A comprehensive guide to opening a business bank account

29 Sept 2023 | SME, Banking Services, Digitalisation | 5 min read

Starting a business is a journey mixed with a lot of excitement, challenges, and critical decisions. One of these decisions is whether to open a business bank account.

Separating personal and business finances is more than just a recommended best practice. A business account bolsters your company's credibility, simplifies cash flow tracking, and eases the tax filing process, thus, reducing potential stress. 

With 111 commercial banks in Singapore, choosing the right bank for your business requires you to consider numerous factors, including:

●        Type of financial services offered

●        Minimum initial deposit

●        Online and mobile banking capabilities

●        Minimum balance requirements

●        Support for foreign currencies

●        Customer service and support

Most banks in Singapore require the following documents to open a business bank account. 

1. Proof of company incorpation from ACRA

This proof includes the following documents:

●        Corporate Account Opening Forms: These must be completed and signed by authorised signatories as per the board resolution.

●        Board of Directors Resolution: This sanctions the opening of the account and the signatories to the account.

●        Certified True Copy of Resolution: This sanctions the opening of the account. Each bank has its own format so make sure to take note of those.

●        Certified True Copy of Certificate of Incorporation: This must be certified by the company secretary or one of the directors.

●        Certified True Copy of the Company’s Business Profile from Company Registrar: This must be certified by the company secretary or one of the directors.

●        Certified True Copy of the Company’s Memorandum and Articles of Association (MAA): This must be certified by the company secretary or one of the directors.

2. Proof of identification

This can be a passport or a certified/notarised true copy of your passport to show proof of your nationality. 

3. Proof of residential address

Shareholders, directors, and ultimate beneficial owners of the company need to provide proof of residency, which can include: 

●        Country/National ID 

●        Latest tax return filings 

●        Invoices from utility or telecom firms. (Usually not older than three months from the date of application.)

4. Information on the Ultimate Beneficial Owner (UBO)

The UBO is the person who mainly owns/manages the company. Documents that can be used are the following:

●        Curriculum vitae

●        Biography write-up

●        Official company website

●        Employment/appointment certificates 

●        Educational certificate from a recognised institution 

5. Detailed information about the company 

While the details needed can vary between banks, here are some of the information they might require: 

●        Sources of funds 

●        Purpose of the entity 

●        Proposed business activities 

●        Potential clients and suppliers 

●        Anticipated banking transactions 

●        Short-term business plans 

Please take note that some banks might ask for extra certifications or documents. You can check with the Accounting and Corporate Regulatory Authority (ACRA) for guidance. 

1. Research and select a bank that best meets your needs. 
2. Check online for the necessary documents needed to open a business bank account. Before visiting the bank, ensure that you have all the required documents.
3. Visit the bank physically or complete an online application. It's advisable to go in person since some banks mandate the attendance of the director(s) and authorised signatory(s).
4. Opening an account can take between 1 to 4 weeks. To avoid any delays, ensure all required documents are submitted at the time of your application. 

Now that you have opened your account, you've laid the groundwork for financial stability and credibility. The next step is to make sure you have a robust and secure communication system in place. This is vital, especially as banking and financial transactions become even more reliant on the internet and cloud to operate.

Modern Point-of-Sale systems, especially those that are cloud-based, rely heavily on internet connectivity. Every transaction, from credit card swipes to e-wallet payments, requires a dependable internet connection to ensure funds are transferred efficiently. In this context, Singtel fibre broadband stands out as a prime choice. With its 100% network availability in 2023 and the distinction of having the lowest network latency in Singapore, businesses can guarantee faster transaction times, elevating their customers' experience.

With greater reliance on the internet and cloud, cyber security is of utmost importance in safeguarding your business communications and financial operations. As businesses expand their digital footprints, they become attractive targets for cybercriminals. In fact, Singapore companies are the most targeted in the world by ransomware attacks. Singtel has cyber security solutions specifically tailored for SMBs that can help SMBs set up network security, and even provide security assessment testing to make sure that cyber security vulnerability is minimised.

Starting a business demands astute planning and choosing reliable partners. Establishing a dedicated business bank account ensures financial credibility, while adopting robust communication systems like those from Singtel is vital in our digitised world. As you embark on your business journey, do prioritise a blend of sound financial and digital strategies for enduring success.