Starting a small business in South Africa is an exciting journey filled with possibilities, but it also comes with its fair share of challenges. One crucial aspect often overlooked in the initial stages is choosing the best business bank account. Many entrepreneurs underestimate the importance of this decision, but the truth is that selecting an appropriate business bank account can significantly impact the success and financial health of your venture.
A well-suited business bank account offers tailored services, aids in effective cash flow management, and provides vital assistance during financial hurdles. Moreover, it streamlines operations, saving time and effort that can be directed towards business growth. With features like payment management, credit access, and international transactions, a reliable business bank account acts as a backbone for your business. Additionally, it ensures proper financial management by separating personal and business finances.
In this guide, we’ll delve deeper into the factors to consider when choosing a business bank account in South Africa and compare some of the top options available.
Below we’ve listed the essential aspects to keep in mind when evaluating business bank accounts in South Africa. From account fees and transaction limits to online banking services and accessibility, researching these key features is crucial for making an informed decision that aligns with your business requirements.
Absa offers several bank accounts suitable for small businesses with an annual turnover of up to R20 million. Their entry-level Business Evolve Lite account has zero monthly fees and is available to Sole proprietors and PTY Ltd companies with an annual turnover of up to R5 million.
FNB offers several bank accounts suitable for small businesses with an annual turnover of between R0 – R60 million. Their entry-level First Business Zero account has zero monthly fees and is available to Sole proprietors with an annual turnover of up to R5 million. For PTY Ltd companies with an annual turnover of up to R5 million, a Gold Business Account costs R83 per month.
Nedbank offers a Startup Bundle for sole proprietors and private companies with a single director and a turnover of less than R3 million per year. This has zero monthly fees for six months, thereafter R70 per month.
Standard Bank offers an entry-level MyMoBiz Account at just R7 per month on pay-as-you-transact pricing. A Business Current Account is also available at R85 per month with additional support and features.
The newest entrants, Bank Zero, Tymebank, and Lula all offer a standard business account regardless of turnover with zero monthly fees. While Capitec offers a standard transactional account for all businesses at R50 per month.
Once you’ve picked the perfect business name, it’s time to make it legal and protect your brand. If you’re doing business under a name different than your own, you’ll need to register with the federal government, and maybe your state government, too.
