How to Open a Bank Account in Singapore?

how to open bank account in singapore

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.

Decide the Type of Corporate Account to Open 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.

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:

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Prepare and Submit the Papers Required by Singaporean Banks in Opening a Bank Account

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)

Due to Covid-19 and adaptation to the current situation, we are able to assist with arrangements of the bank account opening remotely via video call meeting with the desired bank. Nevertheless, 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.

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