Opening a Corporate Bank Account in SingaporeDownload Now: FREE GST 2023 GuidebookDownload Now: FREE Employment Pass ChecklistDownload Now: Free Incorporation Checklist
While a business bank account requires more paperwork to set up and it may seem easier to only use your personal bank account, there are benefits to keeping your business transactions separate. In this article we discuss why you should open a corporate bank account, popular banks in Singapore and the documents required when opening a corporate bank account.
Corporate Bank Account VS Personal Bank Account
Here are the three reasons why it may be beneficial to open a corporate bank account rather than using your personal bank account for your business:
- A Business Bank Account Promotes Better Budgeting
With clear structured finances, you are able to better gauge where and how often you should be spending your money. This is especially beneficial during decision-making processes as separating your personal assets and business assets can make budgeting much less complicated.
- Business Bank Accounts Make Your Accounting Easier
Having a separate business bank account also makes your accounting easier. Whether you automatically import information to your bookkeeping software or send everything to your accountant, you won’t have to waste time separating out your personal transactions.
- Business Bank Accounts Offer More Services
One of the most important features of business bank accounts is controlling the level of access your employees have to your accounts. You can decide who has check-signing authority, who can only make deposits, and who can use a debit card. You can also set limits on debit card use.
I Want to Open a Corporate Bank Account, Where Do I Open One?
Singapore is arguably Asia’s foremost financial centre, with every major international financial institution having its presence here. Among the 120 foreign banks, 28 are foreign banks, 55 are wholesale banks and 37 are offshore banks.
Among those, these locally-incorporated entities (and most popular banks) are the most commonly opted for choices – Development Bank of Singapore (DBS), United Overseas Bank (UOB), and Oversea-Chinese Banking Corporation (OCBC). Some prominent foreign banks present include Standard Chartered Bank, HSBC and Citibank. It is also worth considering Neobanks.
Documents Required to Open a Corporate Business Account in Singapore
Some banks in Singapore require that the account signatories and directors be physically present for the signing of official documentation at the time of account opening. Whereas, other banks may accept documents that are signed in person at one of their overseas branches or in front of a notary. Generally speaking, these are the documents that are commonly required when opening up a corporate business 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 company’s Memorandum and Articles of Association (MAA)
- Copies of passports or Singapore national identification cards of all the company directors
- Proof of residential addresses of the directors and ultimate beneficial owners of the company
When in Doubt, Reach Out!
Sprout Asia wants you to focus on what you do best, while we take care of the rest. That’s why we offer budget-friendly accounting services! Allow our experts to handle your financial management with ease and accuracy. Feel free to contact us regarding any questions about our services, we’ll respond within 24 hours.