How to register Paypal account
This section explains how to use PayPal Malaysia for those who will start business activities in Malaysia using a PayPal account in the name of a Labuan company.
In particular, for those who are involved in IT-related businesses, it is expected that there will be cases where a PayPal account will be required, so the following is information on how to authorise a PayPal Malaysia account in the name of a Labuan company.
The application screen does not allow Labuan entities to be authorised
Firstly, the registration itself for “PayPal Malaysia” is very easy, but in order to continue using your PayPal account, you need to submit official documents containing (i) the company name, (ii) the registered address and (iii) the date of issue.
However, the various documents of a Labuan company are different from those of a Malaysian company (SDN BHD), and the authentication procedure cannot be successfully carried out according to the PayPal Malaysia manual.
Indeed, there is a page on the application screen for uploading various certification documents, but even if you try uploading the documents from there, the approval will not be accepted due to incomplete documents.
Furthermore, when we inform the email support that we are a Labuan company, they only repeat mechanical answers and do not allow us to proceed with the process.
Explanation from PayPal Malaysia
An explanation from PayPal Malaysia is as follows: –
“Proof of business address. This can be a bank statement, utility bill, insurance statement or any document issued by official organization that states your business name, your business address and the issue date of the document. Please note that issue date must be within 6 months time.“
There, it is explained that all of the following documents will be required.
・Form 9（※Not applicable to Labuan corporate documents）
・Form 49（※Not applicable to Labuan corporate documents）
・Memorandum/Article of Association
・Certificate of Incorporation or equivalent
As the above documents are relevant for Malaysian companies, unfortunately some of the relevant documents do not exist for Labuan companies.
How to pass the certification of a Labuan company
|【How to pass the certification of a Labuan company】
|◇ Calling the support desk
|Call the support desk.
|◇ Obtaining a dedicated email address
|The person in charge will issue you with a dedicated e-mail address.
|◇ Send the required documents by e-mail as attachments.
|Please send the following 5 documents by e-mail attachment.
|◇ Certification procedure complete.
|The certification procedure is complete.
To complete the certification process in the name of a Labuan company, please call the support desk and inform them that you are a Labuan company.
You will then be given a dedicated email address to which you can send the certification document file.
Please send an email to that email address with the following five documents attached and the certification procedure will be completed successfully.
|List of documents required for certification
|・Form 7 (Certificate of Incorporation)
|・Form 13 (Allotment of Shares)
|・Form 23 (Registered Office Address)
|・Form 25 (Particulars of Directors and Secretaries)
|・M & A (Memorandum/Article of Association)
Kindly note that the following restrictions apply to receipts made after registering PayPal Malaysia but before activation.
・For sales before activation as an authorised account, withdrawals will only be possible after a 20 days suspension period.
・However, even after activation, sales made before activation will be suspended for 20 days from the date of the sales.
If the amount in suspension reaches a certain amount before the business account is authorised, the sales will be rejected (we do not know the criteria for a certain amount).
In light of the above, for those who are considering using PayPal Malaysia for business in the name of a Labuan company, we recommend that you complete the required documents immediately after opening a PayPal account and receive funds only after the authorisation is completed, in order to avoid the suspension restrictions. We recommend that you complete the verification of the required documents immediately after opening your PayPal account and receive funds only after the verification is completed.
To obtain the necessary documents, please send an email to our representative and we will prepare the necessary documents for you immediately.