Are you a budding entrepreneur in South Africa or one receiving payments from South African customers? Are you in need of a quick business bank account to help facilitate your business transactions?
In this article, we’ll look at how you can open a business bank account for your South African business in just 5 minutes.
As long as you have a registered business in South Africa, opening a business bank account shouldn’t be any stressful.
Before opening a bank account for your business, you are required to register your company with the Companies and Intellectual Property Commission (CIPC). Depending on the kind of business you want to open, you may need to submit different documents. You will typically need to submit the following documents.
- Proof of business registration with CIPC. The certificate will vary depending on the business structure you want to start
- Proof of ID of the owners or directors of the business
- Three months-banking statements for your business
- Proof of address of the business and the owners
The following are some of the top banks that offer business bank accounts if you’re looking to open a business account.
1. FNB
The best bank to use when opening an account for your sole proprietorship is First National Bank. Payments can be made at any time, anywhere. By opening a business bank account, your company will benefit from free card swipes, no monthly fees, and free business coaching through the FNB app.
Additional options for bank accounts include Gold and Platinum. You can choose a larger business bank account as your company expands and your financial requirements change.
2. ABSA
In South Africa, Absa provides bank account products for various business structures. Using your company’s bank account, you can transfer money both locally and internationally. Bank fees are paid as transactions are made.
You can develop a credit history as one of the advantages of using an Absa bank account. You can get low-interest loans if you have excellent credit. On the Absa Banking app, you can access free electronic banking. Enterprise Development Centers, a banking service offered by Absa, help SMEs expand by giving them access to capital.
3. Standard Bank
Newly founded businesses can open bank accounts through Standard Bank. The bank has a vast network of branches and ATMs and is present in 20 African nations. The bank offers discounts on its fixed monthly fees in addition to offering fixed monthly fees. There are numerous banking products, each commanding a specific cost. You must choose one that is appropriate for your bank.
4. Nedbank
All over South Africa, Nedbank has a sizable network of branches and ATMs. It is appropriate for companies that want to expand internationally because it is present in 39 different countries. They have a pay-as-you-go pricing structure.
It has a fantastic platform called SimplyBiz, which serves as a network and resource for business owners. It allows for the exchange of ideas and the discovery of fresh business opportunities. Relationship managers are available at the bank for businesses that want to expand. For your company, you can open a current or savings account.
It’s crucial to carefully read the terms and conditions before opening your business bank account in South Africa, especially the section on banking fees and charges. Take some time to research the specific charges since they might differ significantly from what you’re used to.
Monthly account handling fees and set fees for banking transactions are typical. Account handling fees range widely between banks and types of accounts, from R22 for a straightforward Absa account to R10,000 for a Standard Bank account with extra perks. Remember that these fees, despite appearing to be small, can add up over time.
