After a successful company incorporation in Malaysia, opening a corporate bank account would be the next step before commencing any business operations. Opening a corporate bank account in Malaysia is not as tough of a process compared to Singapore.
However, different banks could be more stringent than the others and most of the time they have a different set of rules and regulation in how they apply the bank account opening process.
What is a Corporate Bank Account?
Corporate bank account is also commonly known as a business account. If you are already familiar with the term ‘current account’, then you will know that a current account has special facilities that a saving account does not, and it is designed to assist a business to manage itself and their finances better.
These facilities include:
Foreign Banking: For businessowners who travel often and wish to ensure business transactions are smooth regardless of where they are, this feature is very much helpful. With the ever-fluctuating foreign exchange rates, international transactions became much simpler and cheaper by having business bank account.
Issuing Cheque: Much like a regular savings account, a current account is where a businessowner is able to issue cheques for business purpose. This feature assist as a method to payoff debtors with high amount much easily.
Overdraft: This feature allows for withdrawals to exceed your account balance within an agreed amount. This facility is great whereby it is mostly helpful to reduce the possibilities of bounced cheques. It also gives flexible access to cash that you do not own. This means you don’t have to worry about your business not having available cash.
Is it difficult for a foreigner who owns a Company in Malaysia to open a corporate bank account?
In lieu of the recent high-profile fraud case, some banks has tightened their anti-money laundering (AML) compliance. Post Covid-19, businessowners who wish to open their corporate bank accounts are normally required to do that by visiting the desired bank branches.
However, as time goes on and more foreign investors are keen to operate a business in the country, some international banks such as OCBC and HSBC are moving towards online registration. They have also allowed corporate bank account opening to be done while the owners are not physically present in Malaysia.
This whatsoever does not include local banks such as Maybank and CIMB. These banks are normally favoured by the local due to a very low initial deposit requirement. Normally, Malaysians can straight away open a corporate bank account over the counter by presenting:
The process is more straight forward for local business owners compare to foreign business owners.