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The first step after a company has been incorporated is to open a corporate bank account in Singapore. The process that is involved in opening a Singapore Corporate bank account is simple and quite straightforward provided proper procedures are followed and correct documentation is provided. While it comes to opening a corporate bank account, Singapore companies have plenty of options. Most of the Singapore banks offer many customer-oriented features such as credit cards, multi-currency accounts, internet banking, freedom to move funds across countries, trade financing, and more. However, in order to select the bank, it is essential to compare the corporate account’s features of various banks so as to arrive at a decision that comes closest to meeting the particular needs of your company.
This article is an endeavor to chalk out a complete guide to give an overview of the procedures involved in opening a Singapore corporate bank account. It must be kept in mind that the information presented in the guide is for general guidance only. It may help you make up your mind regarding the type of account and back that suits your business needs. However, when you have narrowed down your choices, you should confirm the account features and packages for corporate accounts offered by the bank(s) that you have shortlisted at your own. A personal check is must to ensure that you are aware of the latest policies and regulations as per your requirements and nature of the business. You must remain wary of the fact that banks operate in a very competitive environment and normally change their offers and policies quite frequently.
For Foreign Entities
For your foreign entity we can help you to connect with the bankers to open a bank account.
Singapore is a triple-A rated economy, and it continues to match the standards expected of it. Singapore is ranked as the third-best financial center of the world falling behind only London and New York City. There is a strong presence of almost all the banks of the world in Singapore.
Some of the vital banks that offer a wide range of corporate banking services to small to medium-sized companies are mentioned below:
Initial balance and ongoing balance amount requirements vary greatly from bank to bank but in general, the fees are extremely competitive and fair. Therefore, the selection of a bank that suits your needs is of prime importance.
Singapore’s corporate bank accounts can function in a variety of currencies. Singapore corporate bank accounts are denominated in Singapore dollars as well as the major currencies like USD, EUR and GBP.
As per the law, banks in Singapore require at least one executive director to be present in Singapore for the opening of a Singapore corporate bank account. It is an anti-money laundering and anti-terrorist financing measure as per the rules and regulations of Singapore companies act.
Singapore Citizens and Permanent Residents may be able to open a corporate bank account without a visit. However, for foreign directors, a visit is generally a must. With the opening of digital banks in Singapore in 2020, the situation may change.
Despite due diligence to the customer service, requirements have been made quite strict throughout the world because of money laundering and terrorist financing. For the banks, it is a complicated and challenging task to differentiate between the vast majority of legitimate companies who are doing bonafide business and those few that are created as front companies for money laundering. This is more critical and difficult in case of a start-up since there is no history or records to refer to. Therefore, banks ask for the information and documents from startups to better understand their business and risk profiles.
The time period required for processing of applications for opening of Singapore Corporate Bank Account take almost 3 weeks.
The list of the businesses and entities that are entitled to open a Singapore Corporate bank account are mentioned below:
Opening of a Singapore Corporate bank account is a vital step in setting a business in Singapore. Therefore, in order to open a Singapore Corporate bank account, following documents, certificates, and papers may be asked by the banks:
Most of the banks ask for the physical presence of the account signatories, and the majority of the directors at the time of signing of paperwork for opening of the Singapore corporate bank account. Some banks may, however, accept the signing of the documents at one of their overseas branches or in front of a Notary Public.
It has been established through experience over the period of time that not providing the required documents in time is one of the most common delays in opening a Singapore Corporate bank account.
Note : It is essential to mention the list of the documents appended above is only for general reference and should not be taken as a standard checklist of documents required for opening a Singapore Corporate Bank Account. Bank policies change frequently, and they have the right to ask for the additional mandatory or supporting documents before opening your Singapore corporate bank account.
To apply to open a bank account, a company must submit the application form and supporting documents to the bank.
Note that many banks in Singapore require the company directors and authorized signatories to be present at a local Singapore branch in order to sign the necessary paperwork in the presence of bank staff. Furthermore, the directors and signatories will be required to present his or her original passport or Singapore IC when signing the necessary documents.
Bank representative will normally meet you in our office, and go through all the documents with you. They will also sight the original passport and any other identity documents. During the meeting, you will also be explained all the plans and pricing options. Based on your preferences, the form will be completed and sent for processing.
There are over 30 local and international banks that offer corporate bank accounts in Singapore. Some of the most prominent banks in Singapore include:
However, most of the Indian banks will not be able to give the flexibility in their corporate bank account operations as other banks may offer.
Services |
Bank (DBS) |
Bank (OCBC) |
Is it possible to open a bank account without being physically present in Singapore for the signing of the paperwork?
(Though physical presence is highly recommended for all the banks in Singapore in order to avoid delays in opening a Singapore Corporate Bank Account) |
In DBS Bank, the presence of an executive director and authorized signatory is a mandatory requirement and cannot be dispensed with. However, some exceptions can be made on case to case basis at the discretion of the bank authorities.
DBS Bank provides the facility of online application for registration of Singapore corporate bank account, to Singapore residents only. While utilizing this facility, you can skip the branch visit and save time. The verification of Singapore Corporate bank account can be done online through myinfo login. |
In OCBC Bank, the presence of an executive director and authorized signatory is a mandatory requirement and cannot be dispensed with. However, some exceptions can be made on case to case basis at the discretion of the bank authorities. |
Current Bank Account – Singapore Dollars |
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Free Setting Up of Singapore Corporate Bank Account | Doesn’t offer any free account | Doesn’t offer a free account. However, the account fee of S$38 per month is waived off for the first three months. |
Requirement of Minimum Deposit | S$ 1,000 to S$ 3,000 | S$ 3,000 |
Requirement of Minimum Balance |
There are two types of accounts in DBS, which have different implications:
Digital Business Account: This account has no minimum balance requirement Business Account: This account needs an average monthly balance of S$ 10,000 to be maintained otherwise S$ 35 monthly fee becomes applicable |
S$ 35 applies if the balance falls below S$ 5000. However, this fee is waived off for the first six months of opening Singapore Corporate Bank Account |
Debit Card Issuance | ||
Checkbook Issuance |
Digital Business Account: S$ 25 per book
Business Account: Free of charge with this account |
Yes |
Credit Card Issuance | ||
Online Banking Facility | ||
Singapore Corporate Bank Account – Foreign Currency |
||
Availability of Foreign currency account | Both fixed deposit account and current account available in major currencies. | Both fixed deposit account and current account available in major currencies. |
Requirement of Minimum Deposit |
Rates vary depending upon currency
USD 1000 EUR 800 |
Rates vary depending upon currency
USD 1000 EUR 1000 |
Requirement of Minimum amount of balance |
Rates vary depending upon currency
USD 1000 EUR 800 |
Rates vary depending upon currency
USD 500 EUR 500 |
Checkbook Issuance | Yes, for certain currencies. | Yes, for USD. |
Debit Card Issuance | Yes. | No. |
Online Banking Facility | ||
Credit Card Issuance | Yes, subject to approval. | No. |
Other Facilities and related services |
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Insurance for Business | Yes | Yes |
Treasury Services: Bonds, FX Spots, IR Swaps, Forwards, FX Options, Futures, etc. | Yes | Yes |
Eligibility for Business Loans
To be eligible generally the entity should have been in operation for 1 – 3 years |
Yes
The amount depends upon the factors like number of employees, company history, local shareholding, etc. |
Yes
The amount depends upon the factors like number of employees, company history, local shareholding, etc. |
Accounts Payable Services: TT, DD, internal fund transfers interbank GIRO payment, cheque issuance services cashier’s order | Yes | Yes |
Accounts Receivable Services: incoming TT, GIRO Collections, bill payment services, | Yes | Yes |
Liquidity Management Services | Yes | Yes |
Trade Finance Services: Bank Guarantees, Export Products, Import Products | Yes | Yes |
Feature |
Maybank (FlexiBiz) |
Standard Chartered |
CitiBank (CitiBusiness) |
Is it possible to open a bank account without being physically present in Singapore for the signing of the paperwork?
(Though physical presence is highly recommended for all the banks in Singapore in order to avoid delays in opening a Singapore Corporate Bank Account) |
In-person meeting for all authorized signatories is a must for opening of Singapore Corporate Bank Account as part of a foolproof account management system
However, in rare cases, where one of the directors (not a major shareholder or authorized signatory) is not able to come in person at Singapore, a visit to one of the overseas branches (New York, London, China, Hong Kong, Malaysia, Indonesia, Cambodia, Philippines, Vietnam, Laos & Myanmar) can be arranged for verification of the documents and signatures before sending them back to Singapore for processing |
In StanChart,the presence of executive director and authorized signatory is a mandatory requirement and cannot be dispensed with. However, some exceptions can be made on case to case basis at the discretion of the bank authorities where existing customers can go to the bank’s branch or an authorized agent worldwide for identification, verification, and teleconference | In CitiBank,the presence of executive director and authorized signatory is a mandatory requirement and cannot be dispensed with. However, some exceptions can be made on case to case basis at the discretion of the bank authorities. |
Current Account – Singapore Dollar |
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Free Setting Up of Singapore Corporate Bank Account | Nil | None | Nil |
Requirement of Initial Deposit | S$1000 | S$30000 | S$100,000 or equivalent (for USD account USD equivalent). |
Requirement of Minimum Balance | Nil. | This account requires an average monthly balance of S$ 30,000 to be maintained otherwise S$ 50 monthly fee becomes applicable |
This account requires an average monthly balance of S$ 50,000 to be maintained otherwise S$ 100 monthly fee becomes applicable for both SGD and USD accounts
Minimum balanced is not per account based rather depends upon the total relationship balance |
Debit Card Issuance | No. | No. | Nil. |
Checkbook Issuance | Yes. | Yes. | Yes. |
Credit Card Issuance | Yes^ |
No
Debit card is available (only linked to SGD) |
The bank offers corporate commercial cards. |
Online Banking Facility | Yes | Yes | Yes |
Singapore Corporate Bank Account – Foreign Currency |
|||
Availability of Foreign currency account | USD, GBP, EUR, CAD, AUD, NZD, HKD | Both fixed deposit account and current account available in major currencies | Both fixed deposit account and current account available in major currencies |
Requirement of Initial Deposit | $1000 or its equivalent in respective currencies except for HKD $10000 | US$30,000 (Varies based on currency). | S$100,000 or equivalent (for USD account USD equivalent). |
Requirement of Minimum amount of balance | $1000 or it’s equivalent in respective currencies except for HKD $10000 | Rates vary depending upon currency |
This account requires an average monthly balance of S$ 200,000 otherwise S$ 200 monthly fee becomes applicable
Minimum balanced is not per account based rather depends upon the total relationship balance |
Checkbook Issuance | For USD only | For USD only | Yes. |
Debit Card Issuance | No. | No. | Nil. |
Online Banking Facility | Yes |
Yes
One-off setup fee of S$50 is applicable |
Yes |
Credit Card Issuance | Yes^ | No | Yes |
Other Facilities and related services |
|||
Insurance of Business | Yes. | Yes. | No. |
Treasury Services: Bonds, FX Spots, IR Swaps, Forwards, FX Options, Futures, etc. | Yes. | Yes, depending on business activities. | Yes. |
Eligibility for Business Loans | |||
Accounts Payable Services: TT, DD, internal fund transfers interbank GIRO payment, cheque issuance services, cashier’s order | Yes | Yes | Yes |
Accounts Receivable Services: incoming TT, GIRO Collections, bill payment services | Yes | Yes | Yes |
Liquidity Management Services | Yes | Info not available | Yes |
Trade Finance Services: Bank Guarantees, Export Products, Import Products | Yes | Yes | Yes |