Canada corporate bank accounts in 2024

Since 2003, Healy Consultants Group helps multi-national Clients open multi-currency corporate and personal bank accounts in Canada for local and overseas companies.

Without bank signatory travel, our banking team will project manage the multi-currency corporate bank account opening process, including preparing a quality business plan for our Client’s business.

We recommend our multi-national Clients read this web page to avoid bank surprises later!

• Canada banking problems and solutions

  No	Canada banking problem	Healy Consultants Group solutions
  1.	Bank insists the signatory travels to Canada for a one-hour bank interview.	Healy Consultants Group’s Client travel policy will apply. Our staff will organise the bank meeting in our Canada affiliate’s office and assist our Client during the bank interview(s). Alternatively, where possible, Healy Consultants Group’s banking team negotiates with the Canadian bank to have our Client visit the bank’s international branch in their country of residence.
  2.	Canada corporate bank account opening for a new company is difficult when shareholders, directors and bank signatories live outside Canada. Global banks continue to tighten corporate bank account opening procedures and their internal compliance departments are completing more thorough due diligence of Clients. Consequently, our Clients should expect Canada bank account approval to take up to four weeks.	Healy Consultants Group will prepare a quality business plan for the Canadian bank to raise the probability of account approval. If our Client requires a bank account at short notice, we recommend an immediate Canada company plus already-approved international corporate bank account.
  3.	Like in most countries, Canadian banks often close corporate bank accounts without giving an open, transparent reason to their customers. To close a bank account without giving the bank signatory an opportunity to explain ‘unusual transactions in the account’ is unfair and unreasonable, and places our multi-national Clients’ businesses under stress.	We recommend our multi-national Clients open multiple multi-currency corporate bank accounts for their entity. It is unwise to open one corporate bank account and have their business be dependent on one bank.

• The Canada banking sector

  Healy Consultants Group summary view:

  We believe Canada is a stable, reputable country in which to keep funds because:

  • The Central Bank has a reputation for being one of the world’s most respected banking and financial system regulators. For example, in March 2020, the central bank provided a liquidity facility for Canadian banks to access to fund new lending to mitigate the potential impacts of the Covid-19 pandemic.
  • Canada’s banks have proven resilient to the Covid-19 economic shock. In Q1 2021, Canadian banks performed better than in the same period of 2020. The country’s six-biggest lenders reported year-on-year growth in net income of between 3% and 26%. In practical terms, this helps Canadian banks provide finance to businesses in Canada in 2021.
  • Canadian banks are considered some of the world’s most stable (see page 45 of the report). There is an extremely high degree of confidence in the Canadian financial system and its ability to withstand challenges.
  • The Canadian Deposit Insurance Corporation insures Canadian bank deposits up to C$100,000 should a bank fail. Only two banks in Canada have failed since 1985.
  • Canada’s economy is forecast to grow at 5.5% in 2021. This will underpin demand for bank products such as loans and mortgages from businesses and individuals. The ability for loans to be repaid will increase.

  • Despite the above, in 2021, Canadian banks remain vulnerable to risks including i) cyber-attacks, ii) an economic downturn in Canada caused by a global recession and iii) bad debts if customers are unable to repay loans. Fighting cybercrime is expensive and hurts bank margins. Canadian banks have spent billions of dollars on security technology over the last decade.

  • Standard & Poor’s (S&P) sovereign credit rating for Canada is AAA with a stable outlook. Moody’s is Aaa with a stable outlook. Fitch’s rating is AA+ with a stable outlook. See more data on Canada here.

• Key information on the Canada banking sector

  • The Office of the Superintendent of Financial Institutions (OSFI) regulates and supervises i) 35 domestics banks, ii) 17 foreign banks, iii) 27 full-service foreign bank branches and iv) four foreign bank branches offering lending services. View this full list of local and international banks operating in Canada.
  • We recommend our Clients open their business bank account in Canada with a bank with which they already have a relationship in another country. This is because it is difficult to open business bank accounts for shareholders, directors and bank signatories living outside the country. Approaching a familiar bank might i) reduce the time required to open the account (you should still budget for four weeks to receive account numbers), ii) reduce the bank’s internal compliance checks, meaning less paperwork to complete and submit and iii) allow our Clients to enjoy lower/waived international funds transfer fees.
  • If our Client does not have an existing relationship with a bank, there is a strong chance that the shareholders, directors and bank signatories will have to travel to meet the bank in Canada for a one-hour interview. In such cases, Healy Consultants Group offers a workaround solution to our multinational Clients, and we can secure bank account numbers in just one week using this strategy.
  • Among the international banks present in Canada, we recommend i) Citibank, ii) Barclays and iii) HSBC. Alternatively, there are many local Canadian banks offering excellent bank accounts, including i) Scotia Bank and ii) Royal Bank of Canada. All of the above, and most other banks in Canada, offer multicurrency accounts. Bank customer service is usually very good, internet banking is excellent and all communications are in English (and French).
  • Canada is one of the world’s easiest places to get credit. Canadian banks support start-ups and investment projects in the country. To support a funding application, the bank will require i) a well-prepared business plan which includes a feasibility study, ii) evidence of the availability of collateral assets, iii) evidence that the business owners and management are qualified in the sector in which the investment is being made, iv) last three years’ audited financial statements and v) a detailed review of the project’s strength, weaknesses, opportunities and threats (SWOT matrix).
  • Healy Consultants Group will assist our Clients with to obtain corporate finance in Canada, including i) a loan, ii) overdraft or iii) preferential credit terms.
  • In addition to corporate finance, our in-house consultants may also provide our Clients with assistance to secure trade finance services including i) bank guarantees, ii) letters of credit, iii) finance against trust receipts (for imported goods) and iv) documents against payment and against acceptance.
  • Contactless payments are widely accepted in Canada. Nearly all payments can now be made by tapping a card or smartphone. There has also been an explosion in the number of digital banks operating in Canada. Expect the choice and convenience of digital banks to replace conventional banking services in Canada in the next few years.
  • Since 2018, Canada is a signatory to the Common Reporting Standard (CRS), a global initiative to clamp down on tax evasion. As a result, banks in Canada share information on accounts and account holders with tax authorities where the company/individual is a tax-resident.
  • Similarly, under the Foreign Account Tax Compliance Act (FATCA), Canada banks report information on US account holders to the US Inland Revenue Service (IRS).

• Foreign exchange obligations in Canada

  • Canada has no foreign exchange controls. There are no restrictions on the transfer of capital, profits, dividends, royalties or interest into, or from, the country.
  • However, international funds transfers over US$10,000 are monitored by the Central Bank and FATCA.

• Healy Consultants Group fees to help open a corporate bank account in Canada

  Healy Consultants Group guarantees Canada company bank account approval. Our fees for different banking services include:

  Canada banking service	Our Client travels	US$
  Canada bank account for a foreign company	No	5,950
  Canada bank account for a Kuwaiti company	No	4,950
  Canada personal bank account	No	4,950

Conclusion

Canada multi-currency corporate bank account opening is easy if you know how. Contact Healy Consultants Group if your firm needs assistance navigating through the different banking solutions.