How To Open a Corporate Bank Account In Malaysia

After incorporating a business entity in Malaysia, one of the first things you should go about doing is to open a bank account in the business’s name. Foreigners are also permitted to open bank accounts in Malaysia as long as they have the necessary documentation. 

Related Read: Setting up a company in Malaysia »

At first glance, you may be inclined to think that it may not be necessary to open a bank account for your business. However, it is still highly recommended because it will become critical for you to have a business bank account as your business grows. 

What is a corporate bank account?

One type of bank account that is usually best fitted for business owners is a corporate account. This type of account is also known as a business bank account. A corporate bank account offers special facilities that other kinds of accounts may not necessarily offer, and it is designed in such a manner that it can assist you in managing your business and its finances better. 

This type of account is especially suitable for you if you travel often or are a foreigner and your business is based in Malaysia. A corporate bank account will allow you to cope with fluctuating foreign exchange rates and carry out various international transactions more cheaply and simply.

Having a corporate account will also make it easier for you to issue cheques in the name of your business. This will make your method of paying your debtors official.

Another facility offered by corporate accounts is that these allow you to make withdrawals that exceed your account balance up to a certain amount. This facility will go a long way in reducing the possibility of having bounced cheques, and at the same time, gives you as the business owner access to money that you do not own.

Why do you need to open a corporate bank account for your business?

Here are some reasons why it may be important for you to consider opening a corporate bank account in Malaysia for your business:

You are processing a lot of transactions

As your business grows, so will the number of your business transactions. Without a corporate bank account, it will mean that you will mix your transactions with your business transactions resulting in all sorts of complications. 

To avoid spending huge amounts of time trying to unravel your business and personal finances, it would be advisable to have a clear distinction between your business and personal transactions by having a separate corporate account.

To improve the image of your business

Your customers and other stakeholders would be less inclined to take you seriously if you started writing cheques out of your account. You might appear sketchy to them, and this could, in the long run, hurt your business’s credibility and reputation. 

A corporate bank account will make it possible for you to maintain a polished and clean image of your company, thus enhancing its longevity and future. Your business name will appear on your cheques and other payment methods with this account, thus giving your customers and clients more confidence in your business because they will know that it is legitimate.

You intend to take out a loan for the business

In a perfect world, all business owners would have all the capital required to start up and grow their businesses. However, the reality of the matter is that at one point or another, you as a business owner will be required to take out a loan to obtain the necessary funding for your business. To get a loan, it goes without saying that you will be required to have a business account to apply for a loan for your business.

What documents are required to open a corporate bank account?

• Duly completed and filled application forms from the bank of your choice
• Recommendation from an introducer (However, you may need to confirm this requirement from the bank of your choice, as some banks do not require this)
• Your company’s rubber stamp
• Photocopied identifications from your company’s authorized signatories and directors
• Certified true copies provided by the company secretary of:
  • Board of director’s resolution to open a business account and the list of all authorized signatories
  • Return of allotment of shares – Form 24
  • List of company directors – Form 49
  • Registered office address – Form 44
  • Company’s Constitution
  • Certificate of incorporation – Borang 9

Due to the rampant cases of money laundering in Malaysia, at the time of opening the corporate account at the bank, all directors and authorized persons will need to be physically present at the bank. These persons must be individuals who have not been declared bankrupt or been blacklisted by Bank Negara.

Some banks may even require to visit the company’s physical office before they can process the bank account opening application. However, this may not be the case for all banks.

Malaysia is ever on the watch to guard against terrorist financing and other illegal kinds of businesses. Therefore, to safeguard the bank from potential issues that may arise after opening the corporate account, the AMLA will be required to adhere to stringent regulations and laws and carry out various investigations on their potential clients. 

How long does it take to open a corporate bank account in Malaysia?

Depending on the amount of time that it will take for the bank to carry out its investigations on the company directors, the company itself, and the company secretary, the entire process of opening a corporate account may take approximately three months to complete. However, this processing time may take longer if you are not physically present in Malaysia, and the chance of approval is very low. Therefore, even if you are a foreigner who does not reside in Malaysia, it would be recommendable for you to be physically present in Malaysia when opening a corporate bank account.