How a U.S. Company Can Open a Bank Account in Canada

Yes, but you need a Canadian tax number and proof of business registration first

A U.S. company can open a bank account in Canada, but Canadian banks will not treat you like a domestic business. You will need a Canadian business number (issued by the Canada Revenue Agency), proof that your business is registered in your home state, and usually a Canadian address or a representative who has one. Some banks require you to visit a branch in person; others allow remote setup if you meet their specific conditions.

The process takes longer than opening an account in the U.S. because banks must verify your U.S. business status, confirm you are not on Canadian sanctions lists, and establish whether you owe Canadian taxes. Plan for two to four weeks from application to account activation, depending on the bank and how quickly you provide documents.

Key Takeaways

• You must obtain a Canadian business number from the Canada Revenue Agency before most banks will open an account, which takes one to two weeks by mail or phone.
• Banks require proof of U.S. business registration (articles of incorporation, certificate of good standing, or equivalent state document) and a signed lease or utility bill showing a Canadian address.
• Some banks require an in-person visit to a Canadian branch; others accept remote applications if you have a Canadian representative or meet their cross-border criteria.
• U.S. companies typically pay higher monthly fees and face stricter transaction monitoring than Canadian-registered businesses.
• You will need a Canadian tax identification number and must file Canadian tax returns if the account generates Canadian-source income.

Getting a Canadian business number from the CRA

The Canada Revenue Agency (CRA) issues the business number that Canadian banks require. You apply by phone, mail, or through a representative. The phone line (1-800-959-5525) is the fastest route and can issue a temporary number on the call itself, though the official letter arrives by mail in one to two weeks.

To apply, have your U.S. business registration documents ready: articles of incorporation, a certificate of good standing from your state, or equivalent proof that your business is registered and active. You will also need the name and social insurance number (or business number) of the person authorized to represent the company in Canada. If you do not have a Canadian representative, you can name yourself and use your U.S. social security number, though some CRA agents may ask for a Canadian address or phone number.

Once you have the business number, keep the CRA's letter or confirmation email. Banks will ask for this as proof you are registered with Canadian tax authorities.

Documents banks will ask for

Canadian banks treat U.S. companies as higher-risk accounts and ask for more paperwork than they do for Canadian businesses. Expect to provide:

• Proof of U.S. business registration (articles of incorporation, certificate of good standing, or business license from your state)
• Your Canadian business number and the CRA letter confirming it
• A signed lease, mortgage statement, or recent utility bill showing a Canadian address (yours or your representative's)
• Government-issued photo ID for the person authorized to sign on the account (passport or driver's license)
• A letter from your U.S. accountant or lawyer confirming the business exists and is in good standing (some banks request this; others do not)
• Proof of the business purpose in Canada (a contract with a Canadian client, an invoice, or a letter describing your operations)

Banks also run background checks and verify that you are not on the Financial Action Task Force sanctions list or any Canadian government watch list. This step usually takes three to five business days.

Which Canadian banks accept U.S. companies

The major Canadian banks—Royal Bank of Canada (RBC), Toronto-Dominion (TD), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC)—all offer business accounts to U.S. companies, but policies vary by branch and account type. Some branches are more experienced with cross-border accounts than others.

RBC and TD have dedicated cross-border banking teams and are often the easiest to work with if you have a U.S. presence. Scotiabank and BMO also accept U.S. companies but may require an in-person appointment. CIBC's willingness varies by location.

Smaller regional banks and credit unions are less predictable. Some will open accounts for U.S. companies; others refuse outright. Call ahead and ask whether they accept non-resident business accounts before you gather documents.

In-person visits versus remote applications

Most Canadian banks prefer you to visit a branch in person, especially for the first account opening. This allows them to verify your identity against your passport and ask questions about your business directly. If you cannot travel to Canada, some banks will accept a remote application if you meet one of these conditions: you have a Canadian representative who can visit on your behalf, you already have a personal account with the bank, or you are opening an account through a cross-border banking program.

If you send a representative, they will need a notarized letter authorizing them to act on your behalf, plus a copy of your passport and theirs. The bank will still require you to sign documents, usually by video call or mailed signature pages.

Remote-only applications are rare but possible with some banks if you have significant business ties to Canada (a lease, employees, or a registered office). Ask the bank's business banking team whether they offer this option before you assume you must travel.

Costs and account minimums

U.S. companies typically pay higher monthly fees than Canadian-registered businesses. A basic business account for a U.S. company costs between $20 and $50 per month at major banks, compared to $10 to $30 for Canadian businesses. Some banks waive fees if you maintain a minimum balance, usually $5,000 to $25,000 CAD, depending on the bank and account type.

Wire transfer fees are higher for cross-border transactions. Sending money from your Canadian account to a U.S. bank usually costs $15 to $40 CAD per transfer. Receiving wire transfers from the U.S. costs $10 to $25 CAD. These fees vary by bank and whether the transfer is domestic (within North America) or international.

Currency conversion fees also apply if you exchange USD to CAD or vice versa. Banks typically charge a spread of 1.5% to 2.5% above the mid-market rate, meaning you lose that percentage on every conversion. Some business accounts offer better rates if you maintain higher balances or process larger transaction volumes.

Tax obligations once the account is open

Opening a Canadian bank account does not automatically make your U.S. company liable for Canadian income tax. However, if the account generates Canadian-source income—money earned from Canadian clients, rental income from Canadian property, or interest on the account itself—you must report it to the CRA and file a Canadian tax return.

Most U.S. companies use the account only to receive payments from Canadian clients and then transfer the money back to the U.S., which means the income is reported to the U.S. IRS, not the CRA. But the CRA requires you to file a return if you have a Canadian business number and any Canadian-source income, even if it is minimal.

You will also need to report the account to the U.S. IRS on Form 8938 (Statement of Specified Foreign Financial Assets) if the account balance exceeds $600,000 USD at any point during the year. Failure to report foreign accounts can result in penalties.

Frequently Asked Questions

Do I need a Canadian address to open an account?

Most banks require a Canadian address on file, but it does not have to be your personal address. You can use your representative's address, a registered office address, or even a mail forwarding service with a Canadian address. Some banks accept a U.S. address if you have a Canadian representative, but this is less common.

How long does it take from application to first transaction?

Two to four weeks is typical. The CRA business number takes one to two weeks, the bank's verification takes three to five business days, and account setup takes another three to five days. If the bank requests additional documents or you are slow to respond, it can stretch to six weeks.

Can I open an account online without visiting Canada?

Some banks allow remote applications if you have a Canadian representative or existing relationship with the bank, but most require at least one in-person visit or a notarized power of attorney. Call the bank's business banking team to ask about their specific policy for U.S. companies.

What happens if I close the account—do I owe Canadian taxes?

Closing the account does not end your tax obligations. If you had Canadian-source income while the account was open, you still must file a Canadian return for that year. The CRA may contact you to confirm the account is closed and that you have no ongoing Canadian business.

Can I use a U.S. business address instead of a Canadian one?

No. Banks require a Canadian address for the account. If you do not have one, you must use a representative's address, a registered office, or a mail service. Using only a U.S. address will disqualify your application.