How to Open a Business Bank Account?

Should you open a business bank account? Some business owners may think they don’t need a business account and choose to continue using a personal savings account for all business matters. This article will explain the three main reasons you should open a specific account for your business and how to open your business bank account.

Why Do You Need a Business Bank Account?

There is no denying that, managing a business is not an easy task because there are many important elements that need to be managed in business, especially in terms of finances. Because of this, you need to take smart steps in managing your business such as taking the opportunity of business financial assistance or opening a special bank account for all business matters.

It doesn’t matter if your business is still small or developing, you are advised to open an account specifically for your business because it will make your business easier. Remember, your business will probably continue to grow and this means that there will be more and more transactions that will be made through the bank account. You should consider opening a business bank account if:

1. Too Many Outgoing and Incoming Transactions in the Savings Account

Did you know that your personal savings account can be terminated or blocked by the bank if there are too many transactions? This is because savings accounts have their own transaction limits. If there are any transactions in an account that may cause suspicion, the bank may impose a temporary restriction on the account. This is to enable a comprehensive assessment to be made to ensure that the flow of money in and out is not from scammers or other criminal activities.

2. Want to Avoid Business Money Used for Personal Use

Business money should not be placed in the same account as your personal savings because this business money should be used for business purposes only such as capital turnover, cost payment, investment and so on. Not only that, your personal affairs to apply for a loan such as a home loan or car loan can also be easier. Usually, the bank will ask for a pay slip or financial report. Because of this, you need to separate business income from personal use.

3. Your Business Financial Management Might Not Be Systematic

With a special bank account for your business, financial matters related to expenses, sales costs, profit and loss and tax management of your business can also be carried out more smoothly. For example, if you want to pay business taxes, you can refer to the financial and expense records you have prepared.

Which Business Bank Account You Should Consider?

First of all, you need to open a current account as your business account because it will help you manage your business better with the facility of checks, the facility of paying bills and also the facility of paying the wages of your employees.

Usually, if you want to open an account during business, you need an introducer or proposer to open a bank account for your business. What is an introducer? For your information, an introducer is an individual who must be with you when opening a business account at the bank. The following are the conditions that qualify a person to be an introducer:

• Have an active bank account for at least two years.
• There should be no list of bounced checks or bad history in his bank account.
• Must have a clear business stamp and show the business name and SSM registration number.

However, now, most banks such as Maybank, CIMB and several other banks no longer require an introducer, especially for sole proprietorship or enterprise businesses. This means that the conditions have already been relaxed and you no longer need to find an introducer to open your current business account. Here are some of the banks that allow you to create a business account without an introducer:

How to Open a Business Bank Account Without an Introducer?

After you have chosen a bank to open a business account, you can start registering. It should be noted, the registration steps for each bank may vary from certain aspects. For example, for a Maybank account, you need to go to a Maybank branch within 10 days to activate the account after registering online, while CIMB gives you 30 days to register at their branch after you have completed the online form.

Therefore, you are advised to contact your bank to be sure. In general, here are the steps on how to create a business account at the bank:

1. Visit the ‘business’ website of your preferred bank.
2. Fill in all the details required by the bank such as SSM registration number and so on.
3. You will receive a verification code via SMS after completing the details.
4. Your bank will provide details and a reference number (reference ID). You need to make sure you bring these two things with you when visiting a bank branch.
5. Finally, you are required to go to your bank branch within the time period set by your bank.

After completing the online registration, you need to go to the bank to complete the registration of your business account. Before visiting a bank branch, you need to prepare the following documents:

1. MyKad
2. SSM registration certificate
3. Form A SSM
4. SSM business information
5. Your business stamp (There is a business name and SSM registration number)
6. Deposit RM1,000 (Deposit can be withdrawn)
7. Your reference number or reference ID

If all your documents are complete, you can proceed to the bank branch of your choice. Follow these steps while you’re there:

1. Go to the counter and show the reference number.
2. Submit all required documents.
3. The bank officer will activate your business account.
4. You will be given access to your business account.

In conclusion, you are advised to open a business account especially if the business is growing. After you open an account during business, any problems such as getting a warning letter from the bank because there are too many transactions or a warning letter from the IRB for not explaining the source of income will be avoided.

Hopefully this article will help you to open a bank account specifically for your company. In addition, if you want to renew your car insurance online, visit the Qoala website for more information. Qoala provides the best range of insurance services according to your needs and budget. Get your insurance quote now!