If you have a business, then you need to separate personal finances and businesses finances. This is important for tax payments and also to track how your business is performing. As such, you need to open a business bank account in South Africa. I will take you through the process of opening a bank account, requirements and a list of the best business bank accounts South Africa.
Requirements for Opening a Business Account in South Africa
Documents necessary to open a business bank account in South Africa vary depending on the type of business you are operating. Typically, to open a business bank account, you need the following documents:
- Proof of CIPC registration
- ID documents of the business owner and signatories of the account
- Proof of address of the proprietors like a utility bill
- Banking history of your business through a bank statement
Register Your Business
You need to have registered your business with the Companies and Intellectual Properties Commission (CIPC) before you can open a business account. It is because you will need to provide proof of CIPC registration when opening a business bank account.
Registration must be done within 60 days after commencing business operations. You will be required to fill in an IT77 form that is available in the SARS office or website.
Read also: How to register a business in South Africa.
Types of Corporate that Can Open a Business Account in South Africa
You can open a business bank account for different types of corporate. You will need varying documentation depending on business structure to open a business bank account.
You can open a bank business account for the following business structures:
- Public and private company
- Personal liability company
- Sole proprietorship
- Business Trust
Can I Open a Business Bank Account as a Non-Resident?
Residents and non-residents can open a business bank account in South Africa. The most essential factor when opening a business bank account is for the business to be registered in South Africa. Some banks like FNB and Nedbank can help you register your business on CIPC. If you are a non-resident and you are having trouble opening a business account, consider FNB bank.
You can also open a business bank account in South Africa from abroad. There are South African banks that offer online registration. Before you can start using the account, you will be required to provide copies of the necessary documents and signature samples.
Read also: Best business incubators in South Africa.
Best Banks to Open a Business Bank Account With in South Africa
The following are some of the best banks that will help you open a business account in South Africa. If you business is involved in cross border transactions, these are international banks and you can still use them.
1. Standard Bank
Standard Bank is a large bank in South Africa. It is available in 20 African countries and it offers online banking services. You can use it to move money freely, make cross-border transactions and carryout online transactions. It is the best bank to open a business account with.
The Standard bank offers different types of business banks accounts like:
- MyMoBiz business for R5 monthly
- Business current account for R85 monthly
- Bizlaunch account for R210 monthly
Nedbank is also a large bank in South Africa and is the best bank to open a business bank account. It has many branches and a large ATM network. You can use the bank to open business current accounts that come with payment cards.
When you open a business bank account with Nedbank, you also get a relationship manager. You can download the Nedbank app from Play Store or App Store and start transacting your business bank account from your mobile phone.
Absa allows business proprietors to open a business bank account that grows as their business grows. These business bank accounts depend on business's annual turnover. Some of Absa's business bank accounts offer networking events and seminars that add value to business.
Read also: Best payment gateways in South Africa.
4. First National Bank
FNB provides business accounts depending on business type and sector. It is an ideal bank for digital businesses. You can access banking services through a mobile app from anywhere and at any time. It offers business accounts like specialized industry accounts and FNB Islamic Business Account.
It does not charge monthly fees and offers free business coaching and can be accessed through the FNB app.
Opening a business bank account in South Africa is important for your business. It helps you separate your personal finances and business finances. It also makes it easy to track your business finances and also pay taxes. You can open a business bank account in South African using any of the banks mentioned above.