A business entity ends up dealing with numerous transactions once the business activities are commenced. Maintaining a correct pace with the creditors and debtors turns out to be an essential part of the business world. Error-free book of debtors and a creditor can help you to carry out the operations smoothly, and that is only possible if you have an exact scenario of financial transactions.
It is advised to open a corporate business account so that you don't get confused between your personal and business operation.
Additionally, opening a corporate account helps you to keep track and maintain a balance between the zones. It is well-known that foreign business investors prefer setting up a business in Myanmar. The Government of Myanmar expects every company to maintain a separate bank account. This guide will help you to understand the process and documentation required that will ease the process for you. Let's start.
Why a Corporate Bank Account?
When a personal bank account is opened, the transaction does take place in the name of the account holder. However, it is well known that according to International Company Laws, a business is treated as a separate entity from its shareholders. Opening a corporate bank account is one of the first step in setting up your business in Myanmar. The moment you decide to open a corporate bank account for your business, it will be registered under the name of your business. Moreover, the transactions carried out throughout the business cycle will be carried out in the name of your business. Some of the benefits that you will get by opening a corporate bank account in Myanmar are penned below.
Benefits of Opening a Bank Account in Myanmar
The moment you open a bank account in the name of your business established in Myanmar, you will be able to gain the following benefits:
1.Acts as a Proof
A corporate account acts as proof that established your business as a separate legal entity. Every business transaction that takes place gets recorded and keeps track of business transactions.
2.Protects Your Business Assets
A corporate account helps you to protect your business assets and provides you with a sense of security. Maintaining a corporate account helps your business as the creditors will not be able to lieu your account or perform any fraudulent activity.
3.Assign an Authorized Signatory
Once you have opened your business account, you have the flexibility to appoint an assigned authority who can take care of the business transactions, so that you can focus on the other business activities in the pipeline.
4.Build Better Banking Relationships Eases the Loan Process
The presence of a business account helps you to build a strong relationship will the banking institutions. By doing so, it will ease the process in future if it comes to loan approval for further expansion of the business.
The presence of a bank account eases the process for the auditors. Maintaining proper banking transaction and appropriate records will help you to get a good score in the audit report. Moreover, this will help your business to build a sharp image in the eyes of the Government and paves out a way for investors to invest in your company. Now, let’s move on to the process.
How to Open a Bank Account in Myanmar?
To open a Corporate Bank Account in Myanmar, you need to go through the following steps:
1.Select a Bank Account
In the very first step, you need to select the bank where you want to have a business account. The region of Myanmar has got 24 private banks which have been outlined below, which will help you in the selection process. The top three banks mentioned in the list leads the banking industry.
- Kanbawza Bank
- Ayeyarwaddy Bank
- Co-operative Bank
- Yoma Bank
- Myawaddy Bank
- Myanmar Apex Bank
- United Amara Bank
- Global Treasure Bank
- Asia Green Development Bank
- Myanmar Oriental Bank
2.Gather the necessary Documents
The documents required to open a bank account in Myanmar are stated below:
- Certificate of Company Registration in Myanmar issued by the Directorate of Investment & Companies Administration (DICA)
- Duly filled bank account application
- Business Tax Identification Number
- Certificate of Incorporation
- Export/Import Registration Copy
- Copy of Memorandum and Articles of Association
- Board of Directors Resolution
- A complete list stating the details of shareholders
- An initial deposit amount of USD /EUR/SGD 100
3.Verification of Documents
Once you have submitted the aforementioned documents, the investigation process takes place. Once verified, you will be able to operate the banking activities for your business. Now, it is to be noted that clearing the entire documentation process turns out to be a complicated process if you are new to the business field. It is advised to take the help of business consultants who can help you in the bank account opening process and is well-versed with the business establishment process. They will not only help you to open an account but will also cater to the legal proceedings.
Business Setup Worldwide is here to help you in this process. Our business experts are well versed with the legal aspects of Myanmar and can help you to open a bank account for your business in a hassle-free way. To have a word without experts, contact us today, we’d be glad to assist.