Singapore’s tax rates are low, making it undoubtedly attractive for any business to open there. Still, though this may mean saving some company money, simply dropping by a bank in Singapore to open an account isn’t as easy as it seems.
A firm can open a corporate account with many Singaporean banks if the proper papers are submitted. Nonetheless, it’s best to do some research to find out exactly how to open a bank account in Singapore. This includes finding the right financial institution for the company’s needs. So, here are the steps a firm must take in opening a corporate bank account in Singapore.
The Significance of a Business Bank Account in Singapore
A business bank account, also known as a company or corporate account, serves as a dedicated space for managing your company’s finances, including transactions like payables, payrolls, and credit repayments. It can be either a checking or savings account, keeping your business transactions separate from your personal finances. Opening one is advantageous regardless of your company’s size, with many banks offering support and incentives for small business accounts. Therefore, it is crucial to open your corporate bank account without opting to label it as too soon or leaving it too late.
Looking into How a Business Bank Account Operates
Business banking is rapidly expanding to meet the needs of both large and small businesses, aiding them in optimizing financial decisions based on their current balance and creditworthiness. By providing corporate bank accounts, financial institutions ensure legitimacy, enabling access to additional services such as short-term loans, low-interest credit, and payroll management. Moreover, business banking offers enhanced security against fraud, safeguarding the company’s position effectively.
Eligibility Requirements for Opening a Business Bank Account in Singapore
In Singapore, corporate bank accounts can be opened by both resident and foreign entrepreneurs, underscoring the country’s role as a global business hub. The process is typically handled by company directors and authorized signatories who are empowered to act on behalf of the business.
Foreign-owned businesses are typically subject to more thorough verification procedures, whereas local companies owned by Singapore citizens or permanent residents often enjoy streamlined online application processes offered by banks like DBS. These often include in-person meetings, submission of incorporation documents, board resolutions, and identification for all relevant stakeholders.
Choosing the Right Business Bank Account in Singapore
A company can open a foreign currency or Singapore dollar bank account as most banks provide this in Singapore. Do note that the company is required to provide the relevant business supporting documents for the bank preliminary review before the video call meeting can be arranged.
The bank account is subject to final approval by the bank after the video call meeting has been conducted, one of the considerations being the business nature of the company. For example, businesses relating to cryptocurrency, military and defense items, precious stones and jewelry have a low chance to of opening a bank account. Note that the minimum balance required varies per account type and bank. However, the required minimum balance and bank fees are relatively more significant for global banks.
Perks of Opening a Business Bank Account in Singapore
Establishing a business bank account in Singapore is essential for maintaining a clear distinction between your company’s financial activities and your personal funds. It enhances financial organization by simplifying bookkeeping, tax filing, and expense tracking. This separation is crucial for accurate financial reporting and ensures compliance with regulatory requirements. Additionally, it facilitates smoother interactions with the Inland Revenue Authority of Singapore (IRAS) by keeping business transactions well-documented and easily accessible.
Beyond operational efficiency, a corporate account boosts your business’s credibility and access to financial tools. By reinforcing trust and legitimacy, it helps present a professional image to clients and partners. Features such as multi-user access, payroll management, and accounting software integration are commonly included in corporate banking services. Moreover, having a dedicated business account helps build your company’s credit profile, making it easier to secure loans, overdrafts, or trade financing to support growth.
7+ Factors in Choosing a Bank to Open a Business Bank Account in Singapore
Indeed, opening a bank account is vital when the business is ready to commence operations. A business bank account helps the firm to meet legal mandates that make it secure. It also provides gains to its clients and staff. Before opening a bank account in Singapore, companies must first check each bank’s current rules and service terms.
After all, the best business bank account would be one that fits the company’s needs. When picking which bank in Singapore to open a business account with, the factors to check on are as follows:
1. Offered Online Safety
Companies need to check if the online banking facilities are furnished with foolproof on-screen safety to guard against illegal access. Some banks provide a security tool besides the user password and ID for logging into the account. Others demand a signed receipt of online banking tools before the virtual account process can start.
2. Bank Rating and Reputation
Banks with above-average creditworthiness and confidentiality standard, known history, service reliability, and considerable global presence are the safest choice at any time. Even when the bank seems to appear incredible on paper, getting reviews from existing Singapore businesses for a specific bank is always helpful.
3. Bank’s Business Focus
Suppose the company’s preference is getting personalized advice and services on wealth and asset management. In this case, the company can choose a private bank. In contrast, clients with a trade focus and preference of accessible financing, cash management, international trade, and payment can choose a global commercial bank.
4. The Convenience of Account Services
Before picking a bank, it is best to consider whether joint investment and saving accounts, foreign exchanges accounts and combined bank statements in real-time are available. Also, checking on business credit or debit cards, ATM network, local and global branches coverage, and transaction limit per day is a wise move. After all, these services vary widely across banks.
5. Fees, Pricing, and Interest
Some banks collect fees for payment facilities, such as foreign exchange, telegraphic, and inter-bank money transfers. These fees differ greatly per bank. It is also helpful to check if there are any costs incurred in opening an account for various bank account types.
6. Fully Automated Facilities
These days, all banks have online banking services. However, not every bank has fully automated facilities to help clients in their daily transactions. Therefore, before picking a bank, inquire about the bank’s online cash management system.
7. Minimum Balance and Initial Deposit
It is necessary to know the specific bank fees, services, minimum balance, and initial deposit at the onset. And this is because some bank accounts targeting overseas customers have substantial requisites and charges.
8. Niche Expertise and Specialization
The chosen bank must be an expert within the banking demands of the business. After all, every trade has different challenges and standards. So, a bank with the experience of helping firms in the same industry can offer valuable guidance to the company.
9. Location and Access
In an ideal world, the bank should be close to the business location. Apart from easy access, it also helps the bank interact with the client. Since this can pose a challenge, most large Singapore banks offer an assigned manager to companies with a high level of average bank balance or transactional volume. The bank’s call center assists smaller firms unable to meet such requirements.
10. Other Products and Services
Firms must find out, as well, if the bank offers other products and services. These may include risk management products, foreign exchange, asset finance, and wealth management facilities.
11. Range and Quality of Banking Help
Firms have to ask banks if they offer 24-hour client service, phone support, toll-free calls, and online viewing of electronic statements, besides transaction e-advice.
Opening a Business Bank Account in Singapore Remotely
Opening a corporate bank account remotely in Singapore is possible, although the process varies by financial institution. Traditional banks may still require in-person verification, particularly for foreign-owned entities. However, certain banks and digital financial platforms now offer partially or fully online onboarding for local businesses. Certain providers enable entrepreneurs and remote-first teams to complete the entire application process online, offering a convenient and efficient alternative to traditional banking.
Opening a Business Bank Account in Singapore for a Foreigner
Opening a bank account in Singapore is permitted for foreigners, though the process, particularly for business accounts, can take several weeks to complete. Applicants typically need to provide company registration documents, proof of identity and residential address for all shareholders and directors, and a detailed business profile outlining planned activities, clients, and banking needs. Most banks also require a face-to-face or video interview with company representatives as part of the due diligence process. Both local and international banks thrive in Singapore, contributing to its strong and dynamic banking environment.
Recommended Business Bank Accounts in Singapore for Corporations
OCBC Business Growth Account
The OCBC Business Growth Account is designed to support small and medium-sized enterprises (SMEs) with a streamlined, digital-first banking experience. Entrepreneurs can open an account entirely online, eliminating the need for paperwork or in-person visits. The account features low minimum balance requirements and minimal maintenance fees, making it accessible for growing businesses.
Through OCBC’s digital platforms, such as OCBC Velocity and the OCBC Business app, users gain free access to tools for e-invoicing, payment tracking, and trade finance management. Account holders benefit from 80 free FAST and 80 free GIRO transactions monthly, along with a complimentary personalized business debit card that offers unlimited cashback.
OCBC Business Entrepreneur Account Plus
Tailored for more established businesses, the OCBC Business Entrepreneur Account Plus offers a premium banking solution with cost-saving benefits. By maintaining an initial and ongoing average monthly balance of $30,000, businesses can avoid all recurring account and fall-below fees. This account is ideal for companies seeking a more robust financial platform while enjoying fee waivers and enhanced banking privileges.
Document Preparation for Business Bank Account Opening in Singapore
Just like in all countries worldwide, all Singaporean banks follow the laws. By and large, to open a business bank account in Singapore, the papers required are as follows:
- Board resolution
- Certificate of Incorporation
- Business profile
- Constitution
- Passport copy of the directors and shareholders
- Address proof (latest within 3 months) of the directors and shareholders
Business proofs from your existing business (for e.g., invoices, agreements, contracts and any business correspondences)
All Singapore banks carry out a comprehensive string of checks and probes on their prospective clients before approving a new business account.
So, for companies planning to open a corporate bank account in Singapore, check out PREMIA TNC. We’re here for you.
Premia TNC’s Assistance
Premia TNC specializes in simplifying corporate bank account opening, providing expert guidance through the process to ensure compliance and efficiency. Tailored solutions cater to businesses of all sizes and industries, expediting account setup with minimal paperwork. Ongoing support ensures optimized account features and addresses any concerns, while staying informed on regulatory changes keeps your banking operations compliant. Trust Premia TNC to be your dedicated partner in achieving your financial objectives.
What is the typical timeframe for opening a corporate bank account in Singapore?
It typically takes at least four to six weeks, depending on documentation completeness and the bank's processes. Working with a corporate service provider can expedite the process.
Is a foreign company allowed to open a corporate bank account in Singapore?
Yes, foreign companies can open corporate bank accounts in Singapore. The process and required documentation are similar to those for local companies.
