Corporate Bank Account in Singapore: What You Should Know

Singapore banks now hold assets of 2.5 trillion Singapore dollars, with 132 financial institutions serving businesses as of 2023. For companies establishing operations here, a corporate bank account opens the door to this substantial financial network.

The numbers tell a compelling story: Traditional Commercial Banking will grow 2.66% yearly, reaching US$7.88 billion by 2029. This expansion brings new possibilities in digital banking tools, borderless transactions, and multi-currency operations.

This guide breaks down the steps, requirements and strategic choices involved in opening a corporate bank account in Singapore, giving business leaders the facts needed to select the right banking partner.

Why Open a Corporate Bank Account in Singapore?

As per the guidelines set by the Accounting and Corporate Regulatory Authority (ACRA), all businesses in Singapore are required to open a company bank account.

Beyond meeting this legal obligation, a corporate bank account provides a clear line between personal wealth and business capital – a vital distinction that safeguards private assets and streamlines financial reporting. The business advantages extend beyond basic banking. Corporate accounts provide:

A Singapore corporate bank account acts as the financial foundation for business operations. It enables efficient money management while meeting compliance standards – two factors that help companies grow and succeed in the competitive Asian market.

Related Read: Banking on the Future: Why Are Neobanks in Singapore on the Rise?

Key Requirements for Opening a Corporate Bank Account in Singapore

Here are the exact requirements banks assess when opening a corporate account in Singapore:

Processing typically takes 1-4 weeks, with local companies approved faster than foreign-owned ones. Getting documents certified properly is critical – incorrect certification causes delays.

Related Read: Banking on the Best: Digital Bank vs Neobank

Top Banks for Opening a Corporate Bank Account in Singapore

Singapore banks offer corporate accounts designed for different business needs. Here is a summary of the most common corporate banking choices in Singapore:

DBS

DBS Business Account stands out for modern digital companies. Their application process accepts online verification, making it popular among local entrepreneurs. DBS offers one of the most accessible options with no initial deposit requirement.

OCBC

OCBC Business Growth Account targets expanding companies and startups. Their platform excels at supporting bulk payments and payroll operations. This account includes features specifically designed for businesses in growth phases.

UOB

UOB eBusiness Account focuses on digital banking through their BIBPlus platform. They offer comprehensive advisory services and streamlined online operations. Their account suits companies seeking strong digital banking tools.

Aspire

Aspire Business Account provides a tech-forward solution with fast processing. Their platform integrates with accounting software and offers trust account security through a Tier 1 bank. They serve over 15,000 businesses and rank among the top 100 fintech startups globally.

Here is a comparison of leading options and their features as of 2024:

It should be noted that companies often maintain multiple bank relationships to access different strengths and services. Each bank offers unique advantages based on your business model and financial needs. If in doubt as to which bank or banks to choose, it’s advisable to engage a trusted local partner like InCorp to assist with your selection criteria.

Related Read: The Singapore Banking Sector: Guide for Global Entrepreneurs and Investors

The Application Process for Singapore Corporate Bank Accounts

The time needed to open a business account depends on your company’s country of origin and business type. Banks verify identities and check financial backgrounds, with processing times ranging from a few days to several weeks.

Here is how different banks handle applications:

Basic Requirements

• Corporate account application forms
• Board resolution for account opening
• Certified true copies of incorporation documents
• Business profile from ACRA
• Director and shareholder identification
• Proof of registered address

Singapore Corporate Bank Account Application Processing Times

For simple company structures with local directors, applications can process quickly. Foreign-owned companies or those with multiple signatories should plan for longer review periods and prepare for potential in-person meetings based on their chosen bank.

• Simple local companies: 15 minutes to 1 week
• Companies with multiple signatories: 1-2 weeks
• Foreign-owned companies: 2-8 weeks

Special Considerations for Foreign Companies

Because data on foreign companies is not readily available in Singapore’s government systems, corporate bank account applications will generally take longer, as banks need extra time for verification – typically 2-8 weeks compared to 1-2 weeks for local companies.

Most banks require foreign directors to attend in-person meetings, with only Aspire and Transferwise offering fully online processes. During reviews, banks ask for:

Potential Required Documentation

• Registration proof of the company in Singapore
• Proof of identity and home address for all shareholders, directors, and ultimate beneficial owners
• Business plan details including:
  • Potential business activities
  • Prospective clients/suppliers
  • Nature of future banking transactions

Banks need to discuss these matters directly with company representatives through in-person meetings or video calls. This explains why most banks (except Aspire and Transferwise) require physical presence for foreign company applications.

Extra Scrutiny Areas

• Banks perform more detailed due diligence for companies with ultimate beneficial owners from Russia and CIS countries
• Additional checks apply for companies with links to sanctioned territories like Iran, Sudan, North Korea, Syria, Cuba, and Crimea
• Corporate Sanctions Questionnaire completion may be required

Tips for Success

For a smooth and efficient account opening process, consider these key recommendations:

• Engage a local expert: A local, trusted corporate service provider like InCorp can offer valuable insights and support.
• Prepare thorough documentation: Make sure all necessary documentation is complete, accurate, and certified, as errors here can cause delays.
• Understand the bank’s requirements: Research each bank’s specific requirements to choose one that aligns with your business model.
• Demonstrate a clear business plan: Presenting a detailed business plan with revenue sources and transaction forecasts also strengthens your application, helping the bank assess your business’s potential.
• Be prepared for in-person meetings: Lastly, foreign business owners should be ready for in-person meetings or video calls, allowing banks to address questions directly.

By following these tips, you can streamline the process for opening a corporate bank account, and establish a strong banking relationship in Singapore.

Where to Next With InCorp

Opening a corporate bank account in Singapore can be the foundation of a successful business journey. By carefully preparing documents, understanding each bank’s requirements, and selecting a banking partner that aligns with your business needs, you can establish a strong financial base for growth in the region.

For tailored guidance and efficient navigation of Singapore’s banking requirements, consider partnering with InCorp. Our expertise can simplify the account opening process and ensure your business is set up for success. Contact InCorp today for professional assistance on every step.

About the Author

Alton Neo

Alton has deep technical expertise in the Singapore Financial Reporting Standards as well as hands-on experience in accounting for publicly-listed entities and growing enterprises in Singapore. Beyond that, Alton also provides expertise to fund managers and family offices on structuring.

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