What Is a Corporate Account? Benefits, Tips & How to Get One

Even if you’re just starting out, keeping your business and personal finances separate isn’t just a good idea, it’s essential.

Many entrepreneurs often use their personal bank accounts to handle business transactions. This works for a while, but as your business grows, so do the risks, such as messy bookkeeping, compliance issues, and an unprofessional image that can turn off potential clients.

That’s where a corporate account comes in.

A corporate account is a bank account opened in your company’s name. It helps you manage business income and expenses, stay compliant with accounting standards, and build trust with everyone you do business with.

📖 In this guide, you’ll learn:

• What a corporate account is and how it works
• The pros and cons of corporate accounts
• The differences between a corporate account and a business account
• How to open a corporate account for the first time
• Tips on how to manage your corporate account 

Let’s get started.

A corporate account, also known as a business account or business bank account, is a bank account opened in a company’s name. It lets you manage your company’s finances by sending and receiving payments, tracking expenses, and making other business-related transactions. Some accounts also offer features like bulk payments, payroll tools, and integration with accounting or invoicing software.

Most importantly, it helps you keep business transactions and personal ones separate. This separation is essential for accurate financial tracking, simplified accounting, organised bookkeeping, and legal protection in case of audits or lawsuits.

A corporate account is more than just a place to store your funds. It’s a key tool for running your business professionally and keeping your finances organised, both essential for long-term success.

Here are five key benefits of using a corporate account:

1. Separation of business and personal finances
   Keeping your business transactions separate helps avoid confusion, simplifies bookkeeping, and supports legal and tax compliance.
2. Credibility with clients and partners
   Receiving and making payments under your company name builds trust and reinforces your business’s legitimacy.
3. Access to advanced financial tools
   Corporate accounts often include features such as bulk payments, payroll services, and integration with accounting software. They can also help build your company’s credit rating, making it easier to apply for loans or other financing solutions.
4. Easier tax reporting and audits
   Having clear, well-organised financial records makes it easier to file accurate tax returns and handle audits when necessary.
5. Support for business growth

As your company expands, a corporate account can scale with you, offering services like multi-user access, foreign currency accounts, or business financing.

If you’re a business owner, opening a corporate bank account should be near the top of your to-do list. There are many benefits to choosing a business bank account, but there are also a few drawbacks you should consider.

Depending on the legal classification of your business, you may be required to have a corporate account. Make sure to follow the laws and regulations in your country, as well as any other country in which you’re conducting business.

Corporate accounts and business accounts are both used to manage business finances, but they differ mainly in the type and size of businesses they serve:

• Business Account: A broader term used to call a bank account used by a business entity, particularly by freelancers, sole traders, startups, small businesses, and SMEs. It’s usually managed by the business owner and offers basic features like payments and expense tracking.
• Corporate Account: A bank account for larger companies or corporations, often managed by multiple signatories or a finance team. These accounts may include added support like a relationship manager and advanced financial tools.

Let’s look at the differences side-by-side.

Opening a corporate bank account involves a few key steps. While the exact process may vary depending on the country or bank, here’s a general outline:

• Step 1 - Research and choose a provider: Compare banks or fintech companies that offer corporate accounts. Consider factors like fees, currency support, online banking features, and eligibility criteria.
• Step 2 - Check the requirements: Review the documents and eligibility criteria set by your chosen provider. Requirements often vary depending on your business type, structure, and location. For example, some banks only accept applications from companies that have been incorporated and operating for at least one year.
• Step 3 - Complete the application form: Fill out the corporate account application form provided by the bank. This may be submitted online, in person, or via email, depending on the institution.
• Step 4 - Submit supporting documents: Prepare and submit the required documents such as incorporation certificates, ID copies, and proof of address for directors and shareholders.
• Step 5 - Attend an interview or verification (if required): Some banks may require an in-person or virtual interview with the company’s directors or authorised signatories as part of their compliance checks.

Once your application is reviewed and approved, the bank will open your account and provide your account details and login credentials. Keep in mind that the process may take longer than expected if your business has a complex ownership structure or if additional documents are requested during the compliance review.

Generally, banks will ask you to provide information and documents about your company, including the registered name, the nature of your business, business plan, current bank statement, proof of business address, board resolution, and company incorporation documents. 

For example, you should prepare the following when opening a corporate account in Hong Kong:

• Completed account application form
• Company incorporation documents, including the Certificate of Incorporation
• Articles of Association
• Copies of photo IDs of the directors, shareholders, and UBOs
• Proof of address
• Organisational Chart
• Other forms or documents requested by the bank

It is important to note that different banks in different countries have unique requirements and application processes. Some banks may require you to make an appointment for an interview, while some offer a virtual application process via online banking service. 

Once you’ve chosen the bank or financial institution, contact them to confirm their specific document requirements to avoid unnecessary delays.

While a corporate bank account can simplify your company’s financial operations, here are six key tips to help you manage it effectively and get the most value from it.

Many major and international banks offer corporate bank accounts as part of their corporate banking services. Like personal accounts, corporate accounts come in different types depending on your needs, like business current accounts for day-to-day use and merchant accounts for receiving electronic payments.

Start by researching different institutions, both traditional banks and financial service providers, to find the right fit for your business. Compare features like debit cards, chequebook, overdraft, fees, transaction limits, online banking tools, and the quality of customer support. 

If your business operates internationally or plans to expand, consider a multi-currency business account. It can simplify cross-border transactions and international payments and help reduce currency conversion costs.

Banks may charge several types of fees for opening and using corporate accounts, including monthly service fees, maintenance fees, and transaction fees. Some banks may waive certain fees if you maintain a minimum balance or meet other conditions.

Before choosing a provider, review the whole fee structure carefully. Look at charges for sending and receiving payments and making card payments, as these can add up quickly and impact your cash flow.

If your business deals with cash regularly, also check the costs and limits for ATM withdrawals. These small details can make a big difference in your day-to-day operations.

Many banks offer introductory offers to get you to open an account with them, as opposed to their competitors.

These introductory benefits can include bonus cash for first deposits, a monthly fee waiver if you maintain a specific balance over a period of time, and a discounted fee for opening an account.

Make sure to research and compare what each provider offers, and choose the one that best fits your needs. Keep in mind that some promotions are available for a limited time, so always check the expiry date and eligibility criteria.

Before opening a corporate account, check that the provider is authorised by a financial regulator, such as the Financial Conduct Authority (FCA) in the UK.

Also, confirm whether your deposits are covered by a protection scheme like the Financial Services Compensation Scheme (FSCS), which protects eligible deposits if the bank fails.

If you make frequent online payments, choose a provider that offers strong security features like encryption, two-factor authentication, and fraud monitoring to protect your financial data from cyber threats. For accounts with multiple users, set clear access levels and permissions. Assign roles such as administrator, accountant, or viewer to limit access and protect your funds.

Most traditional banks offer wealth management services or integrated investment platforms to corporate clients, allowing you to invest directly through your corporate account.

The common investment options include:

• Dividend Reinvesting (DRIP): Automatically uses dividends to purchase additional shares of the same stock or investment. 
• Portfolio Rebalancing: Periodically adjust your company’s investment portfolio to maintain your desired asset allocation and risk profile. 

If you're just starting out and want a smarter way to manage your business finances, Statrys is a strong option for smaller businesses looking for a simple, hassle-free solution.

Statrys offers a flexible alternative to traditional banks for companies incorporated in Hong Kong, Singapore, or the BVI. The multi-currency business account is built to support SMEs with practical features and transparent pricing, so you can manage funds across multiple currencies as your business grows.

Why over 5,000 entrepreneurs choose Statrys:

• No setup fees, minimum balances, or transaction limits
• Manage 11 currencies with a single account
• Mastercard® payment cards to track and control business spending
• FX services with competitive rates (spot and forward contracts).
• Direct integration with Xero for easy bookkeeping
• A dedicated account manager for personalised support