Do I need a separate business bank account?
A registered company must have its own bank account, because it is a separate legal person. A sole proprietor is not legally forced to, but a separate account makes tax returns, invoicing, loans and proving your income much easier.
It also matters for government work: the Central Supplier Database verifies that your bank account is in the business's exact name.
What documents do I need to open a business bank account?
Requirements differ slightly between banks. For a company, expect to provide:
- The CIPC registration certificate (COR 14.3) and company documents
- ID copies of directors and anyone who will sign on the account
- Proof of residential address for each of those people, usually not older than three months
- A resolution authorising the signatories (some banks)
- Share register or beneficial ownership information, to show who owns the company
- Proof of the business address and a tax number
For a sole proprietor: your ID and proof of address, and sometimes proof of the business activity.
How do I choose a business bank account?
Compare accounts on what you will actually use:
| What to compare | Why it matters |
|---|---|
| Monthly fee and transaction costs | Fees add up as you start trading |
| Card and online payments | Needed if customers pay by card or online |
| Cash deposit fees | Important for retail, taxi and food businesses that handle cash |
| Accounting integration | Saves time if you use accounting software |
| Access to credit | Overdraft and business loan options later |
Why was my business bank account application delayed?
The most common reasons are missing ownership information, proof of address that is too old, names that don't match between your ID and CIPC, or a director who hasn't been verified. Banks must confirm who owns and controls the business under anti-money-laundering rules, so incomplete ownership documents are the most common cause.
Step by step
- Register the business. Register your company with CIPC, or decide to trade as a sole proprietor.
- Prepare documents. Gather company documents, signatory IDs, proofs of address and ownership details.
- Compare accounts. Compare fees, cash deposit costs, card payments and online banking.
- Apply online or in branch. Submit your application with the bank of your choice.
- Complete verification. Respond quickly to the bank's verification and ownership questions.
- Use the account for everything. Run all business income and expenses through the account.