreign expansion.

📩 Contact GEOS for a customized Canada expansion strategy.

This article does not constitute legal advice.