Opening a Bank Account for a Foreign-Owned Sdn Bhd

By Axecta Management Services, Kuala Lumpur · Last verified: 29 October 2026

The starting point: who runs a foreign-owned Sdn Bhd

Foreign ownership adds two things to bank onboarding: a legal requirement about who sits on the board, and extra bank checks on ownership, identity and the source of money. Plan both before incorporation.

Section 196(1)(a) of the Companies Act 2016 requires a private company to have at least one director. Section 196(2) says a director must be a natural person aged at least eighteen. Section 196(4)(a) says the minimum number of directors must ordinarily reside in Malaysia by having a principal place of residence in Malaysia, and that the count does not include an alternate or substitute director. For a one-director private company, that director must therefore be resident in Malaysia. For a larger board, at least one of the directors counted towards the minimum must be. The Act is on the SSM-hosted Companies Act 2016 PDF.pdf).

The company secretary has a similar rule. Section 235(1) says a secretary must be a natural person aged eighteen or above, a citizen or permanent resident of Malaysia, who ordinarily resides in Malaysia. A foreign owner therefore needs a Malaysian-resident secretary as well as a resident director. See who can be a director and how to appoint a company secretary.

Why this matters for the bank

A resident director is often the person who can most easily attend the branch, sign on the mandate and answer questions in person. CIMB’s page, for instance, says all authorised signatories must be present at the branch. If your overseas director is a signatory, they may need to travel. If only the resident director is a signatory, the mandate should say so clearly and the bank must accept that structure.

What banks publish about foreign-linked companies

The table records what each bank’s own page said when read in October 2026. Nothing here is a general rule across all banks.

AmBank, Public Bank and some others publish checklists that either could not be read in full or do not specifically address foreign owners, so no statement is made about them here. Ask each bank directly for its foreign-owned company requirements.

What banks look at, and why

The checks come from anti-money laundering rules rather than from foreign ownership as such. Bank Negara Malaysia’s AML/CFT customer due diligence page lists the minimum information for a company customer, including directors, shareholders and beneficial owners and the person authorised to represent the company. It defines a beneficial owner as a natural person who ultimately owns or controls the customer, directly or indirectly, and, for individuals, lists identification and address details, nationality, occupation and purpose of transaction.

For a foreign-owned company, expect questions in these areas.

The ownership look-through is anchored in SSM’s beneficial ownership guideline%202025%20fair.pdf). It says a beneficial owner is a natural person with an interest in not less than 20% of the shares or voting shares, or who exercises ultimate effective control, and that a nominee does not count as the ultimate owner. It also says references to companies include foreign companies. The company must record and lodge this information and keep it for at least seven years after the person ceases to be a beneficial owner. Companies owned through a holding company overseas should therefore be able to name the natural persons at the top of the chain.

Documents for a foreign-owned Sdn Bhd

Start with the standard pack in documents for a corporate bank account. Then add what a foreign-linked file commonly needs.

• Passports of foreign directors and shareholders, certified as the bank requires.
• Work permit or employment pass, where a foreign national is a signatory and the bank accepts it as identification (CIMB’s page does).
• Ownership structure chart, signed by a director, down to the natural-person owners. HSBC’s page asks for one.
• Parent company documents where the shareholder is a company: its certificate of incorporation and, for a foreign parent, a Certificate of Incumbency where requested. HSBC lists one for foreign-incorporated entities.
• Source of funds evidence for the paid-up capital, such as a transfer record.
• Business plan or description showing the Malaysian activity.

Certification of foreign documents may involve notarisation or consular steps in the home country. No bank page read for this guide set out those steps, so ask the bank which certification it will accept before you arrange anything abroad.

Step-by-step plan

1. Design the board. Appoint a director who ordinarily resides in Malaysia, as section 196 requires. Decide who will be signatories.
2. Appoint a Malaysian-resident secretary under section 235.
3. Incorporate. See how to register a Sdn Bhd.
4. Build the ownership chart and beneficial owner list before approaching any bank.
5. Ask two or three banks for their foreign-owned company requirements in writing, including attendance and certification.
6. Pass the board resolution in the bank’s format. See board resolution for a bank account.
7. Certify and courier foreign documents early, because they usually take longest.
8. Attend the branch with the required people and originals.
9. Fund the account and set up online banking roles.

Foreign exchange: a quick pointer

Bank Negara Malaysia’s foreign exchange policy rules govern payments and accounts for residents and non-residents. BNM’s page on non-resident ringgit payments says a non-resident is allowed to make or receive payment in ringgit in Malaysia, to or from a resident or a non-resident, for permitted purposes including settling trade in goods and services and income earned or expenses incurred in Malaysia, and that documentary evidence of compliance may be needed. How these rules apply to your company, particularly foreign currency accounts and cross-border funding, is for the bank to advise on. Hong Leong Bank’s form asks about foreign exchange requirements at the application stage. Confirm with the bank and, for complex funding, with a professional adviser.

Worked example (illustrative)

A parent company in another country wholly owns a new Sdn Bhd. The board has the parent’s chief executive and a Malaysian-resident director who meets section 196. The secretary is a Malaysian-resident company secretary.

1. The parent signs an ownership chart showing that two named individuals ultimately own the parent, each above the 20% test in SSM’s guideline. Both are beneficial owners of the Sdn Bhd.
2. The Sdn Bhd’s board passes a resolution in the bank’s format naming the Malaysian-resident director as signatory with any one to sign, and the overseas director as an online banking approver if the bank allows it.
3. The company secretary certifies the constitution and the SSM particulars.
4. The Malaysian director attends the branch with the original MyKad, and the company provides certified passport copies of the overseas director and the two beneficial owners.
5. The bank may ask for the parent’s incorporation documents and an explanation of how the capital will be funded.

Whether a given bank accepts this structure is its decision. The structure and documents were chosen together, before the visit.

What this means for different owners

Section 213 of the Companies Act 2016 requires every director, including a resident director in a nominee-type role, to act in good faith in the company’s best interest and with reasonable care. A resident director is not a formality. See director personal liability.

Common mistakes

• Appointing a resident director who does not know the business, and then struggling at the bank interview.
• Assuming an online route is open to the company when the page excludes foreign-linked companies.
• Leaving foreign document certification until the last week.
• Not having a clear chain of ownership down to natural persons.
• Not checking whether the bank wants every signatory to attend.

How Axecta helps

Axecta supports foreign owners from incorporation through to the bank visit: structuring the board and signatories, supplying a Malaysian-resident company secretary, preparing the resolution and ownership documents and certifying the SSM records. See our incorporation service and company secretarial service. The question of capital is covered in how much capital a Sdn Bhd needs.

Next steps

1. Confirm your resident director and secretary.
2. Prepare the ownership chart and beneficial owner details.
3. Ask two or three banks for their foreign-owned requirements in writing.
4. Start foreign document certification.
5. Book the branch visit around the signatories’ travel.

Frequently asked questions