Singapore Bank Account Opening
Your Guide to Opening a Corporate Bank Account in Singapore
Opening a corporate bank account in Singapore is a key step in managing your business’s financial operations. Whether you’re a local or foreign entrepreneur, understanding the process will ensure a smooth application. Here’s everything you need to know, step-by-step!
The Bank Account Opening Process
The application process may take some time to complete, depending on various factors such as document verification and whether a face-to-face meeting or video interview is required. Once all the necessary documents are submitted and the process is underway, approval typically takes approximately two to four weeks.
Understand Your Business Profile
Before starting the account opening process, ensure your business has a clear and simple legal structure for smooth assessment by the bank.
For foreign business owners, as long as your business is legitimate and not from a sanctioned country, you can open an account in Singapore. Banks will require detailed information and documents to verify your business and assess any potential risks, especially if you’re a startup without a business history.
For Local Businesses:
- Company registration documents (e.g., ACRA business profile)
- SingPass (for quick processing)
For Foreign Businesses:
- Company registration documents
- Background information about the business, directors, and shareholders
- Details of business operations (products/services, market, clients)
- Funding sources (e.g., investment, loans)
- Ensure your company’s legal structure is clear and simple
- Prepare your company registration documents (e.g., ACRA or equivalent)
- Ensure SingPass is ready if you're a local business
- For foreign businesses, ensure you have additional details such as your background and business activities
- Choose the right bank: Select a bank that offers financial services tailored to your business needs. This reduces future banking-related issues.
- Prepare documents in advance: A clear and straightforward legal structure, along with up-to-date company registration documents, makes it easier for the bank to assess your business.
- Honesty is key: Be honest and transparent to avoid issues with the bank in the future.
- For foreign businesses, be thorough with your business background, ownership, and funding to help the bank understand your operations. Be ready for more detailed checks and provide as much information as possible to avoid delays.
- Yobbi will guide you through this process to ensure your company name and structure align with your business goals.
The Know Your Customer (KYC) Process
To maintain trust and adhere to stringent Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) regulations, Singapore banks follow the guidelines set by the Financial Action Task Force (FATF) without exception. As a result, all banks in Singapore conduct a comprehensive Know Your Customer (KYC) assessment before onboarding any new clients.
To meet regulatory requirements, banks need to verify several aspects of your business.
Company Details:
- Company registration documents
- Corporate tax documents (if applicable)
- Financial history (if the company is already established)
Beneficiaries & Directors:
- Identification documents for all directors, shareholders, and beneficial owners (e.g., passports, national IDs)
- Proof of ownership of shares and any beneficial interests
Nature of Business:
- Detailed business plan
- Description of operations, target markets, customers, and suppliers
Risk Profile:
- Information about your business's geographic and market risks
- Identification of countries where you operate or plan to operate
- Ensure you provide company registration and corporate tax documents
- Provide personal identification for directors and shareholders
- Prepare a detailed business plan, describing your operations and target market
- Identify any geographic or market risks related to your business activities
- Be transparent and comprehensive with your documents. The more information you provide about your business operations, the easier it is for the bank to understand your company’s legitimacy.
- Anticipate questions about your funding sources and markets. Prepare to explain any high-risk elements of your business.
- For foreign companies, include a clear business plan with information on the nature of business and funding sources.
- Make sure to check that identification documents for all directors and shareholders are valid and up-to-date.
- Yobbi will assist you in navigating the KYC process to ensure all the necessary documents and information are in order, making it easier for you to proceed with your account opening.
Video Interviews and Remote Account Opening
For both local and foreign business owners, banks may require a face-to-face meeting or a video interview (if required) to complete the Customer Due Diligence (CDD) process remotely.
Foreign business owners may experience a longer CDD process. However, many banks are now offering video interviews as an alternative to in-person meetings in Singapore, allowing our clients to open a bank account and complete the registration process without the need to travel.
- Personal Identification: Passport or other government-issued identification
- Company Documents: Your company’s registration details, proof of business operations, and funding sources
- Proof of Address: Utility bills or bank statements for the company and directors
- Schedule a video interview: Be ready to discuss your business’s activities and funding sources (if required)
- Ensure all company documents are ready for upload
- Prepare personal identification and proof of address
- Make sure your internet connection and video equipment are working properly for the interview
- Clear and professional setup: Ensure you’re in a quiet, well-lit space where you can clearly discuss your business during the interview.
- Be ready to answer questions about your business operations, funding sources, and other details.
- Ensure your identification documents are valid and easily accessible for the video verification process.
- Yobbi will guide you with the video interview (if required) and ensure all the necessary documentation is ready, so you can complete the process remotely and efficiently.
Banks Assess Your Application
Once all documents are submitted, the bank will evaluate your business profile and documents before granting approval.
Company Structure:
- Company registration and legal structure documents
- Ownership documents (e.g., share certificates)
Business History:
- Past financial statements (if applicable)
- Trading history or projected income for new businesses
Trading Activities:
- Details of suppliers and clients
- Contracts or invoices from recent transactions (if applicable)
Market and Geographic Risks:
- Details about the countries you trade with
- Any high-risk regions or industries in which your business operates
- Provide a clear and simple company structure
- If applicable, submit financial records from previous years
- Provide clear documentation about your suppliers and clients
- Include a risk assessment of your business’s geographic and market exposure
- Simplify your company structure: Banks prefer easy-to-understand structures.
- Ensure all your financial statements are accurate and show the health of your business.
- Be ready to explain any risks related to your market or operations, especially if you’re involved in high-risk regions.
- Yobbi will guide you through the application review process and help ensure your business’s risk profile is clearly understood by the bank, increasing your chances of a successful account opening.
Final Steps and Approval
Once you’ve submitted all the required documents, your application will be reviewed, and the approval process typically takes two to four weeks.
What to Expect During This Final Stage:
- Complete company registration: Ensure your registration documents are in place.
- Choose the Right Bank: Select a bank that best aligns with your business needs and objectives.
- Schedule an Appointment: Book a meeting or interview (video or face-to-face) with the bank.
- Submit All Prepared Documents: Ensure you’ve submitted all required documentation beforehand to avoid delays.
- Witness Signature (if required): Some banks may ask you to meet with a representative to witness your signature.
- Approval Timeline: After reviewing your documents and completing the necessary checks, approval will typically take two to four weeks.
- Please be aware that different banks may have varying account opening procedures, so let us assist you more effectively in opening your account.
- Yobbi will guide you through every step of the process to ensure you receive your approval smoothly and efficiently.
How Can Yobbi Consultancy Assist You?
At Yobbi Consultancy, offers expert guidance to simplify your business bank account opening, from document preparation to meeting requirements, ensuring a smooth and efficient process.
Frequently Asked Questions
Can I open a business account if I have no business history or if I'm a startup?
Yes, startups can open a business account. However, banks may require additional information, such as a detailed business plan, financial projections, and an explanation of your business model. Being transparent and providing as much detail as possible will help the bank assess your legitimacy.
Do I need a minimum deposit to open a business account?
Many banks require a minimum deposit to open a business account, which can vary depending on the bank and the type of account. Some banks may waive the minimum deposit for certain types of businesses or promotional offers. It’s best to check with the bank beforehand.
Yobbi can advise you on the minimum deposit requirements and help you choose the right bank account based on your business needs.
Do I need to travel to Singapore to open a bank account for my foreign business?
No, many banks offer remote account opening through video interviews, allowing foreign business owners to complete the process without traveling to Singapore. However, some banks may still require a face-to-face meeting depending on the situation.
What types of business accounts can I open?
Depending on your business needs, you can typically open a current account, savings account, or even a multi-currency account. Some banks may also offer specialized accounts for startups or high-growth businesses. Choose the one that best suits your transaction volume and business goals.
Yobbi can help you choose the right account type that aligns with your business needs and growth plans.
What should I do if I don’t have all the required documents?
If you’re missing any documents, reach out to the bank directly to inquire about alternatives. Some banks may allow for temporary documents or offer a way to proceed with the account opening while you gather the necessary paperwork. Be transparent about your situation to avoid delays.
What happens if my business application is rejected?
If your business application is rejected, the bank will typically provide feedback on why the application was unsuccessful. It could be due to incomplete documentation, discrepancies in your information, or a high-risk business profile. You can resolve issues and reapply once you’ve addressed the concerns raised by the bank.