Opening a Bank Account in Singapore: An Overview
There are numerous options for companies to open a corporate bank account in Singapore. Most of the banks in Singapore offer appealing incentives like the freedom to move funds across countries, trade financing credit cards, internet banking, multi-currency accounts, and more.
It is essential for the entrepreneur to review each bank for ensuring that the features offered match their business plan and need and choose a bank that will provide financial services suitable for their business operation. Putting in a little effort on this can significantly reduce future banking-related problems.
The key to understanding the bank's needs is to be aware of the requirements of the business. Legally, banks must perform customer due diligence checks to comply with regulations designed to combat terrorist financing and money laundering. Banks technically have to filter out the few bad apples from the vast majority of legit proper businesses.
Advantages of Opening a Bank Account in Singapore
The advantages pertaining to opening a bank account in Singapore are elaborated below -
Stable and Safe economy
Businesses look for stability and safety for the smooth functioning of their business operations which is offered by the Banks of Singapore. It is a triple-A rated economy providing the ease of doing business; if the entrepreneur’s home base is struggling with political turmoil or economic upheaval, the entrepreneur can safely store his assets by opening a business bank account in Singapore.
Fully Integrated into the Global Financial System
Businesses must have a business bank account in Singapore to unlock upgraded financial systems. It offers cutting-edge technologies to investors.The fully integrated financial system adds to the plus points of opening a business bank account in Singapore. Along with safety and security, a business bank account in Singapore allows you ease of access to your assets.
Brighter Investment Opportunities
Undoubtedly, Singapore is the major hub for investors. It keeps offering new investment opportunities to investors. It provides the entrepreneur with brokerage houses and wealth management options to manage their business fund. Singapore, in itself, is a robust economy where entrepreneur can take advantage of local markets. Entrepreneur must open business bank accounts in Singapore to grab golden opportunities.
Secured Banking with Multi-Currency Accounts
Entrepreneur can set up multi-currency accounts in Singapore. It is also a safe and secure banking process. Businesses can manage funds and initiate transactions through any currency. Singapore puts no restrictions on transactions done by entrepreneur inside or outside the nation’s geographical boundaries. Therefore, entrepreneur must open a business bank account in Singapore to establish multi-currency accounts at minimal bank charges.
Presence of Leading Banks In Singapore
Nearly all leading banks have their branches in Singapore. It is a good opportunity for entrepreneurs. They can manage their funds and assets with renowned banks across the globe. Singapore is a host to various top-class and highly-ranked domestic banks. They can harness those banks’ numerous advantages by opening a business bank account in Singapore.
Ease of Access to Digital Bank Accounts
Potential entrepreneur keep looking for ways for minimizing the transaction charges imposed by banks. They look for ease of operating their business bank account. Entrepreneurs can do so by opening a business bank account in Singapore. Digital bank accounts like Wise (previously Transferwise) have gained huge popularity amongst business entrepreneurs in Singapore.
Eases Tax Filing with a Corporate Bank Account
There are several compliance benefits of opening a business bank account in Singapore. It offers the ease of doing business transactions worldwide. The process of filing taxes can be made simpler by having a business bank account in this destination. Corporate banks assist in every minute detail regarding the business bank accounts in Singapore.
Essential Documents for Opening a Bank Account in Singapore
The essential documents for opening a bank account in Singapore are enlisted below -
- Identity proof
- Address Proof
- Background Details of the ultimate beneficial owners
- Company Details
- Completed Forms for Corporate Account Opening duly signed by the authorised signatories according to the board resolution)
- BOD’s Resolution that sanctions the opening of the account and the signatories to the account which must be prepared by the company secretary)
- Certified True Copy of Resolution, which sanctions the opening of the account as well as the signatories to the account ( most banks have their own format, and signed by the entrepreneur
- Certified True Copy of COI must be certified by the CS or one of the directors)
- Certified True Copy of the Company's Business Profile from the Company Registrar (must be certified by the CS or one of the directors)
- Certified True Copy of the Company’s MOA and AOA (must be certified by the company secretary or one of the directors
Essential Parameters for Choosing the Bank for Open an Account in Singapore
The entrepreneur must analyze the following parameters in order to choose the bank for opening a bank account in Singapore.
- The entrepreneur’s expected volume of banking transactions
- Some of the initial capital intended to be deposited by the entrepreneur with the bank
- Other additional financial services the business may need
- The minimum account balance requirements of the account by the bank
- The type of currencies the entrepreneur be transacting in
- Ease of making the transaction
Procedure for Opening a Bank Account in Singapore
The entrepreneur intending to open a bank account in Singapore must follow the below-mentioned procedure for the same.
Choosing a bank
The presence of various banks in Singapore mandates the entrepreneur to conduct thorough research to find the right one for his business. The speciality of some of the banks is certain types of clients or offering particular services. It may be useful to contact several banks to compare services and costs.
Arranging the Necessary Documents
The requisite documents for opening a bank account in Singapore may depend on the banks. However, the entrepreneur must arrange the basic documents discussed above.
Filing out an Application to open an Account
The entrepreneur must fill out the application in the prescribed manner, ensuring to provide all the required information and carefully checking the terms and conditions.
Depositing the Funds
The banks in Singapore often require a minimum management deposit for opening a bank account for foreign companies. The amount of this deposit shall vary between banks and the risk of the business activity. The entrepreneur must ensure to check the deposit requirements with the chosen bank before depositing funds.
Sending the Required Documents
For opening a bank account in Singapore, the entrepreneur must provide documents such as the COI, AOA, personal identification documents. Document requirements may differ from bank to bank, so the entrepreneur must have the knowledge of the requisite documents.
Awaiting Approval from the Bank
Post the submission of all the required documents and deposit the necessary funds. The entrepreneur must wait for the approval of the bank in respect of opening the account. The waiting time may vary depending on the bank, but it may take several days or even weeks. The bank can even ask questions about the company’s activity, the names of the customers, the names of your suppliers, the number of incoming and outgoing transactions, as well as the source of funds.
Accessing the Bank Account Bank
After obtaining the approval for opening a bank account in Singapore, the entrepreneur will be able to access his account online, via a mobile application or in person at the bank, along with being able to make transactions and view his balances and transaction history, followed by performing other routine banking operations.