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Opening a corporate bank account in Indonesia is necessary for businesses looking to establish a presence in the country. Not only does it provide a convenient way to manage finances and facilitate transactions, but it also adds credibility to a company’s operations. However, it’s important to understand the process and requirements before opening a corporate bank account in Indonesia.

Our guide below covers all the essential information relating to Indonesia’s corporate bank account opening. An Indonesian company must open a business bank account after completing the company registration. This is required to support its operations locally and internationally.

Indonesia generally has two types of banks. Commercial and rural banks. Rural banks do not support payment or money transfer needs. They are established to support rural areas with financing facilities etc.

Commercial banks are those that provide support to all types of commercial organizations in terms of payments, financing, cross-border transactions, and all others. Indonesia commercial banks are categorized as non-Syariah and Syariah based. Syariah banking, also known as sharia, is the banking system that is governed by Shariah principles. Indonesia has more than 100 commercial banks.

The following banks are the four largest state-owned banks in Indonesia.

• Bank Mandiri
• Bank Rakyat Indonesia
• Bank Negara Indonesia
• BTPN

The remaining banks in Indonesia are privately owned by either local shareholders or foreign shareholders. Most banks in Indonesia offer multicurrency banking services that support the USD, EURO, and the British pound.

WHY A CORPORATE BANK ACCOUNT IS IMPORTANT FOR INDONESIA BUSINESS

It’s legally required for Indonesia-incorporated companies

Certain authorities, such as the local tax authorities, require a company to have a corporate bank account for tax payments and refunds. Without a local bank account, it will be impossible for the authorities to transact with the company. 

Helps in getting financing

A corporate bank account gives the business a very transparent financial history. For audits, loans, and investor applications, this is advantageous. The ability to see an accurate record of the company’s payments improves your credibility as a respectable enterprise.

Accepting different payment methods

In some circumstances, the clients and customers might have to use a credit card to pay you. With a corporate account, the business may accept debit and credit card payments, expanding the market and simplifying the lives of the customers.

Keeping personal and business finances separate

A corporate bank account allows you to distinguish your personal and business finances, which is essential for both legal and practical reasons. By separating your business transactions from your personal ones, you can easily track the financial health of your business, prepare accurate financial statements, and comply with tax laws.

Simplifying financial transactions

A corporate bank account makes it easy to conduct a variety of financial transactions, such as paying bills, receiving payments from customers, and transferring funds between accounts. It also serves as a central location for tracking and reconciling these transactions, which can help you manage your cash flow and make informed business decisions.

Obtaining credit and financial services: Many banks offer a range of credit and financial services to their corporate account holders, such as business loans, lines of credit, and merchant services for accepting credit card payments. Having a corporate bank account can make it easier to access these services and seize financial opportunities that can help your business thrive.

Enhancing credibility

A corporate bank account enhances the credibility of your business and can make it easier to attract investors, partners, and customers. It demonstrates that you are a legitimate and professionally-managed company, and it can provide a level of reassurance to those who do business with you.

Overall, a corporate bank account is a vital resource for any business seeking to succeed in today’s competitive marketplace. It provides a convenient and secure way to manage financial transactions, access credit and financial services, and enhance credibility with stakeholders. If you don’t already have a corporate bank account, now is the time to consider opening one to take your business to the next level.

BENEFITS OF HAVING AN INDONESIA CORPORATE BANK ACCOUNT

A corporate bank account is a crucial resource for businesses of all sizes and industries. It provides a convenient and secure way to manage financial transactions, maintain records, and access credit and other financial services. Here are just a few of the many benefits of having a corporate bank account.

Helps Financial Planning

Managing spending and planning are important advantages of having a company account. Business owners may access in-depth reports and bank statements regarding their organization This adds clarity to the financial status of a company.

Makes Transactions Easy

Since corporate accounts have online and mobile banking facilities, business owners may conduct critical business operations effectively and conveniently from any location. A corporate Account helps to deposit and withdraw money at any location, as well as multi-location cash transfers.

Support from the Bank 

Opening a business banking account in Indonesia will give leverage to the business on the bank’s services and support while executing the business expansion plans or conducting financial operations. The business will be able to get a loan easily from the bank when in need.

REQUIREMENTS FOR OPENING A CORPORATE BANK ACCOUNT IN INDONESIA FOR PT AND PT PMA IN INDONESIA

To set up a PT or PT PMA in Indonesia, Having a Corporate Bank Account is essential as it will allow the business owner to take full control of the business by managing the cash flow.

Following are the requirements to open business  Bank Account Indonesia

• Initial Deposit should be made to the bank. This deposit will differ from bank to bank
• An original or copy of the passport or Kitas of the business owner will be required
• Original or copy of the business permit and proof of identity
• Original or copy of your company tax identification number (NPWP)
• Original or copy of your Deed of Establishment
• Original or copy of your Articles of Association
• Business Permit
• Domicile letter
• Monthly account administration fee

REQUIRED DOCUMENTS FOR OPENING A COMPANY BANK ACCOUNT FOR PT OR PT PMA IN INDONESIA

•  Copy of tax identification number (NPWP) and tax certificate (SKT)
•  Copy of your Domicile letter from the building management or tenancy agreement
•  Copy of your Deed of Establishment (AKTA)
•  Copy of Business Registration Number (NIB)
•  Copy of the identification cards of all directors, shareholders, commissioners, and authorized signers
•  Copy of Business License (Izin Usaha)
•  Copy of Approval of AKTA from the Indonesian Ministry of Law and Human Rights (SK Kehakiman)
• Letter of attorney from the Shareholders, Boards of Directors, Commissioners, and Authorized signers.

FACTORS TO CONSIDER WHEN OPENING A COMPANY BANK ACCOUNT IN INDONESIA

• Availability of internet banking
• Minimum deposit required by the bank
• The monthly fees charged by the bank 
• Transferability of  funds to other organizations conveniently
• The capabilities and services provided by the bank
• The reputation of the bank and involvement in scams
• All the currencies provided by the bank
• Monthly average balance, Fall-below fees, Early closure fees, ATM withdrawal fees, and International transfer fees of a particular bank.

PROCESS OF OPENING A COMPANY BANK ACCOUNT IN INDONESIA

The business must be legally registered in Indonesia before it can open a corporate bank account in Indonesia. You can refer to the Indonesia company registration for additional information. Perseroan Terbatas Penanaman Modal Asing (PT PMA) is the most preferred form of business entity in Indonesia.

Choosing A Suitable Bank

First, it’s essential to choose a reputable bank that meets the needs of your business. Consider factors such as location, services offered, fees, and any specific requirements for foreign-owned companies. Once you’ve selected a bank, you’ll need to gather the necessary documents and information to open the account. This typically includes proof of identification and business registration, as well as details about the company’s ownership and structure.

The process for opening a corporate bank account in Indonesia may vary slightly depending on the bank, but it generally involves submitting the required documentation and completing an application form. It’s a good idea to have a local representative or translator on hand to assist with the process, as some banks may require documentation to be in Indonesian.

Once a suitable bank is chosen, preparation and compilation of the required documents should be started. These documents are needed to be submitted for the initial round of due diligence checks by the bank.

The business owner must sign an Application Form for the bank.

In Indonesia, the documents required are different for different company types. 

Submission Of The Documents

After submitting the application and supporting documents, the bank will review the materials and make a decision on whether to open the account. If the application is approved, the bank will provide instructions on how to activate the account and set up any necessary online banking or payment systems.

Fully prepared and signed documents must be submitted to the bank for the first round of approval, along with the requisite fee.

If the bank is satisfied with the application, there will be a face-to-face interview process.

Bank Approval And Depositing Of Required Minimum Deposit

The bank will take a final look at the application and the interview. The corporate bank account will be opened in due time if everything is satisfactory.

The Minimum deposit amount should be deposited in the bank after approval.

The Indonesia business account is expected to be opened in three to five weeks, and the bank will issue internet banking tokens within one week after that.

The business registered in Indonesia will be considered a local company, but the shareholders are still foreigners. So, there is a chance that the bank will ask for additional supporting documents for directors, shareholders, bank signatories, and ultimate beneficial owners.

It’s important to note that foreign-owned companies may face additional requirements or restrictions when opening a corporate bank account in Indonesia. This may include obtaining approval from the Indonesian Investment Coordinating Board (BKPM) or meeting certain ownership requirements. It’s advisable to seek guidance from a local attorney or professional service provider to ensure compliance with these regulations.

Overall, opening a corporate bank account in Indonesia is a straightforward process as long as you have the necessary documents and information and choose a reputable bank that meets the needs of your business. By planning and preparing carefully, you can set your company up for financial success in Indonesia.

OPEN A CORPORATE BANK ACCOUNT IN INDONESIA WITH RELIN CONSULTANTS

Are you looking to open a corporate bank account in Indonesia for your business? Relin Consultants can help you choose the best bank partner to meet your business needs and expansion plans. Our team of professionals is well-versed in local laws and regulations, and we have established relationships with multiple reputable banks in Indonesia offering excellent internet banking facilities.

Here’s how we can assist with your corporate bank account setup in Indonesia:

• Review and compare different bank options
• Help with the application process
• Provide ongoing support

Don’t let the process of selecting a corporate bank account in Indonesia be overwhelming. Let our experienced team guide you through the process. Contact us to learn more about the requirements for opening a corporate business account in Indonesia.