What you need before you walk into a bank
Australian banks will not open a business account without proof that your business exists and that you are who you say you are. This means you need an Australian Business Number (ABN), a form of government-issued photo ID, and proof of your current address. If your business is a company rather than a sole trader or partnership, you will also need your Australian Company Number (ACN) and a copy of your company registration certificate from the Australian Securities and Investments Commission (ASIC).
The ABN is the main hurdle for most people. You can register for one online through the Australian Business Register (ABR) website at no cost, and it takes about 10 minutes. If you are a sole trader or partnership, you can register immediately. If you are a company, you must register the company with ASIC first — that takes a few days to a week — and then register for an ABN using the company's ACN. Once you have the ABN, most banks will process your account application within one to five business days.
Bring original documents to the bank, not photocopies. Banks verify identity documents on the spot and will not accept copies for the initial opening. Your proof of address can be a recent utility bill, lease agreement, or council rates notice in your name.
Key Takeaways
- You must have an ABN before most banks will open a business account, and you can register for one free online in about 10 minutes through the Australian Business Register.
- If your business is a company, you need to register it with ASIC first, which takes a few days to a week, before you can get an ABN.
- Bring original photo ID, proof of your address, and your ABN documentation to the bank in person; photocopies are not accepted for opening accounts.
- Account opening takes one to five business days after you submit your documents, though some banks offer same-day or next-day processing for straightforward applications.
- Different banks charge different monthly fees and offer different features, so compare options before you choose — some waive fees for the first year or if you maintain a minimum balance.
The difference between sole trader, partnership, and company accounts
The type of business structure you choose affects what documents the bank needs and how quickly they can open your account. A sole trader account is the fastest: you register for an ABN as an individual, bring your ID and proof of address, and most banks will open the account the same day or next business day. You do not need to register anything with ASIC.
A partnership account requires an ABN registered in the partnership's name, but again you do not need ASIC registration. Both partners usually need to be present or provide signed authority, and the bank will ask for ID from each partner. This adds a day or two to processing.
A company account takes longer because the company must be registered with ASIC before you can get an ABN. ASIC registration takes three to five business days online and costs a fee (currently around $300 to $400 depending on the service). Once the company is registered and you have the ACN, you register for an ABN, and then you can open the bank account. The bank will need the company registration certificate, the ACN, and ID from at least one director. Total time from decision to open account is usually one to two weeks.
Where to open the account: the main banks and alternatives
Australia's four major banks — Commonwealth Bank, Westpac, ANZ, and NAB — all offer business accounts and have branches nationwide. They tend to charge monthly fees (ranging from $10 to $30 depending on the account type and features) but offer a full range of services including overdraft options, merchant facilities, and business lending products. If you already bank with one of them personally, opening a business account is usually faster because they already have your ID on file.
Regional and online banks often have lower fees or no monthly fees. Bendigo Bank, Bank of Australia, and Macquarie all offer business accounts with different fee structures. Online banks like Up and Xinja have lower overhead and may offer cheaper options, though they have fewer physical branches. Compare the monthly fee, transaction limits, and whether they offer the services you need — some smaller banks do not offer merchant facilities or business loans, which may matter as your business grows.
Credit unions and building societies also offer business accounts, usually with lower fees than the major banks. However, not all of them offer the full range of business services, so check what they provide before you commit.
Documents to bring and how to prepare them
Gather these documents before you go to the bank: your ABN (or your ACN if you are still waiting for the ABN to be issued), an original photo ID (driver's license, passport, or proof of age card), and an original proof of address dated within the last three months. A utility bill, lease agreement, or council rates notice all work. If you are opening a company account, also bring the company registration certificate from ASIC and the ACN.
If you are a partnership or company and cannot attend in person, you can authorise another person to open the account on your behalf, but you will need to provide a signed letter of authority and a copy of your ID. Some banks accept this; others require all partners or directors to attend. Call the bank before you go to confirm what they need.
Do not assume your business name is enough. Banks need to see the legal structure — sole trader, partnership, or company — and the corresponding registration documents. If you have been trading under a business name but have not registered it formally, the bank may ask you to register it with your state's business names register before they open the account. This is a separate step from ABN registration and costs a small fee (usually $50 to $100).
How long it actually takes from start to finish
If you are a sole trader with an existing ABN, the account opens in one to five business days. Most banks process straightforward applications within 24 to 48 hours if you submit everything in person and all documents are in order.
If you need to register for an ABN first, add 10 minutes online plus one business day for the ABN to be issued. If you are a company and need to register with ASIC first, add three to five business days for ASIC processing, then one business day for the ABN, then one to five business days for the bank account. Total time for a company is usually one to two weeks.
Some banks offer faster processing. Commonwealth Bank and Westpac sometimes open accounts same-day if you apply in branch with all documents. Online banks may take longer because they cannot verify ID in person and rely on digital verification, which can add two to three business days. Check with your chosen bank about their specific timeline before you start the process.
Fees, features, and what to compare before you choose
Monthly account fees range from $0 to $30 depending on the bank and account type. Some banks waive fees for the first year or if you maintain a minimum balance (often $5,000 to $10,000). Transaction fees vary: some accounts include unlimited transactions, others charge per transaction or cap the number of free transactions per month. If you process a lot of payments or receive many deposits, this adds up.
Merchant facilities — the ability to accept card payments from customers — are not always included. Major banks offer this as an add-on service with a separate fee. If you need to take card payments, ask whether the bank includes this and what the cost is.
Overdraft facilities and business loans are also add-ons. If you think you will need either, ask whether the bank offers them and what the interest rates and fees are. Some banks offer overdraft pre-approval as part of opening the account; others require a separate application later.
Online banking and mobile app features vary. All major banks offer online banking, but the quality and ease of use differ. If you plan to manage the account mostly on your phone, test the app before you commit.
What happens if your application is declined or delayed
Banks occasionally decline business account applications or ask for more information before they proceed. Common reasons include missing or unclear documents, a mismatch between the name on your ID and the business name, or a flag in the bank's anti-money-laundering checks. If this happens, the bank will contact you and explain what they need.
If your documents are unclear or incomplete, resubmit them. If there is a name mismatch — for example, you have changed your name since your ID was issued — bring a name change certificate or marriage certificate to explain it. If the bank flags something in their compliance checks, they may ask for additional information about the source of funds or the nature of your business. This is routine and does not mean you have done anything wrong; it is a legal requirement for banks.
If one bank declines you, try another. Different banks have different risk appetites and compliance processes. A bank that declines you might be overly cautious for your situation, while another bank might be comfortable with your application. You are not locked into the first bank you approach.
Frequently Asked Questions
Can I open a business account without an ABN?
No. All Australian banks require an ABN before they will open a business account. The ABN is how the bank verifies that your business is registered and legitimate. You can register for an ABN online for free in about 10 minutes, so this is not a barrier — it is a requirement you must meet first.
Do I need to be present in person to open the account?
Most banks require at least one person to be present in person for identity verification. Some banks now offer digital identity verification, which means you can complete the process online using your phone camera and ID. Call your chosen bank to ask whether they offer this option.
What if I have not registered my business name?
If you are trading under a business name but have not registered it formally, some banks will ask you to register it before they open the account. Business name registration is separate from ABN registration and is done through your state's business names register. It costs $50 to $100 and takes a few days. Check with the bank before you apply whether this is required.
Can I use my personal bank account for my business instead?
Technically yes, but it is not recommended. Using a personal account for business makes tax time harder because your accountant has to separate personal and business transactions. It also makes it harder to track business income and expenses, and it can complicate things if you are audited. A business account keeps everything separate and is worth the small monthly fee.
How much money do I need to open the account?
Most banks do not require a minimum opening deposit. However, some accounts waive monthly fees if you maintain a minimum balance, usually $5,000 to $10,000. Check the account terms before you choose — if you cannot maintain the minimum, you will pay the monthly fee instead.