How to open a business account in Australia
Last updated: 25.10.2024
Discover the step-by-step process of opening a business account in Australia
Key takeaways
- A business account simplifies financial management for sole traders, SMEs, and established companies
- When opening a business account, consider your requirements for international transactions, currency exchange, and online banking
- Security and ease of integration are critical when choosing a business account provider
- WorldFirst offers a multi-currency account for global businesses with zero setup costs, competitive exchange rates, and high security
Setting up a business bank account can help you manage cash flow. It becomes easy to track how much money is coming in and how much is going out. Through the same business account, you can streamline all of your financial transactions, employee payroll, supplier payments and customer collections.
In this blog, we walk you through the process of opening a business account in Australia. We also discuss how you can make fast and secure international transfers with WorldFirst’s global business account .
Table of Contents
What is a business account?
A business account is a special financial account for businesses. Setting up a separate business bank account makes it easier to manage smooth financial operations.
Who can open a business bank account in Australia?
Let’s take a detailed look at the common business structures that can open a business bank account in Australia:
Sole traders
A sole trader is an individual running a business independently. They are responsible for running the whole thing, though it’s also possible for sole traders to employ people.
Company
A registered company is an entity with its own legal obligations. The business owner’s assets are not considered part of the company unless the owner invests them. Companies in Australia may be required to have an ABN or ACN registration.
→ Unsure about which one your company might need? Check out our ABN vs ACN comparison.
Partnership
Various people or entities come together in a partnership to run a business without forming a separate company. Each partner can have a different share percentage and responsibilities.
Trust
A trust is a legal entity in which a trustee is responsible for carrying out business on behalf of the members or beneficiaries. A trustee can be a person or a company.
Please refer to ATO’s official website for more information.
Open a business account in Australia: Step-by-step process
Take a look at the look the steps to open a business account in Australia:
1. Decide on the main services you will require
There is no right or wrong answer when choosing the best business account in Australia. The right account for your business depends on your exact requirements and how you plan to use the business account.
Consider these factors:
- Will you make frequent international transfers?
- Do you have suppliers overseas?
- Is your business expanding internationally? Do you need to send and receive payments in multiple currencies?
- Are you currently struggling with low profit margins due to high transaction costs?
- Do you collect payments from customers in different currencies and across different regions?
- Do you prefer to manage your banking online?
2. Choose a service provider
Choose a business bank account provider with features that align with your main business requirements. More importantly, your provider should be able to support you as your business grows.
By setting up a business account with WorldFirst, fast-growing global businesses can send payments to overseas suppliers and collect payments from 100+ marketplaces and payment gateways.
With a World Account, you can pay suppliers, partners, staff and tax authorities in 40+ currencies to expand your market access and global reach.
You can also create multi-currency accounts with zero fees in 15+ currencies, including GBP, USD, CAD, EUR, AUD, NZD and CNH. You get access to competitive exchange rates, leading to improved profit margins.
3. Gather the documentation
You will be required to submit important documents related to your business for verification purposes. The exact documents required will depend on your provider.
Here are some standard documents that you will be required to provide:
Australian Business Number (ABN)
You might be asked to provide your company’s ABN for verification. An Australian Business Number (ABN) is a unique 11-digit number that identifies registered businesses in Australia, including sole traders, companies and partnerships. If your business is registered with ASIC and you already have an ACN, you will also be asked to provide that.
Tax File Number (TFN)
A tax file number or TFN is a unique number issued to businesses by the Australian Taxation Office (ATO). It is usually used for taxation purposes.
Proof of Identity documentation
You’ll also have to provide identification documents, such as your passport or driver’s licence, to verify your identity.
- Open 15+ local currency accounts with local account details
- Direct CNH payments to 1688.com
- Pay suppliers, partners and staff in 40+ currencies and 130+ destinations
- Collect secure payments from 100+ marketplaces and payment gateways, including Amazon, AliExpress, Paypal and Shopify
- Lock in currency conversion rates for up to 24 months
Factors to consider when opening a business account in Australia
Account setup process
The account setup process can give you a good idea about how the account provider handles internal banking processes. If the account setup process requires piles of paperwork, long processing times and visiting the branch in person, you may want to reconsider.
You are already busy running your business; you shouldn’t have to spend a lot of time trying to set up an account for your business.
Ideally, the setup process for your business account should be quick and straightforward.
Minimum deposit or transaction requirements
Some business bank accounts can have a minimum deposit or monthly transaction. There can also be a minimum balance requirement that you have to maintain to avoid any penalty.
If you have a new business and aren’t sure whether you can meet the minimum deposit or balance requirement, you might want to consider a business account without these limitations.
Costs
Cost may not be the only factor you consider when you open a new business account, but it will definitely be an important factor in driving your decision. Most business bank accounts have some fixed fees attached to them, which can include:
Transaction fees: It is the fees for sending and receiving payments.
Currency conversion fees: It is the fee charged when making an international transfer in a currency different from your account’s base currency. Most providers add a markup over the live exchange rate/ interbank rate. When comparing business bank accounts , make sure to review the markup offered by each provider.
While some providers transparently share their markup, others don’t. The best way to understand their currency conversion fees is by comparing the currency exchange rates through the currency convertor tool available on their website.
Maintenance and setup fees: Some providers can charge you a one-time setup fee for opening a new account and a monthly maintenance fee to keep using the account.
Introductory offers
Many business account providers promote introductory offers to attract more customers. Introductory offers can include cashback, lower fees for the first few transactions and other attractive discounts. You are probably not going to feel disappointed when signing up with a provider that values its customers right from the start.
Type of customer support
The best way to know if a business account provider cares about their customers is by checking. Ideally, the provider should have prompt support available through phone and email. You should also be able to manage your business banking processes online.
As you expand your business, you’ll often encounter roadblocks when dealing with finances and international transactions and you’ll need support. Choosing a provider that can offer support when you need it is important.
Security
Your business bank account should have a high level of security and the provider should be regulated by government bodies. Scammers and hackers are always working hard to bypass bank account security measures. So, choosing a provider that works hard to protect your business and your money is necessary.
Here are some of the major security features that your business account should have:
- Data encryption
- Multi-factor authentication
- Fraud detection and prevention
Ease of integration
You’ll have to import data from your business account to connect it to other business tools. The provider you choose should make it easy to integrate your business account with the major finance apps you use to run your business.
Multi-user access
Business accounts are not just used by the business owner. They also need to be accessible to the accountants, finance team and other employees. That’s why you should make sure your business account offers multi-user access.
Setup your global business account with WorldFirst
WorldFirst is a one-stop digital payment provider for global businesses and SMEs in international trade. We are focused on empowering SMEs to successfully execute their growth plans.
Your World Account offers numerous features, including:
Zero setup costs: There are zero charges for opening and maintaining your World Account. You are only charged for sending payments
Scale your business at your own pace: Your World Account has no minimum deposit requirement or transaction limits.
Simplify your global transactions: Send payments in 40 currencies and receive payments in 24 currencies. You can also open multi-currency accounts in 15+ local currencies, including GBP, USD, CAD, AUD, CNH, EUR and JPY, all from one account
Grow where your customers are: Collect payments from 100+ marketplaces and payment gateways, such as Amazon, eBay, Square and Stripe
Protect your profit margins: There are no charges for receiving payments into your World Account. Sending payments involve a fixed transaction fee and up to 0.6% currency conversion rate (up to 0.8% for payments on 1688.com)
Contact the support team any time: Our support team is available 24/5 via phone and email to help you with anything and everything
Your account, secured: We operate real-time fraud monitoring, blocking and alerts. Your login is secured with two-factor authentication via the Authy app
Automate integration with other apps: The World Account integrates with Xero and NetSuite, allowing you to automatically sync transactions and reduce your admin time
Give access to your team: We offer multi-user authorization, making it easy for anyone on the team to access the World Account and manage company finances
How to open a business account in Australia with WorldFirst?
Here are the steps to open a business bank account with WorldFirst
1. Gather all the important documents
Before getting started, make sure you have the following documents:
- Your company’s basic information (including your registration number, trading address, and company structure)
- A valid ID (e.g., your passport or driver’s licence)
- Your mobile phone
- Details of all current directors registered within the company
- Valid ID for all shareholders (e.g., passport or driver’s licence)
Here’s the in-depth list of documents you can provide for account verification.
2. Add the country or region of your business
Select the country or region where your business is registered using the dropdown list
3. Verify your email address
Enter your email address and click on the ‘send code’ button. Verify your email address by entering the code shared over email. Create a secure password for your account.
4. Verify your mobile number
Enter your mobile phone number and click ‘Send code.’ When prompted, enter the 6-digit verification code sent to your mobile phone number via SMS.
5. Provide information about your business
Enter your company registration number and other company details, including company name, type of business, and registered address.
6. Provide proof of identity
Select which country your ID was issued in and upload ID proof.
7. Provide information about company directors and ownership
Add details about registered directors and major shareholders, and upload the necessary documents.
Once your account is verified, you can start using it right away. You can also open local currency accounts based on your current business requirements.
Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
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