In this post, I will walk you through the simple procedures of opening a corporate or business bank account in any Nigerian bank, including the prerequisites for corporate bank accounts, the benefits of having a business bank account, and other important information.
Most people have thought about opening a business bank account in Nigeria at some point. The disappointing part is that they have no idea how to proceed.
This gets much more perplexing for non-Nigerians conducting business within Nigeria’s borders. Everything seemed Herculean, from the prerequisites to the procedures. If you wish to register a business or corporate bank account in Nigeria, this article will walk you through the steps you need to do.
Before obtaining a business bank account in Nigeria, you should have your company registered with the Corporate Affairs Commission CAC. In addition, we provide full instruction on how to register a business name with the CAC.
But, before we go into the specifics of how to register a business bank account in Nigeria, let us first show you how opening a business bank account would benefit your business in Nigeria.
THE ADVANTAGES OF OPENING A BUSINESS BANK ACCOUNT IN NIGERIA
We all start enterprises with the express intention of making as much money as possible. As a result, one of the things you must do for your business in order to optimize profits is to register a corporate account in any Nigerian bank.
The following are the advantages of opening a corporate bank account in Nigeria for your company:
- IT DEMONSTRATES PROFESSIONALISM
Having a corporate bank account shows your customers that you are serious about business. As a result, larger corporations will admire you for excelling in the business sector.
- IT INCREASES CUSTOMER TRUST.
Having a business bank account increases customer trust since people appear to feel safer sending money to a corporate bank account than to a personal bank account.
- LOAN AND CREDIT FACILITY ACCESS
Every small, medium and large-scale firm requires a loan at some time throughout its existence. As a result, one of the requirements for obtaining a loan for your business is that you have a business account, which demonstrates that you are in business. Banks are more likely to trust you if you have a business bank account.
- ACCESS TO A CORPORATE ACCOUNT
Having a business account means you now have a corporate account for your company, which comes with its own set of benefits, such as increased unrestricted withdrawals, free SMS alerts, and a greater transfer limit on internet banking, among others.
- ACCURATE TAX SYSTEM
Having a business account ensures that you are properly taxed based on your business-generating potential. Using a personal bank account may result in excessive taxation by the tax management system.
AMOUNT REQUIRED TO OPEN A BUSINESS BANK ACCOUNT
Depending on the bank, no mandatory sum is required, but be aware that to open a business bank account, a fee of ₦5000 is deducted as a legal search fee.
You provided a certificate of business registration; they will charge you that price for confirmation and all other legal actions. In addition, there is a checkbook and ATM fee (if requested). So, you’ll need at least ₦10,000 to open a business bank account in Nigeria.
OPENING A BUSINESS BANK ACCOUNT IN NIGERIA
- CERTIFICATES OF BUSINESS NAME REGISTRATION
The first stage in this process, as stated above, is to register a business name. I described how to register a business name with the Business Corporate Affairs Commission in an earlier post and in a video (CAC).
Assume you have registered your business name under which you wish to open a bank account. After registering your business name with CAC, you will be handed three documents/certificates on your road to opening a business bank account.
- BANK VERIFICATION NUMBER (BVN)
Currently, in Nigeria, with a mandate on BVN (Bank Verification Number), I will assume all bank account owners should have, for the benefit of those opening an account for the first time. BVN means Bank Verification Number, which is a custom 11-digit personal number issued to all bank account owners by their banking institutions.
- IDENTIFICATION TECHNIQUES
To open this account, you must provide a form of identity, as must your partners (if any). Identification documents, such as your ID card, Voters Card, Driver’s License, International passport, NIN certificate, etc.
- PASSPORT PHOTOGRAPH
You must have at least two coloured passport photographs of yourself and your partner (if any) of any backdrop and size, as long as your face is clearly visible.
- TWO REFEREES
This refers to persons (a current bank account owner in any bank in Nigeria, but it is better to have a current account with the bank where you wish to open the account) who will stand up for you and your business, proving legitimacy. They will be required to fill out and sign a business bank account opening form.
It is required for your account to be opened. Obtaining these referees can be difficult at times because you don’t want everyone to know you’re establishing a firm. If you have family and friends who possess current accounts, you can even speak with the employees issuing the form and work out something with them; they frequently help get referees.
- TIN (TAX IDENTIFICATION NUMBERS)
This is required for every registered business establishment in Nigeria, as well as for various business purposes and to open a business bank account.
In Nigeria, TINs are granted by the Federal Inland Revenue Service (FIRS), which has offices all across the country, thus you may receive a TIN anywhere in the Federation, and the process is simple.
If you have yet to register a business account in Nigeria for your company, please contact any of the main Nigerian banks.