Corporate Bank Account Opening

After Labuan incorporation, it is necessary to open settlement bank account for corporations together. Here, we will organise the main points about what is asked when opening an offshore corporate account.


The point of opening corporate account

· What kind of business is handled by this company, what kind of product is dealt with, who is purchasing products from which country to which countries?

· How is the annual turnover of this company, how often is payment from anywhere in the country, how often is the deposit amount per turn every month? Also, how often the company remit to anyone in what country every month, how much is remittance per turn?

· Who is the UBO (Ultimate Beneficial Owner) of this company? What is the structure of the directors and shareholders, and what kind of work experience do each person have?

In the course of global anti-money laundering prevention in recent years, bank account opening examination just after new incorporation has become severe.

If you cannot open bank account at the time set up a company, the time and expense you have required will be in vain.

In order for the bank side to understand your company’s business profile, you need to keep it in a state you can explain firmly.

Especially, bank side are very wary of mentioning “consulting industry” in the column of business contents. If you cannot explain the details of a specific transaction, suspected that there is a possibility that unnatural fund transfer may be carried out, there may be cases where the opening of account is not good.

In addition, preliminary concluding a provisional agreement such as “sales contract”, “business consignment contract” etc. that will be the basis of the scheduled transaction, with the business partner, and submit it to the bank side together with director’s personal resume.

* Since July 2017, Labuan offshore banks are now required to present counter party information for all deposits / withdrawals.

AttributeRequired information to present to the bank side
In the case where the counterparty of the payment source / withdrawal destination is an individualNationality and passport number
In the case where the counterparty of the payment source / withdrawal destination is a corporationThe Country of incorporation and corporate number

Generally, in opening a corporate account, the following questions are asked from the bank side:-


Description sample of account opening form

This is a sample (in red) of the method described below as a reference example at filling in:-

 

◇ Entry items (sample) on bank account opening application form
1. Company Information
Registered Name (as per certificate incorporation)ABC Inc. (LLNNNNN)
Company Telephone No.+6087 – NNN – NNN
Company Fax No.+6087 – NNN – NNN
Company Email Addresscontact @ abc.com
2. Business Information
Purpose to open the Foreign Currency Current AccountBased on the Labuan company law (Act. 1990), transactions of Ringgit Malaysia denominated accounts are prohibited in principle, so we would like to open it as an account for settlement of international transactions. 

In addition, since Labuan corporate account is not subject to foreign currency regulations, it is considered convenient.

Nature of Business/Industry/Products/Services

Note: As a guide, mere statements like “trading”, “investment holding” or “consulting is not adequate explanation.

We import Automobile parts and Agricultural work items from China and Japan, and export them mainly to Singapore and Vietnam.

Our Labuan company takes on the role of offshore trade (trilateral trade) connecting China and the ASEAN countries, and fulfills the hub function.

Years of Experience In Business (Director)Possess experiences 5 years in the Import & Export industry.

※ Please refer to attach CV for details.

Annual Business Turnover (Please provide estimation amount if newly incorporated Company in USD)Above 2 Million USD expected

Sales ratio(Vietnam 60%, Singapore 40%)

Source of funds (from which country (ies); expected amount involved (give a range of expected inward remittances); and frequency of inward remittances per month?・Sales Commision
2 – 3 times, 120,000USD – 130,000USD / month

・Receive bond dividend
1 – 2 times, 2,000USD – 3,000USD / month

Payment amount involved (give a range of expected outward remittances) and frequency of payments per month?・Purchase expenses
2 – 3 times, 120,000USD – 130,000USD / month

・Sales fare
2 – 3 times, 8,000USD – 10,000USD / month

・Rent payment at business office
1 – 2 times, 1,300 – 1,500USD / month

・Employee salary payment
1 – 2 times, 3,000 – 3,500USD / month

・Payment for water service· utility fee
1 – 2 times, 400 – 500USD / month

Payments to which country(ies)?China, Japan
Purposes of payments/outward remittances?purchase expenses of the Goods
Do you remit and receive funds from individual(s)?Yes, we have a (the) plan.

However, when it comes to dealing with a private business owner, we will endeavor to conduct transactions only with those who are registered in the tax country where the taxpayers are registered and who have proper taxation procedures.

No, we don’t have a (the) plan.

Please state list of counter parties (refers to person or business entities) – Compulsory for incoming and outgoing payment to/from your account.XXX Inc.  (Vietnum)

URL: http://www.XXX.xxx

YYY Inc. (Singapore)

URL: http://www.YYY.yyy

ZZZ Inc. (China) 

URL: http://www.ZZZ.zzz

XYZ Inc. (Japan) 

URL: http://www.XYZ.xyz

Are you acting on behalf of another person as a trustee, nominee or professional intermediary? If yes, please disclose the ultimate beneficial ownerNo
◇ Entry items (sample) on bank account opening application form
◇ Company Information
Company nameABC Inc. (LLNNNNN)
Country of incorporationFederal Territory of Labuan, Malaysia 
Date of incorporation1 January 2017
Type of currency accounts to open (i.e. SGD, USD)USD
Mailing address for the accountcontact @ abc.com
Main country of businessUSA, Japan, Singapore 
Address of physical companyLevel 4, Unit 350 – 407, Office NNN,
Labuan Times Square, Jalan Merdeka,
Federal Territory of Labuan, 87000 Labuan, Malaysia
Names of all directors
(exactly as per passport)
Ichiro Suzuki
Names of all shareholders
(exactly as per passport)
Hanako Yamada
Names of all signatories for this account
(exactly as per passport)
Ichiro Suzuki
1st Ultimate Beneficial Owner Details
NameHanako Yamada
Contact Number+6087 – NNN – NNN
Residential AddressLevel 8, Unit 350 – NNN
Labuan Times Square, Jalan Merdeka,
Federal Territory of Labuan, 87000 Labuan, Malaysia
1st Contact person for this account
NameIchiro Suzuki
Passport NumberAB1234567
Mobile Number+6019 – NNN – NNN
Office Number+6087 – NNN – NNN
Email Addresssuzuki @ abc.com
◇ KYC Information  (Know Your Customer)
1. Please explain about your business activities in detailI have experience working as a consultant in the Information Technology industry for many years. Utilizing the knowledge and experience as well as networks infrastructure which were developed during the long term career. Currently I am supporting the introduction of IT and investigating scientific data etc.

Fortunately, these efforts have brought forth fruit and have been asked for consulting services from many foreign countries, for example USA or Singapore. 

In the future, I would like to contribute to the future of humanity by providing my knowledge and skills to improve Information technology.

2. What is the reason for choosing to use a non-Singapore companyExpecting to develop business activities connected to Labuan and other regions, and due to tax benefit offered by Labuan FSA.

Also, I would like to make use of Singapore company as well as Labuan company. I would like to combine both, manage funds in Labuan, and set up a sales department for foreign countries in Singapore in the future.

3. What is the reason for choosing to open the bank account in SingaporeA banking presence in the region is required and Singapore is known for having a strong and well developed banking sector.

And there are two main reasons as follows:-

1. Continuous efficiency of transfer work

In Malaysia where Labuan belongs, since the settlement debit card is not issued to the corporation immediately after its establishment, it is not very easy to use. I would like to rationalize clerical work by automating the transfer procedures that occur continuously every month.

2. Geopolitical advantage 

The company director I, Ichiro Suzuki, obtained Labuan work Permit and is planning to move to Malaysia soon. If banking procedures are required, I can easy move to Singapore, so I think that there is a geopolitical advantage by using Singapore bank.Especially for payment to Malaysia, there is a currency conversion fee for each settlement, but even after paying the fee, I still feel that there is a great merit because it can reduce the administrative processing work.

4. What will the Singapore bank account be used mostly for? (eg. investments or operational account)I would like to use Singapore account mainly as a settlement account. As mentioned in 3. above, Singapore is geopolitically close to Malaysia, and the financial system as Asian hub function is considered to be very developed than Malaysia.

For above these reasons, Singapore Bank can be most efficient for my business activities. The main payment schedule is as follows.

· Rent payment at business office
· Employee salary payment
· Payment for water service · utility fee
· Payment to business processing agencies
· Payment to airline and hotel

5. Reason for nominee structure (if any)N/A
6. Background of the beneficial ownersSee the descriptions in 8.
7. What is the source of wealth of the beneficial ownersPersonal Saving (Hanako Yamada)
8. Background of the directorsPossess experiences in the IT industry, management consulting company.

※ Please refer to attach CV for details.IT

9. Names of some of your suppliersXXX Inc.  (US)

URL: http://www.XXX.xxx

10. Names of some of your customersYYY Pte Ltd (Singapore)

URL: http://www.YYY.yyy

ZZZ Inc. (Japan) 

URL: http://www.ZZZ.zzz

11. Names of some of your counterparts/ sister companyXYZ Co., Ltd. (Labuan)

URL: http://www.XYZ.xyz

XYZ Pte Ltd (Singapore)

URL: http://www.XYZ.com

12. Expected turnover per yearAbove USD300,000.00 expected

Sales ratio(US 45%, Singapore 35%, Japan 20%)

13. Source of incoming funds into the accountBusiness income of Singapore, US, or other countries where business partners resides
14. Source and intended destination of outgoing funds from the accountUSA, Singapore and Japan, etc.
◇ Details of Suppliers / Customers / Clients:   
 Counterparts (Since this account will be mainly used as a settlement)
Initial deposit (Amount)50,000USD
Source of fundsPersonal Saving (Hanako Yamada)
Source of WealthEmployment income (Hanako Yamada)
Average balance to be maintained in account30,000USD – 50,000USD / month
Amount and frequency of expected transactions inflow:
FrequencyAbout 1, 2 times / month
Amount10,000USD – 20,000USD
Source of fundsBusiness Income (ABC Inc.)
Mode of transactionTransfer of funds (Within the same company)
PurposeAs settlement reserve
Amount and frequency of expected transactions outflow:
Frequency

頻度

About 5, 6 times / month
Amount4,500 – 8,200USD / month
Destination of funds・Rent payment at business office
700USD – 1,000USD / month

・Employee salary payment
1,200 – 1,800USD / month

・Payment for water service · utility fee
250 – 350USD / month

・Payment to business processing agencies
350 – 550 USD / month

・Payment to airline and hotel
2,000 – 4,500USD / month

Mode of transaction・Rent payment
・Salary payment
・Outsourcing fee
・Travel expenses
PurposeAs business settlement payment

Documents necessary for opening corporate bank account

In order to open corporate account, the following documents are required, so kindly submit it together with the opening application form above.

1. Corporate Account Application Form (Questionaire)

2. Resolution of Board of Directors

3. Certificate of Incorporation

4. Memorandum & Articles of Association

5. Register of Shareholders

6. Proof of Office Address 

7. Register of Partners / Directors 

8. Certified True Copies of ID/Passport and proof of residential address of: All Authorised Signatories, Directors and Ultimate Beneficial Owners

9. Letter of Recommendation from our overseas branch or a reputable bank

Should you have any queries, please do not hesitate to contact us.


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