Here’s how to open a business account in Singapore: The complete guide

Introduction

Opening a business bank account is the first and one of the most essential steps for Singapore’s entrepreneurs and small business owners. A business account helps separate personal and business finances to ensure better financial management, easier tax filing and a professional image when dealing with clients or vendors.

Singapore has a well-regulated banking system with various options tailored to different business needs. This guide will walk you through the process of opening a business account in Singapore, the requirements and how to choose the best bank for your company.

Key Takeaways 

• A business bank account is necessary for financial organisation, credibility and tax compliance.
• Sole proprietors and corporations have different account requirements.
• Choosing the right bank involves evaluating fees, transaction limits and additional features.
• Learning the account opening process helps avoid delays and rejections.

When Mark, a freelance graphic designer, decided to formalise his business, he realised that managing his finances through a personal bank account was becoming chaotic. Client payments were mixed with personal expenses, making tracking his earnings and preparing for tax season difficult.

After researching, he learned that a sole proprietorship bank account would streamline his finances and project a more professional image. However, he was unsure about opening a business bank account in Singapore and feared lengthy paperwork.

With guidance, Mark discovered that banks like DBS and OCBC offered easy online applications tailored for sole proprietors. Within a week, he had completed his business bank account opening and immediately noticed the benefits—more apparent financial records, smoother invoicing and access to business banking tools.

Mark’s experience highlights the importance of choosing the right bank and preparing the necessary documents. Whether you are a freelancer, startup founder, or a small or medium enterprise (SME) owner, setting up your business bank account can streamline your financial processes and pave the way for long-term success.

Read for more information on the best corporate and current accounts in Singapore.

What is a Business Bank Account?

A business bank account is a specialised account designed to handle business transactions. It allows companies to make and receive payments, manage payroll and track expenses separately from personal finances. 

Unlike personal accounts, business accounts often have additional features such as multi-user access, corporate debit or credit cards and international transaction capabilities.

Differences Between Sole Proprietorship and Corporate Bank Accounts

• Sole Proprietorship Accounts: These accounts are typically easier to open, as the business is tied directly to the owner. However, they may have limitations, such as fewer financial services and lower transaction limits.
• Corporate Bank Accounts: These accounts are designed for private limited companies (Pte Ltd) and other incorporated businesses. They offer more extensive banking features like trade finance, multi-currency transactions and business loans. 

Since corporations have a separate legal identity, their financial liabilities are distinct from the owners.

Benefits of Having a Dedicated Business Account

• Separation of Personal and Business Finances: Keeping transactions distinct simplifies accounting and tax filing.
• Enhanced Credibility: Clients and suppliers view businesses with corporate accounts as more professional and trustworthy.
• Easier Access to Business Loans: Banks are more likely to approve credit facilities and loans for companies with a clear financial record.
• Better Cash Flow Management: A dedicated business account allows for better financial tracking and planning.

Opening a Business Bank Account in Singapore: Requirements & Process

An active business bank account in Singapore requires proper documentation and preparation. Banks have specific criteria depending on your business structure; meeting these requirements ensures a smooth application.

3.1 Key Requirements

To open a business bank account in Singapore, you will need:

1. Business Registration with ACRA

Your business must be officially registered with the Accounting and Corporate Regulatory Authority (ACRA) before you can register for a business bank account. Banks will require your Business Profile document (BizFile), which contains details such as your company’s registration number, business activities and ownership structure. 

If you are a foreign business owner, you may also need to appoint a local director or representative, depending on your business structure.

2. Valid Identification

All directors, authorised signatories and business owners must provide valid identification documents.

Singapore Citizens & Permanent Residents:

• For Singapore Citizens and Permanent Residents, the National Registration Identity Card (NRIC) is the primary form of identification. The NRIC contains personal details such as the individual’s name, photograph, Singaporean identification number and residential address.

Foreigners:

• Foreign individuals looking to open a business bank account in Singapore must present a passport as their primary form of identification. 
• Certain banks may also request proof of legal status in Singapore, which could include an Employment Pass (EP), EntrePass (for entrepreneurs), or a Dependent Pass (DP) if the applicant is residing in Singapore as a dependent of a work pass holder. 

These documents demonstrate that the individual can conduct business activities in Singapore.

Proof of Residential Address:

• Some banks may also require additional documents to verify the individual’s residential address. Information could include a utility bill, a bank statement, or a government-issued letter showing the name and address of the person. 
• This requirement helps confirm that the individual resides at the provided address and verifies their identity. Missing or incorrect documents may delay the approval process or result in a rejection, so it’s important to check with the bank for any specific requirements before submitting your application.

3. Proof of Business Address

Banks require proof of a registered business address in Singapore. This can be:

• A tenancy agreement is needed if your business operates from a physical office or store.
• A utility bill or official letter showing the company’s name and address.
• A virtual office address, which some banks may accept for online businesses or startups operating remotely.

If your business is home-based, check with the bank to confirm whether they accept a residential address as the registered business location.

4. Company Constitution (For Private Limited Companies)

The Company Constitution (formerly known as the Memorandum and Articles of Association) is required for private limited companies (Pte Ltd). This document outlines the company’s governance structure, shareholder details and business operations. Partnerships and sole proprietorships are generally not required to submit this document.

5. Additional Bank-Specific Documents

Different banks may have unique requirements based on the nature of your business and its financial history. Some may ask you for the following:

• Financial Statements: For established businesses applying for credit facilities or loans.
• Business Plan: Some banks require a brief overview of your company’s operations, revenue model and growth plans, especially for startups.
• Records of Previous Transactions: If your business has already been operating, banks may ask for transaction records to assess financial stability.

Having these documents ready ensures a smooth business bank account opening process and improves your chances of approval.

3.2 Steps to Open a Business Bank Account 

1. Select the Right Bank and Account Type

Since business bank accounts vary, always research and compare the different banks before deciding, compare account fees, transaction limits, online banking features and customer support to find the best fit for your business needs. 

Consider a multi-currency account to handle foreign currencies efficiently if your company deals with international transactions. 

Some banks offer extras like business loans, merchant services, and corporate credit cards to help you scale.

2. Gather the Required Documents

Before applying, ensure you have all the necessary documents ready. Missing documents can delay the process or even result in the rejection of your application. Typically, banks require:

• Business registration details (BizFile from ACRA for Singapore-registered businesses)
• Identification documents (NRIC or passport for company directors and authorised signatories)
• Proof of business address (such as a tenancy agreement or utility bill)
• Company Constitution (for corporations)
• Board resolution (if required by the bank for corporate entities)
• Any additional documents specific to the bank’s policies

Have these documents prepared in advance for a smoother application process.

3. Submit an Application

Most banks allow businesses to submit their applications online, making the process more convenient. However, some banks may require an in-person appointment to verify details, especially for companies with multiple directors. In such cases, all directors and authorised signatories may need to be present during the account opening. 

If you’re a foreigner setting up a business in Singapore, some banks may require you to visit a branch physically.

4. Verification and Approval

Once you’ve submitted your application, the bank assesses your documents and does background checks to verify your business’s legitimacy. They may check the company’s financial history, compliance status and ownership details. Your business bank account opening will be approved if everything is in order. 

Approval takes a few days to weeks, depending on the bank. Once approved, you’ll get your account details and start managing transactions.

Sole Proprietorship Singapore Bank Account: What You Need to Know 

A sole proprietorship bank account allows business owners to separate personal and business finances, making transactions more organised and professional. While not mandatory, having a dedicated account simplifies cash flow management and builds credibility. 

Definition of a Sole Proprietorship

A sole proprietorship is a business structure where a single individual owns and operates the company. The owner has complete control over business decisions but is also personally responsible for any debts or legal issues related to the business.

Can Sole Proprietors Open a Business Bank Account?

Yes, sole proprietors can open a business bank account in Singapore. While they can technically use a personal account for business transactions, banks strongly recommend having a separate business account to avoid financial complications and legal issues.

Choosing the Best Corporate Bank Account in Singapore

Different banks offer various features, so it’s important to evaluate them based on your company’s needs. Here are key factors to consider before making a decision:

Factors to Consider 

Account Fees

Banks charge different fees for business accounts, which may include:

• Monthly maintenance fees: Some banks waive these for startups, while others charge a fixed amount.
• Transaction fees: Charges may apply for local and international transactions, cheque deposits and cash withdrawals.
• Hidden costs: Look out for foreign exchange fees, over-the-limit charges and penalties for falling below the minimum balance requirement.

Online Banking Features 

A strong online banking platform is essential for seamless business transactions. Consider:

• Ease of use: A user-friendly interface can save time on financial management.
• Mobile banking: Check if the bank offers a dedicated mobile app for convenient access.
• Security features: Use two-factor authentication and fraud protection to safeguard your transactions.

Transaction Limits

Each bank sets daily and monthly transaction limits for different types of accounts. Make sure the account can support the following:

• A high volume of daily transactions if your business handles frequent payments.
• Large-value transactions if you deal with high-ticket purchases or international clients.
• Free transactions within a specific limit to avoid additional charges on transfers and withdrawals.

Additional Services

Some banks offer extra features that could benefit your business, such as:

• Multi-currency support: Ideal for businesses involved in international business accounts and global business account transactions.
• Corporate credit cards: These are useful for managing business expenses and earning rewards.
• Trade finance solutions: These are helpful for businesses engaged in import/export operations.

Best Corporate Bank Accounts in Singapore

Singapore offers various options, each designed to meet different business needs. We’ve listed some of the best corporate bank accounts in Singapore to guide your decision.

• DBS Business Multi-Currency Account: The DBS Business Multi-Currency Account suits businesses handling international business accounts. It supports up to 13 currencies, offers competitive foreign exchange rates and integrates with DBS IDEAL for seamless online banking. 

With a low initial deposit, startups and companies managing a global business account can benefit from its efficiency and flexibility.  

• OCBC Business Account: The OCBC Business Account works best for SMEs needing affordable banking and financing support. It offers low fees, a quick 5-minute online application for eligible businesses and access to OCBC Velocity for business money transfers and cash flow management. 

Its SME-focused services help growing companies streamline their banking needs.

• UOB BizTransact Account: The UOB BizTransact Account provides cost-effective banking with low transaction fees and high free transaction limits. Businesses that handle frequent payments benefit from its multi-currency support and efficient cash management tools. 

This account suits companies looking to manage an international business account while keeping transaction costs low.

• HSBC Smart Business Account: The HSBC Smart Business Account caters to businesses with global operations and international trade needs. It offers multi-currency support, competitive forex rates and access to HSBCnet, ensuring smooth money transfers for business. 

Companies engaged in cross-border transactions benefit from its trade finance solutions and strong global banking network.

Final Thoughts

Opening a business bank account in Singapore is easy when you prepare the required documents and select the right bank. A well-managed business account ensures smoother financial operations, tax compliance and a professional business image.

Take the time to research and compare different business accounts to find the best fit for your company’s needs. Start the process early to avoid delays and ensure a seamless banking experience.

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FAQs 

Can I open a business bank account in Singapore as a foreigner?

Yes, foreigners can open a business bank account in Singapore, but the requirements may vary depending on the bank. Most banks require the business to be registered in Singapore with ACRA; at least one resident director or authorised signatory may need to be present. 

Some banks also require a face-to-face meeting or video verification before approving an account.

What are the common reasons a business bank account application gets rejected?

Banks may reject applications due to incomplete or incorrect documentation, insufficient proof of business activity, or concerns about the business’s financial stability. Additionally, companies engaged in high-risk industries or those without a clear compliance structure may face difficulties. 

To avoid rejection, ensure that all required documents are accurate and that your business activities align with the bank’s policies.

Can I open multiple business bank accounts for the same company?

Yes, businesses can open multiple accounts with different banks or within the same bank. This can be useful for managing separate business functions, such as domestic and international transactions, payroll, or expense tracking. However, businesses should consider the fees and administrative workload before maintaining multiple accounts.

Disclaimer: This article is intended for informational purposes only. All details are accurate at the time of publishing. Instarem has no affiliation or relationship with products or vendors mentioned.