Guide to Open Onshore Bank Account for Labuan Company
Labuan Companies are able to open and operate bank accounts within Malaysia to defray their operation expenses such as salaries, payment of professional services such as legal, accounting, etc and such payments usually made in Ringgit. Malaysia onshore bank account is the usual bank account that we deal with on a daily basis for common Ringgit transactions.
The banking facilities available to you from onshore banking account are very useful. They are ATM cards, chequebook, online banking, and other financial instruments to ease our day-to-day transactions. All onshore bank account transactions are regulated by the central bank. This guide to open an onshore bank account for Labuan company will guide you and provide a better understanding of how Malaysia banks work to serve you.
Guide to Open Onshore Bank Account for Labuan Company – Key Points
- [LATEST UPDATE] – Effective 1 July 2017, all banks required the tax identification numbers of every controlling persons and beneficial owners of the Labuan Company
- Most bankers offer diversified currencies including Ringgit account
- Low initial amount for the opening of bank account from RM 10,000 onward per currency depending on bankers
- Most bankers require valid Labuan work permit for all signatories
- All bankers require face-to-face meeting during account opening
- Most bankers offer internet banking for convenient use
- Most bankers offer Fixed Deposit placement with interest rates for all currencies
- Corporate current account with chequebook with convenient to change signatories anytime
- Not available trade facilities such as Banker Guarantee, Letter of Credit etc
- All Ringgit transactions are monitored by Central Bank of Malaysia
- Conversion of a huge amount of ringgit to foreign currencies or vice-versa required reporting to the banker
- Some bankers may tag Labuan Company as an external account with RM 10,000 daily limit for Ringgit transaction
- All accounts are protected by insurance deposit scheme up to RM250,000 per account
All banks are required to verify your company identity and information with Labuan FSA, hence the opening of onshore bank account for Labuan Company may take at least 1 to 2 weeks. We offer complete solutions for the opening of onshore bank account once your
- Arranging of banker meeting
- Preparation of all the necessary certified company documents and resolutions to meet banker’s requirement
- Application to Labuan FSA for company information as required by the banker
- Act as your liaison person to facilitate the opening during your absence
- Collection of checkbook on your behalf after the account is opened
- Application of internet banking facilities
Bankers’ policies and procedures on the opening of an onshore account may change from time to time. There is more scrutiny for an opening for high-risk jurisdictions and sanctions nations and such a list may vary for each banker. Each banker will have different sets of requirements to open the account for such nationalities.
These are the steps for opening of Labuan onshore bank account in Malaysia:
Step 1– Get ready the tax identification numbers of all directors, shareholders, and signatories (if any)
Step 2– Meet the banker for KYC requirements
Step 3– Once the account approved, the banker will inform you of the full bank account details for you to the bank in the initial deposits to activate the Ringgit and foreign currencies account
Step 4– Internet banking application will be initiated for approval, often takes about 45 to 60 days
Find out more:
Contact us at +603-27839191 (Labuan Division) today for an appointment or send us your needs for us to advise you how we can assist you to set up a Labuan company with a bank account.
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