Singapore's company laws require that every company based in the country is required to have a corporate bank account. There are several important reasons why such is required of every company in Singapore. Some of these reasons are legal, while others are practical in nature.

Every Company in Singapore Required to have its own Corporate Bank Account

Definition of a Corporate Bank Account

Corporate bank accounts are of utmost importance to every company which is based in Singapore. Every company in Singapore is required to have its own corporate bank account for any of various reasons. However, before the reasons for the importance of a corporate bank account can be definitively explained, the corporate bank account itself must be defined.

A corporate bank account is a bank account which provides many different services meant for use by businesses and companies. Such services differentiate a corporate bank account from all of the other various bank account types which exist in Singapore today. Corporate bank accounts usually have requirements which must be fulfilled before anyone is allowed to set one up. Corporate bank accounts are not regarded as a personal asset of the shareholders of a company. The primary advantage of corporate bank accounts lies in the fact that they usually provide an optimal level of protection over the assets of the company. No other type of bank account is allowed to provide the level of protection for those assets which are provided by a corporate bank account.

Of course, before a corporate bank account which is connected to a certain company may be opened, the company itself must first be established. This is where we at Paul Hype Page & Co are able to offer our services. Our incorporation team will work with you in order to ensure that your company is established in the most suitable manner possible. We will also assist you with the fulfilment of all matters related to regulatory compliance so that you will not suffer any legal consequences.

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Importance of Corporate Bank Accounts

Corporate bank accounts are extremely important to any Singapore company. Once a company has been incorporated in Singapore, a corporate bank account will be required to be opened. There are several reasons why it is important for a company to have a corporate bank account.

One reason for the importance of corporate bank accounts lies in the fact that corporate bank accounts grant one the ability to clearly separate the finances of the business, such as business expenses, business assets, and cash flow from personal finances. This separation will make it much easier for a business owner in Singapore to separate business finances and personal finances. A greater level of protection from corporate liabilities is also associated with a corporate bank account. There may also be creditors who intend to impose personal responsibility upon a personal account owner for any of the debts which have been incurred by the company in question. Such would not apply in the case of corporate bank account owners.

The opening of a corporate bank account also permits its owner to be more able to scrutinize the business performance of the company. Such may be done by analyzing the business records of the company.

Want to Start business in Singapore
Want to Start business in Singapore

Corporate Bank Accounts and Singapore Laws

The company laws of Singapore require all businesses which have been incorporated there to have a corporate bank account. From a legal standpoint, such is the case because doing so will ensure that the company has fulfilled all matters related to regulatory compliance. A business bank account is required for authorities such as the Accounting and Corporate Regulatory Authority (ACRA) as well as other important bodies related to the company to monitor the business operations of the company and ensure that it is following the necessary regulations to the letter.

When a Singapore company opens a corporate bank account, the owner of the company is required to submit documents which are required for the opening of the account. Such documents include a certificate of incorporation, a copy of the business profile of the company, a certified true copy of the Memorandum and Articles of Association of the company, personal details including passport information and residential addresses of the shareholders and directors of the company, and completed corporate bank account opening forms. Each of these documents provides evidence that the purposes behind the opening of the corporate bank account in question are genuine and legal.