Looking at the various benefits and facilities that are offered by Singapore government, incorporating a company in Singapore as a foreigner is fairly easy and a foreigner can also own up to 100% shares of the company. In this scenario, foreigners requiring to open corporate bank account in Singapore is obvious as the bank account is needed in order to carryout financial operations of the company the bank account should be opened before a company can begin its transactions.
In Singapore, various banks provide special facilities, benefits and offer for foreigners, making it easy for them to open a Singapore corporate bank account.
As choosing one of the various available banks in Singapore for opening Singapore bank account is a critical decision, here are some important tips that will help you choose the right bank for your Singapore corporate bank account.
1. Choose a bank that is start-up friendly
It is important to choose a bank that would facilitate your business processes. One tip of choosing a bank to ensure your operations run smoothly is to pick and choose the bank that allows you to open a corporate bank account at an amount of capital that is according to your preference and risk level. Some banks require you to put a minimum deposit and you cannot take out the deposit for your start-up business expenses and investments. To the start-ups, every cents and cash flows count toward getting sales for the company and hence picking the right bank that is start-up friendly would allow you to have the flexibility and capability to scale, grow and expand your start-up.
2. Choose a bank that provides multi-currency account
Some of the banks provide only Singapore dollar account, meaning that the transactions can only be made in Singapore dollars. However, there are banks that provide multi-currency accounts so that the transactions in foreign currency can as well be made with ease.
As a foreign national opening corporate bank account in Singapore, it's advisable to choose a bank that offers the multi-currency facility. Do note that depending on the bank and account type, the minimum balance amount may differ.
3. Comparing the international fund transfer fees
Being a foreigner having Singapore bank account, you may require to periodically transferring the funds from Singapore account to the bank account in your country. It's important that you check international fund transfer charges of various banks and choose the one that has lowest charges/fee to ensure minimum cost overhead in the long run.
4. Choose a bank that has work hours in your timezone
If you are living in a country that has opposite timezone from Singapore, communicating with the bank for any operational related issue can be challenging. Do carefully check the work hours of banks as well as the availability of their customer care services. Choosing a bank that you can easily communicate with when needed is highly recommended.
5. Choose a bank that offers internet banking and internationally valid card
While internet banking facility is now available in almost all banks, not all banks have the technology capability and authorization to transactions across all the countries.
Do check if your chosen bank has an app that can provide internet or mobile banking. The bank should offer complimentary transaction alerts through SMS messages so that you are kept abreast of every transaction in your account. This will help prevent debit or credit card fraud, as well as helping you keep track of your account balance. With internet banking, you are able to easily access your bank statements, and transfer money between different accounts.
As you may have the need to withdraw money at any point, making sure that the ATM card provided by bank is valid internationally is also a critical point to consider.
6. Choose mindfully between local and international banks
While some of the above points may best be found fitting with international banks, choosing local bank has its own advantages including lesser fee and charges. If you have to use the respective corporate bank account for transferring funds locally (such as salaries, choosing a local bank for Singapore corporate bank account can be a wise option too.
With a number of local and international banks available in Singapore, it is critical to choose a right option keeping in mind the long-term business goals.
At Precursor, we have a team of corporate business experts that does not only consult about best corporate bank account option but also provides end-to-end services such as accounting and company compliance services.
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