Guide to opening a corporate bank account in Singapore

Opening a corporate bank account in Singapore requires you to have a registered entity in Singapore. This means that you’ll likely need a Certificate of Incorporation, which legally states that your company is fully registered in Singapore.

Ensure that you have finished the registrations with ACRA before applying for a bank account.

Although your corporate bank account will be under the same name as your business, an important thing about how to open a corporate bank account in Singapore is that you’ll need proof of the company directors’ identities.

This usually comes in the form of their ID cards, but passports can also be used. Directors will also have to provide their Tax Identification Number.

The proof of business registration alone is not enough. You’ll be asked to provide other company documents, such as your company profile and share certificate.

If your brand name is different from your company name, then you’ll also need documentation that states this.

The bank will want to know if you have partnerships or other entities that have controlling shares within your business. Legal documents for these agreements must be submitted to the bank when opening a corporate bank account in Singapore.

This helps the bank determine who is funding the business and controlling its money.

While you don’t have to have an existing business credit score when you open a corporate bank account, Singapore requires you to submit any that you already have. This will be taken into consideration if you are looking to get a loan or credit under your new account. 

If you want to apply for a credit line immediately after opening your corporate bank account, your personal credit score may be required too.

The first thing you have to find out to know how to open a corporate bank account in Singapore is whether or not you are eligible to do so. Corporate bank accounts are only available for Singaporean businesses that can prove that they operate in Singapore. Most banks will also only provide a corporate bank account for registered companies, as opposed to freelancers or sole proprietors.

There may also be additional requirements that you have to meet. Try to find a banking institution that doesn’t require you to jump through hoops to open an account.

Different banking institutions will have different application processes. Even if you have discovered that you are eligible to open a corporate bank account with multiple banking partners, you’ll want to consider how easy and convenient it would be to apply for and open each one. 

Some of the best modern banking solutions offer an online application process. Filling it out will take no time. If you can find a bank that guarantees timely application reviews, that’s even better. You want an account that isn’t a hassle to set up and start using.

Suggested read: How to register a company in Singapore

Not every corporate bank account provider will have the same administrative fees. While you may discover that many charge you at SGD 10 per month, this is not always the case. Often banking providers that offer more features will charge a higher fee, especially if you get access to international transfer aspects like multi-currency wallets.

It’s not impossible to open a corporate bank account with a lower monthly administration fee while still having access to more advanced features. This is why it’s important to do your research and consider these fees, along with any payment fees for transfers.

Most corporate bank accounts in Singapore will require a minimum initial deposit of SGD 1,000. This means that you have to make sure you have that amount of money in cash before you can open a corporate bank account. Some banks may also require a higher deposit, such as above SGD 3,000.

With the rise of the fintech industry, however, you may find that many fintech institutions will offer corporate bank accounts with a lower initial deposit requirement. This could be preferable for smaller and newer companies looking to create a bank account.

Most banking institutions will require you to meet a minimum monthly balance requirement. If you have less than the amount stated, the bank will charge you a fee to make up for it. That fee doesn’t get added to your balance.

The last thing you want is to pay more than you have to when opening a corporate bank account in Singapore. Make sure that you take into account what your business operations look like and pick a bank account that has a minimum balance requirement that suits your business.

Depending on your banking partner, you may be able to issue more than just one card under your corporate bank account. When you have hundreds of expense items to make each month, the ability to generate and issue unlimited virtual cards could save you hours otherwise spent on trying to manage your business spending.

In the modern era, having to go to a bank branch or ATM for every business transaction is no longer sufficient. To speed up your finance processes, it’s important that you have access to online banking features. Although most if not all baking providers offer online banking, you want to consider which features are a priority for your business. 

If you need to make transactions in large volumes daily, for example, ensure that you partner with a bank or financial institution that allows an unlimited number of daily transfers.

Basic banking functions like transfers and deposits aren’t the only features that you can get with a corporate bank account. Many banking providers offer additional features and facilities, such as securities investments and insurance premiums. If any facilities interest you, try to research a bank that offers them.

Some banks will let you open a checking and savings account under the same account name, eliminating the need to fill out another application form. You can also open an investment account to diversify your business risk and assets.

No bank is immune to system interferences and scheduled maintenance interruptions. However, while this is true, it’s also important that you look for a reputable banking partner with minimal issues. When you open your corporate bank account, ensure that you do it with an institution that you know you can trust. 

Customer service is often an overlooked aspect when you’re researching how to open a corporate bank account in Singapore, but customer service can make or break your decision when choosing a bank. You want an institution that has a reputation for having good customer service.

Rewards aren’t necessarily a make-or-break criterion for most people when it comes to corporate bank accounts, but you still want to see if the rewards program with a particular banking provider is good or not. Some banks will reward you for making transactions with them. The more transactions are made, the higher the rewards.

If you choose to apply for a bank account with a credit card offering attached, rewards also become more important. Consider how much you want to prioritize rewards and upgrades before choosing a banking partner.

While your short-term concern may be simply figuring out how to open a corporate bank account in Singapore with ease, it’s a good idea to think about what your business plans are in the long term. This helps you get a general idea of how much money you will need, as well as whether or not you want to take out a loan or apply for credit. 

Given how helpful loans and credit can be with the right providers, make sure that you take them into consideration before picking a bank for your corporate bank account.

Keeping your personal and business finances separate is important for many reasons. You’ll have a clearer picture of what your business’ financial health looks like when you keep its income and expenses separate from your personal ones.

It helps with different processes such as budgeting, reviewing performances, and reconciliation. Most importantly, it also allows you to be legally protected and separated from your business funds. You have limited liability over funds in a corporate bank account.

When you decide to grow your business and start approaching investors, they will ask about what your finances look like. Not only is it difficult to tell when your business finances are mixed with your personal income and expenses, but it also looks unreliable to investors.

Having a dedicated corporate bank account makes the process of acquiring funds easier. The same idea applies to bank loans, should you decide to apply for a loan.

Business credibility builds trust with your customers. Similar to how it’s professional to get a company email ID, having a bank account under the company name will also make you appear more legitimate, professional, and trustworthy.

Customers are more inclined to pay to an account that clearly states what business it belongs to. The same concept applies to your supplier payments. Allow your suppliers to identify who you are based on the corporate bank account name.

There are several payment methods that are only available to a corporate bank account. With a corporate bank account, it’s possible to start receiving credit card payments from customers.

Linking your account with some of these payment methods will streamline your processes greatly. As a paying customer of your vendors’, a corporate bank account also provides you with access to additional features like virtual cards, which are flexible, quick, and secure payment tools.

Not only are you not mixing business and personal funds, but opening a corporate bank account in Singapore is also beneficial for the other budgeting tools you may get. For example, you could get the ability to open more than one checking account under the same main corporate bank account.

Some institutions will also let you create wallets to segregate your funds. This way, you can ensure all expenses are budgeted for.

When you open a personal bank account, you’ll be the only person who is authorized to access that account and make purchases through it. If you understand how to open a corporate bank account in Singapore.

However, you’ll know that many business banking institutions allow you to add multiple users to the account—provided they have been authorized by you. It simplifies collaboration, while still maintaining the security of your funds.

Using your personal bank account can help build your personal credit score, but it is not helpful for your business. As the account is opened under your personal name, it is not part of the consideration when you are looking for loans for your business.

This is true even if you open a new personal bank account. To build a better credit score, a corporate bank account needs to be attributed to your business.

Accounting for a business is difficult enough as it is, but it gets much more complicated when you mix personal and business expenses. The last thing you want is to waste your time sorting through your transactions to determine which are personal purchases and which need to be recorded in your business’ books.

With a corporate bank account, you can also get integration capabilities with your accounting software, automating the entire process.

Audits can be daunting, especially if you’re not prepared for them. Getting a clean audit trail is one big advantage of having a corporate bank account. Singapore has many regulations that may require you to provide proof of your company funds.

You won’t need to sift through years of bank records if your business income and expenses are all already separate from your personal finances. When auditors come knocking, you’ll have everything ready.

Often referred to as monthly fees or monthly admin fees, most banking institutions will require some form of administrative fees when opening a corporate bank account in Singapore. This fee is incurred monthly or annually and is typically around SGD 10/month

Most banking institutions will have a small payment fee. While there are certain conditions where transactions can be made for free, typically a charge of SGD 0.50 to 1 will be incurred during a money transfer, deposit, or withdrawal.

The fees for additional services with your banking partner will greatly depend on what services are. These could be anything ranging from insurance premiums to custom report fees. Make sure that you know what the fee scheme of any additional features looks like.

Unfortunately, international transfers can be expensive, as most banks will have fees for initiating them. They can be either a flat fee or a percentage of the transfer amount. If you do a lot of international transfers, pick a bank with fees that suit you.

Many people may already have an inkling of how to open a corporate bank account in Singapore, but not everyone knows of the overdraft facilities that you may be able to get. If you need to make a payment but the account doesn’t have enough funds, you can utilize overdraft facilities.

Banks want you to have the minimum balance required in order to keep your account open. To incentivize businesses to meet the minimum balance, most banks will charge a fee if you go under it. If you maintain the minimum balance each month, however, your bank will waive this fee.

If you apply for a business loan, you can expect interest when you pay back the loan. The same applies to credit cards you apply for under the same account, especially if your bills are not paid in full. Be sure you know how much interest you’ll have to pay.

Opening a corporate account in Singapore with Volopay opens up doors for your business. Multi-currency wallets are built into your Volopay account, enabling you to do business internationally without having to worry about expensive transfer fees.

Send, receive, and hold money in SGD, USD, GBP, EUR, and many other leading currencies in the world. Leverage exchange rates by holding money in one particular currency until the rates are in your favor.

Make local transfers for free through your Volopay account. Regardless of which bank you’re initiating transfers to, there are no payment fees that you have to worry about. Your Volopay corporate bank account can be used to transfer money for vendor payouts, salaries, reimbursements, and many more.

All it requires is a single platform for all local transfers—complete with accounting integration capabilities to simplify your end-of-month account reconciliation.

Suggested read: Benefits of opening a local currency account

Do you have vendors, contractors, and employees situated all around the world? There’s no need to create multiple corporate bank accounts just to enable international transfers. Get a seamless international money transfer experience with Volopay.

Through the dashboard, you can easily initiate international payments in multiple currencies with low FX rates. With both SWIFT and non-SWIFT methods available to you, saving time and money is easy with a Volopay account.

Don’t limit yourself to just bank transfers when it comes to payment methods. Volopay offers an all-in-one solution with corporate cards. Get corporate cards by filling out an online application and start using them in no time.

Every employee can be issued a physical card, while unlimited virtual cards can be generated for all purposes. Any transaction made on your Volopay cards will be automatically recorded in real-time on your dashboard.

Managing your accounts payable well is key to ensuring smooth business operations. Your convenience is a priority to Volopay, hence why we introduce vendor, invoice, and payment management features for a more streamlined accounts payable process.

Vendors can send invoices directly to the Volopay platform, improving your communication and collaboration with your suppliers. With the help of Volopay’s integration features, even accounting for your accounts payable becomes simpler than ever.

Allow employees to create reimbursement claims, have approvers review them, and pay them all on a single platform. Your Volopay dashboard and mobile application have features that make it easy to process reimbursements.

Instead of sifting through stacks of paper claims and manually processing their corresponding payments, Volopay’s corporate bank account lets you view all your employees’ reimbursement claims and settle them in just a few clicks. No claim will go missing!

When you have hundreds or thousands of employees, the payroll process is undoubtedly complex and time-consuming. Using Volopay’s corporate bank account can simplify that, without even requiring additional tools.

Say goodbye to juggling multiple systems when you can use Volopay’s payroll module. The right personnel can be given access to the module while keeping the rest of the team out of it. Every payment made is automatically added to your ledger for simpler accounting.