Business

How To Open a Business Bank Account in Nigeria

How To Open a Business Bank Account in Nigeria – The mode of Operation for a business account in Nigerian banks is not same as that of an individual account in terms of their specific requirements and the mandatory documentations. If you want to open a business account in Nigeria, the business is expected to be properly registered with Nigeria’s Corporate Affairs Commission (CAC) or the business is registered by other relevant agency , this might also rely on the nature of your business. Normally, a business account is grouped under tier 3 KYC level and the application documentations , requirements and process flow must abide by the CBN policy on tier 3 accounts.

Mandatory Documents for Individual Signatories in Nigeria Banks

The following list if documents are needed from individual signatories of a Nigerian business bank account ;

  • A valid primary means of Identification (ID card)
  • A means of your address verification which can be your utility bill (NEPA bill) etc)
  • 2 passport photograph
  • A correctly filled and signed mandate form
  • Your Tax identification number (TIN)

Documents Needed From a Business Before Opening a Business Bank Account in Nigeria

The following list of application documents are needed from the business owner before he can open and operate a business bank account in Nigeria;

  • Documentary evidence of the business address
  • Two references
  • Two Passport photograph
  • Valid identification of all the signatories
  • You must get a Residence Permit if you are a foreigner
  • Forms CO7 ,& CO2
  • Certificate of Incorporation or your Business Registration form
  • Memorandum & Article of Association
  • A Board resolution
  • Your Search report
  • Duly executed business Terms and Conditions

Please bear in mind that all these documents will first be verified by the bank to make sure that they are all valid, original & authentic, the bank will have to conduct a search report using your CAC certificate to properly research on the existence of your business. Bank together with their legal unit conducts this research then you will be asked to pay a total sum of five thousand naira ( N5,000) for their search. Also as a checking account, your business Bank account will be charged for the cheque booklet by the bank.

How to Open A Business Bank Account in Nigeria

To open a bank account for your business in any of the government banks in Nigeria, you need to avail yourself these process flows;

1. Register A Business Name With the Business Corporate Affairs Commission

The first step in the process flow for opening your business bank account in Nigeria, as stated earlier, is to register a business name. You should make sure all the documentations used in registering your business with the Business Corporate Affairs Commission. If you wish to open a business account in Nigeria, the business is required to be duly registered with Nigeria’s Corporate Affairs Commission (CAC) or the business is registered by other relevant agency , this might also be determined by the nature of your business. Usually, a business account is grouped under tier 3 KYC level and the application credential , requirements and process flow must keep to the CBN policy on tier 3 accounts.

Assume that you registered the name of your business and you wish to open a business bank account under it, then after registering your business name with the accrediting body CAC, they will give you three separate documents/ certificates which you will need when you are opening a business bank account in Nigeria.

2. Get A Bank Verification Number (BVN)

Presently, in Nigeria, with the mandate set on making use of BVN (Bank Verification Number) in any bank related operation for verification and authentication, it will be better to bear in mind that all bank account owners should get BVN attached to its name, for the benefit of business owners who are just opening an account for the first time. If you already have accounts, then just input your BVN. BVN stands for Bank Verification Number, and it is made up of 11-digit personal number, they are usually issued to all bank account owners through the respective Nigerian banking institutions.

3. Provide a Means of Identification

To open your business bank account in Nigeria, you are expected to provide a form of your identity, and it is also a necessary requirement for your partners in case of corporate business (if any). You should provide Identification documents, like your citizenship ID card, your Voters Card, Driver’s License, your International passport, National Identification Number certificate, etc.

4. Register With Your Passports

You are expected to make use of at least two coloured passport photographs . The passport photograph of yourself (if it is a personal business) and your partner (if a corporate business) and you can use any backdrop and size, all they need is to see your face clearly . Apart from your passport, provide a valid identification of all the signatories, you must get a Residence Permit if you are a foreigner, Forms CO7 ,& CO2, Certificate of Incorporation or your Business Registration form, Memorandum & Article of Association, A Board resolution, Your Search report and Duly executed business Terms and Conditions

5. Bring 2 Referees

This are persons who are current bank account owner in any of the commercial banks in Nigeria, note that it is preferable to create a current account with the bank that you want to open the business account. This Referees will stand up for you and for your business as well, they will verify your legitimacy. Additionally, they will be expected to completely fill out and sign a bank account opening form for your business .

6. A TIN (TAX IDENTIFICATION NUMBERS) Will Be Required

This is needed for all the registered business organizations in Nigeria, as well as for other kinds of business purposes and when you want to create a business bank account.The mode of Operation for a business account in Nigerian banks is not the same as that of opening an individual account in terms of their specific requirements and the mandatory documentations.

In Nigeria, you can get your TINs are at the Federal Inland Revenue Service (FIRS), their offices can be seen all across the country, just search for the one closest to you, thus you may get a TIN anywhere you are in Nigeria, and the application step is simple.

Final Thoughts

If you want to register a business account in Nigeria for your establishment, gather all the necessary documentations & your referees, and contact any of your preferred Nigerian commercial banks. Also note that all these necessary application documents will first be verified by the commercial bank to make sure that they are all valid, original & authentic, the bank will have to conduct a search report with your CAC certificate to conduct thorough research on the existence of your business. The bank together with their legal unit conducts this research and you will be prompted to pay a total sum of five thousand naira ( N5,000) for their search. Also since you are checking the account, your business Bank account will be charged for the cheque booklet .

Frequently Asked Questions

How do I register my business account with the bank?

If you want to open a business account in Nigeria, the business is expected to be properly registered with Nigeria’s Corporate Affairs Commission (CAC)

How much do you need to open a small business bank account in Nigeria?

Bank together with their legal unit conducts this research then you will be asked to pay a total sum of five thousand naira ( N5,000) for their search.

Reference

  • https://www.financialwatchngr.com/2021/06/14/how-to-open-a-business-account-in-nigerian-banks/
  • https://www.mondaq.com/nigeria/shareholders/972526/requirements-for-opening-a-business-bank-account-in-nigeria
  • https://nigerianinfofinder.com/open-business-account-nigeria/
  • https://www.hg.org/legal-articles/how-to-open-a-bank-account-in-nigeria-for-a-company-56396

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Onu Charity

I'm Onu Charity, a Microbiology student at the University of Nigeria Nsukka. A content writer, blogger, copywriter, research scientist and education enthusiast. Reading, writing, going on adventures and meeting new people are what I cherish. I believe self- development and purpose is key in life.

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