Every business should open a business bank account separate from its owner, including sole proprietors who are not legally required to. Mixed accounts make bookkeeping slow, tax season painful, and any dispute about what the business earned much harder to settle.
What banks ask for to open a business bank account
- Identification for every director or the owner
- Proof of address, usually within three months
- CIPC registration documents if you are a company
- Proof of business address
- Your tax number
- A brief description of the business and expected turnover
Requirements differ between banks and change, so check the current list before you go in. Several banks now open business accounts as part of the CIPC registration flow, which removes a trip.
What to compare
| Compare | Why it matters |
|---|---|
| Monthly fee | The number that recurs whether you trade or not |
| Transaction charges | EFT and deposit fees add up quickly on high-volume, low-value work |
| Cash deposit fees | Significant for trades and retail |
| Instant EFT clearing | Whether a payment shows the same day |
| Accounting integration | Whether statements export cleanly |
| Card machine costs | If you take payment in person |
For a business invoicing a handful of clients a month, the monthly fee dominates. For anything cash-heavy, deposit fees will outweigh it.
Put the details on your invoices
Whatever account you open, the banking details belong on every invoice you send: account name, bank, account number, branch code and the reference you want used. The reference matters more than people think. An unreferenced EFT is an unallocated payment, and unallocated payments get chased twice.
Common questions
Do sole proprietors need a business account?
Not legally, but a separate account is worth having. Some banks offer lower-cost accounts aimed at sole proprietors.
Can I use a personal account for business?
You can, and it will cost you time at tax season and credibility with clients who see a personal account name on an invoice.
How long does it take?
Often same-day where the paperwork is complete, particularly through digital onboarding.
Set your banking details once and they appear on every invoice you send.
Start invoicingDisclaimer: This content is for general information only and does not constitute legal, tax, accounting or financial advice. Always confirm important requirements with SARS, the relevant authority or a qualified professional.
