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Setting up a corporate bank account is the next crucial step after building a successful business. Businessmen in Indonesia have a wide selection of choices where they can put their money since the country has the most developed financial sector. These include state-owned, private, and foreign banks that offer different services to corporations in meeting their financial obligations. On one hand, a number of options are available, but on the other hand, choosing an appropriate bank that will meet your company’s goals of operation and its long-term vision might be quite challenging.
It is quite important to realize the importance of a corporate bank account as it acts as the backbone for handling daily transactions, payroll, and investments in tandem with local regulations in the financial sectors. In addition, corporate accounts tend to offer certain services that are useful in cash management and exchange capabilities for foreign trade along with trade finance solutions, all of which may have great influence on the operation of an organization.
This article will explain what a corporate bank account is, outline major banks operating in Indonesia, discuss the criteria for the choice of bank selection, detail the documents required for opening, and describe the step-by-step process involved in opening a corporate bank account. This will give a better view to the businesses regarding how they have to proceed in dealing with banks in Indonesia towards their growth and stability.
Key Takeaways:
- It should be noted that a corporate bank account is the very foundation of conducting daily business operations, salary payments, and investments, as well as meeting all the local legislation and regulations regarding finances.
- Corporate bank accounts can also provide value-added services for cash management, foreign exchange, and trade finance, adding much more value to enhancing your company’s operation effectiveness.
- According to Indeed, an online job search platform, working as a job board and recruiting tool, a corporate bank account is a bank account opened for businesses to conduct and process all their financial transactions and belongings in the most organized manner (Indeed Editorial Team, 2023).
What is a Corporate Bank Account?
According to Indeed, a corporate bank account is a specially designed financial account for businesses in the direction of managing their financial transactions and assets effectively (Indeed Editorial Team, 2023). Indeed is an online job search platform; it works like a job board and also acts as a recruitment tool.
It is a crucial facility for corporations, enabling them to organize their funds and conduct their monetary operations smoothly. By large, three basic roles are played by corporate accounts, including:
Savings
Companies use corporate accounts as a means of securing their funds, which are usually set aside for future expenses or investments. The accounts provide a safe place where businesses can deposit money that might be required for long-term proposals or capital projects.
Banking
Corporate accounts facilitate smooth daily financial activities, like the payment to vendors, payroll disbursement, and other business purchases. Centralization of such processes enables business enterprises to manage their banking transactions with more effectiveness for smoother financial operations.
Investing
Some companies invest their dividends or surplus revenue into corporate accounts that automatically reinvest such returns. This helps the company to increase its assets and probably improve profitability with strategic investment over time.
The Best Banks in Indonesia 2024
According to Aspire, a fintech company which offers a wide array of financial services to enterprises and startups, and CNBC Indonesia, a global business news network, the best banks in Indonesia in 2024 maintained their dominance, especially in the corporate banking sector, where asset management is the key to their growth. This corresponds with information provided by Ekky Pramana (2024) and Muhammad Khadafi (2024).
The top banks by asset size in the first quarter of 2024 are Bank Mandiri, BRI, BCA, BNI, and BTN. These firms also continued to show consistent growth in assets during the period under review, with most of the Bank showing one-digit increases despite some posting double-digit increases such as Bank Mandiri and BRI.
Bank Mandiri
Among all, Bank Mandiri is one of the most popular choices for businessmen with flexible variants of corporate accounts, such as Mandiri Tabungan Bisnis. This account provides multi-currency options, outward RTGS and SWIFT transactions, a debit card with customizable limits, and many more.
Bank BRI
BRI is Indonesia’s oldest state-owned bank and also one of the more popular options for corporate accounts, due to its presence in more remote areas compared to many of its competitors. Their BriTama Bisnis account offers higher transaction limits and free personal accident insurance for the business owners.
Bank BCA
Meanwhile, BCA has Tahapan Gold BCA, which caters to corporate demand with a competitive interest rate. Detailed transaction reporting is made available by SMS and email, among other financial solutions offered to corporations.
Bank BNI
What makes BNI Taplus Bisnis even more special is the offering of Gold and Platinum debit cards, in which every transaction is notified in real time, and the account is digitally manageable for ease for corporate clients.
Bank OCBC
For companies with international operations, OCBC NISP Business Smart Current Account boasts a very strong multi-currency option, enabling seamless global transactions.
CIMB Bank Niaga
For smaller businesses or SMEs, CIMB Niaga XTRA Savers offers an economical alternative with low initial deposits and services such as Auto Sweep and Pick Up, which are perfect for companies requiring only meager capital.
How to Choose a Bank for Your Corporate Account
In selecting a bank for opening a corporate account, one must consider many factors to get the right one that should apply to their financial and operational objectives. Herein is the stuff a business needs to consider when selecting a bank for a corporate bank account as suggested by Forbes Finance Council, an organization for senior-level finance executives created by Forbes (Forbes Finance Council, 2022).
Availability of Internet Banking
This would include internet banking availability and ease of transactions important to be provided for daily business operations based on convenience and efficiency of managing finances. Minimum deposit requirements and monthly fees are also important to be reviewed for affordability, especially for start-ups or small businesses.
Service and Amenities
Other factors, which are equally important, are the services and facilities provided, which may comprise customized corporate solutions, credit products, or cash management services that a company would need. Equally important, if not more so, is the reputation and reliability of the bank, particularly in the long run, as this may impact trust and confidence.
Currencies
For companies doing international business, the availability of types of currency used in transactions is crucial to reducing costs associated with foreign exchange. For companies attempting to align their financial decisions with ethics or values such as sustainability and community investing, bank values are also becoming increasingly important.
Security Features and Quality of Customer Service
Finally, security on behalf of the bank and the quality of customer service can make all the difference, particularly in a business that requires dedicated support or deals with sensitive financial information. Ensuring the bank provides top-notch protection combined with responsive and professional service helps forge a rewarding and long-term relationship.
Requirement to Open a Corporate Bank Account
Opening a bank account in the name of a company requires some legal and administrative documents, especially when that company is individually owned. Below is the general requirement, quoting Ekky Pramana, an experienced writer specializing in finance and business management at Aspire (Ekky Pramana, 2024):
1. Identity of Individuals and Companies
Personal identity is required, in which the person in charge of the company is using a valid identity, such as:
- For Indonesian Citizens: KTP (Indonesian Identity Card).
- For Foreigners: Passport and KITAS – Temporary Stay Permit. Additionally, the company shall provide its own documents of identification, such as the deed of establishment of the company and proof of legality.
2. Company Registration Documents
Upon verification that the company is properly registered, it needs to provide a Surat Keterangan Usaha or an SKU. This will reflect the name, address, and the tax identification number of the company. Other supporting legal documents for registration include:
- Establishment Deed legalized by the Ministry of Law and Human Rights.
- Business Identification Number for the company and its founder.
- Company domicile permit.
- NIB or Single Business Identification Number.
- Business License obtained through the OSS Online Single Submission system.
3. Corporate Documents
For businesses that are non-individual entities, such as PTs, foundations, or cooperatives, this would be adding more documents on top of the previous requirement list:
- Establishment Deed and amendments of AD/ART with the latest date.
- Letters of Authority, where it includes a list of persons appointed to operate the account.
4. Financial Compliance and Tax Documents
The Company shall submit the NPWP along with NPWP of persons responsible for the account. Tax compliance is very crucial for any company intending to open a corporate account.
5. General Requirements
It cannot comprise individual or corporate entities blacklisted by Bank Indonesia. They should fill in and sign the bank account opening form. In respect of a specific business sector, a business permit in the relevant field of activity may be required as well.
6. Initial Deposit
Opening a corporate account usually requires an opening balance, which varies in size from bank to bank. For instance, the opening balances for both BNI Taplus and BRItama are IDR 1,000,000.
Also Read: All About Indonesia Corporate Tax Rate
Process of Opening of a Corporate Bank Account in Indonesia
Incorporating your corporate bank account in Indonesia involves, among others, the following steps that companies will have to go through.
Submission of Required Documents
This includes the photocopy of the certificate of business registration, tax identification (NPWP), articles of association, and identification of shareholders and authorized signatories, to be reviewed by the bank.
Bank Issues Board Resolution
A Board Resolution is issued by the bank for the appointment of an Authorized Person for the management of the account. This document must in turn be signed by the board and returned, usually via email.
Fully Accomplished Account Opening Form
The bank will provide an Account Opening Form, which the company completes with details of its structure and signatories. After completion, the form is returned to the bank for review.
Original Documents Submission
The company submits the original signed documents to the bank, which go into the official records. These documents include the Board Resolution and the Account Opening Form.
Initial Deposit
A minimum deposit of 1 million is required to activate this account. Multiple accounts can be granted in different currencies if deposits equal to the value are credited to this account.
Acitivize Account
To regard this an active account, a transaction should be frequently carried out on this account. If this account is left dormant for 6 months, it may be automatically deactivated.
Internet Banking
The company may enroll in web-based banking at the time of, or subsequent to the opening of an account, to ensure efficiency in managing the transaction.
Adherence to Laws and Regulations
The bank adheres to the regulations from OJK and Bank Indonesia. Other requirements, such as checks or documents, may be required.
Smoother Process of Opening of Corporate Bank Account in Indonesia
Opening of corporate bank accounts in Indonesia sometimes gets a bit tedious if not supported rightly. Viettonkin supports the companies with the right expertise to smoothen such a process and sees that all the local regulations are met with minimum delay.
From preparing the documentation to liaising with banks, Viettonkin’s experienced consultants will help you through. We can offer you tailor-made services that will ensure your company’s banking needs are taken care of as fast and effectively as possible, enabling you to focus on developing your business in Indonesia.
Contact Viettonkin today to smoothen your company’s banking setup and achieve its expansion goals. To learn more about how the Experts for Expansion can help you, click here.
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