What Documents Are Required to Open a Business Bank Account – the Ultimate Guide

If you’re looking to venture into the business world, there’s no better place to do it than Australia. The country ranks among the World Bank’s top 20 most business-friendly nations, and 5^th in the Global Entrepreneurship Index.

The ever-expanding economy, stable political environment, competitive tax structure, and low setup costs make it an exceptional place for anyone looking to establish a company. Before you engage in any type of trading activity in Australia, the first thing you need to do is open a bank account.

But not any kind, though. It needs to be for business.

So, what documents are required to open a business bank account? What are the different options available? Here’s what you need to know.

Opening a Business Bank Account – Who Is Eligible

Before you can even consider opening a business bank account, the first step is to determine if you’re eligible for one.

First off, you don’t have to be an Australian national to open an account. But, if you’re opening a business bank account, you need to have a company that’s registered in the country.

Most banks allow you to apply online. But keep in mind that you’ll still have to present the required documentation at the branch later on.

What Documents Are Required to Open a Business Bank Account

Whether you’re a sole trader, in a partnership, or you have a trust, you need to open a business bank account to operate. Before going any further, keep in mind that anytime you’re required to provide identification documents or “ID,” it means providing:

1. A primary photographic document like:

• Australian or New Zealand driver’s license, or
• Passport

Or,

2. Any two of the following non-photographic documents:

• Birth certificate – Australian or foreign
• Citizenship certificate – Australian or foreign
• Centrelink health or pension card

Or,

3. Any of the following documents:

• A Territory, State, or Commonwealth-issued notice that displays your full name and residential address
• A utility bill that displays your full name and residential address. It should be issued from a utility service provider or a local government body
• An Australian Tax Office notice that displays both your full name and residential address
• Overseas driver’s license

Without further ado, here’s the account opening document checklist required for the specific type of business entity you have.

1. Sole Trader

This refers to an individual, trading under a registered business name, or in their own name. In such instances, the person is legally liable for every aspect of the business. Banks usually require that you provide:

• Your ID
• Australian Business Number (ABN) if any
• Business address
• Full name of the business
• Industry code/type

2. Australian Domestic Proprietary Company

This is defined as any company that’s listed on the Australian Stock Exchange (ASX), registered with the Australian Securities and Investments Commission (ASIC), and issued with an Australian Company Number (ACN).

The details that banks require include:

• Business name (if any)
• Address of the company’s principal place of business
• Company’s ACN
• Company’s full name as registered by the ASIC
• Full names of each of the directors
• The ID of at least one of the directors and anyone else who will operate the account
• Industry your company will operate in
• Registered company office
• Relevant tax residency information
• Income declaration – you’ll have to state whether more than 50% of your company’s income will be generated from investment activities

3. Partnership

This is a legal entity formed by two or more individuals or organizations for the sole purpose of making a profit. It needs to have a registered business name and an ABN.

The list of documents required to open this type of business bank account include:

• Original and certified copies/extract of the partnership agreement
• All relevant documents that relate to the partnership, including:
  • Business name or ABN
  • The ID of at least one of the individual partners, beneficial owner, all corporate partners, as well as that of anyone else you want to authorize to operate the account
  • Original and certified copies of minutes taken during a partnership meeting
  • Original and certified copies of the notice of the partnership as issued by the Australian Tax Office
  • Corporate partners need to provide all the documents that are relevant to their business structure. For instance, if it is an Australian Domestic Proprietary company, they need to provide the details and respective documents as listed in the section above

4. Australian Listed Public Company

A listed public company refers to a corporate entity that’s listed on the Australian Stock Exchange (ASX), registered with the Australian Securities and Investments Commission (ASIC), and issued with an Australian Company Number (ACN).

Banks will require the following details:

• Company’s full name as registered by the ASIC
• Address of the company’s principal place of business (if applicable)
• Company’s ACN
• The industry that your company will operate in
• Your ID and that of anyone else who will operate the account

5. Trusts

A trust can be regulated where it has government or regulatory oversight. It could also be unregulated like a family trust, unit trust, or deceased estate. A trust is essentially a fiduciary arrangement, where one person or entity (the trustee) holds the property or assets of another party (the beneficiary).

The documents required to open a trust bank account include:

• Original and certified copies of the Trust Deed showing all the names of trustees, the beneficiaries, the settlor, and where applicable, the amount
• In the absence of a Trust Deed, you will need to provide original and certified copies of notice as issued by the Australian Tax Office. It shouldn’t be older than 12 months
• Your ID and that of each individual or corporate trustee, beneficial owner of the trust, as well as that of anyone else you would like to authorize to operate the account
• Corporate trustees are required to provide all the documents relevant to their business structure

Open an Account and Start Trading

Now that you know what documents are required to open a business bank account, you’ll need to decide on the type of bank account you need to open.

This typically involves choosing between a business transaction or checking account, savings account, or term deposit account in your preferred bank of choice. Once you set up your account, you’re ready to get the ball rolling.

In case you need an unsecured business loan to help move things along, use our online business loan finder to put you in contact with 70+ non-bank Australian-owned business lenders. Get funding in as little as 24 hours!