A good business bank account is a critical first step to your success in Singapore. Open a business account when your company is incorporated and starts handling money as a rule of thumb. This account can be your investment, revenue from customers, or personal cash.
Opening a corporate account in Singapore is indispensable to your business operations and keeps you protected and legally compliant. Most Singapore banks offer attractive incentives like multiple-currency accounts, freedom to move funds across countries, credit cards, or trade financing, to name a few. Review each bank to ensure that its features match your business needs.
The process for opening a Singapore corporate bank account is easy and pretty straightforward. However, it’s relatively stricter for foreign startups because it includes data verification. Banks have to assess the client’s risk profile, including the legal structure complexity, promoter’s background, geography and nature of business activities, suppliers, and clients.
Your capability to supply the requisite information will determine your success in opening a corporate account in Singapore.
Things to Consider While Shortlisting Your Bank
More often than not, those with reliable services, creditworthiness, proven customer service, and international presence in major countries are the best. Use your due diligence before to help you make informed decisions.
Here are the things to consider while shortlisting your bank:
- Look for a bank that integrates savings and investment features with ATM, corporate debit/credit cards, and local and international branch coverage. The bank should also offer foreign currency accounts with high daily transaction limits.
- Choose a bank with corporate banking experience in your industry so they can offer valuable advice. A bank with a commercial focus can offer international trade, cash management, cross-border transactions, and financing.
- Take note that some banks integrate with popular accounting software like Xero, to save you time managing your business finances and creating reports and balance sheets.
Banks you Can Consider
DBS
DBS has by far one of the most straightforward account opening processes. Their popular fuss-free banking solutions and reasonable rates make them popular among business owners and individuals alike.
Maybank: Maybank FlexiBiz Account & Maybank PremierBiz Account
Maybank PremierBiz Account is an interest-bearing account with a checking account and an opening deposit of SGD 1,000. Your account must have a maintaining balance of SGD30,000 to avoid paying a fall below fee. Maybank FlexiBiz Account, on the other hand, requires the same opening deposit with the interest-bearing account, but it is not as favourable as the PremierBiz. However, FlexiBiz has no maintaining balance or fees.
OCBC Bank: OCBC Business Growth Account
An OCBC Business Growth Account does not require an initial deposit. This benefits new business that needs to set up a business account while waiting for additional funds from business partners or other companies. Your account does not require a monthly maintenance balance. You can apply for a business account online.
HSBC: HSBC BusinessVantage Account
HSBC BusinessVantage Account is a comprehensive and reliable banking solution helping the business run smoothly and efficiently. This BusinessVantage Account is ideal for businesses that need a combination of extensive access to transaction centres, business internet banking, automated machines, and phones for day-to-day operations. It also offers an all-in-one range of banking services like cash and trade management.
Standard Chartered: Smart Business$aver Current Account
A Smart Business$aver Current Account is an innovative current account with no average maintaining balance and low transaction fees. This account will give you the edge to make free cash deposits up to 12 times the minimum maintained average.
Documents Required
The requirements for opening foreign startups corporate accounts in Singapore vary depending on the banks, but the primary documentation is pretty similar. Here is what you need to open a corporate bank account:
- Company’s resolution of the board of directors.
- A copy of the company’s certificate of incorporation.
- A copy of the company’s constitution and Memorandum and Articles of Association (M&AA).
- Copies of Singapore national identification cards or passports of all the company directors.
- Proof of residential addresses of the owners of the company and the directors.
- A copy of the company’s business profile.
Documents must be “Certified True” by one of the company directors and secretaries. The bank may request the original records for added verification. Some banks require the presence of account signatories during the signing of the official documents when opening the account. Other banks, however, may accept signed copies in one of their branches abroad. Whatever the case may be, all banks in Singapore comply with comprehensive checks and investigations on their potential corporate client’s accounts.
These are only the general guidelines and requirements. Check with your bank for additional requirements.
Process of Opening a Corporate Bank Account in Singapore for Foreign Startups
After comparing the different bank accounts and ensuring your business needs, you’re ready to open a corporate account in Singapore.
1. Decide whether you need a business checking account, savings account, or merchant services account.
2. Select a bank based on account variety, fees, and interest rates.
3. Gather the required documents. If you have any questions, call the bank.
4. Apply for the account. While most banks enable you to open an account online, some may require you to visit the branch. This process will be a breeze when you have all the required documents with you.
5. Deposit the required funds to start using your account. Your bank may require an initial deposit when you set up the account. This deposit can be cash, check, or money transferred from another account via wire transfer.
Foreign startups can also engage their company secretary to help them open a corporate bank account. They will ensure all your documents are in place and the process is seamless.
A corporate bank account is a must to grow your business and service in Singapore. The majority of the significant banks globally have a presence in Singapore. Banks will generally process a corporate bank account, whether offshore or in Singapore, if you submit the necessary documentation and the bank is satisfied with the information you provided.
For the most part, ensure that your bank account leaves you room to grow. Evaluate your business budget and anticipate how your company’s future growth could influence the monthly fees you pay. For example, some banks impose transaction limits and charge fees for exceeding them. If your current bank becomes restrictive, check if other banks could provide additional free transaction fees for the services you need.
🏢 Setting Up a Company in Singapore?
Please read our guide on tax saving for set up companies in Singapore.
If you would like to learn more about what Timcole can do for you, feel free to contact us.
Our team of professionals can assist you in opening a foreign startup in Singapore or provide consultation on corporate tax or tax exemption schemes that your business is eligible for.
