Welcome to our website. Are you searching for a way to open a business bank account for either your small or large business? If you’re nodding your head right now, I can help you. In this blog post, I will give you a comprehensive guide on how to open a business account in Nigeria within 5 minutes. Let’s get started
Opening a business account in Nigeria is not as hard as one thought, I experienced this when I was opening my first bank business account for my catering business. Don’t worry, I will walk you through the process I took.
What is a business account?
Business bank accounts, otherwise known as corporate accounts are bank accounts for business organizations. These accounts are explicitly available for registered businesses that want to separate their personal account from their business. You may be wondering why you need a business account. Well, most reasons why you need it is because of some additional features it offers. Read Also: Types of Business Investments That Will Make You Lose Money
In some cases, the amount of money you can receive on a personal account is limited compared to a business account. Apart from branding, the Business account is cool because you can easily monitor your revenue and expenditure.
What are the features of a Business bank account?
- Ability to set up direct deposit for payroll and other payments
- Option to apply for a business loan or line of credit
- Ability to issue standing orders and direct debits
- Ability to open multiple sub-accounts for different business purposes
- Ability to set up and manage employee payroll accounts
- Option for a merchant services account for accepting credit and debit card payments
- Ability to track expenses and manage cash flow with online banking and financial management tools
- Interest-bearing account options
- Ability to open and operate a foreign currency account
- Some Banks also offer discounts on their other services such as POS, Internet banking, and SMS alerts.
Are there any documents required to open a business bank account?
Yes. There are a few documents that you must possess as a business organization in other to open a business bank account today.
Required documents for open business account
For you to open a business account, below are some of the required documents that you must have handy with you. They include:
- Business registration documents: This includes the certificate of incorporation, memorandum and articles of association, and business name registration certificate.
- Tax Identification Number (TIN): All businesses in Nigeria are required to have a TIN, which is issued by the Federal Inland Revenue Service (FIRS).
- Personal identification for all signatories: This may include a valid government-issued ID such as a national ID card, international passport, or driver’s license.
- Proof of address: This can be in the form of a utility bill, such as a water or electricity bill, or a letter from a reputable organization.
- Business plan or proposal: Some banks may require you to a business plan or proposal outlining the nature of the business, projected income, and projected expenses.
- Minimum deposit: Some banks in Nigeria may demand a minimum deposit to open a business account with them. When I wanted to open my business, I deposited 50,000 Naira.
- Reference letter: Some banks like GTB, First bank, and UBA may require a reference letter from another bank or an existing customer.
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How to open a business account today
- Proceed to your preferred bank to open a business account
- Exchange thoughts with any of the bank representatives to direct you to the customer care center.
- From there, tell the customer care representative that you want to open a Business account. From there, you will be directed to the ‘corporate business department.
- Submit your documents and provide an answer (s) to any questions asked by the bank representative.
- Obtain your account details and read the terms and conditions before signing up. Good luck
Can I open a business account online without going to the bank?
Yes. You can open any business or corporate account online. It’s simple and easy. What you need to do is to proceed to the bank website and navigate to the “Open account” section and select Business account and follow the screen.
Can I open a business account for free?
No. In most cases, several banks require some fees in order to open a business account with them.
Thanks for reading to the end of our article about how to open a business account in Nigeria within a few minutes. I hope you find this helpful. Kindly share and comment below if you have any questions.