• Company in Singapore have Corporate Bank Accounts in more than one Bank at the Same Time

There are several facts which must be understood by any Singapore company owner who plans to own multiple company bank accounts at the same time. We look at these two:

Requirements of setting up a company in Singapore

One of the requirements of any company to be incorporated in Singapore is that of a corporate bank account. A company’s incorporation cannot truly be completed unless an associated corporate bank account has been opened. Although the business regulations of Singapore stipulate that at least one corporate bank account be opened, they do not specify a maximum number of corporate bank accounts that may be opened.

Therefore, one can conclude that there is NO LIMIT to how many corporate bank accounts may be owned by a company based in Singapore. All that is required is the approval of the bank in question. Once a bank has given its approval, a business owner can use that bank to open a corporate bank account regardless of how many other corporate bank accounts are already owned.

In as much as you are not restricted from owning more than one bank account at the same time in Singapore, your corporate bank account may be closed if at one point the information you filled during the Customer Due Diligence (CDD) changes inappropriately, and the information provided is found to be inconsistent with your current company business operations, your bank may be flagged and if found guilty it can be close. For example, if your source of income is questionable, your Corporate Bank Account(s) can be flagged for money laundering. Therefore, it is advisable to update your information properly.

Advantages of Owning Multiple Corporate Bank Accounts

Can separate the fund allocation of the company

It is not only possible but sometimes even beneficial to own multiple corporate bank accounts. The primary advantage of having multiple business bank accounts at the same time lies in the fact that the business owner can separate the money associated with the business. The money in one of the accounts may be put aside for ordinary expenses such as buying equipment or taking payments from clients, while the money in other accounts could be used for other strategic purposes such as the management of the salaries of employees. Owning a corporate bank account that has specifically been created to handle operational expenses allows the owner of the bank account to better understand how much money is made and spent by the company at regular intervals. It also allows a business owner to understand how and when the business typically experiences falls in total revenue, thus allowing the business owner to take steps towards mitigating an upcoming financial loss.

Digital Cashback

Many companies in Singapore also chose to open a second corporate bank account with ASPIRE for its digital cashback feature. Aspire offers cashback on digital spending like Google, LinkedIn, Facebook, and more. By setting up a second corporate bank account, companies can reduce their cost for SaaS.

More features of Aspire bank can be found on their website: www.aspireapp.com.

Note: Aspire is operating under the Monetary Authority of Singapore in accordance with the Payment Services Act (No. 2 of 2019).

Simplifies the payment of taxes

Also, ownership of multiple corporate bank accounts simplifies the payment of taxes. Before a business owner pays the amount of tax money that has been imposed upon the owner, they will need to set aside an amount of money that is to be used for the payment of corporate taxes. Owning multiple bank accounts will therefore make it much easier to separate the money to be paid in the form of taxes from the rest of the business’s money. This would then make it easier for the company to fulfill its corporate tax obligations without causing the funds required for the company’s ordinary operations to be negatively impacted.

Should you require any assistance with the management of your corporate tax obligations, we at Paul Hype Page & Co are always willing to be of assistance. Our tax team is extremely familiar with all the tax requirements and laws of Singapore. Thus, we will be able to assist you with any tax-related issues which you might face at any time.

Emergency Fund

Another important benefit of owning multiple corporate bank accounts is that any additional accounts may serve as a reserve of money during times of emergency. By keeping this emergency money separate from the primary corporate bank account of the company, the business will always be certain to have an amount of money that will serve to boost the company’s financial position during difficult financial times. The money stored in an additional corporate bank account could also be used to pay for certain expenses that are needed by the company without using up funds that are intended to be used for other important purposes.

Of course, it would be best for a company owner to never face financial emergencies at all. One can do so through the use of a suitable financial plan. We at Paul Hype Page & Co have assisted many Singapore company owners with the creation of financial plans. Our plans have been proven to deliver very positive results for company owners.

Can a Company in Singapore have Corporate Bank Accounts in more than one Bank at the Same Time? FAQs

What are the benefits of owning a digital bank over owning a traditional bank?2020-12-04T10:12:37+08:00

There are several benefits of owning a digital bank over that of owning a traditional bank. These are:

  • As a customer, you can access banking services remotely provided you have the required gadgets like desktops, mobile, or ATM cards.
  • Provides online bill payment services hence one’s time is saved because you can pay bills at any convenient time.
  • It also saves you time as you don’t need to queue in line for some services.
  • Lower transaction rates compared to physical banking.

Some online banking services include banking statements, bill paying, depositing & withdrawing money, easier management of multiple currencies, and transferring funds.

How is the process of opening a corporate bank account in Singapore?2020-12-04T10:12:01+08:00

The process of opening a Singaporean corporate bank is not difficult as long as you avail of the required documents within the required time. You are to be verified in a process known as Customer Due diligence (CDD) whereby

  • Your identity, your background, and the background of the key company personnel are verified
  • Your source of fund is verified
  • Nature and legal structure of your business etc. are verified.
Are there restrictions on owning multiple corporate bank accounts?2020-12-04T10:11:30+08:00

No, you can own multiple corporate bank accounts as long as you comply with the requirements of those banks. 

Is there any advantage in owning more than one corporate bank accounts in different banks?2020-12-04T10:10:56+08:00

Yes, it allows for easy planning and efficiency. You will be able to separate your assets, expenses, and salaries, and thus be able to monitor any account balance appropriately. It is also important to have a separate corporate bank account for keeping reserve money for unforeseen eventualities in the company operations, or during pandemics. 

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