Opening a Business Bank Account in Singapore as a Foreign Entrepreneur

No matter the size of your business, it’s a good idea to keep your personal and business expenses separate by opening a corporate bank account.

The bank account opening process in Singapore is generally simple and straightforward. In this guide, we’ll walk you through the essential steps and requirements for opening an account.

Understanding the Necessity

Before delving into the specifics, it’s essential to grasp the importance of having a business bank account in Singapore. While it may seem like an administrative task, a dedicated business account offers several advantages:

1. Credibility: Having a local business bank account in Singapore enhances your credibility and trustworthiness, especially when dealing with local partners, clients, or suppliers.
2. Efficient Operations: A dedicated business account streamlines financial operations, making it easier to manage payments, invoices, and employee salaries.
3. Access to Banking Services: With a business account, you gain access to a wide range of banking services tailored to the needs of your business, such as business loans, merchant services, and foreign exchange facilities.

Preparing the Essentials

Before opening a business bank account in Singapore, ensure you have the following essential documents and information ready:

1. Incorporation Documents

• Certificate of Incorporation: Proof of your company’s registration with the Accounting and Corporate Regulatory Authority (ACRA).
• Business Profile: A document provided by ACRA containing your company’s information, including its UEN (Unique Entity Number), business activities, and registered address.
• Company Constitution: The governing document outlining your company’s internal rules and regulations.

2. Personal Identification

• Passport: A valid passport or identification document for all company directors and shareholders.
• Proof of Residential Address: Banks may require a utility bill or a similar document to verify your address.

3. Business Plan and Details

• Nature of Business: A comprehensive description of your company’s activities, operations, and future plans.
• Financial Projections: A business plan with financial projections, including revenue, expenses, and cash flow forecasts.

4. KYC (Know Your Customer) Documentation

• Due Diligence: Be prepared for the bank to conduct due diligence on your company, its directors, and shareholders. This may include background checks.

5. Additional Considerations

• Initial Deposit: Ensure you have the required minimum initial deposit, which varies among banks.
• Appointment Letter: Some banks may require a letter of appointment designating an authorised signatory for the account.

Bank Requirements

Typically, most banks will ask for the following:

1. Account signatories and majority directors should be physically in Singapore for paperwork signing when opening the company bank account. Some banks might allow document signing at one of their international branches or in front of a Notary Public.
2. Supporting documents needed:

Choosing the Right Local Bank

Factors to consider include the bank’s reputation, accessibility, service offerings, fees, and your specific business needs. When considering local banks for opening a business bank account in Singapore, two prominent options stand out:

1. DBS Bank has a Business Multi-Currency Account that does not require a minimum balance and initial deposit, and offers unlimited free local transfers.
2. OCBC Bank Multi-Currency Account does not impose a setup fee or minimum balance requirement.

Can I open a business bank account in Singapore from abroad?

Yes, you can open an account from overseas. Several local banks provide online banking services, including the option to open a business bank account.

However, the necessity of your physical presence may vary depending on the chosen type of business bank account. Some banks may also request supplementary documents for verification purposes.

Furthermore, all documentation must be presented in English. It is your company’s duty to ensure the accuracy of translations.

Summary

Opening a business bank account in Singapore is a crucial step in establishing your presence in the city-state’s thriving business landscape. With proper preparation and understanding of the requirements, you can navigate this process smoothly and enjoy the benefits of efficient financial management and credibility in the Singapore business community.