To open a business bank account in Canada, a financial institution has to confirm two things: that the business exists, and who is behind it. For a corporation, that means corporate records such as the certificate and articles of incorporation, the names of the directors, the people who own or control 25% or more of the shares, and photo ID for the individuals who will operate the account. For a sole proprietor, the business is not a separate person, so the bank mainly verifies the owner's own identity, along with a business name registration where the business uses a name other than the owner's.
Those requirements are not just bank preferences. Banks are reporting entities under Canada's anti-money laundering rules, and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) sets out what they must obtain and verify. This guide explains those rules in plain terms, lists the documents typically involved for a corporation and for a sole proprietorship, and shows where your corporate records fit in.
Why a business gets its own account
Ontario's own business guidance draws the line clearly. A corporation is a legal entity that keeps the business separate from the business owner, and its owners have limited liability. A sole proprietorship has no such separation: creditors can take the owner's personal assets and the business to pay debts.
For a corporation, a bank account in the corporation's name follows from that separation. The corporation earns its own revenue, pays its own expenses and files its own tax return, and an account in its own name keeps those transactions together. For a sole proprietor, a separate account is not a legal requirement in the same sense, but it keeps business activity apart from personal spending, which makes bookkeeping and tax records easier to follow.
What the bank must verify under FINTRAC rules
FINTRAC guidance sets out what a reporting entity must obtain when it verifies the identity of a corporation: its name, its address and the names of its directors. Acceptable records include a certificate of incorporation, or the most recent version of any other record that confirms the corporation's existence and contains its name, address and the names of its directors, such as a certificate of active corporate status. FINTRAC also notes that this information can be obtained from publicly accessible databases such as Corporations Canada's. The documents relied on must be authentic, valid and current.
Banks also have to collect beneficial ownership information. For a corporation, FINTRAC lists three items:
- The names of all directors of the corporation.
- The names and addresses of all persons who directly or indirectly own or control at least 25% of the shares of the corporation.
- Information establishing the ownership, control and structure of the corporation.
The bank must then take reasonable measures to confirm that this beneficial ownership information is accurate, and FINTRAC states that those measures cannot be the same as the method used to obtain the information in the first place. Among the ways FINTRAC gives to confirm it are reviewing official records such as the minute book, the shareholder register and the articles of incorporation, or consulting public registries. In practice, this is why a bank asks to see corporate records rather than relying only on what the owner says.
The individuals dealing with the bank are verified as well. FINTRAC permits several methods for identifying a person, including government-issued photo identification that is authentic, valid and current, a credit file method, and a dual-process method using two different reliable sources. Which method a given institution uses, and in what order, is up to that institution within the rules.
Documents to open a business bank account in Canada
Every institution sets its own document list, and the list can change with the type of business and the account. The table below shows the documents commonly involved, mapped to the legal requirement they answer. It is a guide to what to have on hand, not a list any particular bank has published.
| What the bank needs to confirm | Corporation | Sole proprietorship |
|---|---|---|
| That the business exists | Certificate of incorporation, or a current record such as a certificate of status or corporate profile | Business name registration, if the business uses a name other than the owner's own |
| Name and address of the business | Articles of incorporation and the registered office address on the public record | The owner's address and the registered business name, if any |
| Who the directors are | Directors' register or a current government record listing the directors | Not applicable: there are no directors |
| Who owns or controls 25% or more | Shareholder register and register of individuals with significant control, from the minute book | Not applicable: the owner is the business |
| Who can operate the account | A directors' resolution or list of signing officers authorizing the account | The owner |
| Identity of each individual involved | Photo ID or another FINTRAC-permitted method for each signer and, depending on the bank, each director and significant owner | Photo ID or another FINTRAC-permitted method for the owner |
A CRA business number is also commonly requested once the business has one. A corporation receives a business number as part of its incorporation; the guide to getting a CRA business number explains how the BN works and when other businesses register for one.
Opening a corporate account: where the documents come from
Most of what a bank asks a corporation for comes from two places: the documents issued at incorporation, and the corporation's minute book.
The certificate and articles of incorporation show that the corporation exists, its exact legal name, its share structure and its registered office. They are issued by the government when the incorporation is filed.
The corporate minute book holds the rest: the by-laws, the registers of directors, officers and shareholders, the share issuances, and the resolutions passed by the directors and shareholders. Banks commonly ask for a resolution authorizing the account and naming the signing officers, and the registers are how the corporation shows who its directors and significant owners are.
The register of individuals with significant control is part of that record. Corporations under the Canada Business Corporations Act must keep a register of individuals with significant control, meaning individuals who own or control 25% or more of the shares (by votes or by fair market value) or who have control in fact. Since January 22, 2024, federal corporations also file that information with Corporations Canada, annually with the annual return and within 15 days of any change to the register. In Ontario, privately held corporations have been required since January 1, 2023 to keep the same kind of information on file and to provide it when requested by law enforcement and regulatory and tax authorities.
How a sole proprietor opens a business bank account in Canada
A sole proprietorship is not a separate legal entity, so there is no corporation for the bank to verify. The identity check centres on the owner, using one of the FINTRAC-permitted methods for individuals, such as government-issued photo ID.
Where the business operates under a name other than the owner's own full name, Ontario requires that name to be registered under the Business Names Act. The registration, formerly called a Master Business Licence, is valid for five years and is renewed after that. A bank opening an account in a trade name commonly asks to see it, since it links the name to the owner. The guide to registering a sole proprietorship in Ontario covers the filing, and Korporex offers sole proprietorship registration as a service.
The process, step by step
- Complete the incorporation or business name registration, so the business exists on the public record.
- Gather the records: certificate and articles, minute book with registers and a signing resolution for a corporation; the name registration for a sole proprietor using a trade name.
- Identify everyone the bank will need to verify: signing officers, and for a corporation, the directors and anyone holding 25% or more of the shares.
- Have each of those individuals ready with identification that meets the bank's verification method.
- Contact the institution, confirm its current document list for your business type, and submit the application.
- Keep the minute book current afterward, since banks confirm ownership information again during ongoing monitoring.
After the account is open
FINTRAC guidance treats beneficial ownership confirmation as something that happens both at the start of the relationship and during ongoing monitoring. When directors change, shares are transferred or a new significant owner comes in, the bank may ask for updated records. A corporation whose registers and resolutions are kept up to date can answer those requests from its own minute book.
For the account itself, the Financial Consumer Agency of Canada (FCAC) oversees federally regulated financial institutions and publishes information on fees and account disclosures. The FCAC's account-opening guidance on its website is written for personal accounts; for business accounts, the institution's own disclosure documents set out the fees and terms.
Getting the documents ready
If your business is not yet incorporated, you can incorporate with Korporex federally or in Ontario and receive the certificate, articles and a complete minute book together, ready for the bank. Korporex is not a law firm or a financial institution; questions about a specific bank's requirements belong with that bank.
Frequently asked questions
What documents does a corporation need to open a business bank account in Canada?+
Requirements vary by institution, but they follow from FINTRAC rules: proof the corporation exists (such as the certificate of incorporation or a current certificate of status), its name and address, the names of its directors, the names and addresses of anyone owning or controlling 25% or more of the shares, information on its ownership and control structure, and identification for the individuals operating the account. Banks commonly also ask for the articles and a resolution naming the signing officers.
Why does the bank want to see the minute book?+
Banks must take reasonable measures to confirm the accuracy of beneficial ownership information, using a method different from the one used to collect it. FINTRAC lists reviewing official records such as the minute book, shareholder register and articles of incorporation as one way to do this.
Can a sole proprietor open a business bank account?+
Yes. A sole proprietorship is not a separate legal entity, so the bank verifies the owner's identity. If the business uses a name other than the owner's own full name, Ontario requires that name to be registered, and banks commonly ask to see the registration.
Do all shareholders have to be identified?+
FINTRAC rules require the bank to obtain the names and addresses of all persons who directly or indirectly own or control at least 25% of the shares. Smaller shareholders are not covered by that specific requirement, though an institution may ask for more information.
Does a Korporex incorporation include the records a bank asks for?+
Every Korporex incorporation package includes the certificate and articles of incorporation and a minute book with by-laws, organizational resolutions and registers. The bank decides which of those it needs to see.