How to Open a Business Bank Account in Nigeria
If you have a registered business in Nigeria and you want to be seen as a serious business person by clients and investors, then you must have a business bank account otherwise known as corporate account. I won’t be telling you which bank to open a business account or not because they all can do that. But what might interest you is that different banks have different and slightly different process of for opening a business account with them. So you can go ahead and open with any bank and be rest assured that it is safe and secured. If you want your business or company consummated into the Nigeria then you need a company bank account. So I will be give it the guide for foreigners on how to open a business/corporate account in Nigeria which also includes the requirements.
The Benefits of Opening a Corporate Business Account in Nigeria
Registering your business account in Nigeria had allot of advantage and some of them happens to be the fact that it will be easier for you to maintain a healthy cash flow. You will be able to work through the tax liability process for either the month, quarterly or yearly. Below are the major reasons why you should open a business account in Nigeria.
having your own business account, sure has allot to do with your company outlook and appearance. As a business owner, you always want your business to maintain a professional outlook and this is one way to make that happen. By keeping your business finances in a corporate account by opening a corporate bank account, this will altogether help you enhance your image of professionalism.
2. Accurate Tax and Deductions
With your business bank account, you can be able to file for taxes accurately. So when you take a detailed look at your business account statement, it will reflect on the record and also the figures on your tax return statement. But when you don’t fill your tax information very well then you begin to face difficulties with IRS authorities. When you mix personal expenses in the same account of your business, it becomes hard to separate taxes from it and you may fall IRS penalties.
3. Clean and Accurate Bookkeeping
you must separate your personal expenditure from your business. Don’t mix things up. You must also keep a very clean account bookkeeping. A clean record will be a very nice one. Because at the end of the year you want to be able to keep a clean records and be able to track all your dealings from the beginning of the year.
How to Open a Corporate Bank Account in Nigeria?
Like I have said before, banks have different process in opening a corporate account for you but in all, they both have same procedures and requirements. Some of the banks that operates in Nigeria do provide a wide range of services to their clients. These services includes features such as the ability to transfer funds from Nigeria to other country with and little charges, trade facilities, debit and credit card, internet banking, and multi-currency account.
Another good advantage of a business bank account, is that is allows you to easily keep track of your business expenses, manage employees pay, convey finances to investors, receive deposit payment, and plan your budget the way it ought to be.
Below are the requirements that are needed to open a company corporate account in Nigeria:
1. Select a Bank
The first step is to find a reputable bank to open a new business account. Every bank have their own unique incentives they offer their clients. So I won’t advise you just walk into any bank and open an account. Do a very diligent research and follow through. If possible, go to various banks and make your own research.
2. Get Your Paperwork in Order
when making research on the bank you want to use, find out the various paper works, and different requirements that are needed so that you won’t have any issues when opening the account. The last i remember was them asking for my tax ID number. They also asked me to bring business license or my business registration documents.
3. Fill the Application
Go to the official website of any preferred bank and fill in the application form to open the bank account. You can Download the same app by filing all the required details and then submit the same to the bank with documents that you have gathered in the second step.
4. Provide your Business License.
The bank will surely demand that you submit your official business license which was given to you after your business registration. Your business license will serve as a proof of your business legitimacy and validity. In addition, your business registration documents could also work along with a business license.
5. Provide your Tax ID Number.
Your special business Tax pin or Pin Number is required by the bank when opening a business or corporate bank account. A must.
There is also a requirement to submit your business name registered in Nigeria, usually designated as DBA “Doing Business As”. Of course, your business license and certificate of registration also has this name. Remember that while opening the account relevant references or signatories for your business account must be present in the bank. Once you follow all the steps, submit documents, and be physically present in the bank to sign all the relevant documents, your business bank account will be opened in nick of time.
Documents Required to Open a Corporate Bank Account in Nigeria
Resolution from the Board of Directors/Proprietor(s) authorizing the opening of the account and approving the account signatories
A company seal
Certified Memorandum and Articles of Association (MeMat)
Completely filled corporate account opening form signed by the company’s designated signatories
Certified true copies of incorporation documents (Form CO7)
Residential address proof of signatories and directors
Passports photograph of the signatories
Bank Verification Number of directors or proprietor
Legitimate identification document of the directors or proprietors, such as international passport, driver’s license, etc.
Tax Identification Number (TIN) for the company
Utility bill of business addresses such as the Power Holding Company of Nigeria (PHCN), water bill, Lagos Waste Management Authority (LAWMA), etc.
Special Control Unit Against Money Laundering (SCUML) registration where applicable
Special requirements such as business permit, residence permit, etc. for foreigner nationals
2 duly filled reference forms by corporate account holders
Minimum Opening Balance for a Nigerian Corporate Account
The minimum amount needed in opening a Nigerian corporate bank account varies depending upon the bank. The normal monetary sum for opening a current account ranges from N 5,000 to N 100,000.
Top 10 banks in Nigeria
The top 10 most preferred banks to open a corporate bank account in Nigeria are as follows:
Guaranty Trust Bank
United Bank of Africa
Eco Bank Nigeria
First City Monument Bank
Having a Nigerian corporate account is very advantageous for entrepreneurs who would want to have their business set up in Nigeria, especially an e-commerce business. The one way you can have your business accept and do deals in Nigeria is to have a corporate business account in Nigeria.
How to Open a Corporate Bank Account in Nigeria