What you need to know when opening a Business Bank Account.
This article looks at the processes involved in opening a business bank account, the documents required and the time frame involved from start to finish.
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Opening a Business Bank Account in Malaysia
A business bank account is essential when you are running a company in Malaysia. As your business grows, your customers need to be assured of your legitimacy as a business and having a corporate bank account helps.
Opening a business bank account in Malaysia is not difficult. You need to fulfil certain criteria, submit all the documents requested, and wait for approval from the bank.
Different banks will have different procedures, rules and regulations and some can be more stringent than others. It is advisable to visit your preferred bank to confirm their specific requirements.
Here are some points that you need to consider when thinking of opening a bank account:
* Your business transactions are increasing each month.
* You plan to take a business loan to expand.
* You want to receive online payments from your customers.
* You need to make online payments/ cheque payments to your suppliers.
* You need to separate your business income from your other income.
* Ease of keeping proper accounting records.
* You wish to have an overdraft facility for your business for ease of cash flow.
Requirements to open a Business Bank account
You will need to visit the bank of your choice to get the application forms from them. Some banks need an introducer. Do check with your preferred bank on this. You might need to prepare the Company’s rubber stamp. This is a requirement for some banks. Once you have identified who will be the signatories to the account and the order of operation of the account, do prepare their ID documents.
You will need to inform your company secretary and have her /him prepare the following documents :
* Resolution from Board of Directors to open account & list of authorised signatories (the template resolution will be given by the bank)
* Statutory Forms that have to be certified as true copies by your Secretary (please refer to the graphics below)
* All directors and the authorised signatories must be physically present at the bank during the corporate account opening. The signatories must not be declared bankrupt or be blacklisted by Bank Negara to open a corporate bank account.
Different banks will have different requirements as to the opening of the corporate bank account. We will always advise you to visit your preferred bank to confirm the requirements.
How your Company Secretary can help you in opening your bank account?
Your Company Secretary is required to prepare the Directors' Circular Resolution in Writing that is to be provided to the Bank when you visit them for the opening process. You will need to provide your secretary with the required information :
* A sample or template of the Resolution obtained from the preferred bank
* Bank’s name, branch and address
* Type of account - either a current account, internet banking, foreign currency account, joint account, etc.
* Type of statutory forms and number of copies required by the bank
* Details of the authorised and /or approved persons to operate the bank account
* Signing conditions (to be signed jointly / solely / either one )
Time-line and other considerations when opening your bank account
Banks in Malaysia are now required to ensure stringent rules and regulations and will carry out series of investigations on their potential clients before opening a new account for a company. This is to safeguard themselves from potential issues such as money laundering, terrorism financing as well as other types of business activities that are illegal.
Banks also need to safeguard their risks against any potential defaulters. Depending on the amount of investigation and due diligence process that the bank undertakes, opening a new company bank account may take about three weeks to three months to complete.
To expedite your bank account opening, all the signatories should be physically present in Malaysia and visit the bank at least once during the account opening process. You may be required to place a deposit upon opening the account, any amount from RM1000 to RM50000 depending on your choice of bank. Certain banks will require your company to have a 'business address that is not the Company's registered office address. The business address could be any one of the director's residential address. The nature of business of the Company will also be scrutinised by the bank during the due diligence process and you may be asked to add, amend or vary your nature of business accordingly. You would also need to declare the source of funds during this due diligence process. If everything is in order, the bank will approve your application and your bank account will be opened.
If you need help in opening a bank account, you may contact us as we work closely with a few banks here in Malaysia, and subject to all your documentation is in order, and the individuals to operate your account is approved, you may be able to get your account opened without much hassle. Do contact us if you require our services, at our website www.allproconsultants.com or by submitting this form to us.