Open business bank account in Australia

One of the first things you'll need to do when starting a business is open a bank account for it. All of your financial transactions, profits, accounts payable, employee payroll, and other information will be stored in your corporate bank account.


Whether you require one or not depends on the type of your firm. It is, nonetheless, always prudent to have one. Opening a business bank account is not difficult, even for a tiny company.

business bank account in Australia

What does business bank account mean?

Company bank accounts and corporate bank accounts are other names for business bank accounts. They all have the same meaning, though. A business bank account is a separate account that has been set up specifically for your business. It's where you keep track of your company's finances. You can also use this page to manage your other bills. This could cover anything from payables to payrolls to credit card payments.

Similar to personal accounts, a corporate account can be a checking or savings account. It enables you to separate your personal and professional accounts. Additionally, having a company bank account comes with a slew of benefits (from the time of opening a business account to using a corporate account).


Your bank account and bank of choice will be chosen by your requirements. Regardless of how small a company is, it is necessary to open a business bank account. Many banks give additional assistance, including specific incentives, for small company bank accounts. As a result, there's no such thing as creating a corporate bank account "too early."

business account in Australia

How does it work?

Business banking is distinct in that it is specifically designed to assist businesses and corporations in making the best financial decisions possible. As more businesses choose to open a corporate bank account, the area of business banking is rapidly expanding. The goal is for these financial institutions to assist large and small firms in making better use of their assets and making prudent financial decisions based on their current balances and creditworthiness.


Business banking safeguards your company's status, which is one of the most crucial features. For LLCs and corporations, business bank accounts serve as proof of their legitimacy. As a result, banks will offer your business more services. Small-term loans, low-interest credit allowances, spending management advisory, and payroll administration are just a few of the services available. Business banking is also safer and more fraud-resistant.

6 things to consider when opening business account

Opening process and account set up

Long processing time delays and truckloads of paperwork are antiquated procedures. For firms to open corporate bank accounts, banking systems today offer highly well-regulated and automated processes. Make a note of which of your selections has the finest method for setting up a company bank account when deciding where to register a corporate account. Check if you have all of the necessary documents to open the account.

Spend requirements

Many bank accounts have a minimum deposit requirement that must be met before the account can be opened. There may also be a minimum balance that you must maintain to avoid fines. However, this isn't limited to receiving funds. Some banks have a minimum expenditure requirement for accounts, depending on the type of account. If your business is just getting started, choose a bank with fewer requirements and a lower cost.

Accessibility

A company bank account is not only accessible to the individual whose name appears on the documents. Your finance team, accountants, compliance staff, and some employees will need access to bank facilities. It's always a good idea to have a banking system with a powerful and easy-to-use web interface. Make sure they have a mobile app so that staff can access information even when they're on the go.

Additional features and perks

Financial institutions understand how important it is to provide as many benefits to businesses as possible. Business bank account holders have a variety of extra benefits, especially if they open an SME bank account. Accounting integrations and collateral-free corporate cards are just a few examples, as are better interest rates and expenditure analysis capabilities. Examine the advantages and perks that your bank provides to businesses that create an account with them.

Costs

Opening a business account is frequently accompanied by costs. Transaction fees, international currency exchange costs, and even fines for failing to maintain a minimum balance are examples. If you want to run your business with the least amount of collateral feasible, go with a bank that has the best fee offers and the lowest fees. Also, see if your company qualifies for any fee waivers; having a free business bank account is always preferable.

Transaction rules

Many advantages come with a business bank account, and these benefits are based on the assumption that you would use the account. Your business's bank savings account may have deposit limits that must be adhered to. If you choose a business checking account, you may be required to complete a minimum and a maximum number of transactions (or transactional amount). Before picking which accounts to open, carefully review the transaction rules for each option.

What are requirements to open a business bank account in Australia?

Employer information

To open a business bank account in Australia, you will need your ABN/ACN number handy. You will also need copies of your share certificates, director appointment documents, and company constitution. 

Personal identification

The business owner needs to provide personal identification to open an account in their name. The form of ID will depend on your country of residence and country of operations, but it will need to be a government-issued identification that is not expired.


Copies of the business owners’ passports, birth certificates, Medicare cards, and utility bills should suffice (and will depend on the bank you choose). These need to be provided for every entity having more than 25% holding. Banks in Australia use a point system to approve a corporate account application, and this goes towards the 100-point system.

Business registration documentation

This is the documentation that proves your business entity is registered with the authorities. It could be a tax certificate, an LLC registration document, as well as proof of office space purchase (if your business has an offline office). Your bank will need this to ensure that you are a legitimate business trying to open a corporate account. Your company should be registered under the Corporations Act 2001 (Cth).


You will also need to provide additional documentation depending on what type of company you have. For instance, public companies need to show their listing on the Australian Stock Exchange, as well as register with the Australian Securities and Investments Commission. Trusts require to show their registered investment scheme.

Ownership and partnership agreements

The best business bank accounts make room for your business to grow and expand. This includes partnerships. If you share your business with other entities or have entities with a controlling amount of shares, then that legal paperwork is required by your bank. This is purely to ascertain how will be controlling the funds and making authorizations.

Licensing information

Is your company registered? This, of course, is dependent on the industry in which you work and the country in which your headquarters are located. Some licenses are unique and must be obtained after you have established an account. However, some permits must be secured prior to your company's registration. These permits must be given when your company bank account is opened.

Brand and company certifications

Some banks and local laws demand a "doing business as" certificate if your company's registered name and branded name are different. This will be required by your bank, especially if your company has many sub-brands.

Credit score information

Your application will include a credit score if your company has one. If you are creating an account for the first time while starting a business, the credit score of the account owner (the business owner) may be needed.

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Steps to opening a corporate bank account in Australia

1
Do your research

Before deciding on a bank, carefully consider all of the available options, advantages, and costs. When opening a corporate bank account, it's critical to conduct your homework on your current status and how you see your company expanding in the future.

2
Decide which bank you will opt for

Once you've picked the bank you want to create an account with, research all of their options. It's much better if you can chat with a bank person.

3
Decide the type of account you will open

Decide if you'll open a business checking or savings account first (or both). Always consider the interest rates and fees associated with each option.

4
Gather the required documentation

Make a list of all the essential paperwork once you've decided what kind of account you want. So that there are no surprises or delays once you've filed your application, get them as soon as possible.

5
Fill out the application

Complete the application fully and accurately. Provide as much information as possible, and be as specific as possible. If your data is right, your bank will process everything more quickly.

6
Deposit the required amount

As with most accounts (especially savings), there needs to be a nominal deposit made to open the account. Gather the funds for this and write the check that meets these nominal requirements. Many banks in Australia cater to SMEs and have no minimum balance requirements, so look for those!

7
Activate your bank account

Your task isn't done once you get confirmation that your account has been opened. It is necessary for you to use it to activate your account. Prepare to use your account by familiarizing yourself with the banking services (both online and offline).

What are the charges and business banking fees?

Administration fee

This is the operative fee your bank charges for owning the account. It might be charged monthly or annually. On average, the range of monthly fees in Australia is between 10-25 AUD. Many services also offer free business bank accounts.

Cash payments

Charges may apply to cash deposits and withdrawals from the account (as well as charges for ATM usage).

Automated payments

Pre-approved payments or recurring transactions may incur fees at some banks. If this is the case, contact your bank.

Manual payments or checks

Checking processing and manual deposits can both be expensive. Take a look at these costs ahead of time.

Minimum balance charges

If your savings account falls below the minimum balance threshold, you may be charged a fee. Make sure this price is within your budget, especially if your cash flow is slow.

Overdrafts

Is overdraft protection available on your checking and credit accounts? Is swiping into a negative balance permissible? Recurring payments might easily put you in danger of going into debt. Check your overdraft costs to make sure they aren't too high.

Additional services

Some premium services (such as specialty cards, insurance, upgrades, advisory, and report preparation) can be charged. If you want to open a low-cost or free corporate account, check with your bank to see if such services are required.

International transactions

Exchange rates, receiving bank costs, administrative fees for the wire transfer provider, and other factors come under the international transaction fees. Have an idea of how much it costs to transfer or receive money from another nation (particularly if you frequently pay for it).

5 advantages of having business bank account

Separating your personal and business finances

The largest and primary benefit of opening a corporate account is to separate your personal and business finances. Your payroll and your household expenses don’t need to be mixed. Everything pertaining to your business is handled separately, and can also be analyzed separately. Credit scores are also separated so that your personal creditworthiness does not have an impact on your business (or vice versa).

Accepting various types of payments

Accepting payments to a personal account can be tricky. Sometimes it needs to be an NEFT/SWIFT transfer, or through a payment application. But many of your clients and customers might need to make card payments to you. A corporate account lets you accept debit and credit card payments, which not only expands your market but also makes your customers’ lives easier.

Professionalism for your company

From a brand reputation perspective, having a business bank account can improve your credibility. Customers are more likely to make payments to an account that is registered as a legitimate business, instead of a personal account. Employees’ salary slips and payroll make their tax filing streamlined. Additionally, all invoices, receipts, and reports can be generated in the name of your business.

Ease in acquiring financing

Having a corporate bank account creates a very clean money trail for your business. This comes in handy for compliance, audits, and also when applying for loans and investors. Having a no-nonsense record of your company’s payments improves your legitimacy as a business.

Accessibility for partners and employees

A corporate bank account lets you share the account with your partners and employees without having to hand over any personal assets. Everything related to your company’s finance can be easily accessed by authorized people, and you can have a transparent system for efficient business transactions.

Business bank account: When to open it?

Opening a company bank account is never too early. You can open an account as soon as your business has been registered and the appropriate licenses have been received. Some specific permits may even necessitate the creation of such an account. If you're going to form a partnership, you'll also need a business account.


Starting early ensures a clean audit trail from the outset. Many banks have special packages and deals for small businesses, so you don't have to be a unicorn to open one. Just keep in mind that if you want to grow your business, your financial institution should be able to accommodate your needs.

business bank account

Volopay is the best business account in Australia


Line of credit

Volopay offers credit facilities to your business. This credit can be availed in the form of pre-loaded credit cards, or even applying for business credit through the Volopay portal.


Unlike a bank that requires extensive documentation and credit history, this credit line is entirely dependent on your transaction and growth predictions. The billing is also done on the same platform, all while adding to your business credit score.

credit line
Corporate cards

Instead of giving your employees access to a plethora of debit cards, you can give them corporate credit cards with Volopay. They are far more secure and protected from fraud.


You can give your employees physical credit cards if they frequently make offline payments - and an unlimited number of virtual credit cards for online transactions. If your business needs to make SaaS payments, or other recurring payments, these virtual cards can be used for vendor-specific payments.

virtual cards
Integrate with accounting software

Even if you choose an excellent banking plan, there are high chances that it may not come with accounting integrations. The automation of accounting has become vital for businesses and having to externally download data only makes the process more cumbersome. 


Volopay allows you to integrate your accounting software directly with the portal so that data is transferred directly without manual entry. Volopay also integrates with some HR software that manages payments, such as payroll facilities.

accounting integrations
Transparency on spending

Since Volopay is software, everything takes place in real-time. If an employee requests reimbursements, pays a vendor or swipes a card - all data is updated as these transactions take place.


The ability to give all your employees accounts also means that multiple people can access this information, analyze data, and generate reports in a collaborative and streamlined manner. Volopay also has a mobile app so that employees can view their accounts on the move.

real time access
Bill Pay

Volopay’s Bill Pay features work better than a bank account. A centralized location for all your finances, it eliminates the need for multiple bank accounts in different locations. Regardless of where your company is located or how many branches it has, your business can access an eagle-eye view of all its funds from a singular interface.


Moreover, the Bill Pay feature allows you to make a variety of payments at the lowest possible fees. International transactions occur at competitive exchange rates, with significantly lower charges compared to wire transfers (and lesser time!). Your company policies can be assigned to transactions to manage accounts payable in compliance with audit requirements. Budgets can be applied to different departments. It is a one-stop shop for your business banking needs.

bill pay

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