The business landscape has changed after Covid-19. The new norms disrupt the old foundation, yet it opens up new possibilities. You may be thinking of setting up a new business entity or expanding your business.
An army marches on its stomach and a good business banking service provides the necessary support for your business plan.
What are the Benefits of Business Bank Accounts?
You have recently set up your company, and so you might think: “Why not just utilise my personal account for business purposes? Why trouble myself with opening a business bank account?”.
Hold on a second. Mixing up personal and business accounts can cause a whole host of issues. While you may think using your personal bank account would be easier, maintaining a separate business bank account would help keep better records which is very important.
With a dedicated business account, you can keep track of every transaction. If you want to expand the business, good bookkeeping records will also help your bank decide whether you qualify for a business loan.
Moreover, you may be eligible for government assistance, especially under volatile circumstances such as the COVID-19 pandemic. Your business bank account details may help you in preparing the necessary documentation for the application.
As your business grows, the transactions will become more complicated. You will maybe hire a clerk, accounting, or finance expert to handle day-to-day transactions or even opening separate bank accounts for different subsidiaries.
A good banking institution will help you to propel your business while complying with any pertinent government regulations.
What type of Services do Business Banks Offer?
As the famous saying goes: “A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
Such a proverb carries some truth as seen in the case of investment bank Lehman Brothers which filed for bankruptcy protection, sparking the 2008 Financial Crisis.
Coming out of this painful experience, the Basel Committee of Bank Supervision published the Basel III Guideline to increase the minimum bank capital requirement as a way to cushion the impact. In Malaysia, top banks have met and even gone beyond this standard in 2020.
As such, most commercial banks offer financial protection against your eligible account up to RM250,000 per depositor per member bank via Perbadanan Insurans Deposit Malaysia.
More importantly, a business account allows you to enjoy an overdraft facility with a minimum fee charged by the respective bank. In the event of insufficient cash flow, you may utilise it as operating capital for the business.
Opening a business bank account may also provide additional benefits such as offering financial and business advice, issue debit and credit cards, and othe business banking services to support all your needs as your company grows.
Such services may also extend to online business banking facilities, advisory services, and assistance with IPO listing etc.
What Documents will you need to open a Bank Account?
It depends on the category of your business registration and also the respective bank’s requirements. Here’s an overview of what is generally needed:
a. Private Limited Company/Sendirian Berhad (Sdn Bhd)
b. Sole Proprietorship
c. Partnership/Perkongsian
d. Limited Liability Partnership (LLP)
e. Public Listed Company (Berhad)
a. Private Limited Company/Sendirian Berhad (Sdn Bhd)
- Memorandum and Articles of Association/Constitution/CoSec Confirmation New Act Sec21
- Copy of all directors’ MyKad (Citizen)/ passport (if foreigner) and authorised signatories
- Form 9 (Certificate of Incorporation of Private Company)/Notice of Registration
- Form 13 (Change of Company Name)/Notice of Registration of New Name
- Form 24/Return for Allotment of Shares
- Form 49/Notification of change in the Register of Directors, Managers & Secretaries
- Common seal with company registration number
- Resolution of the Board of Directors to open and operate the account. Download Board Resolution
- Initial deposit (subject to respective bank’s regulation)
- Bank account opening application form
b. Sole Proprietorship
- MyKad (Citizen)/passport (if foreigner) of the proprietor and authorised signatories
- Certificate of Registration
- Form A and Form D (Business License)
- Letter of Introduction (subject to the respective bank)
- Common seal with company registration number
- Mandate Letter
- Initial deposit (subject to respective bank’s regulation)
- Bank account opening application form
c. Partnership/Perkongsian
- MyKad (Citizen)/passport (if foreigner) of all partners and authorised signatories
- Business Registration
- Form B and Form D (Business License)
- Deed of Partnership
- Letter of Introduction (subject to the respective bank)
- Common seal with company registration number
- Mandate Letter
- Initial deposit (subject to respective bank’s regulation)
- Bank account opening application form
d. Limited Liability Partnership (LLP)
- Notice of Registration of the LLP [Perakuan Pendaftaran] issued by Registrar of LLP.
- Register of the names, particulars and address of each Partner and Compliance Officer.
- Approval Letter from the Professional governing body to form a LLP and a valid Professional Indemnity Certificate (applicable for Professional Practice LLP only such as accounting, law firm, ).
- Resolution passed according to the terms as stated in the LLP Agreement OR by a majority of the partners of the LLP resolving the following.
- Appointment of Bank and Branch to open the Current Account.
- Names and specimen signatures of the Authorised Signatories.
- Method of signing (mode of operation).
- MyKad (Citizen)/ passport (if foreigner) of the partners/signatories.
- Initial deposit (subject to respective bank’s regulation)
- Bank account opening application form
e. Public Listed Company (Berhad)
- Memorandum and Articles of Association certified by the Secretary of the company
- Certificate of Incorporation (the original copy must be sighted)
- Certificate to Commence Business, if public limited companies (the original copy must be sighted)
- A list of all Directors and Secretary together with their home addresses (Form 49)
- Resolution of the Board of Directors to open and operate the account
- Initial deposit (subject to respective bank’s regulation)
- Bank account opening application form
Before making your final decision, compare which bank packages are more suitable for your business plans. Quadrant Biz Solutions partners with leading Malaysian Banks to offer you a seamless business compliance and banking package to help you get started.