BusinessFinance

How to open a business account in Australia?

Australia is becoming one of the favourite destinations to launch a business and open a startup. Starting from the designing companies until eCommerce industries all are planning to start their venture in Australia. Everyone is pointing fingers towards Australia as it has an abundance of natural resources, Business-amicable climate and familiar work culture. Throw in the lifestyle and laid back weather, it’s an appealing option.

During the times, when there is industrial inflation in major countries like Europe, Australia is banking, plunging forward the trend. Businesses can rely mostly on the secured and support of the government. This alone can become a highly sought-after place for a startup.

If you are among that crowd who thinks pockets of businesspeople tend to go up. Then you should think a lot about it. The primary thing to among those key ingredients is how to open a business account for that new company which you desired to set up. Don’t worry, it is not a tough task to do. It’s an easy thing to work on.

The term business account

A business account works similarly to your personal bank account. It works under the business name rather than the individual personal name. Though they are not required by a few businesses such as sole trader firm, they are a smart alternative for any niche. This tracks your daily income and expenditure, profits, tax and other general finances of your venture much clearer.

Type of business entities in Australia

Australian law accepts the following business entities

  • Company
  • Sole trader
  • Trust
  • Partnership

Each business type varies from each other. The basic rules and norms are clearly discussed on their governmental website.

Although it is not mandatory to have different business accounts, if you run a sole proprietorship, then it is a good practice to know all the transactions easily. If you have a partnership firm, company, the trust then it is compulsory to maintain a business account.

The need for a business bank account

Launching a company, trust or a partnership? Then, it is a must to have an individual bank account for the purpose of tax.
In fact, there is no necessity for a sole trader, but many proprietors opt for this. This makes an easy job for managing the admin works.
Some banks even offer privileged services to small and medium businesses who hold an account in their banks. Making them a sensible choice for sole entrepreneurs.
If you have any doubts about any of the bank procedures, you can directly contact ABN stands for Australian business number.

Opening a business account

Do you want your business finances to be in order? Then shift to a business account. Opening up a bank account primarily is an indispensable part of putting your finances in subsequent order. These accounts are offered by all the big companies and the smaller ones. There is a facility for opening a bank account with your current account, in fact, it is not a necessary thing to do. To save money for yourself, instead of looking elsewhere you can opt for the banking accounts.
To fill up the paperwork for opening the bank account, all you need to do is:

  • Opting for the best bank to meet your business daily needs
  • Prepare all the documents handy. The documents largely depend upon the business structure. ¬†Most commonly they ask for
    • Proof of identity
    • Address proof like a utility bill or bank statement
    • The registered address of your business and its name
    • Your business nature
  • Open the account by going to the bank in-person or through online. But the business people who are in the following industries need to mandatorily go to the banks:
    • Precious metals
    • Telemarketing
    • Gambling
    • Government

For all the other entrepreneurs the choice depends on you. Many banks prefer businesspeople who have a good credit history. Hence have a good credit history before heading to the bank. Banks may even inquire about your personal accounts before granting any services.

Many banks prefer businesspeople who have a good credit history. Hence have a good credit history before heading to the bank. Banks may even inquire about your personal accounts before granting any services.

Fees and charges

Some banks provide monthly fees. Other banks go for free options, though it depends on the services you opt. Moreover, these are only special offers. There is every possibility to change the fee structure after a period of time.
To lure the customers, some ever go for introductory rates that looks like a free business account. Many banks even give privileged services for 12 months as free, especially for new accounts. For all the benefits to avails, carefully go through the fine prints of banks and make a wise choice.

In addition, there are different special offers offered by banks and these vary from bank to bank. These include

  • Mobile app
  • Overdraft facilities
  • Online Bank Account

Opening the bank account as a non-resident

It is not compulsory that only the resident of Australia can open the account. Though there should be a company registered under the Australian government. If you have any further clarifications, contact the Big four banks supervisors and have your doubts clarified. Though they are many banks which comes under this umbrella term, the big four companies are NAB (National Australian Bank), ANZ Bank, Commonwealth Bank and Westpac.

Conclusion

It is a myth that opening a bank account means consuming a lot of time and involves more admin work. But for small and medium business people it is a key step to manage all your business cash flows. That is the reason, why banks even lure their customers by giving offers and 24/7/365 days support. During the tax transactions, it becomes a daunting task, if the bank account is not opened. It may even create a lot of confusion.

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