If you have a newly launched business in Kenya, you need to open a business bank account. It is important to a business account to separate personal finances from business revenues for easier accounting. Banks offer various banking services while the charges vary from one bank to the other. As such, it is important that you get the best bank that serves the needs of your business. In this article, I will take you through the process of opening a business bank account in Kenya.
You can use a business bank account for the following tasks:
- Pay your employees
- Track your business revenues and expenses
- Manage and pay taxes
- Secure and save your business money
You can open different types of business accounts in Kenya. Some of the business accounts you can open include collection account, fixed deposit account, call deposit account, paybill account, savings account and business current account Kenya.
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Requirements to Open a Business Bank Account in Kenya
To open bank account in Kenya, different banks have different requirements. In most cases, you will be asked to provide the following.
- Duly completed business account application
- Certification of incorporation
- VAT certificate
- Trading license
- Company PIN
- Partnership deed for a partnership business
- A resolution by the board of directors to open a bank account
- A copy of the annual returns of the business
Can You Open a Business Bank Account Online
While many banks in Kenya do not offer online banking services, a few of them provide online accounts. However, to open a business bank account, you need to visit a banking hall. You will need to submit account opening documents physically.
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Best Bank to Open a Business Account in Kenya
Some of the best banks in Kenya that will help you open and maintain a bank account include the following:
1. KCB Bank
To open a business account with KCB Bank is free. There are no operating balances required. However, there are maintenance charges of Ksh 300 and ATM withdrawals of Ksh 30. When you open a business bank account with KCB, you can access loans and overdraft facilities.
There is online KCB registration for those who want internet banking. With KCB internet banking, you can transfer, withdraw and pay your utilities at the convince of your device. Internet banking makes is easy and time saving since you do not have to visit the banking hall to transact.
2. Equity Bank
Equity Bank is among the Kenyan banks with the largest customer base. You can open a business account. With the account, you can enjoy the asset finance loan for your business. This loan will help your business purchase assets like vehicles and equipment. You can also access an Eazzy loan of your business account that has been active for the last six months. It doesn't require you to have a guarantor.
Equity Bank has Eazzy banking service that you can use to access banking services from anywhere using a device. You can buy airtime, pays bills and apply for loans using Eazzy banking service. This way, you can easily run your business.
3. Absa Bank
Absa Bank, previously known as Barclays Bank, is among the oldest banks in Kenya. It offers both business and retail banking. Interestingly, it provides different types of bank accounts for different businesses. For example, it has advocates business account for the legal industry. There is also ABSA graduate account that prepares graduates for work. ABSA offers excellent services and products tailored to your banking needs.
4. Cooperative Bank
The cooperative bank has current accounts tailored for business persons. You can manage transactions, save and also make payments using the account. You get a checkbook so that you can easily make payments. It is also easy to make cash transfers and deposits. Cooperative bank Kenya accounts are convenient for your business. They offer current and savings accounts for businesses. You can track your transactions through monthly statements and also enjoy loan facilities.
5. NIC Bank
NIC Bank has entrepreneur accounts that are tailored for business needs. They come with a wide range of banking products. You can opt to open a Transactional Current account or Pay as YOU Go Account. Pay as You Go Account attracts charges per transaction, while flat fee accounts have fixed prices per month.
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Having a business bank account is important and will help you manage business revenues. It also makes it easy to manage and pay taxes. Separating personal and business finances is essential for better management of business expenses and to determine if your business is making profits or not. Make a point of opening a business account with any of the above banks for your startup.