The Advantages of Opening a Singapore Bank Account
- Singapore is an independent sovereign country with social and political stability, sound fiscal system and complete financial facilities
- Singapore is the fourth largest foreign exchange trading center in the world. It is not subject to foreign exchange control and currency can be freely exchanged and funds can be transferred freely, with one of the lowest tax rates in the world
- Banks in Singapore attach great importance to the privacy of customers
- After opening a Singapore bank account, companies are free to settle international trade payments
- Opening an account is simple and has a high success rate. Remote account opening is available
- Due to its well-developed banking industry, Singapore enjoys a higher reputation in the world. It is more secure to realize the internationalization of assets, it is more convenient for financing and deposits and loans, and it is easier to obtain international capital support
- Singapore is an open financial center, especially for blockchain and digital currency, making it the most suitable place for digital currency investors to open an account
Requirements of Opening a Singapore Bank Account
To open your bank account in Singapore, there are some general requirements:
- Residence status: Some accounts are only for Singapore Citizens/Permanent Residents (PR), while other banks offer account opening services for foreigners who live temporarily (employment/education) in Singapore;
- Age: General current accounts require the holder to be aging over 18 years old, while opening deposit accounts sets an age limit of 15 or 16 years
old; - Initial deposit: A certain amount needs to be deposited when opening an account;
- Minimum account balance: A certain account balance needs to be maintained, otherwise the bank may charge a low-balance service fee;
Procedure for Opening a Singapore Bank Account
Step 1: Register Singapore Company (Optional)
To open a bank account in Singapore, the company registered in Singapore is preferred as the subject of the account opening application. The company doesn't need to operate in Singapore because both the Singapore government and banks accept the company's offshore operations. By registering a Singapore company, you can easily apply for opening an account in a Singapore bank.
If you want to know more about registering a Singapore company, you are welcome to read our Singapore company registration page or book a meeting with Hongda to discuss your business plan.
Step 2: Choose Your Ideal Bank
There are various banks for you to choose from. The main factors that you should consider include:
- Security of online banking: companies need to check that the online banking facility is equipped with online security features to prevent any unauthorized access. Some banks provide security features in addition to user IDs and passwords used to log into accounts. Other banks require an online bank provisioning receipt to be signed before the virtual account process begins.
- Bank's Rating and Reputation: it is always safer to choose a bank with outstanding reputation and confidentiality standards, a long history, reliable service, and a sizable global reach. Even if many banks appear credible on file, it is always helpful to get reviews of specific banks from existing businesses in Singapore.
- The Company’s Business Focus: assuming companies prefer to receive personalized advice and services on wealth and asset management, private banks can be a better option. In contrast, clients who are trade-focused and prefer access to financing, cash management, international trade, and payments can choose global commercial banks.
- The convenience of Account Services: Before choosing a bank, it is best to consider whether the bank offers joint investment and savings accounts, foreign exchange accounts, and real-time consolidated bank statements. Also, it's wise to check business credit or debit cards, ATM networks, local and global branch coverage, and daily transaction limits. After all, these services vary from bank to bank.
Typically, the following banks are widely chosen by our clients:
Singapore local banks
- Development Bank of Singapore (DBS);
- Overseas Chinese Banking Corporation (OCBC);
- United Overseas Bank (UOB);
- Standard Chartered Bank (SCB);
- The Hongkong and Shanghai Banking Corporation (HSBC);
- Citibank;
Step 3: Document Preparation
Opening a bank account in Singapore usually requires the following documents. In certain cases, you may be required to provide additional materials for your application to be approved.
- A valid passport;
- A valid visa (Employment Pass (EP), Student Pass, Dependent Pass (DP), or the In-Principle Approval Letter (IPA) from a related authority);
- Proof of address within 3 months (telephone bill, bank statement, government letter);
You are also required to provide documents about your company, including:
- Board Resolution
- Certificate of incorporation
- Business Profile
- Articles of Incorporation
- Passport copies of directors and shareholders
- Proof of addresses of directors and shareholders within the last 3 months
- Proof of your existing business (such as invoices, agreements, contracts, and any business correspondence)
Step 4: Submitting Application
For your application to be approved, you can choose one of the following methods to open your Singapore bank account:
- Online Video Conference: the most convenient method to open your bank account. The bank will make an appointment with you, and you will need to present your passport during the video call. Your application is expected to be approved in a week.
- Visiting Singapore: the quickest way for application approval. You need to travel to Singapore and visit the bank at the appointed time to present your documents and fill out a form. Your bank account can be opened on the same day.
- Visit a branch bank in your country; this method can take a longer time for processing. However, you will not need to travel while having assistance from the branch bank.
The Maintenance Requirements After Opening Singapore Bank Account
After successfully opening a bank account in Singapore, another important point is the maintenance of the bank account. Otherwise, the loss outweighs the gain if it is canceled or frozen by the bank due to improper use.
- The long-term balance of the account should not be zero
- Accounts should not be inactive for a long time, such as half a year
- Keep in touch with the bank and inform the bank of changes in contact information in a timely manner
- Try not to use Singapore bank accounts to trade with high-risk countries
- Avoid debit account transfers and help others collect money
- Transferring non-trade items to overseas companies or overseas personal accounts
