What do you think about Do I Need a Singapore Business to Open a Bank Account in Singapore??

Yes, you will need to register a business and open a bank account in Singapore, if you intend to carry out business activities in this hot business destination.

A corporate bank account is necessary to streamline business' financial transactions. It will also assist in maintaining your personal finance separate from that of your business'.

If it is all you want to do and you have “nothing else but business” on your mind, then you are in for an easier time. Starting a company in Singapore is a simple and straight affair. In fact, you could outsource it to a reputable provider of the Singapore registration services to simplify it even further. The task requires almost no time even if you are a foreigner and within 2-3 days, you could become the proud owner of a new company.

Open a Personal Bank Account in Singapore

However, the import behind the question, “Do I need a Singapore business to open a bank account in Singapore?”, suggests that you are not in need of a bank account for conducting business-related activities. It also smells like as if you are a foreigner in Singapore who needs a personal bank account and have exhausted internet to find the useful answer to your query.

As a foreigner, you cannot open a personal bank account in a Singapore bank unless you have the local address. The authorities have instructed these entities to know their customers to establish who they are. Now, anyone interested in opening a bank account has to provide the proof of local address in Singapore. Then, who gets to open a personal bank account in Singapore?

KYC (Know-Your-Customer) Requirements

The banks also like to know why you need an account with them. They have a valid point there. As a foreigner who is on a short vacation or for a short duration in Singapore, you do not need one. So they are interested in finding out what you will do with it after leaving their country.

The difficulties in opening a bank account in Singaporean puzzles as well as inconveniences a large number of foreigners. However, the authorities have not created a bureaucratic hurdle for you. They are simply interested in preventing anyone from using their system for money laundering or financing any terrorist activities.

It is the reason why one needs to submit a complete set of KYC (Know-Your-Customer) documents to the banks for opening an account with it. You also need to be physically present at the local branch for doing so.

Open an Account in a Bank in Singapore

Today, you need a local address to open a bank account in Singapore. The individuals that fall in the categories, listed below, are eligible for doing so.

  • Singaporean Citizens/Permanent Residents

  • Foreigners (Work Pass or Work Permit)

  • Foreigners (Student Visa)

  • Long Term Visit Pass Holders

Go for International or Offshore Bank Account

Well, if you are a frequent traveler or a digital nomad you cannot carry cash everywhere you go. You are better off with an International or Offshore Bank Account. Singapore authorities allow you to open such an account with a local bank.

However, it is not an easy or affordable option for an ordinary person. You must deposit at least USD 200,000 to do so.

Use Credit or Debit Card

If you are traveling to Singapore for the short duration, your best option is to use the credit or debit cards for your purchases. You need to check with your current bank in your country and know your options. Some of the banks offer special cards to their customers traveling abroad. Most probably, you can use your current card in Singapore if it is Visa/ Master Card.

Opening a Corporate Bank Account in Singapore

Today, Singapore is one of the hot marketplaces for the entrepreneurs and investors. If you are genuinely interested in starting a company in Singapore, you will need a corporate bank account for it. You will need to submit the following documents:

  • Board of directors' resolution

  • Certificate of Incorporation (copy)

  • Business profile of company (copy)

  • Memorandum and Articles of Association (copy)

  • Passport or Singaporean Identity Card (copy)

  • Proof of residential address of company director

  • Proof of residential address of beneficiaries in company

You may have all the necessary documents for opening of your corporate bank account, it may still take time. The bank needs to check your bona fide. You can avoid the delays in the process by being present at the local bank and by signing the documents.

Key Points to Check Before Opening Your Bank Account

Ideally, before opening a bank account for your business, you should check on the services and the facilities they offer. You need to know if they provide,

  • Account integrated saving & investment

  • Multi-currencies account

  • Consolidated online bank statement

  • Business credit or debit cards

  • ATM network

  • Local and worldwide branch network

  • Daily transaction limit

The banks in Singapore also offer other specialty services like fully automated service, international trade, management of cash, payment, and funding. If you need advice, choose a bank that has experience in guiding small or new businesses in your industry. Opening your corporate bank account with the right kind of bank in Singapore will surely prove helpful to your business.

 

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