How to Open A Corporate Bank Account in Nigeria?
Read all about how to open a corporate account in Nigeria.
A corporate bank account is also known as a business account. This type of account allows one to record business expenses easily, manage employees’ salaries, receive payments, convey finances to investors and plan the company’s budget.
It is important for every business owner to separate their personal account from their business account to enhance the effective running of the business.
Do you know opening a business account is more demanding in terms of its requirements and documentation than opening a personal account?
This article will discuss how to open a corporate bank account in Nigeria and the benefits of a corporate account.
Requirements to Open a Corporate Bank Account in Nigeria
Most banks in Nigeria have different step for opening a corporate account, but its requirement is still the same.
Firstly, to open a corporate account, you must consider which bank you want to create an account with. Each bank offers different services and features, so you have to research and consider which bank offers you the most convenient services.
The following are the document requisites to create a corporate bank account in Nigeria. They are;
- Fill out the corporate account opening form.
- The Board of Directors or owner of the business signatory is required.
- Certified Memorandum and Article of Association are required.
- The Director resident address is required.
- The signatory’s recent passport photograph is required.
- The signatory bank verification number is required.
- Valid means of identification such as international passport, voter card, and Driver’s license is required.
- Tax identification number for the company is needed.
- Recent utility of the business address, such as the power holding company of Nigeria (PHCN) bill is required.
- Business permit and residence permit are required for Foreigners.
- Two fill out references form by corporate account holders.
Benefits of Opening a Corporate Bank Account
The following benefits of opening a corporate account. They include;
- Increased investment opportunities
Potential investors must know that your business is running effectively. A corporate account helps keep a record of the business transaction, allowing your investors to track how the business has been running to date.
- Improved business management
Corporate accounts keep an accurate business transaction record, which helps manage spending and makes budgeting more convenient. Furthermore, with this information, the company would be able to plan for the future to increase the growth of the business and determine if the business is making a profit or loss in a long run.
No matter how large or small your business operates, a corporate account makes your business more reputable. Furthermore, clients are more likely to trust your business.
- Increase business credit score
A corporate account increases your business’s chances of obtaining loans from banks or financial companies. Additionally, you slowly increase your credit score by constantly using your corporate account for all transactions.
- Access to corporate account benefit
Unlike personal accounts, which often have restrictions, especially on fund transfer limits, a corporate account allows its customer to perform as many transactions as they want per day. Also, this account offers free or low-cost electronic transactions and better interest rates on business profits.
- Tax Audit
With cooperate account, you can easily determine your tax return and provide accurate information about your business transaction to any authority.
How much do I need to open a business bank account in Nigeria?
The minimum account opening balance is N50,000 – N100,000. Each bank has its minimum account opening balance.
Which bank is best for business accounts in Nigeria?
Best banks to open a business account
- First Bank
- Guaranty Trust Bank
- Zenith Bank
- Access Bank
- Wema Bank
- Stanbic IBTC Bank
- Union Bank
Does a company need its bank account?
Yes, a company need to have its business account.
Conclusion: How to Open a Corporate Bank Account in Nigeria
suppose you are a business owner still using your personal account for business transactions. In that case, we advise you to open a corporate bank account because it gives you access to many benefits.
According to Chas Rampenthal, “no matter what type of business you own, you should always separate your personal and business finances”.
However, when opening a corporate account, you must consider which bank offers you more convenient services.
I hope you got a lot of helpful information from this article; please share and leave your comments.