The online business account for fast-growing businesses

A business account is a dedicated bank account used exclusively for managing a company’s finances. It helps separate business and personal transactions, making it easier to track income, control expenses, and manage cash flow. For Private Limited Companies in Singapore, it is also a legal requirement. Unlike personal accounts, business accounts offer features designed for companies to support operational efficiency and financial clarity. These features include low-cost FX, multiple corporate cards, cashback on business spend, and integration with accounting software etc. Here are some reasons why you should not use a personal account for your business.

A corporate account and a business account are frequently used interchangeably. However, there are subtle distinctions between a corporate account and a business account, despite the similarity in terminology.

A corporate account is generally designed to serve larger companies and thus provide products and services tailored to their needs. A business account on the other hand is designed to serve smaller companies, who have their unique set of challenges and requirements.

Key Benefits of a Business Account

1. Separation of finances
   Keeps personal and business funds in separate accounts, reducing confusion and ensuring financial clarity.
2. Financial monitoring
   Account statements provide a clear overview of income, expenses, and cash flow for better business decisions.
3. Simplified tax filing
   Supports accurate record-keeping and simplifies tax reporting in line with IRAS requirements. An Aspire account also provides integrations with accounting software, making this process simpler and more efficient.
4. Enhanced business credibility
   Having a registered business account builds trust and a financial history useful for securing loans and partnerships.
5. Legal requirement for companies
   A business account is mandatory for Private Limited Companies under ACRA regulations.
6. Access to banking services
   Grants access to corporate cards, payroll facilities, and other essential finance tools for business operations.
7. Multi-currency banking
   Singapore providers offer multi-currency accounts to support international payments and foreign currency transactions.
8. Eligibility for government support
   Most government grants and assistance schemes require a local business account for fund disbursement.

Yes, a current account can be categorized as a corporate account. A current account is a basic type of bank account that enables businesses to undertake day-to-day financial operations such as receiving payments, paying suppliers, handling payroll transactions, and other operational expenses.

As long as you have your ACRA details, setting up your business account should be easy.

Conventional banks might require you to complete the account setting process and interview in person at a branch location. Fintech businesses, on the other hand, usually provide you with the ability to electronically upload the necessary papers, which speeds up the verification procedure.

The specific documents needed for verification may vary but typically include the following:

• Proof of identity and address for the user
• Certificate of shareholding
• Business constitution or memorandum and articles of association
• Proof of identification for the business director and majority shareholders
• Board resolution (if applicable)

The amount of time you need to register to get a business account is another important consideration. Some providers may require a lengthy and difficult procedure to establish an account, while others might offer a quick and easy one.

It can take anywhere from two business days to a month or longer, on average, to set up a company bank account. The process for opening a company bank account typically involves submitting necessary documentation and undergoing KYC checks. The duration is determined by the KYC checks and internal processing times of the banks.

There are various factors that decide which business account suits your business the best. You need to carefully evaluate various factors associated with the account, the account provided and your business to decide on which one suits you the best. Some of these factors are:

1. Reputation of the provider
2. Expertise
3. Account features & services
4. Fees, interest rates, and deposit requirements
5. Easy of access & account opening
6. Business entity type
7. Business size
8. Business operations - international or domestic etc.

Business accounts in Singapore are offered by various banks such as OCBC, UOB, Maybank, DBS, Standard Chartered etc. We have also compiled an article for you comparing them all.

As mentioned earlier, multiple factors determine which bank account may suit your business the best. Every business has a unique requirement and there is no straightforward answer to this question. Read our article on 'How to choose the right business account for your business'. We have also created an article that compares these bank business accounts, you can read it here: 'Comparing the best SME banks in Singapore'