Business owners are recommended to keep separate bank accounts after registering their company in Singapore. This is so that the process of meeting compliance requirements and accounting processes can be done with ease in the near future.
After Singapore company incorporation, business owners would find that they have plenty of choices available when setting up a corporate bank account. Therefore, it is crucial to compare the features made available for corporate accounts from different banks before making the choice.
To best facilitate the process of opening corporate bank accounts after registering a company in Singapore, here is a guide to use as a reference:
Different banks may differ slightly when it comes to the requirements but there are several constants that all bank branches look for. Before applying, business owners must check if the bank they have chosen require for all directors and account signatories to be physically present in Singapore when the signing is conducted. There are other banks that do not require so and may also allow signing of paperwork in front of a Notary Public instead.
Let’s look into both DBS and OCBC as an example as a reference to highlight differences and similarities.
Business owners who chose DBS requires only the executive director and authorised signatory to be present for face-to-face meetings. Account verification can be performed either through facetime, phone calls or skype.
Depending on the business account, the minimum deposit balance required is different. DBS Digital business accounts do not contain minimum balance requirements whereas DBS Business Account requires a monthly average balance of $10000. If the balance is not met, business owners will then have to make monthly payments up to $35. It’s also interesting to note that there are no maximum transaction amount limits for DBS, unless the business owner chooses to set their own.
Banks like OCBC only requires for the executive directors and authorised signatory to meet. While there is no payment required for setting up the corporate bank account, it is also important to note that OCBC charges an account fee of $38 on a monthly basis. This is waived for the first 3 months of using a corporate bank account set up with OCBC. Additionally, OCBC also requires for a deposit of at least $3000 and an average monthly balance of $5000 (waived for the first 6 months).
For companies that deal with foreign currency, OCBC also allows for both current and fixed deposit accounts to be available for foreign currencies. In this case, the initial deposit for foreign currency accounts can vary based on the type of currency with the minimum balance set at an amount equivalent to US$500 or EUR500.
These are just some of the features different banks provide to business owners looking to open a corporate bank account after Singapore company incorporation. While opening a bank account in Singapore is fairly simple, it is still prudent to be aware of the requirements and features they provide before making a choice.