How to open a business bank account in Singapore

Now that you’ve successfully registered a company in Singapore, your next step is to open a business account. This allows you to manage your cash flow efficiently and access financial services that can support your growth.

In this article, we give you the complete lowdown on how business bank accounts work and what you need to consider before opening one.

We’ll also examine fintech alternatives like Airwallex and explore how they are changing the ways Singaporean businesses manage their financial operations.

What’s the difference between a Business Account and a Business Bank Account?

The difference between a “business account” and “business bank account” lies in the financial institutions that offer them, and the licences they hold. A business account is a financial solution offered by fintech firms that do not hold a banking licence. They serve companies with products like multi-currency accounts, international transfers, currency exchange, and corporate cards. 

Although fintech companies like Airwallex and Wise are not banks, they are regulated as Major Payment Institutions by the Monetary Authority of Singapore (MAS). This means they have a proven track record for providing payment services to businesses, and follow strict guidelines for safeguarding customer funds.¹ 

On the other hand, a business bank account is offered by traditional banks specifically for managing a company’s funds. With this type of account, you can accept payments, pay bills, and access business loans or credit lines.

Can I open a business account (from a FinTech) alongside my business bank account?

Yes. A fintech business account can complement a traditional corporate bank account by providing lower-cost international transfers, fewer fees, and streamlined financial operations. This allows businesses to save money and reduce admin tasks while still enjoying the services of their traditional bank.    

When your business starts growing beyond Singapore, you may opt for fintech providers who offer purpose-built business solutions such as international payments, invoicing, company cards and expense management. Airwallex is one of the only fintech firms for businesses that support end-to-end payments and wide global coverage.

How to open a business bank account in 5 steps

The process for opening an account depends on whether your provider is a traditional bank or fintech. A fintech firm may have a simpler process as all documents can be submitted online, and there is no need to visit a physical branch.

Here are the 5 steps:

1. Research and select a financial services firm that offers services tailored to your needs.

2. Gather and prepare supporting documents, such as your Unique Entity Number (UEN), ACRA company profile, and identification documents. We have more details on this below.

3. Apply online, by phone, or in person at a bank branch (depending on your chosen provider).

4. Your chosen provider will go through the “know your customer” (KYC) process, which is required by the MAS. A provider must go through the KYC process before they can give financial services to a business.²   

5. Once verified, set up your account, add funds, get cards issued and get started.

How does a business bank account work?

Business accounts or business bank accounts are a hub for your business's financial activities where you can handle essential financial activities like accepting payments, making international transfers, and processing payroll. 

They're not fundamentally different from personal accounts, but they do come with special features tailored to meet the needs of businesses. This means you can handle larger transaction volumes, possibly access business lending options (depending on your account type and provider), and enjoy other specialised services that might not be available with a personal account, such as the ability to issue employee cards and tools for financial analysis and reporting.

Banks and financial providers offer different kinds of business accounts, each with their own set of rules and perks and often customised to fit particular business sizes or industries. There may be specific benefits, and features aligned with business operations.

While there are many benefits, it’s important to check any fees or charges you may be up for. For example, banks like DBS charge a fall-below fee if your average daily balance falls below SGD 10,000.³ If you’re looking to move money internationally for your business, there may be other associated costs, such as agent fees for telegraphic transfers. Fintech firms like Airwallex have fewer fees because of lower overhead costs and a wide global network that enables low-cost transfers.

What types of businesses open a business account?

You might be wondering, “Do I need a business bank account?” In Singapore, almost all registered businesses, from small startups to large corporations across all industries manage their finances with business bank accounts or a specialised business account from a fintech provider.

Sole proprietors, on the other hand, might opt not to open a business bank account if their transactions are minimal or closely tied to personal finances. Even so, many of them will find that a business account is a valuable way to simplify tax reporting and gain clarity over their business’s cash flow. 

How do I choose the right business account?

There is a wide range of business accounts offered by established fintech firms, neobanks, and banks in Singapore. Before looking at your options, it helps to understand your business’s present-day needs and short-term goals. Each business account offers distinct features and services tailored to various needs. For example, Airwallex is engineered to help Singapore businesses operate globally with multi-currency accounts, fast international transfers, and online payments, all in one platform.

By knowing what your business needs, you can make an informed decision that supports your business's daily operations and position yourself for future growth.

Here are other factors to consider when you compare business bank accounts:

• Account and transaction fees: Review the account and transaction fees to ensure they're justified by the services provided. For small businesses, a fee-free account might work, particularly for online-only transactions. Alternatively, consider an account with a low monthly fee that includes some free transactions.

• International fees: If you’re sending and receiving money internationally, it's important to find a provider that offers competitive rates.

• Credit services: If you need to access finance to expand or boost your cash flow, it’s important to consider accounts that come with affordable overdraft facilities and credit services.

• Local networks: Not all international banks have a presence in multiple countries, so if you choose one for your business banking, make sure they have a local partner bank that can help you out. Airwallex lets you open 23+ currency business accounts with local bank details in 60+ countries.

• Online services and customer support: Does the provider offer an easy-to-use online platform and, if you need it, a way to contact and access customer support to resolve any issues you might have?

• Business features: A business account should offer additional features and services that eliminate the administrative hassle of managing multiple platforms. For example, an eCommerce startup with an Airwallex Business Account can also use our multi-currency payment gateway to accept payments from 180+ countries. 

What are the best bank accounts for small businesses?

Narrow your search for no monthly fees or minimum deposit requirements, such as the DBS Business Account and OCBC Business Growth Account. Fintech firms like Airwallex and Aspire also offer business accounts with no account fees, friendly exchange rates, and low transfer fees compared to banks. The cost-effectiveness and flexibility of these options mean that your business can continue to make the most of its money with limited cash flow. 

For small businesses, it’s much easier to have a separate business account or business bank account set up from the start. Then, as you start to grow, you’ll already have access to features like online payment processing and card creation. Also, it will mean that you save yourself the hassle of moving to a more suitable provider and changing your banking details with suppliers and customers. 

If you decide to seek financing to develop your business, or assess its value if you want to sell, it’s much easier to have your finances set up and ready in a dedicated business account.

Which bank accounts are best for international businesses?

The right business account simplifies global payments – it can propel your growth beyond borders and make entering new markets easier.  

For businesses with an international footprint or those aiming to expand overseas, the following types of accounts may be especially beneficial:

• Multi-currency accounts: These accounts allow you to hold, manage, and transact in multiple currencies without needing to convert funds back to your home currency, reducing exchange rate risk and currency conversion fees.

• Accounts with global banking networks: Banking with a provider that has strong partnerships with banks in other countries can make it so much easier to manage overseas transactions by fast-tracking the business banking process and letting you bypass the usual tangle of application procedures.

Airwallex offers 23+ local currency accounts and has banking licences in over 60 countries, which allows you to operate in multiple markets with ease. We also support international transfers to 150 countries, 90% of which go through local payment rails instead of SWIFT. This makes global transactions cost-effective and efficient, with 85% of payments arriving the same day.

By using Airwallex, businesses like Hey! Chips achieved their overseas expansion goals in 4 years and saved up to 90% on telegraphic transfer fees. “Because of Airwallex, we're able to set up new business accounts overseas very quickly,” says Hey! Chips co-founder Emily Chu.“ If Airwallex isn't around, I think a lot more traditional businesses will take a very long route to success.”  

What documents do I need to open a business bank account in Singapore?

If you’ve gone through the process of how to start a business in Singapore, setting up a business bank account or business account is straightforward. You'll need to submit documents about your company and its partners or shareholders.

• The documentation you need to submit may include: Company Business Profile from ACRA.⁴

• Certificate of Incorporation

• Passport or Singapore IC of the company directors or partners

• Proof of Residential Address of the company directors or partners

• Board of Directors Resolution  

• Company’s Constitution 

• Completed account application forms

The application process is generally quick once you’ve submitted all the relevant documents and information. However, verification checks can extend the time taken to open your account and you might be asked to give more information or paperwork to support your application.

5 things to consider before opening a business bank account

Before opening a business account, consider these five important factors:

1. Fees and charges

It's crucial to carefully review the fee structure of any prospective business account. Look for details on monthly account maintenance fees, transaction fees (such as charges for transfers), and potential hidden costs like fees for excess transactions or early account closure. Understanding these fees helps you know what you’re liable for and ensure there are no surprises and that the account suits your budget.

2. Interest rates and benefits

Some business accounts offer interest on the balances maintained. Depending on the amount in your account, this can deliver a substantial boost to your business. Also, review other benefits that could support your business operations, such as discounts on business software, reduced rates on business loans, or cashback on corporate spending. These benefits can add value beyond the basic account functions.

3. Digital capabilities

Assess how you will access the services that are available with the account. Key features to look for include comprehensive online platforms, mobile app capabilities, and detailed financial reporting tools. Make sure these services integrate well with your business’s operational needs, like payroll management, expense tracking, and easy access to financial reconciliation.

4. Customer support

Local customer support is essential for handling the complexities of business banking. This includes traditional phone support, as well as support channels like email, chat, or even dedicated account managers. Having a great support team on your side can save you significant time and frustration as your business grows. Airwallex has a Singapore-based team that can guide you through the process of setting your account, maximising its features, and navigating the local business environment.

5. Scalability

The business account you choose should be able to scale with your business growth. This means the account should accommodate higher transaction volumes and provide additional services as your business needs evolve. For instance, as your business grows, you may need enhanced credit options, more complex cash management services, or better international transaction capabilities. Check if the provider can support your business not just now but also in the future as you expand.

Why open an Airwallex Business Account?

Traditional bank accounts are useful for getting started with accepting payments locally. But if you have international payment needs or are looking to grow beyond Singapore, the all-in-one Airwallex Business Account can position you for success. 

That’s because Airwallex offers an end-to-end payments solution that lets you save on conversion fees and telegraphic transfer fees. With Airwallex’s payment gateway solution, you can accept customer payments in 180+ countries, hold 23+ currencies in Airwallex Global accounts and pay out to overseas suppliers without converting them to SGD. We also have partnerships with local payment rails in 120 countries, which lets you make faster and less expensive international transfers compared to SWIFT. 

Our time-saving features like bill payments, expense management, and accounting integrations simplify your financial operations and automate many manual tasks. As custom PC company Dreamcore discovered, having several financial services in one platform also cut down time spent managing multiple vendors. 

With Airwallex accounts, you can also relax knowing that your money is safe and secure with world-class information security standards and end-to-end encryption.

Our goal is to save you time, and we focus on getting you up and running within 1-3 business days after you submit all of the required business information. After that, you have immediate access to your account and can start sending and receiving funds. Your account can also link directly to leading platforms like Xero, making it simple to sort your end-of-year financials.

How do Airwallex Business Accounts stack up?

Here’s a roundup to help you see how we compare:

• Global Accounts. Open accounts in 23+ currencies in minutes, with local bank details, and accept currencies from over 60 countries.

• Fast, low-cost international transfers. 90% of Airwallex’s international transfers go through local payment rails instead of SWIFT. This means low transaction fees and faster transfer times, with 85% of funds arriving the same day.

• Market-leading exchange rates. Trade 60+ currencies at interbank rates, and save up to 80% on foreign exchange fees.

• Unlimited corporate cards. Issue virtual and physical Borderless Cards with 1% unlimited cashback. These multi-currency debit cards are powered by VISA and let you make purchases from held currencies in your Airwallex account.

• Expense management. Our built-in Expense management tool gives you full control and visibility over company card spend.

• Payment gateway. Process payments from major credit card networks and 160+ local payment methods with the Airwallex payment gateway. You can also instantly generate payment links for invoices. 

• Embedded finance for enterprises and marketplaces. Open up new revenue streams by offering financial services to your customers or end-to-end payments for your marketplace.

It’s why global businesses of all sizes are flocking to Airwallex as a way to manage their financial operations. They appreciate the convenience of having one platform to access low fees, multi-currency accounts, high-speed international transfers, borderless cards, expense management, and online payments. There are no account opening fees or minimum transaction requirements.

Join the Singaporean businesses growing beyond borders with Airwallex, and open a free Business Account today. 

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FAQs:

1. What key documents do I need to open a business account?

The key documents you need to open a business account are: your business name, primary business address, Unique Entity Number (UEN), ACRA Company profile, type of industry, and identification for all owners or partners. Ensure you have these documents ready to streamline the account setup process.

2. How long does it take to open a business account?

The time taken to open a business account may vary depending on the provider you choose (traditional bank or non-bank alternative) and the method needed to apply (in-branch or online). Modern non-bank alternatives like Airwallex can often get you up and running as quickly as 1-2 business days because you can answer key questions and upload documents online.

3. Do start-ups need a business account?

Singapore registered companies are required by law to have a separate business account for tax purposes, except for sole proprietorships. That’s because the business and owner are a single legal entity. No matter the legal status of your startup, however, you are setting yourself up for success by having a business account to manage your finances. It helps separate personal and business transactions, simplifies accounting, and elevates the professional image of your new venture, which can be crucial for attracting investors and establishing credibility with customers.⁵

Sources

1. https://www.mas.gov.sg/regulation/payments/licensing-for-payment-service-providers

2. https://www.mas.gov.sg/regulation/anti-money-laundering

3. https://www.dbs.com.sg/corporate/cash-management/new-business-account-pricing

4. https://www.acra.gov.sg/how-to-guides/buying-information/business-profile

5. https://singaporelegaladvice.com/law-articles/form-a-sole-proprietorship/

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.