How Can Foreigners Open a Corporate Bank Account in Malaysia?
Complete Process, Required Documents & Common Challenges
|
.gif) |
| |
|
For foreign entrepreneurs and investors, setting up a company in Malaysia is just the first step. The real challenge often lies in opening a corporate bank account.
Especially for foreign-owned companies, the process can be much more complex due to stricter compliance and bank-specific policies.
This article provides a comprehensive overview of the procedures, documents required, common issues, and practical tips for a smoother experience.
|
|
|
1. Precondition: Company Must Be Legally Registered
|
Before applying for a corporate bank account, your company must be legally incorporated in Malaysia.
Most businesses choose to register a Private Limited Company (Sdn. Bhd.), under the Companies Commission of Malaysia (SSM). |
| |
| |
2. Three Main Steps to Open a Corporate Bank Account
|
|
Step 1: Company Incorporation (Sdn. Bhd.)
- You must register your company with SSM before approaching any bank.
Step 2: Prepare the Required Documents
Each bank may vary slightly, but typically the following are required:
- Certificate of Incorporation
- Company Constitution / Memorandum & Articles of Association (M&A)
- Board Resolution to open the bank account
- Proof of business address (e.g., tenancy agreement or utility bill)
- Passport/IC copies of all directors and authorized signatories
- Entry permit, visa, or work permit copies for foreign directors
- Company stamp or seal
⚠️ Some banks may also require at least one local director or contact person for operational and compliance reasons.
Step 3: Bank Appointment & Due Diligence (KYC)
Banks will conduct a Know-Your-Customer (KYC) review which typically includes:
- Background checks on directors and shareholders
- Review of the company’s business nature and funding sources
- Evaluation of the company’s operational capacity
!! The approval process can take 1 to 3 months, depending on the bank and company profile. |
| |
| |
3. Common Questions & Challenges
|
|
Q: Is a local director required?
ANS:
Legally, there is no mandatory requirement for a local director.
However, some banks may request at least one local director or representative, especially for 100% foreign-owned companies, as part of their internal risk management policy.
Without a local director, you may need to submit more detailed business plans and supporting documents to justify your application.
Q: Why does the process take so long or require multiple document revisions?
ANS:
Due to strict anti-money laundering (AML) regulations, banks conduct in-depth scrutiny of all submitted documents.
Missing or unclear information can lead to repeated follow-ups and delays.
Tip: Work with a professional company secretary or consultant to ensure your documents are accurate and complete before submission.
Q: What if my company has no physical office or business activity yet?
ANS:
Banks may question the substance and legitimacy of your company. If there’s no real operation, the account application might be rejected.
Recommended supporting documents include:
- Business plan or pitch deck
- Memorandum of Understanding (MOU)
- Customer/supplier agreements or letters of intent
- Company website or social media presence
|
| |
| |
4. Practical Tips for Successful Account Opening
|
To improve your chances of approval:
- Engage an experienced corporate secretary or consultant to guide you through the incorporation and bank account opening process
- Contact your preferred bank branch in advance to confirm the latest requirements
- If possible, appoint at least one director with a valid work visa or long-term residence permit
- Choose bank branches that are more familiar and open to handling foreign-owned entities
|
| |
| |
Conclusion
|
Malaysia remains a favorable destination for foreign investors, but opening a corporate bank account for a foreign-owned company requires preparation and patience.
By understanding the process and preparing the necessary documents in advance, you can significantly increase your chances of success.
If you need personalized assistance, feel free to contact Themis Corporate Secretarial Services — we're here to support your business journey in Malaysia. |
| |