Outline
- Introduction to Opening Corporate Bank Account in Singapore
- Preparation for Documents
- Why is It Difficult to Open a Corporate Bank Account in Singapore?
- What Do Banks Look for in Corporate Account Applications?
- Steps to Open a Corporate Bank Account in Singapore
- Bank-Specific Procedures to Open a Corporate Bank Account in Singapore: DBS, UOB, and Standard Chartered
- How Long Does It Take to Open a Corporate Bank Account in Singapore?
- Conclusion
- FAQs
After incorporating your company in Singapore, one of the most important steps is to open a corporate bank account. This process is essential to ensure your business transactions are separate from personal finances, and it helps track your income and expenses, which is important when filing your income tax returns. Understanding how to efficiently navigate the requirements and steps of opening a corporate bank account in Singapore is crucial for setting up a successful business.
Introduction to Opening Corporate Bank Account in Singapore
For Locally-Owned Singapore Companies
For Singaporean-owned businesses, the process is straightforward. With our fast-track procedure, the account can be opened online within a week with selected partner banks. For local Singaporeans or permanent residents (PRs), the process is even easier, and you can use your SingPass for a quick and seamless application.
For Foreign-Owned Singapore Companies
Foreign business owners face a slightly more complicated process due to the lack of direct access to local government data from Singapore’s banking system. Banks must collect more detailed information, such as identification, professional background, and business plans. This additional verification can take a few weeks to complete. It’s also essential for foreign investors who are unfamiliar with Singapore’s legal system and documentation process. To avoid delays, seeking help from local corporate service providers, like Paul Hype Page & Co., can help expedite the process of opening your corporate bank account.
Preparation for Documents
When opening a corporate bank account in Singapore, several documents are required by the bank to complete the process:
Account Signatories and Majority Directors
- The signatories and majority directors must be physically present in Singapore to sign the necessary documents.
- If you are overseas, you can still open an account remotely with our assistance. We can help liaise with the bank and prepare the required documents on your behalf.
Required Documents
- Certified True Copy of the Company Constitution or Memorandum and Articles of Association (M&AA).
- ACRA’s Bizfile (business registration details).
- Proof of residency and a 3-month bank statement.
- Invoices from potential suppliers and customers.
- CV and resume of the director.
- Evidence of residential address (either from Singapore or your home country).
- Passport/NRIC of shareholder & director.
- A selfie holding your passport ID page or NRIC.
- Wet signature on the back of your passport or NRIC.
Additional Information from the Bank
- Contact details, including full name, email, and phone number.
- Roles of digital banking users (e.g., maker, approver, viewer).
- Company website (if applicable).
- Initial deposit amount, intended currency, and source of funds.
- Business description and industry background.
- Expected inflows and outflows of funds to and from the account.
- Details of customers and suppliers (full names and countries).
- Purpose of the bank account and expected payment types.
While there are numerous documents and information required by banks, you can simplify the process by contacting us. We can help you streamline the application process for you, minimizing any potential hassle.
Why is It Difficult to Open a Corporate Bank Account in Singapore?
Recent events related to anti-money laundering (AML) and fraud prevention have led banks to implement stricter regulations. These regulations, combined with compliance checks, make the process more thorough. Singapore’s OECD commitments also play a role, as they require financial institutions to report customer information to tax authorities under the Common Reporting Standard (CRS).
Banks are now required to establish the tax residency of all their account holders and report that information to the Inland Revenue Authority of Singapore (IRAS). For foreign companies, this means proving tax substance in Singapore to avoid complications during the account approval process.
What Do Banks Look for in Corporate Account Applications?
When applying for a corporate bank account in Singapore, one of the key factors that banks will evaluate is whether your company has sufficient tax substance in Singapore. This refers to the presence of tangible business operations in the country, which demonstrates that the company is genuinely conducting business and not just using Singapore as a tax haven. A company with tax substance will be recognized as a tax resident of Singapore, and its operations must reflect the principles of local economic activity.
To establish tax residency and meet the expectations of Singaporean banks, businesses must demonstrate their presence in the country through various means:
- Local Suppliers and Customers: Banks require that your company engage in business transactions within Singapore or with Singapore-based partners. You must have contracts, invoices, and agreements with local suppliers or customers, which show that your business activities are active in the country. For example, your business might be importing products to Singapore or providing services to local clients.
- Physical or Virtual Office: Having a registered office address in Singapore is an essential requirement for companies wanting to open a bank account. Whether you maintain a physical office or a virtual office, the key is that your business has a legal presence in Singapore. This is also important for tax residency, as it proves that the company is operating from Singapore rather than being managed remotely from another country.
- Local Staff with CPF Contributions: Another critical factor for demonstrating tax substance is hiring local staff. A Singaporean business is expected to contribute to the Central Provident Fund (CPF), which is a mandatory social security system for Singaporean workers. When you hire employees and make CPF contributions, it shows the bank that your company is involved in the local workforce and supporting Singapore’s economy. The presence of local staff also reflects the company’s ability to contribute to the local economy through employment taxes and obligations.
If a company does not have sufficient tax substance, banks may perceive it as a shell company or a business not truly engaged in Singaporean economic activity. As a result, applications for corporate bank accounts may be rejected, delayed, or flagged for additional scrutiny. Demonstrating local business operations in line with Singaporean regulations is crucial for the smooth approval of your account.
Steps to Open a Corporate Bank Account in Singapore
The process of opening a corporate bank account in Singapore is quite detailed and involves several stages. However, with the right guidance and expert support, you can navigate the process with ease. Below are the key steps that we follow at Paul Hype Page & Co. to assist foreign companies in opening a bank account in Singapore:
Document Compilation
The first step involves collecting all necessary documents required for the bank application. These include company formation documents, identification proof for directors and shareholders, business licenses, and other legal documents. We ensure that all documents are up-to-date, properly certified, and meet the bank’s requirements. At this stage, we conduct an initial compliance check to ensure everything is in order and ready for submission.
International Compliance Checks
After compiling the required documents, our banking partners will begin the process of verifying your information through their international compliance checks. These checks involve confirming your company’s legitimacy, checking your financial background, and ensuring that you meet all anti-money laundering (AML) and know-your-customer (KYC) regulations. This process may take some time depending on the bank’s internal procedures and the complexity of the business.
Submission to the Bank
Once the documents have passed the compliance checks, we submit the application to the selected bank. The bank will then conduct its own background checks using the information provided. This may include additional verifications or requests for more documents. It’s important to work with a bank that understands your business and can efficiently process your application. We help liaise between you and the bank to ensure that any questions or additional information are addressed promptly.
Our Solutions
Obtain an Employment Pass: Obtain an employment pass to live and work in Singapore. This implies that control and management is in Singapore which directly contributes to local tax residency, or that an employee is located in Singapore.
Engage Local Staff through Our Shared Services Solutions: Our Shared Services Solution enable your business moving by employing physical local staff for multiple roles as below. Having physical presence in Singapore will contribute to your business substance and meet current requirement from the government.
- Admin
- Sales
- Customer Service
- Accounts
- IT
- HR Executive
- Other roles if specifically requested
Bank-Specific Procedures to Open a Corporate Bank Account in Singapore: DBS, UOB, and Standard Chartered
Opening a corporate bank account in Singapore involves specific procedures that vary depending on the bank you choose. Major banks such as DBS, UOB, and Standard Chartered each have their own requirements and processes for opening business accounts. Below, we’ll take you through the general steps and what to expect when opening an account with these leading banks.
1. DBS Bank: Opening a Corporate Account
DBS is one of the largest and most well-known banks in Singapore. Their corporate account opening process is straightforward but thorough, and it involves several key steps:
- Initial Requirements:
- DBS requires that account signatories and majority directors be present in Singapore for document signing.
- For foreign-owned businesses, DBS will conduct extensive due diligence to verify the identity of the business owners, directors, and shareholders. This process involves collecting personal and business details, including tax-related information.
- Documents Needed:
- Company’s Constitution or Memorandum and Articles of Association.
- ACRA Bizfile (proof of business registration).
- Identity proof of shareholders, directors, and account signatories (passport or NRIC).
- Proof of address for directors and shareholders.
- Business profile detailing the company’s nature of operations, products, or services.
- Compliance Process:
- DBS follows strict KYC (Know Your Customer) and AML (Anti-Money Laundering) guidelines, requiring all submitted documents to be verified for authenticity.
- DBS will ask for a clear business plan, including projections for the first year and your intended use of the business account (e.g., suppliers, customers, and anticipated fund transfers).
- Timeframe:
- For local businesses, the account can typically be opened in about 1-2 weeks.
- Foreign-owned businesses may take longer due to the additional verification steps, generally 3-4 weeks or more.
- Additional Services:
- DBS offers various business banking features, including digital banking options for easier management of funds, cash management solutions, and trade financing for companies engaging in import/export activities.
2. UOB (United Overseas Bank): Opening a Corporate Account
UOB is another major player in Singapore’s banking landscape, known for its comprehensive corporate banking services. The process to open a corporate account with UOB is slightly different in terms of documentation and the verification process, especially for foreign businesses:
- Initial Requirements:
- UOB requires directors and account signatories to be physically present for the signing of documents. If the directors are located overseas, they may need to attend a video conference for verification.
- UOB conducts an enhanced due diligence check on foreign clients, asking for additional background information to comply with both local and international regulations.
- Documents Needed:
- Company’s Constitution and Business Registration Certificate (Bizfile) from ACRA.
- Valid identification of directors, shareholders, and account signatories (passport and NRIC).
- Proof of residential address for all involved parties.
- Company’s business plan, including details about the source of funds, expected turnover, and nature of business activities.
- Compliance Process:
- UOB performs KYC checks and AML screening to ensure compliance with Singapore’s regulatory framework. They also require detailed background checks to assess the legitimacy of foreign business owners.
- They may request additional documents or clarification on the business model, especially if the business operates in high-risk sectors.
- Timeframe:
- For local businesses, the account opening process typically takes 1-2 weeks.
- For foreign businesses, the process can take between 3-4 weeks, depending on the verification process and document completeness.
- Additional Services:
- UOB offers a range of services, including trade financing, working capital solutions, cash management, and digital banking services. Their UOB BizSmart platform also helps businesses automate processes like invoicing and financial tracking.
3. Standard Chartered Bank: Opening a Corporate Account
Standard Chartered is a global bank with a strong presence in Singapore, offering corporate banking services with a focus on digital banking and global transactions. Here’s a look at their corporate account opening process:
- Initial Requirements:
- Similar to other banks, account signatories and directors must be present in Singapore to complete the paperwork.
- For foreign businesses, Standard Chartered requires additional background checks and verification of the company’s business activities and financial status.
- Documents Needed:
- Company’s Constitution or Articles of Association.
- ACRA Bizfile and Certificate of Incorporation.
- Identification proof (passport, NRIC) for shareholders, directors, and signatories.
- Proof of address for directors and shareholders.
- Business plan and projections for the first year of business.
- Source of funds and anticipated inflows and outflows from the account.
- Compliance Process:
- Standard Chartered conducts thorough due diligence to verify all information provided. They follow strict KYC and AML procedures and require businesses to disclose the purpose of their bank account, such as the types of transactions they will conduct.
- They may also ask for additional financial documents depending on the company’s structure and the business’s industry.
- Timeframe:
- For local businesses, the account can be set up in 1-2 weeks.
- For foreign businesses, the account may take up to 4-6 weeks due to additional checks, especially for businesses without a physical presence in Singapore.
- Additional Services:
- Standard Chartered offers online banking services, trade finance solutions, cross-border payment services, and digital treasury management tools to help businesses manage their finances more efficiently.
How Long Does It Take to Open a Corporate Bank Account in Singapore?
The timeline for opening a corporate bank account in Singapore varies based on the bank, the complexity of the application, and the completeness of the submitted documents. On average, the process takes anywhere from 2 to 6 weeks.
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For straightforward applications with all the required documents, the process may be completed in about 2 to 3 weeks.
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However, if the bank requests additional information or verification, the process may extend to 4 to 6 weeks or even longer in some cases.
Factors that could impact the timeline include the company’s business activities, the tax residency status, and the local staff presence. It’s essential to ensure that your documents are accurate and that you have met the requirements to avoid unnecessary delays. Working with a professional service provider like Paul Hype Page & Co. can help expedite the process by ensuring that all paperwork is handled efficiently.
Conclusion
Opening a corporate bank account in Singapore is a crucial step in establishing your business operations and complying with local financial regulations. However, the process can be complex, especially for foreign companies, as it involves multiple compliance checks, documentation, and validation of business activities.
At Paul Hype Page & Co., we specialize in assisting foreign entrepreneurs and companies to navigate the intricacies of opening a corporate bank account in Singapore. With our extensive network of banking partners and in-depth knowledge of Singapore’s regulatory landscape, we provide valuable support at every step of the process.
If you are a foreign business owner looking to open a corporate bank account in Singapore, we can help you streamline the process, ensure compliance with regulatory requirements, and significantly increase your chances of success. Contact us today to get started with your corporate bank account application.
FAQs
The process for a foreigner to register a company in Singapore is similar to that of a local, with the exemption of the need to apply for an Employment Pass to physically be and work in Singapore.
You can read more about it here.
There are three types of banks in Singapore: traditional local bank, traditional foreign bank, and digital bank.
Yes. You can open a corporate bank account with any bank located in Singapore.
Digital bank is generally safe in Singapore.
All documents submitted must be in English. For all non-English documents, the company must ensure all documents are translated into English by an official translator and certified by the directors of the company who are to sign on every page of such documents.
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