How to open a Canadian bank account as a non-resident - Winvesta (2024)

6 minutes read

Opening a Canadian bank account could be the first step to seamless transactions and growing your global presence. Whether you're dealing in goods or services, having a local Canadian bank account will simplify payments and build trust with your clients across borders. The best part? You can do it all from India!

In this guide, we’ll break down why having a Canadian bank account is a game-changer for your business. From learning how to open an international bank account online to understanding the different options for non-residents, we’ve got you covered. So, whether you’re an experienced entrepreneur or a freelancer just getting started, discover how easy it is to open a bank account in Canada and take your business to the next level. Ready to dive in? Let's get started!

Benefits of a Canadian bank account for Indian businesses

Opening a Canadian bank account can be a total game-changer for your Indian business. Think of it as a powerful tool in your financial toolkit that opens up new doors. Let’s dive into the perks that’ll leave you wondering why you didn’t get started sooner!

Simplified transactions with Canadian partners

Imagine playing financial ping-pong with your Canadian clients and vendors. A Canadian bank account is your paddle, making sure the game runs smoothly. Here’s how it helps:

• Easy money moves: You can send and receive payments in Canadian dollars with ease.
• No more currency exchange headaches: Say goodbye to confusing conversions—handle exchange rates without stress.
• Faster transactions: Money flies between accounts faster than you can say "loonie" (that's a Canadian dollar coin, by the way).

It's like building a financial bridge between India and Canada. Your business can cross it any time, making deals and partnerships simpler and quicker.

Enhanced credibility in the Canadian market

Having a Canadian bank account is like wearing a “Trust Me” badge in the Canadian business world. It signals to partners and clients that you’re serious about doing business in the Great White North. Here's why it matters:

• Local presence: A Canadian bank account shows you’re not just passing through—you’re committed.
• Trust builder: Canadian clients are more likely to work with you when they see you banking with familiar names.
• Long-term commitment: It shows you’re not here for a quick deal—you’re in the Canadian market for the long haul.

It’s like having a local ally vouching for you. Your Indian business instantly becomes more relatable and trustworthy to Canadian partners.

Types of Canadian bank accounts available to non-residents

International business accounts

International bank accounts are an option for Indians seeking to open Canadian bank accounts. Canadian banks such as the National Bank of Canada, HSBC Bank Canada, and the Canadian Western Bank offer these solutions. You don’t need a Canadian address to open an international bank account.

Non-residents looking to open a bank account need to fulfil certain requirements. These include providing proof of identification, proof of residency, a minimum deposit or proof of income, and a tax identification number. You can ask the bank about their requirements before opening an account to ensure accuracy.

However, it’s essential to note that some banks may require a big initial deposit or a high minimum balance to open an account, and there may be monthly fees to pay. Thus, it’s crucial to research before selecting an international bank account that best fits your business needs.

Digital banking solutions

Neobanks, or online or digital banks, are financial institutions that operate exclusively online without physical branches. They offer most of the services that traditional brick-and-mortar banks do, such as checking and savings accounts, debit cards, and loans, but with the added convenience of being accessible through a smartphone or a computer.

One key advantage of neo-banks is that they tend to have lower fees and more competitive interest rates than traditional banks. They’re also known for their user-friendly interfaces, intuitive mobile apps, and quick customer support.

Wise (formerly TransferWise):

• Offers multi-currency accounts with highly competitive exchange rates.
• Provides local bank details for multiple countries, including Canada.
• Known for its transparency and low fees for international money transfers.

PayPal:

• A popular digital wallet for online banking and transactions.
• Offers buyer and seller protection for eligible transactions.
• Integrates easily with e-commerce platforms and invoicing tools.

Payoneer:

• A global payment platform offering virtual bank accounts in multiple currencies.
• Specialises in cross-border payments for freelancers and businesses.
• Provides a prepaid Mastercard for quick access to funds.

Winvesta:

• Tailored for Indian businesses and individuals dealing with international bank accounts.
• Offers multi-currency accounts supporting 30+ currencies.
• Provides local bank account numbers for multiple countries, including Canada and the US.

Stripe:

• A global payment processor that supports businesses in India.
• Seamlessly integrates with websites and apps for online payments.
• Provides tools for invoicing, subscription management, and marketplace payments.

Remitly:

• Specialises in international money transfers with competitive exchange rates.
• Offers both bank deposits and cash pickup options in India.
• Provides real-time transfer tracking and excellent customer support.

Comparison Table

Here’s a quick comparison of these payment methods based on their features, costs, and transfer speeds:

Choosing the right payment solution

When selecting a payment method, you should consider factors like transaction fees, exchange rates, ease of use, and the specific features their operations require. Platforms like Wise and Winvesta provide comprehensive solutions for international bank account opening, while options like PayPal and Stripe excel in e-commerce integration. It's important to evaluate each option based on your unique business needs and the preferences of your Canadian clients.

Remember, whether you choose a traditional bank or a digital solution, you're opening doors to new opportunities in the Canadian market. So, pick the option that best fits your business needs and get ready to say "eh" to success!

Navigating the account opening process from India

Ready to open your Canadian bank account? Let's make it happen! While it might seem tricky, we've got some tricks up our sleeve to make it smoother than maple syrup.

Document preparation

First things first, let's gather your paperwork. You'll need:

1. Two forms of ID (at least one with a photo)
2. Proof of your business structure (e.g., articles of incorporation)
3. Business license or registration
4. Tax identification number

For corporations, you'll also need to show who's boss - literally! Provide a list of directors and owners with 25% or more stake.

Remote verification options

Can't hop on a plane to Canada? No worries! Some banks offer online account opening. But heads up - you might face more restrictions or upfront requirements.

Digital banks are changing the game. They're like the cool kids of banking - all online, no branches needed. Winvesta, for example, lets you open an account with just a valid ID. No need for a Canadian address or representative.

Potential challenges and solutions

Opening a Canadian bank account from India can be like trying to catch a hockey puck - slippery! Here are some challenges and how to tackle them:

1. High initial deposits: Some banks might ask for a big chunk of change upfront. Shop around for options that fit your budget.
2. Monthly fees: Keep an eye out for these sneaky charges. Digital banks often have lower fees.
3. Verification process: Banks need to confirm it's really you. Be prepared to jump through a few hoops, like authenticating your ID if you're not there in person.

Remember, opening a Canadian bank account is just the one small step in your business adventure. With the right preparation and a dash of patience, you'll succeed in no time!

Opening a Canadian bank account can be a game-changer for Indian businesses and freelancers. It makes dealing with Canadian partners a breeze and boosts your credibility in the Great White North. Whether you go for a traditional bank or a digital solution, you're setting yourself up for success in the Canadian market.

Are you also collecting payments from the US, UK, or Europe too? We can help you set up more local accounts to receive your international payments. So go ahead, take the plunge, and watch your business grow in the land of maple syrup and hockey!