A corporate bank account is an account that is opened under the name of your business to help manage the businesses’ finances, profit, expenditures and tax. This guide outlines what you need to know when opening a corporate bank account in Australia.
Business banking in Australia
Australia’s big four banks generally provide the most comprehensive business banking services and have the most extensive branch and ATM networks in Australia.
Depending on the size of your business, each bank offers a range of banking options, and they can also provide additional banking services, including:
- Higher daily payment limits
- Co-signatory authorisation
- Greater security (via security devices)
- Linking the account to interest-bearing products
- Integration with major accounting platforms, such as Xero
What are the big four banks in Australia?
The major banks in Australia which are known as the big four are:
- ANZ Bank
- Commonwealth Bank
- National Australia Bank
Which entities are entitled to have a corporate bank account?
The following entities must have a corporate bank account for taxation purposes:
Sole traders are not required to open a corporate bank account; however, some choose to do so to separate personal and business finances.
Can non-residents open a corporate bank account?
Non-residents can open a corporate bank account. However, for a non-resident to open a corporate bank account, their company must be registered in Australia.
Can the corporate bank account be opened from abroad?
Yes, the account can be opened from abroad. However, to be able to open it abroad, the company must be registered in Australia.
Benefits of opening a corporate bank account
The benefits of a corporate bank account include:
- Controlling business expenses and income
- Tracking business expenses and income
- Separating business finances from personal finances
Documents required to open a corporate bank account
Australian banks use a points system for the required documentation, adopted by the Australian government to combat financial transaction fraud.
You must provide hard copies of identification that total up to 100 points for each director and for signatories (authorisers) of the bank account.
Identification documents and their respective points include:
- Passport (70 points)
- Driver’s licence (40 points)
- Identification card (40 points)
Signatories and other documentation:
- Account application, signed by two directors
- Account signatories, signed by all signatories (authorisers) to the account
- Bank account signatories are generally appointed in line with the parent company delegation’s policy.
Information that is required to be provided include:
- Company name as registered with the ASIC
- Australian Company Number (ACN) and/or Australian Business Number (ABN)
- Registered office and place of business
- Full name of company directors
- Registration date
- Business name or trading name
Some fees that you should expect with a corporate bank account are:
- ATM fees
- Currency exchange fees
- Establishment fees
- Internet banking fees
- Monthly fees
- Transaction fees
Transferring funds to your Australian subsidiary
Each of the big four banks can process large transactions coming into an Australian dollar business bank account, either in Australian dollars or in a foreign currency, that will attract:
- A foreign transaction fee
- A foreign exchange conversion that can be favourable or negative depending on the bank’s current daily retail foreign exchange rate
If large transactions are expected frequently, the big four banks also offer the option of a foreign currency account, which may provide better currency conversion rates.
Opening a corporate bank account in Australia requirement for a company, partnership and trust, but is optional for a sole trader. Having an account is beneficial to your business as it manages and separates business and personal funds.
Acclime can facilitate the opening of your business account to suit the needs of your business. We can manage all procedures related to the initial account opening, including the deposits of funds and the coordination of verification procedures.