A business account is an account that is availed by companies and organizations that wish to keep all of their funds in one secure place. Opening a business account in Singapore allows businesses to keep track of all of their finances without mixing it up with their personal finances; it facilitates easier business transactions, helps acquire business loans and licenses with ease, and so on.
Factors to consider while opening a business account:
Business account opening is made easy in Singapore and it has its own set of benefits, but to reap most of these benefits, you need to research and choose smartly to find the perfect account that suits your business and its needs. It can be quite daunting to make a decision when it comes to choosing the right account for your business. Here are a few factors that you need to consider while opening a business account for your business.
- Requirements and eligibility
Each Financial institution has its own set of requirements when it comes to opening a business account. Before you choose a financial institution to partner with, look at all of the requirements and the benefits that they offer. Further research on each provider and check if you meet their eligibility criteria.
- Fee and charges:
Knowing about the fees is crucial. Financial institutions charge multiple fees such as annual fees, transaction fees, additional facilities fees, and international money transfer fees. You must be aware of all the fees you need to pay. Pick a financial institution whose fees fit your company’s budget. It is also advisable to weigh the account features against the fees that you will be paying.
- Minimum balance requirement.
Many financial institutions require you to keep a fixed amount of money in your account at all times. This is the minimum balance required to keep your account active. If your balance sinks below the minimum balance, you need to pay penalties. This is why it is very important to find out the minimum balance requirement and decide if it’s viable for the organization.
- Account features and services:
Once you have researched the above three things, you need to determine what features are required to fulfill your business needs. Consider the basic features and the additional services that the financial institution provides.
- Process of opening a business account:
When opening a business account, the last thing you need is a long and tedious process. Choose a financial institution whose registration process is simple. What you need is a Financial institution that provides a short verification and review process. Fortunately, with the evolution of technology, you can open a business account online at your convenience. Some financial institutions provide apps that make this process shorter.
Document needed to open a business account:
Each Financial institution has its list of requirements of documents to open a business account, but there are some common documents that each financial institution requires and you need to have to open a business account. Let’s take a look at them:
- Company registration document:
- Tax Identification Number
- Ownership and partnership agreement
- Memorandum and articles of association
- Business licenses or permits
- Proof of business address
- Identification documents
- Credit score information
How to open a business account in Singapore:
Now that you have a better understanding of the requirements to open a business account in Singapore, let’s examine the process of opening one.
- Research and compare:
As we have said before, the very first step in choosing a financial institution to partner with is to research and find the best fit for your business. Compare the features that each financial institution provides you and the fees that they charge.
- Decide the type of account you need to open:
Financial institutions in Singapore provide multiple types of business accounts, including a business savings account, a checking account, a multi-currency account, and a merchant account. You need to check what type of account will be useful for your business. A checking account is useful for daily business transactions, and a multi-currency account helps with international transactions.
- Gather the necessary documents.
Once you have decided which financial institution you want to partner with and the type of account you want to open, gather all of the necessary documents. This will make the process more convenient. Look at the list of documents that we have provided; those are the ones commonly required by the Financial institutions.
- Complete the application form:
You can complete this process online or on the financial institution’s app that you choose to partner with. If you choose to go in person, schedule an appointment with them in advance.
- Submit the required documents.
Ensure that you submit the required documents on time. Compile them and submit them along with the application process.
- Deposit the required amount:
Once the Financial institution has completed the verification process of the application and the documents, the company will ask you to deposit a certain amount of money. This will be the minimum balance amount
- Await the account activation
Even after getting the application approved and making a deposit, most businesses will not be able to use their business accounts immediately. You have to wait for the provider to activate the account and provide access. For online financial institutions, businesses will be given a login ID and instructed to create a password. If there are multiple users, each user may have their own login ID and password to access the online platform.
Opening a business account is essential for managing finances effectively. By researching and comparing Financial institutions, understanding fees, meeting minimum balance requirements, and gathering necessary documents, businesses can streamline the process and enjoy the benefits of dedicated financial management, facilitating smoother operations and future growth.
