If you have become a business owner in Canada or are just planning to start a company (for example, a limited partnership in Ontario), a business account will be one of your primary needs. This way, you will separate your personal finances and the company’s funds. Moreover, profit analysis and tax filing procedures will be considerably simplified.
If you are still unsure which form of company to establish in Canada, we recommend an LP in Ontario. This company type gives entrepreneurs an opportunity not to pay any taxes in Canada provided that no income is derived from local sources (100% of income is generated abroad). Why not use a highly-respectable destination to establish a business entity?
Our experts can help you establish an Ontario Limited Partnership and simplify operations by opening up a business account with a local bank. You can also take advantage of the support we furnish to individuals in the process of professional or business immigration to Canada. Write an email to make an appointment with our advisors.
- Canadian Business Accounts for Non-Residents
- Can a Non-Resident Open a Business Account in Canada Online?
- Opening a Business Account with a Bank in Canada for a Non-Resident: Plan of Action
- Documents for Non-Resident Canada Bank Clients
- Extra Criteria
- What is the Best Bank to Open Up a Business Account for Ontario LP, Canada?
- How Long Does it Take to Open a Business Account?
- Online Banking and Bank Cards
- Canada’s Tax Treaties
Canadian Business Accounts for Non-Residents
Theory and practice often stand apart, and a Canadian non-resident bank account attests to the correctness of that statement. It is hardly possible to find any legal or technical obstacles to opening a business account in Canada if you are a non-resident. However, you still need to conform to the qualification requirements of the bank you picked prior to being onboarded. Our consultants are well aware of this circumstance, and they help foreign businessmen to come up to the bank’s expectations (which may be high) and take advantage of all benefits that the Canadian banking system offers.
Do your business plans include relocation to Canada in the future? It would be useful for you to discover that some Canadian banks have a newcomer service in place to assist immigrants (business owners as well) in the appropriate handling of their financial matters.
We support non-resident entrepreneurs who own an Ontario LP (one of the most convenient legal forms in Canada). They can open up a multi-currency business account online and manage transactions in US and Canadian dollars, and also in other currencies, which will help take their business project to a worldwide level.
We recommend that non-residents who operate an international business find out whether the bank they currently use has branches (or partner banks) in Canada.
Can a Non-Resident Open a Business Account in Canada Online?
Online business accounts are available to non-residents in dozens of Canadian traditional banks, but the clients have to deal with a limited choice of accounts and services. Certain banks expect you to set up a personal account first and then request to open a business account online.
The regulations differ from institution to institution. You can call the bank headquarters or drop round to one of its branches close at hand (if appropriate).
Still, the safest option is to reach our experts for a free consultation on the selection of business accounts in foreign banks. You may be unaware of all the technicalities – but we are!
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with seasoned professionals on international
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non-resident corporate accounts.
with seasoned professionals on international banking and where it is best to open non-resident corporate accounts.
Major American banks operate via branches in Canada, which means that sometimes it is easier for a non-resident to register an account in the USA online first as it can be easily moved to Canada after a while. One evident downside that should be taken into account: setting up an international account with a US bank may be associated with greater fees or unreasonable minimum balance requirements.
Does your business require registering an account online with a Canadian bank? A traditional account may be hard to open, but you can focus on a fintech solution. Given that digital business accounts used by non-residents in Canada ensure all functions you need via the Internet, all you need to do is complete the registration procedure and download a website or app to manage transactions.
Opening a Business Account with a Bank in Canada for a Non-Resident: Plan of Action
If you formed an LP in Ontario, make sure it corresponds to the requirements detailed in the Access to Basic Banking Regulations under the Banking Act. And if it does, you simply send the documents, and that’s all. Do you have a GP or some other legal form? Our experts will give you more specific information – just get in touch.
The online opening procedure depends on the selected bank and the specific type of business account, and also on the non-resident’s plans to get a Canadian permanent residence.
You can use several different strategies for opening business accounts with Canadian banks for non-residents.
- In some cases, you can register an account online by providing scanned documents.
- Royal Bank of Canada (and other comparable institutions) can authorize a digital personal account prior to the non-resident’s relocation assuming that the applicant phones or visits a branch to register a business account in Canada.
Check out the options available depending on your personal situation and the bank you pick.
Documents for Non-Resident Canada Bank Clients
In nearly all instances (it does not really matter whether a non-resident files an application by paying a personal visit or online), a similar package of documents will be required:
- Details of the owner, applicant and/or persons that will have access to the bank account: name, nationality, date of birth, and address
- At least one ID (with a photo) and one document issued by the government
- Personal Identification of the Ontario LP owner (director, major shareholders)
- Trade name, address, type, profit figures, or estimates for your Ontario LP
- Ontario LP flow data on behalf of a non-resident (business authorizations, registration numbers, partnership agreements, or instruments of incorporation)
- Proof of the fact that the entity name is unique (name search results)
- Receipt of the state registration fee payment
- Legal address in Ontario for 1 year
- Declaration 3 to certify limited partnership set-up
- Organizational resolutions carried by general partners
- Resolution on the limited partner admission
- Partner Agreement
- Register of general partners
- Register of limited partners
Banks in Canada expect each beneficial owner (non-resident) and authorized person to file the following personal documents:
- A valid passport
- A second ID (driver’s license)
- A letter of commendation signed by your current bank
Any other documents that are likely to be requested (depending on the entity type):
| Type of entity | Documents Needed |
| Sole Ownership | Trademark Registration Basic Business License |
| Corporation | 2 IDs of authorized corporate signatories Memorandum of Association Status Certificate Corporate Profile Report Certificate of Existence Certificate of Compliance Corporate Annual State Filing Income Tax Assessment Notice Business Number Business License |
| Limited Partnerships (Ontario LP) | Registered Partnership Statement Copy of the Partnership Agreement Trademark Registration |
The lists of documentation required are available on the banks’ websites, which is extremely helpful for non-residents: this way, they can estimate whether they come up to the bank’s expectations. In addition to paperwork, a minimum initial deposit may be a prerequisite for setting up and operating an online business account for an Ontario LP. Be sure to verify account details before you start.
Take a look at the services that our professionals render to business owners in Canada:
Extra Criteria
First of all, a potential corporate bank client has to meet two fairly simple criteria:
- be at least 18 years of age
- have a duly formed LP in Ontario, Canada
An initial deposit is not mandatory. All the same, it would still make sense to deposit a minimum of $500 into your account to keep it operational, otherwise, it may be closed if the inactivity period exceeds 6 months.
No minimum balance needs to be maintained. On the other hand, you will be required to have a certain amount in the online account to enable the bank to deduct the monthly service fee.
What is the Best Bank to Open a Business Account for Ontario LP, Canada?
There are five really large banks in Canada (known as the Big Five) that offer different services to suit every taste:
- RBC (Royal Bank of Canada)
- TD Bank (Toronto-Dominion)
- Scotiabank (Bank of Nova Scotia)
- BMO (Bank of Montreal)
- CIBC (Canadian Imperial Commercial Bank).
How Long Does it Take to Open a Business Account?
LP formation in Ontario requires 1 to 2 working days. The bank will consider the application within 7 to 15 days. Following the approval, our experts and legal advisers in Canada will arrange an appointment with the bank authorities to open an account.
What do we know about the minimum balance and initial deposit that the bank expects its client to make?
There are no precise minimum balance or initial deposit figures. Still, we do recommend keeping a small amount in the account to cover any bank charges, determined by the type of business bank account you are going to set up online.
Bank Cards and Online Banking
As soon as the online account becomes functional, the bank will release a debit card for the Ontario LP owner’s personal use. Payment by debit card is automatically debited from the non-resident bank account. As for the credit limit or deposit, they are not set for debit cards. The card can be used immediately after the account balance becomes positive.
You can request a Visa or MasterCard credit card, but the bank will demand a security deposit if you are a non-resident. They will also provide access to online banking 24/7 where you can receive and transfer payments from/to other non-resident accounts.
Canada’s Tax Treaties
Canada has 93 tax treaties in effect, 4 more were signed but have not taken effect yet, and 8 more are being negotiated. This extensive network of tax treaties means that businesses have superb tax planning opportunities.
Furthermore, Canada is a party to 24 Tax Information Exchange Agreements (TIEAs): 1 of these is signed and expected to take effect shortly, and another 5 are being discussed. Consequently, Canada’s exempted surplus regime will cover more jurisdictions.
Write a letter to our experts to get assistance in opening a business account online or Ontario LP Registration on behalf of a non-resident.
To receive advice on services from our consultants, send an e-mail to info@offshore-pro.info.
