Opening a business bank account in Singapore can be a pivotal step in establishing and growing your company. This article aims to simplify the process by providing a comprehensive overview of the requirements involved in opening a corporate bank account or a company bank account in Singapore.
Whether you are a local entrepreneur or a foreigner looking to set up your business in this thriving Asian hub, this guide will help you navigate the intricacies of the banking system. We primarily focus on the banking needs of small to mid-size companies, ensuring that you can access the essential financial services required for your business operations.
It is important to note that the information provided here serves as general guidance, and given the dynamic nature of the banking industry, it is advisable to verify the account features directly with the chosen bank(s) to stay up-to-date with their latest policies and offerings. Singapore’s banks continually adapt to remain competitive in their services, making it crucial to have the most current information at your disposal.
The necessary documents to open a business bank account
To initiate the process of opening a corporate bank account for your Singapore-incorporated company as a foreign national, you’ll typically need to provide the following documentation:
- A board of directors’ resolution that approves the account’s opening and specifies the authorized signatories. Alternatively, you can use a pre-approved format the bank provides, requiring only the directors’ signatures.
- Completed standard account opening forms signed by the authorized signatories.
- A copy of your company’s Certificate of Incorporation.
- Your company’s Business Profile from ACRA (Accounting and Corporate Regulatory Authority).
- Your company’s Memorandum and Articles of Association (MAA).
- Copies of passports (or Singapore national identification cards) and proof of residential addresses for all directors, signatories, and ultimate beneficial owners.
- If the shareholder is a corporation, a copy of the Certificate of Incumbency of the holding company is required. This official document lists the names and titles of the current directors and officers of the organization, confirming their authority to engage in legally binding transactions on behalf of the company.
While the majority of banks stipulate that account signatories and directors must be physically present in Singapore to sign the necessary official documents during the corporate bank account opening process, certain institutions offer flexibility. Some banks may allow documents to be signed in person at one of their international branches or witnessed by a notary public. Furthermore, it’s worth noting that banks might request supplementary documentation on a case-by-case basis as part of their specific requirements.
Bank laws and regulations
Banks in Singapore adhere to stringent laws and regulations, necessitating thorough due diligence and investigations when considering new corporate bank account applications. These measures serve to mitigate risk and ensure compliance with anti-money laundering policies. Singapore places a strong emphasis on combating terrorist financing and illicit transactions, making it challenging for companies engaged in dubious activities to establish an account.
The timeline
The timeline for opening a corporate bank account can fluctuate, spanning from a few weeks to as long as three months. The duration is contingent on the extent of investigation required to validate the identities and creditworthiness of the company’s directors, secretary, and the company itself. For accounts initiated without a physical presence in Singapore, the processing period may be further extended.
Presence in Singapore
Lastly, We highly advise your physical presence in Singapore for the completion of the corporate bank account opening procedure. This proactive step can help preempt any potential delays, as banks retain the authority to demand the presence of the beneficial owner as a prerequisite for application approval.
We provide complimentary support for the initial bank account setup for companies structured as follows:
- One foreign director alongside our nominee director.
- One local director.
Our assistance encompasses tasks such as preparing the requisite board resolution and facilitating the signing of bank account opening documents, with a particular focus on UOB Bank accounts.
We offer free support for the initial bank account setup for companies structured as follows:
- Two or more foreign directors alongside our nominee director.
- More than two directors without utilizing our nominee director services.
Additionally, for the signing of the bank account opening form, there is a fee starting from SGD$100 (including GST), which varies depending on the chosen bank. This fee becomes payable after the board resolution has been successfully signed and verified, and it grants authorization for the nominee director or secretary to sign the requisite documents.
Most banks in Singapore require at least one director to be physically present to open a corporate bank account, excluding our nominee director.
For clients who are independently managing their initial bank account opening with their preferred bank and do not require our assistance, we kindly request that you provide us with a copy of the signed bank’s standard form, which includes the resolution to open the account. This will help us maintain accurate records.
For clients seeking to initiate their first bank account opening remotely with their chosen bank, it is essential to verify whether this procedure is permissible according to the bank’s policies. If you find it necessary for our nominee director or secretary to facilitate the signing of documents at a bank branch, please note that our fees for such visits will start at $250 (inclusive of GST $270) per visit.
Regarding the bank account opening process, we can offer document certification services, such as passport/NRIC copies, but this service is contingent on the bearers being physically present in our office and presenting the original documents. Additional charges will be applicable for these services. In cases where corporate shareholders are involved, banks typically require the registration documents of these entities to be notarized by a notary public, practicing accountant, or lawyer whose professional credentials can be verified through their respective professional websites. If additional certification on these documents is required, our local director (excluding those utilizing our nominee director services) will also need to provide certification, and additional charges will apply in such instances.
Iris International extends support for opening a bank account at select banks when you choose to incorporate your company through our services. You can find comprehensive details about this offering on our Singapore Company Incorporation page.
Additionally, we have outlined the prominent features of each Singaporean bank below for your convenience. For a more in-depth analysis of the features offered by local banks in Singapore, please consult our detailed comparison, which includes DBS, OCBC, and UOB
UOB Bank:
- Initial deposit: SGD$1,000
- Account opening: Free in our office or remotely
- Internet banking: Available
- Debit card/ATM card: Available for SGD accounts
DBS Bank
- Initial deposit: SGD$3,000 for SGD account, US$1,000 for USD account
- Account opening: At least one director and the bank signatory must be present at a DBS branch. Local and foreign directors can be present separately.
- Internet banking: Available
- Debit card/ATM card: Available
- Company assessment: DBS bank officers will thoroughly assess your company. Newly established foreign-owned companies have a high rejection rate, unless the owner has a good personal banking relationship with DBS.
OCBC Bank
- Initial deposit: SGD$3,000
- Account opening: Must be completed at an OCBC branch. We charge SGD$200 (including GST) for signing the bank account opening form at the Novena OCBC branch. Additional charges apply for assistance with opening an account at another OCBC branch.
- Internet banking: Available
- Debit card/ATM card: Available
State Bank Of India, Singapore (“SBI Singapore”)
- Initial deposit: SGD$2,000 for SGD account, US$5,000 for USD account
- Service fee: SGD$20 per month if the average monthly balance falls below SGD$2,000 or US$5,000
- Annual maintenance fee: SGD$50
- Internet banking: Available for statement viewing only
- Debit card/ATM card: Available
Standard Chartered Bank (“SCB”)
- Initial deposit: SGD$30,000 for SGD account and USD account
- Service fee: SGD$100 per month if the average monthly balance falls below SGD$30,000
- Account opening fee: SGD$200 (including GST) for signing the bank account opening form
- Internet banking: Available
- ATM card: Available
HSBC Bank
- Account opening: Initial deposit of USD 100,000 and monthly balance of USD 100,000 required. Estimated turnover of USD 3 million per year required.
- Requirements: Physical office and 3 years of business operation in Singapore recommended.
- Rejection rate: High for small newly started companies.
In conclusion, navigating the process of opening a corporate bank account in Singapore can be a pivotal step in establishing and growing your business. This step-by-step guide has provided valuable insights into the requirements and procedures involved, helping you make informed decisions for your company’s financial needs. It is important to stay updated on the latest policies and offerings of the banks, as the financial landscape in Singapore is ever-evolving.
At Iris International, we are committed to simplifying this journey for you. Beyond just bank account assistance, we offer a range of services to facilitate your company’s incorporation and expansion in Singapore. Our expertise in navigating local regulations and our dedication to providing tailored solutions make us your ideal partner in this endeavor. We invite you to explore the possibilities and opportunities that Singapore offers and to consider Iris International as your trusted guide in realizing your business aspirations in this dynamic city-state. Your success is our priority, and we look forward to being a part of your entrepreneurial journey.
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