Opening a Corporate or Business Bank Account in Singapore

Having set up a new company, you may now intend to open a corporate bank account in Singapore. In fact, it would be advisable for you to do that as soon as possible for practical reasons.

Why Should I Open a Corporate or Business Bank Account?

Opening a corporate or business bank account would separate your personal and business finances (including your business’ assets, cash flows, expenses etc.), bringing about potential benefits to you and your business.

For one, your business’ finances can be independently managed without being mixed with your personal finances. This would better protect you from any corporate liabilities that may arise in the future, since there is a clear division between your personal and business finances.

On the flipside, if you use a single bank account to manage funds, you are essentially treating your business funds as your personal money. This way, you risk subjecting your personal funds to, for instance, creditors who may seek to pierce the corporate veil (i.e hold you liable for your company’s debts).oc

Furthermore, such an account would also allow you to monitor and evaluate your business performance more accurately and conveniently based on the records that are solely for your business.

Who is Authorised to Open a Corporate or Business Bank Account?

The director(s) and authorised signatories (if any), are able to open a corporate or business bank account.

Authorised signatories are those appointed to operate the account, and should be listed in a company’s board resolution, in accordance with the company’s constitution.

Considerations When Choosing a Corporate or Business Bank Account

Given the plethora of reputable banks in Singapore, how should you go about deciding which bank to open your corporate or business bank account with?

Your task to decide is made harder especially since the different banks offer competitive corporate or business account options, each with their own distinct perks and coverage.

Here are a few tips and pointers that may help you to narrow down your options, with reference to the services offered by a few local banks:

Initial deposit amount

As a new business owner, you might be concerned with initial set-up costs. The initial deposit required for setting up an account can range from S$0 to S$3,000.

This amount is not solely dependent on the bank you approach – each bank may offer different types of corporate or business bank accounts, which incur different initial deposit amounts.

See the following table for example:

Looking at how the initial deposit amounts vary considerably across and within the banks, this should not be the sole factor that you should consider.

Instead, it may perhaps be helpful to consider other factors before you decide on which account to go ahead with.

Minimum balance

Besides the initial deposit, another key consideration would be the minimum balance to be maintained in your corporate or business bank account. This is because this may have implications on the cash flows and management of finances for your business.

In addition, falling below the minimum balance amount would incur additional fees, which will not be desirable for a new and growing business.

The table below includes certain examples:

As seen from the table, while DBS’ Business Digital Account has no minimum balance stipulated, there is a monthly fee of $18 charged for the account. On the other hand, the Aspire Business Account has no minimum balance or fall-below fee requirements.

Accounts that can hold multiple currencies

The type and nature of your business is also a crucial consideration to the choice of your corporate or business bank account.

If your business is likely to involve cross-border transactions, you may wish to open a corporate or business bank account that allows for foreign currency transactions.

Here are some banks that offer multi-currency accounts for your consideration:

*UOB does not offer these currencies

As can be seen, the currencies offered by each bank may differ. Thus, knowing which currencies your business will be dealing with is definitely crucial when it comes to choosing a bank.

How Can I Open a Corporate or Business Bank Account in Singapore?

If you have made up your mind on which bank to open your corporate or business bank account with, it’s time to apply for the account:

Apply online

Certain banks are now offering 1-day express account opening services which can be done online, enhancing convenience for business owners like you.

Examples of bank accounts that can be opened online include OCBC Business Growth Account, DBS Business Digital Account, UOB eBusiness Account and the Aspire Business Account.

Therefore, if you are eligible to apply online, you can simply complete the online form on the bank’s website and have your corporate or business account opened in a day.

You may be eligible if you:

• Are a single director (who is also the only shareholder and authorised signatory) or sole proprietor; and
• Already have a personal account with that bank.

You may require the following details to apply for the 1-day express corporate or business account:

• Your Accounting and Corporate Regulatory Authority (ACRA) business registration number
• Your personal bank details (e.g PIN number)

Note that, depending on the bank, you may also be requested to submit additional documents.

Going down to the bank to apply

Certain banks may require the presence of the director and authorised signatories at the bank to open a corporate or business bank account. You may wish to check with the bank you are opening the account with on such requirements.

You may also be required to submit a number of documents before your corporate or business account is set up. Generally, these may include:

• Bank Account Application Form from the bank;
• Board resolution with clear indication of any appointment of signatories;
• Certified true copies of the NRIC/Passport of directors and all authorised signatories including their residential address information;
• ACRA Business Profile Search;
• Certificate of company incorporation etc.

How Long Will It Take to Open a Corporate or Business Bank Account?

As you might already have noticed, opening a corporate or business bank account can possibly happen in one day, but it may also stretch to weeks. This is largely dependent on the time taken for verification by the banks.

Overall, with proper documentation, the process should be effortless. The physical presence of directors and authorised signatories at the time of setting up an account may also prevent unforeseen delays.

Setting Up a Corporate or Business Bank Account with Aspire

With Aspire, company directors can set up a new corporate or business bank account with no set-up fee, monthly fees, minimum deposit or fall-below fees. Apply online—no need to head down to a bank—with your identity documents and have your bank account set up within minutes. Click here to find out more!

If you require assistance in opening a bank account for your company, please contact us for a quotation.