By the time you finish reading this article, you will understand what distinguishes a corporate bank account, plus every step necessary for you to open one in Nigeria in 2022.
Introduction
A corporate bank account is a type of financial account that is specifically created for a business, company, or profit/non-profit organization.
It is quite different from the regular accounts meant for individuals, although they technically serve similar purposes- save money.
The corporate account name would be the same as that of the business for which it is created. The business name has to be approved and registered by the government parastatal concerned with corporate activities, in Nigeria this body is the Corporate Affairs Commission (CAC).
Therefore, every business that seeks to have a designated bank account must first be registered under the CAC, with evidence of a certificate and additional documents. See a comprehensive step-by-step guide on how to open a corporate account in Nigeria.
Registering a corporate bank account in Nigeria is somewhat similar to the usual process of opening an individual bank account.
What You Need To Open a Corporate Bank Account
- CAC Certificate
- CAC Supporting Documents
- Tax Identification Number
- Board Resolution
- SCUML (for companies and nonprofits)
- BVN of Directors and Signatories
- Valid ID of Directors and Signatories
- Passport of Directors and Signatories
- Two References (usually corporate account holders)
Why You Need A Corporate Account in 2022
A business or organization is a unique entity. It is distinct from you, the owner, and your personal dealings.
Until you recognize and begin to treat it this way, you are yet to position your enterprise for any significant relevance.
Here are a few reasons you should speed up those plans of opening a corporate account for your venture.
I. A Sense Of Responsibility
Opening a corporate bank account has a way of making you feel more committed and responsible for your establishment.
It’s more of a psychological effect. I have been there, and I can tell you this for free.
When you go through the often demanding process of opening one, it shows that you are taking that enterprise of yours seriously since you have taken the step to create its own purse.
That’s respect for your business.
II. Better Customer Service
Everyone can agree that there is a greater sense of regard when you want to make payments for a good or service, and you realize that the account name provided for you is the same as the business name.
This sends a much better impression than furnishing your clients with some personal name.
This singular impression can be strong enough to keep your customers returning. After all, if you don’t take your business seriously, why should a customer do so?
And no, you do not have to wait till your business becomes big to do this. Wouldn’t you rather start preparing for the bigness you envisage?
You need to tie up every loose end and put a corporate face to that venture. Opportunity can come calling anytime. Be prepared.
III. Financial Records and Accounting
It’s easier to keep track of your income and to some extent, expenditure, when you have a dedicated account for your venture.
Financial accounting is unarguably one of the key practices for sustaining any venture.
While having a corporate account does not automatically replace proper bookkeeping and accounting, it does its bit to serve as a reference for financial transactions, especially for those carried out via the corporate account.
At the end of the month, or whenever necessary, you can quickly glance through your banking app to see details of every transaction that has taken place.
Steps to Opening A Corporate Bank Account
The opening process may vary slightly from bank to bank but in general, it’s almost the same.
See below a summary of the process in 3 steps.
A) Make A Good Choice Of Bank
When you have all requirements listed above, you must now decide on which of the banks you wish to open your corporate account with.
You can do some research and make a choice that suits your business needs and also offers you smooth operations, with as many incentives as you can get.
Yes, you need to consider incentives too; getting some profits off saving your money in the bank should be something to aim for.
Some of the commercial banks in Nigeria I could recommend now are Access Bank, GTB, and First Bank.
There are others that may surpass the banking experience of these I mentioned, so do your research well and select any good one. You do not want to have hiccups with your business account every now and then.
Once you have decided on a bank, walk into any of their branches and ask for an available account-opening officer that can guide you through creating a corporate account.
It would be great if you are lucky to meet a reliable and efficient account officer so they can be available to work with you both during and after the process.
You can have their contact and establish some official cordiality with them as your account manager, this way, you can get useful feedback or assistance with a phone call, instead of having to go to the bank.
You would be given forms or documents to take home, carefully complete, and return.
Do not forget to confirm everything you must submit along the form like passports, CAC certificates, etc.
Some banks generate an account number for you almost immediately, while others wait till the process is near done.
You may also receive both your Nigerian and foreign account numbers as an SMS or email.
B) Fill Out All Required Information
A lot of writing is needed throughout the process.
It is best practice to peruse the forms before leaving the bank and ask for clarity on any section or information that may not be clear to you.
If the account is for your small business, the process is easier. If it is for a company or organization, it is a bit more complex.
You might not need to complete every section in the form, so ask the account officer to mark the sections that are required.
It is during this form-completing process you should seize the opportunity to indicate interest in opening foreign accounts.
Most, if not every bank provides the opportunity to request accounts in foreign currencies like dollars, pounds, and euros, just by checking available boxes on the form.
Make sure you confirm that they offer these options before you begin so you don’t miss out.
When you are done, confirm that all information you entered is correct before submitting.
C) Submission & Finalizing
Next thing is to put all documents and credentials together and then submit at the bank.
Thereafter, exercise some patience while the bank carries out the due process on your information before giving you full control over your account.
You will also need to deposit some money for the account to get running.
Until the entire process is done, you can only deposit money into the account number you have been assigned, but you are restricted from other transactions like transfers and withdrawals.
How Much Does It Cost To Open A Corporate Account?
Opening a corporate bank account in Nigeria costs about N10,000.
This fee is said to account for the process of verifying that the business has been duly registered with the CAC.
It will be deducted from your account once you deposit any money into it.
How Long Does It Take To Open A Corporate Account?
Time taken to open a corporate account would vary from one bank to another.
Generally, the complete process should not take more than 4 to 6 weeks, after which you would be able to carry out both debit and credit transactions.
