Starting a business in Singapore is a thrilling venture. Singapore’s strategic location is ideal for any entrepreneur or company desirous of expanding in Asia, with business-friendly regulations and solid financial sophistication. Opening a business account is one of the most important aspects of setting up a business in Singapore. In this article, we will walk you through the process, highlighting the requirements.
Prerequisites: ACRA Details
Before you open a business account in Singapore, register your business with the ACRA. After this, you will get the ACRA registration number, which is a must for you to have a bank account.
Understanding Account Types and Services
There are many types of business accounts, and different banks and fintechs will deliver them. Knowing these options can help you decide which will be the best for your business:
- Basic Business Accounts: These accounts are generally straightforward and are for startups and smaller businesses with simple banking requirements. They provide you with all the banking essentials, including online transactions, deposits, and basic online access to your money.
- Premium Business Accounts: These are sometimes reserved for larger businesses and those with more complex banking needs. They often come with extra features like higher transaction limits, better interest rates, or the option to have a dedicated relationship manager.
- Multi-Currency Accounts: This is useful if your business transacts in international currencies. These accounts enable you to keep funds in more than one currency so that you can reduce currency conversion fees and the impact of exchange rate movements on your balance.
Required Documents
You need to have some documents ready during the account opening process. Although the requirements can differ for each provider, Here are some commonly requested documents.
- Identity and Address Proof of Applicant:
A passport, or NRIC (for residents of Singapore) or Recent utility bills, bank statements (must not be older than 3 months) with the current residential address.
- Certificate of Shareholding:
This document will show shares that are distributed among the shareholders in your company.
- Business Constitution or Memorandum:
They are the legal documents that establish the structure, purpose, and governance of your company.
- Proof of Identification for Business Directors and Majority Shareholders:
Similar to the proof required for the applicant, this typically includes valid passports or NRICs.
- Board Resolution (if applicable):
In case your company’s constitution mandates that a board resolution is required for opening a bank account, please provide this. It is a Board Resolution that grants the opening of the account and specifies the signatories.
Steps to Open a Business Account
- Research and Choose Your Bank: Find out which banks or fintech providers match your business style and needs. Consider features like cost, the services they offer, accessibility, and anything else you may require.
- Prepare Your Documents: Find and Prepare the necessary documents as listed before. Be sure they are current and represent your business correctly.
- Application Submission: For conventional banks, you will probably have to go to an agency branch to present your documentation and application. The final step is to verify your citizenship and identity. This may also be done easily online by simply uploading scanned copies of your documents.
- Verification Process: After submission, the bank or fintech company will evaluate your application and documents. The exact duration of this process can be different from week to week; traditional banks will take longer due to more rigorous verification processes, while fintech companies tend to speed up this step.
- Account Activation: When your application is successful, you will get a notification with information about your new business account. For traditional banks, you may get a welcome pack where you can find your account details as well as any debit cards or checkbooks that you need. Fintech places digitally enable you and often give instant virtual cards.
- Time Frame for Account Opening: While the time it takes to open a business account may vary greatly depending on the provider, traditional banks might take several days to weeks to perform the same function owing to their in-person meeting and detailed verification requirements. Meanwhile, fintech companies are generally able to establish your account over a few days since they use more agile online processes.
In conclusion, opening a business account in Singapore is a vital step in setting up your company’s financial operations. Whether you choose to maintain it the traditional way or digitally through fintech, a business account will provide you with all the necessary tools and services to help manage your finances fruitfully for your Singapore business.
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