According to a report published by the Monetary Authority of Singapore, there has been an increase of bank account opening in the country among non-residents. To date, Singaporean banks hold more than USD 36.35 billion of non-resident money. Opening a bank account in Singapore for non-residents can be challenging, but with the right information, non-residents can be rest assured to succeed in the process. 

As Singapore ranks second on the list of Ease of Doing Business by the World Bank, the country enjoys an influx of foreign investments from all over the word. As it supports cross-border trade and features a business-friendly environment, opening a bank account has never been a barrier for many international private investors and institutional investors looking to do business in Singapore.

Here is a comprehensive guide for non-residents who wish to open an account in Singapore. 

Can Non-Resident Investors and Individuals open a Business Account in Singapore?

Yes! However, recent regulatory provisions and recommendations have inspired Singaporean banks to tighten their rules when approval bank account applications from non-residents to avoid money laundering and counter-terrorism financing (AML/CTF) and other unscrupulous activities. 

Advantages of Opening a Business Bank Account in Singapore

• Given that all Singaporean banks operate without limitations from the government, account holders enjoy no restrictions when accepting funds or making payments internationally. 
• Non-resident account holders can legally receive funds and send payments to virtually any country in the world. 
• Singaporean banks offer sophisticated products that are designed for international business entities, while offering flexibility in the management of daily financial transactions. 
• Many banks offer multi-currency accounts, allowing account holders to realize transactions in various currencies, including USD, EURO, GBP, CAD, and AUD. Other crucial currencies in Singapore are MYR and INR. 
• As a result of the COVID-19 pandemic, many banks now allow international businesses to open a corporate bank account remotely, following a video interview to complete the process. 

The Monetary Authority of Singapore (MAS) regulates all banking operations in Singapore. It thoroughly screens the capital adequacy and leverage ratios of local Singaporean banks. All depositor funds are insured by the Singapore Deposit Insurance Corporation Limited (SDIC). The majority of banks in Singapore offer secure Internet banking. All these ensures the safety and security of non-resident funds. 

Requirements to Open a Corporate Bank Account in Singapore

As a foreign company, any Singaporean bank will require a comprehensive set of information and documents about your business, including:

• Proof of identification of a foreign-owned Singaporean company
• Identification and residential address of the company
• Identification and requirements from company shareholders 
• Identification and requirements from company directors
• Identification and requirements from ultimate beneficial owners
• Professional background information on key executives 
• Copy of a company’s memorandum and articles of association
• Resolution of a company’s board of directors
• Other company-specific information 
• Planned business activities
• BUsiness plan
• Business profile
• Potential suppliers and vendors
• Anticipated banking or transactional activities
• Reference letters from previous or existing banks

Whether you are opening an individual bank account for wealth management, brokerage account, or corporate account, all document copies must be certified authentic by the Company Secretary or Director. Banks may also request for original documents and other paperwork for further Know Your Customer verification. 

Bank Account Application Process in Singapore

The steps involved in setting up a Singaporean corporate bank account will depend on the bank and the account type you choose. 

You will need to follow these steps to set up a bank account in Singapore:

1. Choose bank account type, whether a local Singapore account, foreign currency corporate account, and more. 
2. Inquire whether you can open an account online or you need to be physically present in Singapore to open a bank account. 
3. Fill out the application form. Make sure all authorized signatories have signed the opening form. 
4. Prepare the necessary documents, including proof of company registration. 
5. Make sure to include the name of the Board of Directors Resolution which approves the bank account opening. 
6. Submit proof of identification and residential address for all company shareholders, ultimate beneficial owners, and directors. 
7. Submit all requirements with minimum deposit. 

Your preferred bank will thoroughly assess and review your bank account application. After meeting all documents and financial requirements, you can successfully open a bank account in one to four weeks. 

Costs Associated with Opening a Bank Account in Singapore

Set Up Fee

Majority of banks in Singapore do not require a set up fee to open a private or corporate bank account, although there are a few exceptions. 

Maintenance Fee

Expect to pay a monthly maintenance or administration fee between SGD 10 and SGD 40, which may be waived for the first few months by some Singaporean banks. 

There are banks that do not charge maintenance fee, making them ideal for smaller companies, start ups, and entrepreneurs, delivering greater flexibility and freedom to concentrated on their businesses rather than worry about their banking expenses. 

Some Singaporean banks assess fees for checkbooks and setting up Internet banking features. 

Minimum Balance

Almost all Singaporean banks has a minimum initial deposit threshold. Some require a low initial deposit bteween SGD 1,000 and SGD 3,000 ideal for small companies with limited startup capital. 

Ongoing minimum requirements will vary between Singaporean banks. In general, minimum balance deposit is between SGD 1,000 and SGD 100,000. There are banks that will assess a fall-below value if the balance drops beyond a certain threshold. Fall-below value varies from SGD 15 and SGD 35. Few banks offer special corporate accounts for entrepreneurs, with initial deposits as low as SGD 500. Some banks also waive minimum average monthly balance requirements or fall-below fees for a fixed period, usually six months. 

Transfer Fees

Some Singaporean banks offer free fast transfers between Singaporean banks. In case your company expects international fund transfers, you may incur costs between SGD 10 and SGD 40 per transaction. You may also incur international transfer fees for sending and receiving foreign funds plus commission and conversion fee based on a percentage of the entire transfer amount. 

Challenges of Opening a Bank Account in Singapore for Non-Residents

• All Singaporean banks implement the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS). 
• Expect stringent compliance checks and know your customer requirements from Singaporean banks. 
• Banks may require documents regarding company registration and from ultimate beneficial owners, business profile, and many more. This can be a challenging and time-consuming process. 
• Bank account opening and approval can take longer. 
• Some banks require in-person interviews with applicants. 

For foreign investors looking to set up a company in Singapore, you need a reliable company that can help your through the process. As a premier business consulting firm, Damalion offers a full suite of services, With our broad global service network consisting of service providers, you can rest assured that our professionals can help you in activities, including company formation, bank account opening, management, accounting, bookkeeping, taxation consulting, and more. Whether you need a private bank account or corporate bank account in Singapore, we will be with you to ensure a smooth and seamless bank account formation process. Reach out to a Damalion expert today if you wish to start processing your bank account application in Singapore. 

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.