When setting up your company in Singapore, one of the most important things to consider is setting up a company bank account. After all, how will you receive payments, handle financial transactions, and manage your business expenses without a bank account?
If you are just setting up shop for the first time in Singapore, you probably are wondering how you can go about a company bank account opening in Singapore. This is the goal of this article.
In this guide, we are going to walk you through the process of setting up a company bank account in Singapore.
- Why do you need company bank account in Singapore?
- Types of company bank accounts in Singapore
- Requirements for company bank account opening in Singapore
- Steps to company bank account opening in Singapore
- Important tips for choosing a bank for your company bank account
- What if you are a non-resident?
- An alternative solution to bank account opening: The Business Account
- Conclusion
Why do you need a Company Bank Account in Singapore?
A company bank account is quite different from a personal bank account. A company bank account is tied to your business and is the medium through which all business financial transactions will take place.
Having said that, you need a company bank account in Singapore because:
- 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.
- A company bank account makes it easier for you to manage your finances and track your business expenses.
- Having a company bank account can help you get access to financial services such as overdrafts, loans, and credit cards.
- Having a company bank account helps you to maintain a professional image with your clients as well as vendors by allowing them to make payments to your business account directly.
Types of company bank accounts in Singapore
Before we embark on the process of company bank account opening in Singapore, it’s imperative that we familiarize ourselves with the types of bank accounts in Singapore. In essence, there are two types of company bank accounts in Singapore. These are:
- Current account: This is without any doubt the most common type of company account in Singapore owing to the fact that it allows you to deposit and withdraw cash, issue cheques and manage all your business transactions. A current account is perfect for businesses with a high volume of transactions.
- Savings account: Unlike a current account, a savings account offers lower interest rates and is suitable for businesses that have low transaction volumes and wish to earn interest on their deposits.
Requirements for company bank account opening in Singapore
In order to open a company bank account in Singapore, you must meet certain requirements. These are:
- Business registration documents: You need to furnish your bank with business registration documents such as a certificate of incorporation, ACRA business profile, memorandum, and articles of association.
- Proof of registered business address: You can provide your bank with a document showing proof of address such as tenancy agreements or utility bills.
- Identification documents: You will be required to provide your bank with an identification document such as passport or National Registration Identity Card (NRIC).
- Business plan: If you are setting up a startup or a business for the very first time in Singapore, your bank might require you to furnish them with a business plan.
- Company seal: While this is not mandatory, there are banks that might require you to furnish them with a company seal before you can open a company bank account.
Steps to company bank account opening in Singapore
You are conversant with the two main types of bank accounts that businesses in Singapore can open and you are also familiar with the requirements for company account opening. Let us now shift gears and look at the steps for opening a company bank account in Singapore.
Choose a Bank
If you are going to open a company bank account, the first step is of course determining which bank you wish to open an account with. With so many banks in Singapore, it’s incumbent upon you to do due diligence and thoroughly research all the banks offering business accounts in Singapore, compare their services, fees, and requirements, and choose one that best fits your business model or needs.
Put Together All the Required Documents
Once you’ve narrowed down the bank you wish to do business with, the next step is gathering all the documents that will be needed prior to opening the company bank account. You should ensure that you have in your possession the original copies as well as their photocopies.
Book an Appointment
Most banks in Singapore require that you book an appointment with them in order to open a company bank account. As such, you need to book an appointment with the bank of your choice and ensure that you have all the required documents with you.
Attend the Appointment
Attend the appointment and ensure you bring with you all the required documents. You should also ask the bank officer any questions you might be having regarding the company bank account just to ascertain that it meets your business needs.
Wait For Approval
Once you’ve submitted all the required documents, the bank will review and inform you at a later date of your account opening status. Once it’s approved, the bank will send details of your account number via mail or post.
Activate the Account
The last step is activating your company bank account once you receive the account bank details. The bank will provide you with instructions on how to activate the account.
Important tips for choosing a bank for your company bank account
A company bank account is instrumental in the success of your business. As such, it’s in your best interests to choose a bank that can help steer your business to greater heights. Here are important tips for choosing a bank for your company bank account in Singapore.
- Compare fees: Each bank has its own fees and as such, it’s important that you compare fees before settling on any given bank. Please note that there are some banks that have hidden fees and as such it is in your best interest to read the fine print carefully before making any decision.
- Online banking features: Choose a bank with amazing online banking features such as the ability to check account balances online, transfer funds, pay bills, and transfer funds. This will make it easier for you to manage your finances.
- Banks location: It’s in your best interests to choose a bank that is not far very far from your business premises. Convenience is everything and you want to choose a bank with multiple branches and which you can visit easily should you need any service from the banking hall.
- Customer service: Should there be an issue of whatever nature with your company bank account, you want it to be resolved in the shortest time possible with efficiency. This is where customer service comes in. Look for a bank with good customer service and one that you can get in contact with customer service with ease should there be an issue of whatever nature.
What if you are a non-resident?
If you are just setting up your startup in Singapore and need to set up a company bank account, you can save yourself the stress of opening a company bank account by enlisting the services of a startup incorporation service provider. This is where MBiA comes in.
While opening a bank account for a Singapore resident is somewhat straightforward, you need a Singapore company incorporation service such as MBiA to register a company bank account on your behalf.
At MBiA, we will fast-track the process of company bank account opening in Singapore within no time. We liaise with the bank on your behalf to ensure that the account opening process is fast and seamless. What’s more? All you need to do is furnish us with the required documents and we shall submit them to the bank on your behalf.
Luckily, we offer assistance with both company registration and corporate bank account opening. We help you meet all the requirements that the Singaporean government requires for company founders such as.
- Company name
- Company secretary
- Company registered address
- Nominee and resident director
- Lodging of the register of registrable controllers
- Shareholders
- Paid up capital
We have on-going relationships with major Singaporean banks, hence making it easy for us to help you open a company bank account for you remotely online. Our experts understand that your business needs to hit the ground running and we can assure you that you have a clear understanding of the local legal framework to help you fast-track this process.
An alternative solution to bank account opening: The Business Account
Knowing the difficulties and length of opening a Bank Account with a traditional Bank in Singapore, MBiA offers its own Business Account Solution!
The difference between a Business Account and a Bank Account is that the Business Account is provided, not by a bank, but by a Payment Solution Provider who is also properly licensed by the Monetary Authority of Singapore (MAS). This license allows them to handle transactions for their clients and handle their deposits through safe custodial accounts.
For MBiA clients, this means that the KYC requirements are less stringent and more streamlined leading to an average time for the opening and having the account operational to less than 7 days. On the other side, foreigners willing to open a Bank Account for their companies with traditional banks often see delays leading to an opening time of 4 to 6 months.
Since the Business Account solution used by MBiA is more innovative and efficient it also allows for reduced transaction fees, lowered Foreign Exchange fees and no management fees, and no opening fees. Your company saves significantly from using this solution!
In the long run, the business account can also be used as a complementary solution to Bank accounts and help with collection of funds in foreign jurisdictions through the presence of global wallets supporting multi-currencies.
MBiA offers all of its clients to open a business account for free to support the growth of their companies and focus on their business while experts handle your company administration.
To streamline the corporate bank account opening process for business owners, we have developed a concise guide outlining essential steps. It also covers frequently asked questions about setting up a Singapore bank account.
This guide provides comprehensive information on establishing a Singapore business bank account. It covers essential aspects such as selecting the right bank and account type, required documentation, submitting deadlines, and associated fees.
Feel free to contact us if you need assistance with opening a business bank account.
Conclusion
In conclusion, a company bank account opening in Singapore is a crucial step in starting and running your business whether you are a resident or a foreigner. We understand that the whole process can at times be time-consuming and confusing for some.
This is why we at MBiA have taken it upon ourselves to help you set up a company bank account while you focus on other growth aspects of your business. Our goal is to help you set up a company bank account within no time. If you would like help with setting up a company bank account in Singapore for your business, simply reach out to us and let us help you achieve your business objectives!
