Opening an account in Australia

When establishing a company in Australia, opening a business bank account is an imperative initial step. Maintaining a dedicated account streamlines financial management for companies operating in the country. This article outlines key considerations for overseas individuals seeking to open an Australian business account.

Personal accounts for foreign citizens

Local banks do not furnish personal accounts for Commonwealth of Independent States nationals. Additionally, non-residents cannot open Australian personal accounts. Leading Australian banks typically do not impose account opening fees for companies. However, substantial identification documentation must be furnished to initiate business accounts.

Banks allocate points for verification credentials presented. One hundred identification points are mandated to activate company accounts. Required credentials include:

• Passports and citizenship certifications
• Address confirmations like utility invoices or bank statements
• Driving licences, government ID cards
• Credit cards and similar company-issued identification

While Australian banks permit remote account initiation, newly opened accounts necessitate in-person verification at branches before starting any business activities.

How to set up a business bank account in Australia

When establishing an Australian company, procuring a commercial bank account is an essential consideration. Firstly, the pertinent government bodies must officially register the business entity seeking an Australian bank account. The country's regulations recognise several common structures:

• Sole traders
• Private limited companies
• Partnerships
• Trusts

Required credentials to open an account

• Entity name
• Tax File Number (TFN) – a unique identifier for interactions with tax authorities
• Australian Business Number (ABN) – the ASIC registration number
• Goods and Services Tax (GST) registration – mandatory for companies with over A$75,000 in annual turnover

Choosing an account type

Several account types suit different business needs. Key options include:

Documentation required for non-resident business accounts

It is feasible for overseas entities to initiate Australian corporate bank accounts, contingent on formally registering the business and furnishing pertinent verification materials, namely:

• Confirmation of directors’ and principal shareholders’ identities (over 25% ownership). Acceptable documents include passports, driving licences or other statutory ID. Notably, Australian banks employ a 100-point identification system, so entities must fully satisfy prerequisites to activate accounts. It is advisable to confirm requirements with the selected bank beforehand.
• ASIC business certification or certificate of incorporation. For Australian trusts, documentation verifying trust validity.
• Registration numbers (ABN, ACN, TFN). It is important: GST is mandatory for companies with over A$75,000 in annual turnover.
• Address proof like a utility bill or bank statement.
• Registered company name and business activity summary.
• For trusts or partnerships, the original or certified copy of the constituting trust deed or partnership agreement.

While Australian business account eligibility does not mandate local residency, overseas entrepreneurs may encounter substantial administrative procedures for KYC checks.

Certain banks facilitate online corporate account initiation contingent on entity type — for instance, sole proprietorships. However, most institutions necessitate in-person identity verification and account access at branches post-application.

Selecting a bank for an Australian business account

Before initiating a company account selection process, clearly define all requisite features like international capabilities, electronic payments, credit provision, overdrafts and more. Australia's "Big Four" banks offer periodic promotions for new business customers, such as temporary fee waivers.

Conclusion

While initiating Australian bank accounts may not be inherently challenging, overseas applicants must evaluate several key factors. Different providers offer varying associated business benefits and have specific non-resident requirements.

Visiting local bank branches with identification documentation forms part of the process for larger banks, even if non-residents can theoretically open Australian accounts remotely.

Account applications must be filed for entities registered in Australia. However, United States citizens should furnish tax details during the application process.

To assist further with seamlessly establishing non-resident Australia company accounts, please contact TK Deal’s specialist team.