Crucial for starting and operating a business in Botswana, a bank account is very important. A corporate bank account allows paying employees and suppliers, receiving payments from customers, and keeping all records compliant with the regulations. The procedure for opening a business bank account in Botswana is very simple but businesses have to comply with all requirements set forth by the country’s banking laws and regulations.
How to pick the best bank
The decision to set up a business bank account in the country of Botswana is initiated with the selection of a suitable bank. Some of the agents operating in Botswana include reputable national and foreign banks such as First National Bank (FNB), Standard Chartered Bank, Absa Bank, Stanbic Bank, and Bank Gaborone. These banks offer services to match merchant services, foreign exchange solutions, online banking services, as well as various types of corporate accounts. For businesses, the last but most important factors are availability of specific products for the business, digital banking capability, customer service, costs, and the location of the financial institution.
Types of available business accounts
Current and savings accounts are the two main business record types offered by the majority of banks in Botswana. Businesses that need to make payments and deposits on a regular basis are better off using a current account. A few banks also provide customized solutions for startups, NGOs, big companies, and small enterprises. Additionally, these accounts could include check books, multiple user access, and overdraft protection. Businesses should evaluate their financial demands and choose the sort of account that best meets their operational needs.
Requirements and supporting materials
Certain documents must be provided by the business in order to confirm its legal status and the identification of its directors and shareholders before opening a business account. Although the specific criteria could vary somewhat from bank to bank, they often consist of the following:
- The incorporation certificate authorized by the Companies and Intellectual Property Authority (CIPA)
- Certificate of company name (if any)
- Articles of association or the company’s constitution
- Resolution of the board of directors appointing the signatories and approving the bank account creation
- Valid identity for all directors and authorized signatures, such as national ID cards or passports
- Verification of the directors’ and signatories’ addresses (lease agreements, utility bills, etc.)
- Botswana Unified Revenue Service (BURS) certificate of Tax Identification Number (TIN)
- The company’s ownership structure shown in the CIPA shareholding report.
- If appropriate for the kind of company, a business or trade license
Certain banks may additionally do a Know Your Customer (KYC) interview and request further paperwork, such as contracts, a business plan, or evidence of financing, particularly for startups.
How to set up an account
To start the record opening procedure, the director or business representative must go to the selected bank after obtaining all required paperwork. A lot of banks demand that the directors or authorized signatories be present when the application is being submitted. Filling out and signing account opening paperwork will be provided by the bank. The bank will evaluate the application when the paperwork has been submitted and the KYC procedure is finished. If everything is well, the account is typically created in a few working days, and the business will get the account information along with any necessary documents.
Account activation and the first deposit
A minimum deposit is needed to open a business account with the majority of Botswana’s banks. It is contingent upon the kind of account chosen and varies from bank to bank. For new or small enterprises, certain banks may provide zero-deposit accounts as part of special promotions. The account is activated and made available for usage when the first deposit is completed. After that, businesses may apply for merchant terminals, use internet banking to make transaction monitoring simpler, or connect the account to their accounting software.
Retaining the account
The business has the obligation of keeping the record in good standing when it is established. Make sure there are enough funds to cover charges and transactions, that the account doesn’t become inactive, and that all transactions adhere to anti-money laundering regulations. Additionally, companies should notify the bank of any changes to their contact details, directorship, or ownership. Account limits or closures may follow from inaccurate record-keeping.
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