How to Open a Business Bank Account in Australia: 5 Easy Steps

Choose a business account

Choosing the right business account for your needs is important. You’ll need to think about the services your company needs right now, and also the sorts of transactions you might make in future as your business grows. Most business owners choose to have an everyday account for daily use, which may come with a linked card or cards for payments. This is a handy way to receive and hold money, send payments and spend on behalf of your company as needed.

In addition, there are lots of more specialist business accounts out there. You may choose an account which has lots of international functions for example, or a product with an overdraft or linked loan facility, or an account for savings and investments. This guide walks through the basic process to open an account – whichever type of bank or banking alternative account you pick.

Types of business bank accounts in Australia

Both banks and specialist providers have a good range of business account products on offer. You’ll find:

• Accounts with no monthly fee which may be best for small business transacting mainly online
• Accounts with a low monthly fee and some free transactions
• Accounts which are aimed at medium to large sized businesses
• Accounts for corporate clients which offer more specialist services and features

As well as transaction accounts which are aimed at companies needing to manage day to day finances, there are also specialist accounts which are handy for saving and investing, foreign transactions and transfers, and accounts which come with credit services.

How to choose a business bank account

If you’ve decided it’s time to open your business bank account, you’ll need to do a bit of research to find the right fit for your specific needs.

To kickstart your research, we’ll look at some key features of some major Australian banks and a couple of specialist providers – Wise and OFX. Specialist providers like these can often offer lower overall transaction costs and a more convenient user interface, as well as features like multi-currency functionality and instant international payments.

Tips for choosing a bank account for your business

Different banks and specialist providers offer accounts which have varied fees, features and services, so comparing a few is the best way to choose. Factors to consider include:

• What are the account maintenance fees?
• How much are the charges for transactions – particularly those you’ll make regularly?
• How easy is the account to operate – what’s customer service like?
• Can you get a linked bank card for yourself or other team members?
• Can you add multiple users to your account to allow your team to view or transact according to their role in the business?
• How easy is it to make and receive international payments – what are the fees and exchange rates offered when you do?
• Can you hold multiple currencies in your account?

To select the right account for your needs, you’ll have to evaluate your business requirements carefully. Think about how often you will have to transact, whether or not you need to make cash deposits, your online banking preferences, and any special services you may want, like payroll management or merchant services.

Finally, take a look at the fees you will pay for different accounts, including monthly maintenance, transaction fees, ATM fees, and currency conversion costs.

2. Check and collect all the info and documents required to open a business account

When you open your business bank account you’ll usually need to provide the following information and paperwork:

• Full business and legal name as registered with ASIC
• Primary business address
• Australian Business Number (ABN) or Australian Company Number (ACN)
• Industry type
• Identification, name and address for all owners or partners
• Foreign tax status of any owners if relevant
• FATCA and CRS information for the company

Identification documents accepted can usually include government issued photo ID like a passport or driving licence, or a combination of other documents which together establish your identity and address.

3. Complete the application from

Once you’ve selected the account you want, checked eligibility, and gathered all the required information and documents, it’s time to apply. Many banks and non-bank alternatives allow online applications, so you might be able to get started with just a phone or laptop. However, some banks do ask you to call or call into a branch to discuss your application.

If a remote application, verification and onboarding process is important to you, consider a digital provider like Wise or OFX which offers a fully online and in app experience.

4. Provide your documents to verify your business account

To support your application you will have to provide some important personal and business documents. If you’re applying online or in an app you can usually just take a photo of the documents that have been requested. If you’re in a branch you’ll be expected to take along physical copies of your paperwork.

Getting verified with a digital non-bank alternative like Wise or OFX is usually pretty quick and straightforward. As long as you can take some clear snaps of your paperwork, the process is usually painless and completed without any fuss.

5. Add funds and start using your account

Once your account is approved you’ll have to add some money. Some banks or providers may have a minimum deposit requirement, but it’s not always compulsory – Wise and OFX, for example, let you sign up and simply add whatever funds you’ll need, with no obligation.

You’ll be able to get started using your account to send and receive payments, and can also start to access other features such as integrating your account with cloud accounting solutions or setting up batch payments for payroll for example.

Does my business need a business account?

Sole traders and freelancers aren’t legally obliged to have a business bank account, but can still find it handy to have one. We’ll take a look at some of the specific benefits of having a business bank account in just a moment.

In Australia you must have a separate business account for tax purposes if you have a:

• Company
• Partnership
• Trust

That’s because, as the owner of a registered entity of these types, your personal and business finances are considered separately for tax purposes. Having a business bank account makes your company and tax accounting processes far easier – and if you pick the right provider, you might also find you cut the costs of transactions, too.

What are the benefits of having a business bank account?

You may be legally obliged to have a business bank account – but even if you’re not, there are some great benefits which make it worth considering. Here are a few perks to consider:

• A business bank account makes it far easier to track and analyse your company’s performance
• Business bank accounts often offer lower fees compared to personal accounts  for the types of transactions companies need to make frequently
• Using a business account can cut costs when you transact globally – providers like Wise offer mid-market exchange rates and don’t have foreign transaction fees
• Business bank accounts often come with features to cut admin time, like batch payments and cloud based accounting integrations
• Your chosen bank or provider may also offer other business financial services like loans or investment advice
• It’s easier to manage your tax accounting and company reporting requirements when your company finances are independent of your own money

How much does it cost to open a business account?

The costs to open and operate your business account will depend on the provider you select. Some banks offer the option of an account with no monthly fee, but in this case you’ll often pay for every in person transaction you make – you’ll also often have the choice to pay a monthly fee in exchange for a limited number of free transactions per month. Online providers may charge a one off fee to set up your account, but are often cheaper for day to day transactions compared to normal banks.

Here are the costs for opening and maintaining an account with the providers we selected above:

How to open a business account in Australia

The process to open a business account will depend a little on the bank or provider you select. Online specialist services offer a fully digital account opening process, which means you can apply and get verified without needing to visit a bank branch. Banks often also offer online application processes, but may need to call you to confirm your account details, or ask you to visit a branch to submit your identification documents.

In most cases, the process to open your Australian business bank account will be as follows:

1. Choose the business account that suits your needs
2. Check and gather all the information and documents required
3. Complete the application form in hard copy or online
4. Provide your documents to the provider – either uploading digital copies or presenting them in a branch
5. Add funds, and start to use your account to send and receive money

How long does it take to open a business bank account?

In most cases, applying for your business bank account will only take a few minutes once you have gathered all the information and documentation required. However, banks and specialist providers will usually need to complete verification checks on you and your business, to comply with local and international law. These can take a day or two, and may mean you’re asked to provide further information or paperwork before you can use your account.

Can I open a business bank account in Australia as a non-resident?

You may still be able to open a business bank account in Australia as a non-resident, as long as your business is registered in Australia. You’ll need to provide your ABN or ACN – your proof of business registration – as part of the account opening process.

It’s worth knowing that banks may have different requirements for non-resident customers, including requiring additional proof of identity and address. Check what your preferred bank needs before you start your application.

Can I open a business bank account online?

You can open an Australian business bank account online, either with a specialist provider, or in some cases, with a bank. It’s common for banks to allow you to complete the application online – but you might still have to wait for a call back to have your account verified once you’ve submitted your information. Online specialist services offer a fully digital account opening process, allowing you to apply and submit images of required documents more easily.

Can I switch business bank accounts?

There’s a great range of business accounts available, so if you decide you need to find a new one you’ll have plenty of choice. Switching business bank accounts is usually pretty simple. All you’ll need to do is open your new account, transfer any recurring payments from your old account to the new one, and pass your new account details to customers to receive payments. Withdraw any remaining account balance and close your old account, and you’re all done.

Conclusion

Opening a business bank account in Australia may be mandatory if you’ve got a registered business, partnership or trust – and although it’s not obligatory for sole traders and freelancers,  it’s still recommended as a smart way to manage your money.

Business accounts are offered by banks and specialist online and mobile service providers which can come with low fees and some helpful features to save time and money. Check out a range of providers and account types to find the best fit for you, looking carefully at the ongoing charges and fees for the transactions you’ll need to make regularly.

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FAQs

Is it easy to open a business bank account in Australia?

Apply for an Australian business account in just a few minutes online. You’ll then need to upload or show documents proving your identity and address, so the bank can complete a verification step and open your account. In most cases, the process is pretty painless and can be done in just a day or so.

Do I need a business bank account if I am a sole trader?

It’s not mandatory to have a business bank account as a sole trader – however, it can be a good way to keep your personal and business funds separately and make tracking your business performance more straightforward.

How much does a business account cost?

Business accounts may be free to open, have a low one time fee for opening, or have ongoing monthly charges. Shop around to find the best account option for you, based on your business needs and budget.

Does an Australian company need an Australian bank account?

Legally, Australian registered companies, partnerships and trusts must have a separate business bank account for tax purposes.