How to Open a Company Bank Account in Nigeria

How to Open a Company Bank Account in Nigeria

Introduction

In Nigeria, opening a company bank account is not just a procedural formality—it is a legal, financial, and strategic step in setting up and running a legitimate business. A corporate bank account not only helps separate business funds from personal finances but also enables a company to access credit facilities, receive client payments, comply with regulatory frameworks, and demonstrate professionalism.

Despite its importance, many Nigerian entrepreneurs and business owners struggle to navigate the often bureaucratic and tedious process of opening a company account. This article provides a comprehensive, step-by-step guide, legal background, documentation requirements, and a real-life Nigerian case study to help new and existing businesses understand and successfully open a corporate bank account.

1. Why Open a Company Bank Account in Nigeria?

• Legitimacy and Compliance: A corporate bank account shows that your company is registered and law-abiding.

• Financial Transparency: It separates personal finances from business transactions.

• Loan and Credit Access: Required for applying for bank loans, overdrafts, and government grants.

• Customer Trust: Clients prefer paying into a corporate account than a personal one.

• Audit and Tax Purposes: Helps in tracking business income and complying with FIRS and state IRS regulations.

2. Legal Framework Governing Business Banking in Nigeria

Several laws and regulations impact the operation of business bank accounts in Nigeria:

• Companies and Allied Matters Act (CAMA), 2020

• Central Bank of Nigeria (CBN) Guidelines

• Money Laundering (Prohibition) Act

• Bank Verification Number (BVN) Regulation

• Know Your Customer (KYC) Guidelines

These frameworks ensure that only legally registered businesses are granted corporate banking privileges.

3. Types of Business Entities Eligible for Company Bank Accounts

a. Business Name (Enterprise)

E.g., Sole proprietorships, partnerships
May open a corporate account, but typically under the owner’s name with the registered business name.

b. Private Limited Liability Company (Ltd)

Must have an RC (Registration Number) from CAC
Best suited for serious businesses with long-term vision.

c. Public Limited Company (PLC)

Listed companies that meet stricter financial and legal requirements.

d. Non-Governmental Organizations (NGOs)

Registered under Incorporated Trustees and required to follow NGO-specific account opening procedures.

e. Cooperatives and Associations

Must be registered under relevant ministries or agencies and have governing constitutions.

4. Step-by-Step Guide: How to Open a Company Bank Account in Nigeria

Step 1: Register the Company with CAC

Before anything else, your company must be fully registered with the Corporate Affairs Commission (CAC).

Required documents:

• CAC Certificate of Incorporation (Form CAC 1.1 or Form CAC/BN/1)

• Memorandum and Articles of Association (MEMART)

• Status report for Incorporated Trustees

Step 2: Obtain Your Tax Identification Number (TIN)

Apply through the Federal Inland Revenue Service (FIRS) or via CAC portal (for companies registered from 2021 onwards).

TIN is mandatory for corporate account opening.

Step 3: Open a Company Email and Phone Line

Ensure the company has an active corporate email (e.g., info@yourcompany.com) and a dedicated phone number.

Step 4: Prepare All Required Documents

Commonly Required Documents Include:

Note: SCUML is issued by EFCC and mandatory for Designated Non-Financial Institutions (law firms, real estate agents, dealers in luxury goods, etc.)

Step 5: Choose the Right Bank

Criteria to consider:

• Proximity to your office

• Reputation for SME services

• Digital banking features

• Customer service rating

• Account maintenance charges

Popular Nigerian banks include: GTBank, Zenith Bank, Access Bank, First Bank, UBA, Stanbic IBTC, Wema Bank, Polaris Bank, FCMB, etc.

Step 6: Visit the Bank and Fill Account Opening Forms

You will be required to:

• Choose account type: current, domiciliary, corporate savings

• Provide two referees (some banks require companies with similar corporate accounts)

• Complete signature cards and specimen forms

Step 7: Submit All Documents and Wait for Approval

Once all documents are submitted:

• The bank performs KYC (Know Your Customer) checks

• Account is reviewed and created, typically within 48–72 hours

• Account details, cheque books, and online banking credentials are issued

5. Role of Board Resolution in Account Opening

A Board Resolution is a formal document signed by directors authorizing the company to:

• Open a corporate bank account

• Appoint signatories

• Define operating mandates (e.g., two to sign, single signatory, etc.)

It must be signed on company letterhead and kept on file by the bank.

6. Common Mistakes to Avoid

• Using expired IDs or incorrect TIN

• Submitting outdated utility bills

• Not preparing a proper board resolution

• Lack of SCUML (for regulated businesses)

• Opening an account with unclear signatory mandates

7. Case Study: Chaman Real Estate Group – Opening a Company Bank Account in Lagos

Background:
Chaman Real Estate Group registered a private limited liability company with the CAC in 2023 and needed to open a corporate bank account to begin accepting client deposits for real estate transactions.

Challenges:

• Directors were in different locations

• The company had no office yet, only a virtual address

• SCUML was required as real estate is considered a designated non-financial institution

Steps Taken:

1. CAC registration completed with clear MEMART

2. TIN retrieved via FIRS online portal

3. Directors provided passports, utility bills, and BVNs

4. Board resolution drafted authorizing account opening at Zenith Bank

5. A virtual office address was accepted temporarily with a utility bill

6. SCUML was applied for after account was opened

Outcome: The account was opened within 3 working days. The company began transacting immediately and used the account to apply for real estate partnership programs and listing platforms.

Lessons:

• Proper documentation speeds up the process

• SCUML may be required later but banks may still proceed initially

• Board resolutions and tax compliance are crucial

8. Requirements for NGOs and Foundations

In addition to standard requirements, NGOs must submit:

• Constitution or Trust Deed

• Minutes of meeting where signatories were appointed

• Certificate of Incorporation under Part F of CAMA

• Trustees’ valid IDs

• NGO-specific bank resolution

9. Maintaining a Corporate Bank Account

Once your account is open:

• Keep transaction records clean and business-focused

• Avoid mixing personal and business funds

• Monitor for suspicious activity (AML/CFT compliance)

• Ensure annual returns and tax filings are up to date

• Maintain account activity to avoid dormancy

10. Tips for Smooth Account Opening

• Work with a lawyer to prepare resolutions and vet documents

• Choose banks that understand startups and SMEs

• Have all directors present (if required) or notarize signatures

• Set up online banking and mobile alerts

• Keep scanned copies of all documents

Conclusion

Opening a company bank account in Nigeria is a critical step toward running a structured, compliant, and credible business. While the process can be paperwork-heavy and sometimes bureaucratic, proper preparation, legal guidance, and timely documentation can make the process smooth and efficient.

Whether you’re starting a real estate firm, an NGO, a tech startup, or a professional consultancy, a corporate bank account is not optional—it’s essential.

Ready to Open Your Company’s Bank Account? Start Smart, Start Legal.

Opening a company bank account in Nigeria is more than just paperwork—it’s a legal requirement and a foundation for business credibility, financial growth, and regulatory compliance.

At Chaman Law Firm, we make the process seamless and stress-free by helping you:

✅ Register your business with CAC
✅ Obtain your TIN and SCUML certificate
✅ Draft a board resolution that meets bank standards
✅ Prepare and verify all documents for submission
✅ Liaise directly with banks for faster approval

Whether you’re a startup, NGO, real estate firm, or professional service provider, we’ll guide you every step of the way to ensure your company account is opened correctly and legally.

📞Phone:  08065553671, 08096888818

✉ Email: chamanlawfirm@gmail.com

📍 Address: 115, Obafemi Awolowo Way, Allen Junction, Ikeja, Lagos, Nigeria

🌍Click here to learn more about Chaman Law Firm

Chaman Law Firm – Your Right, We Protect.
Let’s help you open your company’s bank account the right way—professionally and promptly.