The importance of a business account is similar to that of a regular current and savings account. This bank account is required for financial transactions by all businesses, small and large. In general, it aids in a variety of ways and provides numerous features and benefits. These include receiving payments from clients, paying bills to vendors, paying staff salaries, and paying utility bills, among other things.
The business account, on the other hand, is distinct from the savings and current accounts. The purpose of this article is to explain how to open a business account in Nigeria. The procedure and list of essential paperwork for creating a business account in the country are also mentioned. You should also be aware of the best banks to open a business account in Nigeria so as not to make the wrong choice.
REQUIREMENTS TO OPEN BUSINESS ACCOUNT IN NIGERIA
Individual signatories of a business bank account in Nigeria must provide the following information.
- A genuine main identification card.
- Verification methods for addresses (utility bill, etc).
- Two passport photograph.
- A mandate document that has been duly filled up and signed.
- Tax identification number (TIN)
DOCUMENTS REQUIRED FOR OPENING A BUSINESS ACCOUNT
Before the account may be opened and operated, the business must provide the following documentation.
- 2 references with documentary evidence of address
- 2 Passport photograph
- All signatories must have valid identification.
- Residence Permit (Foreigners)
- Forms Board resolution Search report CO7 and CO2
- Certificates of Incorporation / Business Registration
- Memorandum and Articles of Association
- Terms and Conditions that have been properly executed
Keep in mind that the bank will verify all of these documents, so make sure they are all valid and original. The bank will also run a search report using your CAC certificate to confirm the business’s existence with their legal section. The entire cost of the search will be N5,000. You will be charged for your cheque booklet if you have a checking account.
HOW TO OPEN A BUSINESS/CORPORATE ACCOUNT IN NIGERIAN BANKS
It is simple to open a corporate or business bank account in Nigeria. It usually entails walking into a bank, requesting the bank’s criteria, and filling out and submitting the necessary paperwork. The banker in question will then open the account for you. That’s all there is to it.
However, the purpose of this article is to demonstrate the various prerequisites for creating a business or corporate account in a Nigerian bank. This will relieve you of the hassle of having to go to the bank personally to obtain this information.
OPENING A BUSINESS ACCOUNT WITH GTBANK
Guarantee Trust Bank, or GTB, is one of Nigeria’s most vibrant banks, offering financial ingenuity. They provide the services that you would expect from a bank in the twenty-first century.
Opening a business bank account with this forward-thinking institution has the potential to improve your company’s operations in ways you can’t even conceive.
If you’re looking for information on how to open a business account, look no further:
- The initial step is to figure out the documents you’ll need for the procedure.
- Once you have all of the necessary paperwork, go to any GTBank branch near you and request a corporate account form.
- Fill out this form and send it along with the other documents mentioned previously.
- Gtbank will send you an email confirming the creation of your business account within a few days.
OPENING A BUSINESS ACCOUNT WITH FIRST BANK
The First Bank of Nigeria has established itself as a leading financial organization both within and outside of Nigeria’s borders. This is demonstrated by their innovations, which span all of the important sectors of modern banking.
Having a corporate account with First Bank might help you take your company to the next level. However, the following instructions will show you how to open a business account with First Bank:
- To begin, you must have the necessary documentation to open a business account with First Bank.
- The next step is to fill out and submit the application form together with the other relevant documents.
- The application should be submitted to the nearest first bank branch.
- Soon after, your first bank business account will be established.
OPENING A BUSINESS ACCOUNT WITH ACCESS BANK
Another fascinating bank to rely on for business marketing is Access Bank of Nigeria. Here’s how you make it possible:
- Simply fill out the form to open a business account with Access Bank.
- Request a business account form at any of the Access Bank branches in your area.
- Fill out the form and send it in with the additional documents you’ll need. This is the CO2 and CO7 forms that have been properly filled out.
- Submit these paperwork, along with the needed funds, and then wait.
- Your access bank business account will be ready in three working days.
OPENING A BUSINESS ACCOUNT WITH FCMB
FCMB is one of the top banks in Nigeria for setting up a business account. A business account with FCMB was created with young entrepreneurs in mind who want to take their company to the next level. It’s worth noting that FCMB corporate accounts come with a monthly cost. Your business account will only require a little payment.
On the plus side, you’ll get all of the perks that come with having a corporate account. It’s a good idea to gather your documents before going to the bank to open an account.
ADVANTAGES OF BUSINESS BANK ACCOUNT IN NIGERIA
One of the most critical tools for running a successful business is a business bank account. It provides a wide range of advantages and benefits. These are the ones:
- A business account, first and foremost, assists in accounting. It also aids in the tracking of business transactions and the company’s financial health, which aids in decision-making.
- A bank reconciliation statement can be simply drawn at any time. It also aids in the matching of ‘Cash in Hand’ and ‘Cash in Bank’ balances.
- You can also combine the IT return with other regulatory obligations such as GST returns, professional taxes, and so on.
- A business account aids in the enhancement of your company’s image as well as the expansion of your business. In order to accomplish this, you’ll need a current account in your company’s name. Having a business account shows that you are serious about running your company.
- Maintaining a healthy business account ensures your loan eligibility. It can assist you in obtaining a term loan or working capital loan to help you expand your firm.
- A business account provides a variety of services that a savings account does not. These include the RTGS or NEFT facility, a line of credit, 24 hour phone banking, and internet banking, among others.
The process of opening and operating a business account differs from that of opening and operating a personal account. A business must be officially registered with Nigeria’s Corporate Affairs Commission (CAC) or a competent agency, based on the severity of the firm, in order to own a business account.
A business account is usually classified as tier three KYC, and all of its documents must adhere to the CBN’s tier three account policy. The objective of this post is to help you understand the prerequisites for establishing a business account in Nigeria. We hope you found the information in this article to be very useful.