Guide to opening corporate bank account in Indonesia

The act of opening a business bank account is one of the first things you must do when starting a business. Your business bank account will serve as the hub for all of your company's financial activities, profits, accounts payable, employee payroll, and more. By law, whether you need one or not is determined by the nature of your business. However, having one is always a good idea. Even if it is a small business bank account, opening one is not as difficult as it appears.

What are corporate bank accounts?

Corporate bank accounts are known by many names. They're also known as company bank accounts or business bank accounts. But they all mean the same thing. A corporate bank account is a separate account set up just for your company. It is the location where your company's funds are managed. You may also manage your other payments from here. This could include everything from payables to payrolls and credit repayments.


A business account can be a checking or savings account, comparable to the personal account options. It does, however, perform the critical function of keeping your payments distinct from your business's transactions. Furthermore, there are several advantages to having a business bank account (from the time of opening a business account to using a corporate account).


It is crucial to remember, that opening a business bank account is always a good idea, regardless of how small your company is. Many banking institutions provide additional support for small company bank accounts, including special incentives. As a result, there is no such thing as opening a corporate bank account “too early”.

How do corporate bank accounts work?

Business banking assists organizations and companies in making the best financial decisions possible. Business banking is a fast expanding area, as more and more businesses choose to have a corporate bank account. The goal is for these financial institutions to assist both large and small firms in making better use of their assets and making prudent financial decisions based on their current balance and creditworthiness.


One of the most crucial things is that business banking safeguards your company's position. Business bank accounts for LLCs and businesses are proof of your company's legitimacy. As a result, banks will provide your organization with extra services. Small-term loans, low-interest credit allowances, and even payroll administration are among the services available. Business banking is also safer and less vulnerable to fraud.

business account

Factors to consider while opening business account for your company

Accessibility

A business bank account is not only accessible to the individual whose name appears on the documents. Bank facilities access will be required by your finance department, accountants, compliance officers, and even some employees. It's always a good idea to have a banking system with a powerful and easy-to-use web interface. Make sure they have a mobile app so that staff can access information even when they're on the go.

Benefits and features

Financial institutions understand how important it is to provide as many benefits to businesses as possible. Business bank account holders have a variety of extra benefits, especially if they open an SME bank account. Accounting integrations and collateral-free corporate cards are just a few examples, as are better interest rates and expenditure analysis capabilities. Examine the advantages and perks that your bank provides to businesses that create an account with them.

Transaction of business rules

A business bank account has many benefits, and it is provided with the assurance that you will utilize your bank account. Your business's bank savings account may have deposit limits that must be adhered to. If you choose a business checking account, you may be required to complete a minimum and a maximum number of transactions (or transactional amount). Before opening accounts, carefully review the transaction rules for each option.

Charges

Opening a business account is frequently accompanied by costs. Transaction fees, international currency exchange costs, and even fines for failing to maintain a minimum balance are examples. If you want to run your business with the least amount of collateral feasible, go with a bank that has the best fees offers and the lowest fees. Also, see if your firm qualifies for any charge exemptions. Having a free business bank account is always the best.

Minimum balance requirements

Many bank accounts have a minimum deposit requirement, and you should have it before opening the account. There may also be a minimum balance that you must maintain to avoid fines. However, this isn't limited to receiving funds. Some banks have a minimum expenditure requirement for accounts, depending on the type of account. If your business is just getting started, choose a bank with fewer requirements and a lower nominal cost.

Process for account opening

Long processing time delays and truckloads of paperwork are both antiquated methods. Businesses can now open corporate accounts through banking systems that are highly regulated and streamlined. Make a note of which of your selections has the finest method for opening a company bank account when deciding where to open a corporate account. Check to check if you have all of the required verification documents to open the account.

What are the requirements to open business bank account in Indonesia?

Brand and company certifications

Some banks and local laws demand a "doing business as" certificate if your company's registered name and branded name are different. This will be required by your bank, especially if your company has many sub-brands.

Credit score information

If your company already has a credit score, it will be included in your application. If you are creating an account for the first time during your business's establishment, the credit score of the account owner (the business owner) may be required.

Business registration documentation

This is the documentation that proves your business entity is registered with the authorities. It could be a tax certificate, an LLC registration document, as well as proof of office space purchase (if your business has an offline office). Your bank will need this to ensure that you are a legitimate business trying to open a corporate account. You will need to provide your business permit, tax identification number (NPWP), tax certificate (SKT), and Articles of Association.

Licensing information

Is your business licensed? This, of course, depends on the industry that you are working in, and the country of headquarters. Some licenses are specialized and need to be obtained after you have an account. But some licenses need to be obtained on registration of your company. These licenses (Izin Usaha) need to be provided at the time of opening your business bank account.

Ownership and partnership agreements

The best business bank accounts make room for your business to grow and expand. This includes partnerships. If you share your business with other entities or have entities with a controlling amount of shares, then that legal paperwork is required by your bank. This is purely to ascertain how will be controlling the funds and making authorizations. A resolution from the board of directors and agreements from the shareholders and proprietors might be required, as well.

Personal identification

The business owner needs to provide personal identification to open an account in their name. The form of ID will depend on your country of residence and country of operations, but it will need to be a government-issued identification that is not expired. Business owners and partners will need to provide a copy of their passport or Indonesian ID Card. If you are a foreign citizen with a residence permit, then you will need to provide a copy of your KITAS (residence permit).

Employer information

To open a business bank account in Indonesia, the first thing you need to do is present your business identification documents. This will include your business registration number (NIB), domicile letter (if applicable), and Deed of Establishment (AKTA).

Efficiently manage your company cash flow with the business account

Steps to opening corporate bank account in Indonesia

1
Do your research

Before deciding on a bank, take a close look at all of the available offers, benefits, and costs. When opening a corporate bank account, it's crucial to conduct your homework on your current status and how you see your company expanding in the future.

2
Decide which bank you will opt for

Once you've picked the bank you want to create an account with, research all of their options. It's much better if you can chat with a bank person.

3
Decide the type of account you will open

Choose whether you'll open a business checking account or a business savings account first (or both). Keep in mind to examine the interest rates and fees associated with each.

4
Gather the required documentation

Once you know which type of account you want, make a list of all the required documents. Your documents must be “Certified True”. Some banks might even need directors and power of attorney holders to be present in person, so be prepared for that.

5
Fill out the application

Complete the application thoroughly and accurately. Provide as much information as possible, and be as specific as possible. If your data is right, your bank will process everything more quickly.

6
Deposit the required amount

As with most accounts (especially savings), there needs to be a nominal deposit made to open the account. Gather the funds for this and write the check that meets these nominal requirements. Most banks in Indonesia require an initial deposit of Rp.1 million, with a minimum monthly balance of Rp.10 million.

7
Activate your bank account

Your effort does not end until you receive confirmation that your account has been opened. You must use it to activate your account. Get acquainted with the banking services (both online and offline) and begin using your account!

What are the corporate banking fees and charges to consider?

Administration fee

This is the operative fee your bank charges for owning the account. It might be charged monthly or annually. On average, the range of monthly fees in Indonesia is between Rp. 12,000 - 15,000. However, some banks offer small businesses a free business bank account, provided you maintain your minimum balance.

Cash payments

Charges may apply to cash deposits and withdrawals from the account (as well as charges for ATM usage).

Automated payments

Pre-approved payments or recurring transactions may incur fees at some banks. If this is the case, contact your bank.

Manual payments or checks

Checking processing and manual deposits can both be expensive. Take a look at these costs ahead of time.

Minimum balance charges

If your savings account falls below the minimum balance threshold, you may be charged a fee. Make sure this price is within your budget, especially if your cash flow is slow.

Overdrafts

Is overdraft protection available on your checking and credit accounts? Is swiping into a negative balance permissible? Recurring payments might easily put you in danger of going into debt. Check your overdraft costs to make sure they aren't too high.

Additional services

Some premium services (such as specialty cards, insurance, upgrades, advisory, and report preparation) can be charged. If you want to open a low-cost or free corporate account, check with your bank to see if such services are required.

International transactions

Exchange rates, receiving bank costs, administrative fees for the wire transfer provider, and other factors come under the international transaction fees. Have an idea of how much it costs to transfer or receive money from another nation (particularly if you frequently pay for it).

5 advantages of having business bank account

Ease in acquiring financing

A corporate bank account leaves a very clear financial trail for your company. This is beneficial for compliance, audits, and loan and investor applications. The ability to view a clear record of your organization's payments enhances your validity as a legitimate business.

Accessibility for partners and employees

You can share a business bank account with your partners and employees without giving your personal assets. Authorized people can access everything relating to your company's finances, and you can have a transparent system for effective commercial transactions.

Accepting various types of payments

Sometimes you should use a SWIFT transfer or a payment application in some cases. However, many of your clients and customers may need to pay you using a credit card. You can take debit and credit card payments with a corporate account, which not only extends your market but also makes your clients' lives easier.

Separating your personal and business finances

The most important reason to register a corporate account is to keep your personal and work finances separate. It's not necessary to combine your payroll and household spending. Everything related to your company is handled individually and can be studied separately as well. Credit scores are also kept separate so that your personal creditworthiness has no bearing on your company's creditworthiness (or vice versa).

Professionalism for your company

Having a business bank account can greatly increase your credibility in terms of brand reputation. Customers are more likely to make payments to a corporate account rather than a personal account. Salary slips and payroll make tax filing easier for employees. Furthermore, all invoices, receipts, and reports can be generated under your company's name. You may also rest assured as a business owner, that your personal transactions will never reflect negatively on your company.

When to open corporate bank account?

business account

One thing you should remember is

Opening a business bank account is never too early. You can open an account as soon as when you get the appropriate licenses and your business registered. Some specific permits may even necessitate the creation of such an account. If you're going to form a partnership, you'll also need a business account.


Starting early guarantees that your audit trail is clear right from the outset. Many banks have packages and deals for small businesses, so you don't have to be a unicorn to open one. Just keep in mind that if you want to grow your business, your financial institution of choice should be able to accommodate your needs.

Get the best business account for your company


Flexible credit line option

Volopay offers credit facilities to your business. This credit can be availed in the form of pre-loaded credit cards, or even applying for business credit through the Volopay portal.


Unlike a bank that requires extensive documentation and credit history, this credit line is entirely dependent on your transaction and growth predictions. The billing is also done on the same platform, all while adding to your business credit score.

credit line
Volopay's corporate cards

Instead of giving your employees access to a plethora of debit cards, you can give them corporate credit cards with Volopay. They are far more secure and protected from fraud.


You can give your employees physical credit cards if they frequently make offline payments - and an unlimited number of virtual credit cards for online transactions. If your business needs to make SaaS payments, or other recurring payments, these virtual cards can be used for vendor-specific payments.

virtual cards
Integrate with accounting software

Even if you choose an excellent banking plan, there are high chances that it may not come with accounting integrations. The automation of accounting has become vital for businesses and having to externally download data only makes the process more cumbersome. 


Volopay allows you to integrate your accounting software directly with the portal so that data is transferred directly without manual entry. Volopay also integrates with some HR software that manages payments, such as payroll facilities.

accounting integrations
Real time data

Since Volopay is software, everything takes place in real-time. If an employee requests reimbursements, pays a vendor or swipes a card - all data is updated as these transactions take place.


The ability to give all your employees accounts also means that multiple people can access this information, analyze data, and generate reports in a collaborative and streamlined manner. Volopay also has a mobile app so that employees can view their accounts on the move.

real time access
Bill Pay

Volopay’s Bill Pay features work better than a bank account. A centralized location for all your finances, it eliminates the need for multiple bank accounts in different locations. Regardless of where your company is located or how many branches it has, your business can access an eagle-eye view of all its funds from a singular interface.


Moreover, the Bill Pay feature allows you to make a variety of payments at the lowest possible fees. International transactions occur at competitive exchange rates, with significantly lower charges compared to wire transfers (and lesser time!). Your company policies can be assigned to transactions to manage accounts payable in compliance with audit requirements. Budgets can be applied to different departments. It is a one-stop shop for your business banking needs.

bill pay

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