The need for banking in a modern-day business environment cannot be overemphasized, the banking industry has been evolving and adapting to the changing needs of customers. Banking is an essential part of any business, as it provides the necessary financial services to run a company smoothly.
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What is a business bank account?
A business bank account is a type of bank account that is used by businesses to manage their finances. It is also known as a corporate bank account. It can be opened by any company, partnership, or sole trader. It can be opened in the name of the company or in the name of an individual who has been given authority to act on behalf of the company. The main purpose of a business bank account is to provide a safe place for your money and to make it easier for you to manage your finances.
Business account vs. personal bank account
A business account is used by a company to manage its finances. It is usually set up by the company’s owner or CEO and can be used to pay for expenses, make deposits, and transfer funds while A personal bank account is a type of account designed for personal banking needs. It can be used to manage personal finances, make deposits, and transfer funds.
Why does your business need a corporate business account?
A business bank account is a must for any small business. It is the most important financial tool for any company. It helps in managing cash flow, paying bills, and making payments to vendors. A business account or corporate account is a great way to add more credibility to your business and run your business more professionally.
A business bank account can be opened with most banks in Nigeria, but with a very rigorous process. The process of opening an account is said to be simple and straightforward, maybe for personal accounts, this is not the same for opening a business account as you need lots of paperwork to sail through. All you need to do is fill out a form and provide some basic information about your company such as the name of the company, address, contact person, etc.
Requirements for setting up business accounts in Nigeria
There are several inconveniences associated with opening a business bank account with a certain bank, such as:
- Bank Authentication Signatories of the board of directors
- Water bill, Power Holding Company of Nigeria (PHCN) bill, Lagos Waste Management Authority (LAWMA) bill, etc. for commercial addresses.
- Board Resolution allowing the account’s establishment and approving its signatories.
- Corporate account opening form signed by the company’s authorized signatories and the company’s directors.
- Work permit for foreigner
- Photographs of the signatories’ passports.
- Identification number for the organization
- The completion of two reference forms by corporate account holders.
- Addresses of the directors’ homes
- Copies of the company’s certificate of incorporation and other incorporation papers.
- Director identity documents, such as an international passport, driver’s license, etc., must be shown.
- Documentation of Special Control Unit Against Money Laundering (SCUML) registration for DNFIs.
Mobile Apps to Set up Business Account Online in Nigeria
You can set up your business account easily without having to worry about all the paperwork and bank visits listed above which are required to create your business bank account. You can create a business account using digital banking Apps such as Alat by Wema, Prospa App, Kippa app, and Sparkle.
1. Get Prospa
With Prospa you can open an account for your business in less than 300 seconds. You will get a fully operational bank business account and also have unlimited access to powerful tools to grow your business.
Account highlights
- Current account
- Cards
- Loans
- Cash deposits
- POS
- Commerce tools
- Instant support
2. ALAT For Business
ALAT is a mobile app that helps you open your business bank account. It is a one-stop solution for all your banking needs.
It is an app that lets you open a bank account in just 10 minutes. You can do it from the comfort of your home or office, and without any paperwork. All you need to do is download the app, enter some basic information, and ALAT will take care of the rest.
Account Highlights
- Multiple account beneficiaries
- Money transfers of over ₦100 million
- Bills payment and Collection
- Zero hidden charges
- Bulk Transfers
- Easy Navigation and a refreshed new look
3. Kuda Business
Kuda is a digital bank account platform that cares about your business. It has all the features you need to manage your finances and grow your business. Send invoices, make free transfers, manage multiple accounts, and more with Kuda’s easy-to-use app.
Account Highlight
- No paperwork required
- Bulk payments
- Manage multiple business accounts in one place
- Higher transaction limits to cater to your business needs
- No more spending productive hours in Banking halls and queues
- Access your account and make payments from anywhere
- Schedule unlimited payments like a pro
- Enjoy the standard 25 free transfers to other banks
- Manage all your business expenses seamlessly
- Deposits are insured by NDIC
4. Kippa
Kippa is a mobile app that allows you to create a free account number for your business. It is an easy and convenient way to manage your business. With Kippa, you can easily create an account number for your company, you can also use this app to send invoices, track expenses, and get paid in real-time.
5. Sparkle
Sparkle Business is a mobile app that helps small and medium enterprises manage their business. It has everything you need for your business at the tip of your fingers. It has invoicing, tax management, inventory management, and more. You can also use it to collaborate with your team members and clients. The Sparkle Business Account is a new account for business owners already on the Sparkle platform and has a TIN (Tax Identification Number), valid Business registration and BVN.
6. Mintyn
Mintyn allows small business owners to create a free business bank account that allows them to receive, send, and manage all payments. Take advantage of unlimited free transfers. Payments can be made at any time and from any location. Open a free business bank account online in minutes with no minimum balance requirement, account fees, or paperwork. It’s fast, free, safe, and secure.
7. Moniepoint Business account
Moniepoint is on a mission to help small business owners streamline and simplify their business finance by offering several business-friendly solutions and opening of a business account on the Moniepoint app is one.
The Moniepoint Business Account offers users a hassle-free solution to managing their business finances and also process payment receipts from clients in a corporate and professional way.
Users can open a free account on the Moniepoint app, get easily verified and start receiving payments from your prospective clients, with no hidden charges, and total control over your funds.
In just a few steps, you can have a fully verified business account that offers instant notifications and 24/7 support.
With Moniepoint, you can receive a business expense card, access business loans, and even get a POS terminal for your business in under 48 hours. It’s banking designed for your business, all from the comfort of your location.
