Expats, non-residents, and foreigners can use this guide to open a business bank account in Singapor

Expats, non-residents, and foreigners can use this guide to open a business bank account in Singapore.

On the World Bank's Ease of Doing Business 2020 index, Singapore is rated second. The city-state enjoys a favorable economic, political, legal, and regulatory climate. It also facilitates cross-border trade and offers business-friendly loans, electricity, permits, taxes, and contract enforcement procedures. Singapore also boasts a well-developed banking infrastructure that is extensively connected to the international financial system. It also has a good reputation for honesty, offers significant tax benefits, and strictly enforces anti-money laundering and anti-financial crime legislation. Singapore is a particularly appealing site for foreign firms for all of these reasons.

When you're seeking to start a business in Singapore, one of the first things you should do is register with ACRA and open a business bank account (Accounting and Corporate Regulatory Authority). The majority of banks in the country offer a variety of advantages when it comes to opening a corporate bank account.

In this post, we’ll look at how this process works for a non-Singaporean, such as an expat foreigner living in Singapore or a foreigner living outside Singapore. ● ● ● ● ●

Is it possible for a non-Singaporean to open a business bank account here?

Is it possible to do it online or do you have to go to the branch in person?

What is the cost of opening and maintaining a corporate bank account?

What is the application process like, and what kind of paperwork is required?

What are the most typical issues that non-Singaporeans have when opening a corporate bank account in Singapore?

Let's address these concerns while also highlighting a less expensive and simpler solution to manage your overseas payments and receipts.

Is it possible for foreigners to open a corporate or business bank account in Singapore?

Yes, in a nutshell.

One of the main reasons for Singapore's popularity as a global business destination is its ease of banking. Singaporean banks, on the other hand, have tightened their criteria for vetting new overseas clients in light of recent regulatory judgments and recommendations, particularly in the areas of money laundering and counter-terrorism financing (AML/CTF).

The Benefits of Opening a Singapore Business Bank Account All banks in Singapore operate without any government-imposed financial regulations on the transfer of funds, which means that receiving funds or making international payments is typically unrestricted. With a business bank account in Singapore, you can lawfully receive funds from or transfer payments to any country in the world (except for countries on Singapore's sanction list).

Another benefit is that large banks have accounts specifically created for foreign business entities, as well as a wide range of standard banking services. Many also have multi-currency accounts, allowing you to keep your money and perform transactions in any major currency, including the US dollar, the British pound, the euro, the Canadian dollar, and the Australian dollar. Other key currencies, such as the Malaysian Ringgit (MYR) and the Indian Rupee (INR), are also supported.

Many banks now allow businesses to open bank accounts remotely, following a video interview, thanks to COVID-19. You can now open an account without having to travel to Singapore because an in-person meeting with the bank is no longer required. The account can also be managed entirely from afar.

All banks operating in Singapore are regulated by the Monetary Authority of Singapore (MAS). It also keeps a close eye on all locally incorporated banks' capital adequacy and

leverage levels. Singapore Deposit Insurance Corporation Limited ensures all depositor monies (SDIC). Furthermore, all banks provide safe Internet banking. All of these features ensure that your company's funds are secure.

Foreigner's Requirements and Documents for Opening a Business Bank Account in Singapore Any Singaporean bank will want thorough information and paperwork regarding your firm if you are a foreign corporation.

This includes the following: ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Proof of the foreign-owned Singapore company's registration.

Shareholders must provide proof of identification and residential address.

Directors.

Beneficial Owners in the End. Copies of all Directors' passports or Singapore national identification cards.

Ultimate Beneficial Owners' background information in the form of a website or a CV. Background information on significant CEOs from a professional standpoint.

Memorandum and Articles of Association of the firm (MAA).

The company's Board of Directors passed a resolution.

Other documents that are specific to your firm.

Proposed business ventures Model/profile of a business This is a business plan.

Customers/clients who might be interested in doing business with you.

Suppliers/vendors who could be interested.

Transactional banking activity is expected.

Reference letters from previous business banking ties are optional but recommended.

The Company Secretary or a Director must "Certify True" all document copies. Original documents, as well as extra documents, may be requested by the concerned bank for further KYC verification.

Application for a Corporate Bank Account in Singapore.

The procedure for opening a corporate account in Singapore will vary depending on the bank and account type you select. However, to get the account up and running, you'll need to do the following:

1. Select a bank and an account type (Singapore dollar account, foreign currency business account, etc.).

2. Check to see if the account may be opened remotely or if you must be physically present in Singapore.

3. Complete the account registration form. Make sure it's signed by the right people.

4. Prepare the necessary paperwork, including proof of business registration.

5. Include the account signatories as well as the Board of Directors Resolution authorizing the account's establishment.

6. Each of the company's shareholders, ultimate beneficial owners, and directors must provide proof of identification and a residence address.

7. Submit all documentation, as well as the required deposit (if mandated by the bank).

Your application will be reviewed by the bank. It will open the corporate account in 1-4 weeks if you fulfill all of the documentation and financial requirements, and will provide you with the essential information, such as the account number, terms of usage, and so on.

How much does it cost to open a corporate bank account in Singapore?

1. The cost of the setup.

Although there are a few exceptions, most banks in Singapore do not charge any fees to open a corporate/business bank account.

2. The cost of upkeep.

Expect to pay monthly maintenance or administrative cost of S$10 to S$40, which, depending on the bank, maybe waived for the first few months. A few banks do not impose such fees, giving smaller businesses, startups, and entrepreneurs more flexibility and freedom to focus on their core business needs rather than banking costs.

Some banks may charge a fee for providing checkbooks and establishing Internet banking accounts.

3. Minimum equilibrium Almost every bank has a minimum starting deposit requirement. Some just require a $1,000 to S$3,000 initial investment, which is suitable for small firms with minimal launch funds. The ongoing minimum balance requirements vary for each bank, but they often range from $1,000 to $100,000. If the account balance goes below a specified threshold, some banks charge a "fall-below fee." This is usually between S$15 and S$35. Entrepreneurs can open special corporate accounts with as little as S$500 in initial deposits at a few institutions. For a limited time, they also waive minimum average monthly balance requirements and fall-below fines (e.g six months).

4. Transfer charge Some banks provide free FAST transfers, which are transfers of SGD funds within Singapore from one bank to another. If your firm expects to make a large number of foreign funds transfers, such as transfers from or to countries other than Singapore, anticipate paying between S$10 and S$40 (and even more) every transaction. You may be charged international transfer fees for both sending and receiving foreign funds, as well as a commission and/or a percentage-based currency translation cost.

Foreigners' Challenges in Opening a Corporate Account in Singapore The Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards are rigidly enforced by all Singapore banks (CRS). As a result, expect more stringent compliance checks and KYC requirements from banks when opening a corporate bank account in the country. For some non-Singaporeans, this can be difficult, especially if they come from countries where such rules are either non-existent or not strictly enforced.

Banks also require a variety of documents, including those related to company registration, ultimate beneficial owners, business profiles, and so on. Completing this paperwork can be complicated and time-consuming. However, it is impossible to register a corporate account without them, therefore the effort is necessary.

Another issue is that the opening process can be lengthy due to several regulatory and business checks. This is due to the government's information system not having readily available data on foreigners in Singapore or applicants from other countries. Banks typically take 3-4 weeks to process applications for companies with foreign holdings. There is no such thing as a fast track, same-day, or immediate processing of applications from foreign-owned company organizations, so be aware of anyone who claims to be able to assist you.

Some banks require applicants to attend in-person interviews, so if you aren't already in Singapore or can't travel to Singapore (because of COVID limitations, for example), you may be unable to register a business account here.

A Less Expensive and Easier Way to Send and Receive Payments A business bank account might be highly costly if you want to make or receive payments from locations outside of Singapore. You will pay exorbitant transfer fees, commissions, and currency conversion fees for every foreign transaction. Exchange rates are also subject to a large "markup" by banks. These expenses mount up over time and have an impact on your cash flow and earnings.

With a Wallex international payments account, you can easily manage your cross-border payments. You can send low-cost payments to 180+ countries and save a lot of money with rapid transfers, mid-market rates, and support for 40+ currencies. A global receiving account is also available through Wallex. To enhance your net earnings, collect funds in numerous currencies without incurring costs and avoid unfavorable rates and fees.

You can hold and manage 14+ currencies in one place with the Wallex multi-currency wallet, and you'll get competitive exchange rates and clear reconciliations.

A business bank account is required to conduct business in Singapore. However, do not use this account to send or receive international money. Instead, get a Wallex global receiving account and a Wallex payments account. To get started for free, go here.