In Singapore, after incorporating a company you need to open a bank account. In this article, we will guide you on how to open a small and medium company bank account. The following list of things are the requirements you must meet when opening a company bank account:
- Company account opening application form from a reputable bank
- One Certified True Copy of E-Certificate of Incorporation
- Copy of Singapore NRIC/Passport and Residential Address Proof of signatories, directors, and ultimate beneficial owners
- One Certified True Copy of the Company’s Business Profile from ACRA
- One Certified True Copy of the Company’s Memorandum and Articles of Association (M&AA)
- Resolution by the Board of Directors approving the account opening and appointment of the signatories for the bank account. Apart from this, you can also use the bank’s pre-approved format that will only require the necessary signatures on it.
The certification of all true copies must be certified by any one of the directors of the company. According to the law, all the directors of the company and account signatories must be physically present for the signing of the necessary paperwork at the time of the account opening. Other banks, nevertheless, may allow the signing of the paperwork at their branches that are overseas or in the presence of a Notary public.
Different accounts exist and the following details are how each one of them can be opened. The details are based on initial deposit, minimum balance required, closure fees, and other features.
OCBC – Business Entrepreneur Account
To open this account, you will need an initial deposit of S$3,000. Furthermore, a monthly minimum balance of S$8,000 is required from the 7th month onwards, failure to which the company will incur a fall-below fee of S$25 per month.
To close the account, a closing fee of S$50 is required. The account can only be closed within one year since its opening. The bank offers velocity that is available with one free token and any additional token will cost S$20 each. Other features include free chequebook for the first two years, a business debit card with company logo, and lifetime waiver of annual fees.
DBS – Entrepreneur’s Account
It requires an initial start-up of S$500 and an average daily balance of S$8,000 from 7th month onwards, or you will incur S$25 fall-below fee. Closing fee of S$50 is needed to close the account and it can only be closed within 6 months of opening. Other features include DBS IDEAL available with monthly subscription waived for 2 years and first three security devices free (Additional security device at S$20 each). Cheque clearing is free for first 30 cheques monthly and S$0.50 for subsequent cheques.
UOB – Current Account
You need S$1,000 to open this account. A further average daily balance of S$10,000 is required or a fall-below fee of S$30 will have to be incurred by the company. A minimum closing amount of S$30 is required and the account can be closed within six months of opening. Other services offered by the bank include UOB Business Internet Banking and S$20 is charged for each security device issued.
Cheque clearing is free for the first thirty cheques and S$50 is charged every month for subsequent cheques. Companies are able to receive alerts via SMS and/or E-mail regarding their account through UOB eAlerts. Free Corporate ATM card (Corporate UniCard) is also offered.
Standard Chartered – Business Saver
It requires an initial start-up of S$30,000 and an average daily balance of S$30,000, or you will incur S$25 fall-below fee. Closing fee of S$50 is needed in the account and it can be closed within 6 months of opening. Straight2Bank service is available. Furthermore, free token is also issued, and a replacement fee of S$20 per token is charged.
Other services include free cheque books, phone banking (only available for Business Essentials, a package inclusive of Business Saver), and replenished automatically- Corporate debit card (SME Business Debit Card).
Maybank – FlexBiz
To open this account, you need start-up amount of S$10,000. No minimum balance is required to operate this account. Closing fee of S$50 is needed in the account and it can be closed within 6 months of opening. A non-refundable service fee of S$10 is charged when opening the account. The bank charges $0.50 per cheque cleared and cheque charges are waived if average daily balance is S$30,000 and above. Average daily balance refers to the average amount during the month, calculated by adding the daily balances for the month and dividing by the number of days in that month.*Accurate as at 03/10/2013
Each of the above listed banks have their own distinct features. Therefore, it is good to go through all of them and study their features to find the one that best fit the needs of your company. From there, you may wish to find out more directly from the bank officials. It is recommended that you make an appointment with the respective bank before going down to avoid long waiting time.