When it comes to opening a business account in Nigeria, there are a few requirements that you need to meet to ensure a smooth process.
Whether you’re a small business owner or a large corporation, having a business bank account helps you stay organised, maintain accurate financial records, and take advantage of various banking services.
Why Do You Need A Business Account for your business?
Opening a business bank account in Nigeria has a lot of advantages. A corporate bank account offers the following the following benefits including but not limited to:
- To show professionalism: A business bank account shows your customers how dedicated you are as a business owner. When your business name appears instead of your personal name during a transaction, you tell everyone you mean business.
- To build trust with your customers: Having a business bank account increases customer trust. People feel safer sending money to a business account than a personal one.
- To build credit and access loans: Every business would require a loan at some point. As a result, one of the requirements for obtaining a large loan is having a business account with a history of paying back your previous smaller loans on time. With a good record attached to your business, you can quickly get the loan you need to grow and expand.
- To get more control over your money: With a business account, you can separate your business funds from your personal funds. With this dedicated account, it’s easier for you to make smarter financial decisions and keep track of your cash flow.
- To get accurately taxed: a business account ensures you are adequately taxed based on your business-generating potential. Using a personal bank account may result in excessive taxation by the tax management system.
Requirements For Opening A Business Bank Account in Nigeria:
Now that you understand the advantages of opening a bank account in Nigeria, let’s look at the following requirement(s). Please note that requirement may vary depending on the status of your business. To open a business bank account, you will need:
- Business registration documents: You must provide proof of the company business registration, such as a certificate of incorporation, business name registration certificate, or any other relevant documents as required by the bank.
- Tax identification number: All businesses must have a Tax Identification Number (TIN) to open a bank account in Nigeria. This number is issued by the Federal Inland Revenue Service (FIRS) and is used for tax purposes.
- Business address: You must provide the bank with address of the business, including the physical location, postal address, and contact details.
- Directors or shareholders information: Depending on the type of business structure, you may need to provide details of the directors, shareholders, or partners of the business. This can include passports photograph of the shareholders, bank verification number, power holding company of Nigeria, waste management authority Lawma bill, valid international passport or driver’s license.
- Business plan: Some banks may require a detailed business plan to understand the nature of your business, including your projected income, expenses, and overall financial goals.
- Initial deposit: Most banks require an initial deposit to open a business bank account. This amount can vary depending on the bank and the type of account you’re opening.
That’s all it takes to pass the requirements and open a business account in Nigeria. With that, you’ve made managing your business’ finances organized and more professional.
With your newly created business bank account, you can access financial solutions essential for helping you grow your business and reach your financial goals. Opening a business account with Moniepoint offers you a lot of benefit and is faster as you do not need any account opening form. Click here to learn how to open a Moniepoint Business Account.
Frequently Asked Questions
How much does it cost to open a business bank account in Nigeria?
Zero. You can open a business bank account in Nigeria for free on Moniepoint.
Can I open a bank account with my business name?
Yes, it is recommended that you open your business bank account with your business name.
How long does a business bank account take to open?
Depending on the bank, it can take 1-14 days. However, you can open a business bank account with Moniepoint in less than 10 minutes.
Can I use a personal account for business?
Yes, but it comes with a lot of disadvantages. You should open and use a business account for all your business transactions.