How to open a corporate bank account in Singapore

Why should you open a bank account in Singapore? Singapore is one of the leading financial centers in Asia and the fourth-largest in the world. Great options and security for online banking. Privileges of online banking in Singapore:

• Low commission cost for international transactions
• Good forex rates
• Available for smartphones and computers
• Easy management of multi-currency accounts
• Fast transactions

A total of 125 commercial banks are operating now in Singapore: 5 local Singaporean banks, 28 foreign banks, 55 wholesale banks, and 37 offshore banks.

DIA / Digital Advice will help you to fill all documents for the corporate bank account in Singapore. We work with DBS, UOB, OCBC, Standard Chartered Bank, CitiBank, and Maybank.

Is it complicated to open a corporate bank account in Singapore?

Yes, sometimes banks deny applications. Mostly because the company is just incorporated or if the bank decides that your business activities are not legit. You will have to prove the transparency of your business structure and the background of all shareholders is clean.

Before the acceptance of any bank in Singapore, you need to provide documents including the Know Your Client form (KYC) to prove that you are a trustworthy and honest client.

The Customer Due Diligence (CDD) process verifies all details about the company:

• source of funds,
• legal structure,
• identity and background of shareholders and directors,
• nature of business
• risks involved in your business
• nature and geography of business activities
• clients and suppliers
• profile of transactional activity

Banks need to make sure that key persons are not Politically Exposed Persons (PEP) and are not involved in money laundry, corruption, or nefarious activities. Also, banks will need to understand why your company opened in Singapore and make sure it’s not just a dummy entity.

Requirements for opening a corporate bank account in Singapore for Foreign-owned Companies

For Foreign-owned companies, it might take way longer for banks to check all the information. That’s why we need to provide as much information as possible about the background of every person in the company and full information about the business nature. Banks will have to verify this information anyway but they will have fewer questions if we will collect all details in advance.

Documents you need to provide:

1. Certificate of Registration
2. Business Profile of the Company
3. Memorandum and Articles of Association
4. Scanned copy of passport and proof of address of all shareholders and directors.
5. Background of all Beneficial owners. They will ask to provide the website, Curriculum Vitae, and a written biography.
6. Information about the Company: nature of business, business plan, activities, clients and suppliers, previous transactions and activities, business model. The more information you can provide about your company, the faster result you will get.
7. Completed forms provided by the bank
8. Resolution from the Management of the Company about the corporate bank account opening and who will operate it. Notarized copy

For Foreign-owned companies, it is impossible to open a corporate bank account within a day. Fast-track processing is not permitted. It might take weeks while banks will verify all provided information. Mostly it takes 3-4 weeks to open a corporate bank account in Singapore.

Advice from DIA / Digital Advice:

1. If your company doesn’t have many transactions, it’s better to open a payment system account. Good for internet platforms, web-design companies, or online shopping websites. This option has low commissions for transactions and you will not have income taxes.
2. If your company mostly has transactions with partners outside Singapore, better to open a bank account in a third country. This way you will escape taxes and minimize the risks of working with Singapore banks. But in case you will need to have a bank account in the same country as a corporation, better to switch to option 3.
3. For companies with high transactions volume and partners mostly in Asia, better to get a bank account in Singapore. Great online banking and fast transactions. But make sure you understand tax rates in Singapore. So, you will not be surprised at the end of the year after the annual filing.