When you’re ready to start transacting and managing finances for your business, it’s crucial to open a corporate bank account. This not only ensures legal compliance and protection but also offers benefits to your customers and employees. In this guide, we will provide insights into Singapore’s banking industry, which boasts a sophisticated financial ecosystem with a mix of domestic and international banks. You’ll gain an understanding of the account opening procedures, required documents, and the range of banking services available.
Singapore Banking Landscape
Over the years, Singapore has established itself as a leading financial center in Asia, attracting major international financial institutions. Currently, there are 125 commercial banks operating in the city-state, with five being local banks and the rest being foreign entities.
Among the foreign banks, 28 are full banks, 55 are wholesale banks, and 37 are offshore banks. The five locally-incorporated entities are part of banking groups such as Development Bank of Singapore (DBS), United Overseas Bank (UOB), and Oversea-Chinese Banking Corporation (OCBC). Notable foreign banks include Standard Chartered Bank, HSBC, Citibank, and ABN AMRO.
The Monetary Authority of Singapore (MAS) acts as the regulatory authority overseeing all financial institutions in Singapore.
Note: While opening a corporate bank account in Singapore can be relatively easy and straightforward, it is essential to meet the documentation requirements accurately. The following overview of the account opening procedure and a comparison of major banks serves as a general guide and should not be considered professional advice. It is advisable to verify the current policies and terms of service directly with the respective banks.
Required Documents for Opening a Corporate Bank Account in Singapore
Generally, the following documents are needed to open a corporate bank account in Singapore:
- A resolution by the company’s board of directors
- Copy of the company’s certificate of incorporation
- Copy of the company’s business profile
- Copy of the company’s Memorandum and Articles of Association (MAA)
- Copies of passports or Singapore national identification cards of all company directors
- Proof of residential addresses for directors and ultimate beneficial owners of the company
The document copies must be “Certified True” by the company secretary or one of the company directors. Additionally, the bank may request original documents and additional documents for further verification.
It’s important to note that some banks in Singapore require the account signatories and directors to be physically present during the signing of official documentation at the time of account opening. Other banks may accept documents signed in person at one of their overseas branches or in front of a notary. Regardless, all banks in Singapore comply with stringent laws and regulations, conducting thorough checks and investigations on potential clients before opening new corporate accounts.
Singapore Multi-Currency Accounts
Companies can open Singapore dollar accounts or foreign currency accounts, as most banks in the city-state offer multi-currency accounts. The choice of account depends on the nature of the business.
Trading companies and those with significant overseas transactions typically require foreign currency or multi-currency accounts. Keep in mind that the minimum balance requirements and bank charges may vary depending on the bank and account type, with international banks generally imposing higher thresholds.
Banking Facilities Availability
In Singapore, all banks provide cheque book facilities for Singapore dollar corporate accounts. However, for foreign currency accounts, cheque books are available only for specific currencies.
As for ATM cards, most banks offer this facility with varying daily limits, but exclusively for Singapore dollar accounts.
Credit card facilities are usually granted on a case-by-case basis, and some banks may require the account to be held for a minimum period before availing such services.
Online banking facilities are available across all banks in Singapore, though the allowed transactions may vary. Customers can typically set transaction limits in major banks.
Additional Services Provided by Banks in Singapore
Nearly all banks in Singapore offer a comprehensive suite of enterprise banking solutions, including insurance, accounts payable services, accounts receivable services, trade financing, and liquidity management services.
Loan facilities are also available, but eligibility depends on factors such as the company’s financial history, business nature, Singaporean stake in the company, management profile, company size, and customer profile.
Interested in Opening a Corporate Bank Account in Singapore?
We are here to assist you. Our team can help facilitate the opening of a corporate bank account for your Singapore or offshore registered entity. Feel free to call us at +65 6591 9991 or email us at [email protected] for a free consultation.
