A business, whether it is small or large, should have a bank account for seamless money transactions and secure and easy capital management. Singapore is a leading financial centre, ranking third in the world.
For those who want to start a business, they need to open a business bank account. You can find numerous banks offering financial services, such as online banking, trade finance, quick transfer of funds, business loans, foreign exchange facilities and payroll management, in Singapore. With these services, banks help businesses grow by navigating the nation’s healthy and reliable financial system.
Your startup necessitates a corporate bank account opening with a reliable and leading bank upon registration for successful operations.
Some Reasons for Opening a Business Bank Account
When running a business, you can separate your business finances from your personal finances with a corporate bank account, managing your cash flows, assets, and expenses of your business. One of the important benefits is that you can save yourself from any liabilities by separating personal and business receipts and payments.
Alternatively, managing your funds with one bank account leads to combining personal and business transactions and using business funds like your personal money. By doing this, you run the danger of exposing your personal assets to creditors who may try to breach the corporate veil and hold you accountable for the business debts.
However, a business account would enable you to simply and properly track and assess your company’s performance using records that pertain to your company.
Get to Know the Requirements for a Corporate Bank Account Opening
A company, irrespective of whether it is a Singapore-based or a foreign company, can open a bank account online or offline. Nevertheless, most banks follow similar criteria for a business bank account opening. They are:
Proof of registration
A company owned by permanent residents or citizens in Singapore and registered with the authority in Singapore. It will help identify your business with a UEN or Unique Entity Number, which is an identification number that helps a business entity to interact with government agencies.
- The Business Bank Account Opening form – completed and duly signed by signatories entitled by board resolutions
- A Resolution approving the bank account opening and the signatories passed by the Board of Directors, prepared by the company secretary
- The certified copy of the Resolution authorizing the opening of the account and the signatories to the account (in the bank’s format)
- Exact copy of the certificate of incorporation, which is certified by the company secretary or a director
- A true copy of the company’s business profile that has been certified by the company secretary or a director
- The copy of the Memorandum and Articles of Association (MAA) of the company, duly certified by the company secretary or a director
Any other essential documents proving your identity or residential place.
What Is the Process of Opening a Business Account?
With several leading and reliable banks in Singapore, how would you choose a bank to open a corporate bank account? A few things to look for are the initial deposit, holding multiple currencies, and minimum balance. For instance, DBS Business Multi-Currency Account (Starter Bundle) does not ask for an initial deposit and a minimum balance. Also, it does not place any limit on free local transfers. All you need to do to open a business account is:
- Keep the UEN of your business and the contact information of the account users ready.
- Apply online by filling out the application form
- Submit the necessary documents
- Pay the initial deposit, if required
- Wait until the bank reviews your application and documents
Once the application is approved, you will receive a message about your corporate bank account opening.