How to Setup a Singapore Corporate Bank Account?

Money Market in Singapore

Ever since independence, the government of Singapore has concentrated on improving financial services in Singapore. Due to this, Singapore has become one of the largest financial centers in the world.

Some of the main factors which contribute to financial inclusion in Singapore include a competitive and thriving business environment, excellent infrastructure facilities, skilled and cosmopolitan workers.

In the financial budget of 2016, the government of Singapore brought out a scheme known as the Industry Transformation Maps (ITMS). This scheme’s main motive was to improve transformation to different sectors. One such sector which witnessed rapid growth was the money market and financial sector.

The main financial authority of Singapore is the Monetary Authority of Singapore (MAS). MAS was given the responsibility of strengthening financial inclusion and innovation in fintech. Neo-banks were the main focus to improve banking activities for consumers. Due to these developments, Singapore has transpired into the world’s largest financial sector, where financial institutions constantly innovate themselves.

Banking Developments in Singapore

It is quite straightforward for you to open a corporate bank account in Singapore. There are more than 130 commercial and retail banks in Singapore that offer investor services, local banking services, and foreign banking services.

Banks are divided into the following categories in Singapore:

Local Banks- Development Bank of Singapore (DBS), OCBC and UOB

International Banks- BNP Paribas, HSBC, Citibank, Barclays, Coutts, ABN AMRO

The above banks are prominent names where you can consider opening your corporate bank account. Retail banking and business banking are different from one another. When you incorporate a company, you have to open a business bank account.

Key Considerations for Opening a Corporate Bank Account in Singapore

The following are the key considerations that have to be kept in mind before opening a corporate bank account in Singapore:

Registration requirements- depending on whether or not you have opened your business, you can go for opening a bank account. For example, if you choose to open an account with Wise, then you have some benefits which are interlinked to registering your entity.

Minimum Deposit- When you open a corporate bank account in Singapore, there are certain banks that require a minimum deposit. Some banks may require you to have a minimum deposit of SG$ 1000. However, there may be other banks that provide flexibility for your business, but still do not need any deposit.

Monthly Balance- Along with minimum deposit, there are certain banks that require you to maintain a monthly balance. If your balance goes below the limit, you may have to pay interest.

Net Banking- As you open a business account, you have to make sure to take the net banking and online banking features. Online banking is offered by all banks. If you are busy with any business matters, online banking would be your best bet to save time.

Reputation and Scalability- Another thing, which you may want to check is the reputation which the bank has with other businesses. Choose a bank that is business-friendly. You would receive more incentives and benefits by considering this. Research on businesses and which banks they utilize for their services.

Foreign and Local Currency- If you are an international business, then make sure to get a bank that has local and foreign currency accounts. Choose a bank that allows you to receive transactions in any currency. If you are dealing with a business in the USA, then you can raise invoices and receive money in US$. You may be dealing with overseas clients. So this is a must if you are an international business.

Transfer Limit- Another thing, which you have to keep in mind is the transfer limit. This would especially be for any international-related payment. Usually, there would be a mid-market exchange rate for all transactions. For example, for any cross-border transactions, some banks would charge an international transfer fee of SG$ 30.

Location- Though most of the banks offer net banking and internet services, it would be ideal to choose a bank that is located close to your business or located centrally in a business district in Singapore.

Customer Service- Ideally choose a bank with proper customer service. Any disruptions in banking could affect your business.

Process of Opening a Corporate Bank Account in Singapore

The following process has to be considered for opening a corporate bank accounting in Singapore:

Resolution Passed in the Board Meeting- If you are a foreign company and plan to set up a branch officer or a representative office in Singapore, then the foreign parent company must pass a resolution to open a branch office or representative office in Singapore. Once this is passed, a resolution to open a business bank account in Singapore must be considered.

Selecting the Bank- In the next step, you must choose an appropriate bank for opening your business bank account. Consider the key considerations before opening a corporate bank account. You can also research the facilities offered by all banks on an individual basis.

Make an Application- To open a bank account, you must make an application. If you are a foreign company, then some banks require the directors to be physically present when opening a bank account in Singapore. You can also choose an overseas branch in your country to open a bank account in Singapore. If you do not want to be physically present in Singapore, then an overseas branch can be contacted to carry out the process of opening the corporate bank account.

Verification- The bank would want to verify the information of the directors, shareholders, and the business. Usually, banks would collect passports and visas from the directors. This is a mandatory KYC (“Know your client”) requirement which has to be carried out by the bank.

Provide Documents to the Bank- Along with the application to open the bank account, you would be required to provide copies of documents for the bank. Usually, copies of the certificate of incorporation, memorandum of association, and articles of association would be requested by the bank. 

Certification of Documents- All documents which are provided must be certified by the directors and company secretary as true.

Opening the Account- In the final step, the bank would open your business account. Along with opening your business account, they would provide you with terms and conditions which have to be consistently followed by you.

Documents Required for Opening the Corporate Bank Account in Singapore

The following documents are required for opening the Singapore corporate bank account in Singapore:

• The resolution which is passed by the board of directors for opening the bank account in Singapore
• Company Incorporation Documents 
• Memorandum of Association and Articles of Association
• Copies of foreigner’s passports and visa information
• Initial deposit fee (this would be different for every bank)
• Complete Business Information of the company
• Residential Address of the Directors
• Certificate that the above documents are true and verified
• Any other documents which are requested by the bank

Conclusion

There are different forms of banks in Singapore. For your business, you require to choose a corporate business account. Before choosing a bank, you must research and find out the products and services offered by any bank.

At ScaleX, we can open a corporate bank account for your business. If you require more information on a corporate bank account in Singapore, feel free to contact us for a free consultation.