For business owners, understanding how to create a business account is essential, whether you're running a small startup or managing a large corporation. A business account simplifies your financial operations and enables smoother transactions from purchasing raw materials to receiving payments from customers, helping you manage your business finances more efficiently.
In this article, you will learn what a business account is, what factors you need to consider before opening one, what requirements you need to meet and how to set up your account.
What is a business account?
A business account is a special financial account for business entities, regardless of size. It is generally used by companies and is suitable for frequent and large transactions.
Most business accounts are current accounts (giro) because of their suitability for large and frequent transactions. Banks or financial institutions provide account holders with periodic transaction statements and a passbook to keep track of account movements.
Here are the main characteristics of a business account
- It can handle high transaction frequency, reflecting frequent inflows and outflows of funds.
- It has more extensive features compared to personal accounts, such as detailed reports and an invoicing feature.
- It has lower interest rates than savings accounts.
- It has higher transaction limits for withdrawals and money transfers than a regular savings account.
Why do you need a business account?
A business account offers more than just convenience — it is a cornerstone of professional financial management. By separating personal and business finances, you create credibility and professionalism, enhancing your business reputation.
In addition to this advantage, there are other benefits of a business account, which you can read about below.
- Streamlined tracking of cash inflows and outflows.
- Simplified handling of business expenses.
- Easier collection of payments from customers.
- Clear separation between personal and business funds.
- Easier access to apply for business funding, such as bank loans.
- Improved stakeholder confidence in your business.
- Reduced risk of mismanagement or misappropriation of funds.
Requirements for opening a business account
To open a business account, you must meet the requirements set by the bank or financial institution of your choice. You must submit documents relating to your business and complete a registration form.
Here are the general requirements you must fulfill when opening a business account:
- Identification documents (KTP) for the business owner, manager or an authorized representative of the business.
- Tax identification number (NPWP) for the company.
- Certificate of incorporation for the company.
- Last Certificate of Amendment, if applicable.
- Business license and domicile certificate.
- Business registration number (NIB).
- Completed business account registration form.
Steps to set up a business account
You can apply for a business account as soon as you have prepared the necessary documents. In Indonesia, you can open a business account with major banks such as Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) and they usually offer two opening methods: visiting a branch or registering online.
1. Visit a bank
This traditional method is still popular with business owners as they can consult directly with the bank’s customer service about the type of business accounts they should choose.
If you want to use the same process, you can visit the branch of your preferred bank and wait in line to meet the customer service team who will guide you through the process. Once you have met with the customer service team, you can submit the required documents that you have prepared and fill out the registration form. The bank will review your documents and once approved, you can own a business account in the name of your business.
2. Register online
Thanks to digital innovations, you can now also open a business account online. Simply visit the website of the bank or financial institution of your choice, fill out the required forms and upload the necessary documents.
Once you have submitted your documents, the bank will check your details and may request a live identity check via your phone or webcam. After verification, your account will be processed and set up.
Registering online saves time as you do not have to go to a branch in person. In addition, several banks in Indonesia offer a one-day approval process when you open a business account online, which is faster than the usual approval process of three to five days.
However, even if you have applied online, some banks may still require you to visit the bank to submit some additional documents.
How to choose the right business account
With so many providers offering business accounts, it can be difficult to choose the one that's best for you. Here are the key factors you should consider:
1. Features and benefits
Look for accounts that offer features that align with your business needs. For example, some banks offer debit cards with high limits (gold or platinum), automated transaction tools and detailed transaction tracking.
2. Accessibility
When running a business, you may experience unforeseen situations or need to make immediate expenditures, so your account must be easily accessible anytime and anywhere. Therefore, it is advisable to have a business account with a bank that offers benefits such as a robust online banking system or ATMs that you can access 24 hours a day and are available in many locations.
3. Transaction policies
Find out about the transaction policies, including limits on withdrawals or transfers within certain time periods.
4. Account opening process
Find out about the time and requirements needed to open an account. Choose a provider that offers a fast and reliable process.
5. Minimum balance and fees
Find out about the minimum balance required and the associated fees. A transparent fee structure ensures that you avoid unexpected costs.
Choose Aspire Business Account for seamless financial management
If you are looking for a business account to help you manage and scale your business on a global scale, Aspire’s Business Account can be the ideal solution for you, as it has a range of features to help you manage your business efficiently, both in terms of time and cost.
- You can add multi-currency accounts for GBP, USD, and EUR at no extra cost. Enjoy free local transfers in SGD, USD, EUR and GBP
- You can enjoy 10 free interbank transfers per month
- Aspire's Business Account is equipped with accounts receivable and accounts payable management to facilitate your cash flow management.
- No initial deposit or minimum balance required.
Aspire’s all-in-one financial platform offers transparent fees and best-in-class features to empower your business. Ready to optimize your financial operations? Get in touch with us today!
Frequently Asked Questions
How can Aspire support the unique financial needs and challenges of mid-sized businesses?
Aspire offers a comprehensive suite of expense management solutions tailored for mid-market companies. This includes sophisticated corporate cards, advanced budget controls, and streamlined claims and approval policies, all designed to enhance financial efficiency.
How quickly can a mid-market company integrate Aspire's solutions into existing systems and workflows?
Integration with Aspire's expense management solutions is swift and seamless. Mid-market companies can swiftly implement corporate cards with tailored features, set up nuanced budgets, and establish streamlined claims and approval processes, ensuring minimal disruption to existing workflows.
How does Aspire compare to competitors for international money transfers?
Aspire excels in international expense management with FX fees up to 2x cheaper than traditional banks.
Global payments are offered by various providers through business accounts. Read our article to know more about types of business accounts and how to choose the best one for your business. There are many banks and fintech companies offering business accounts to businesses in Singapore. We have covered them all in our blog, you can click the links to view accounts offered by various banks such as DBS, OCBC, Maybank etc.
However, if you are a start-up or a growing business, chances are you may not meet the eligibility criteria for most of these banks or find their charges to be expensive for your liking. You can consider opting for Aspire multi-currency account for global payments which offers you all the benefits, with eligibility criteria which are less stringent. Read our article on bank charges in Singapore for a quick and easy comparison.
What level of customization does Aspire offer to meet the specific financial requirements of mid-market clients?
Aspire understands the diverse financial needs of mid-market clients and provides a high level of customization to tailor solutions accordingly. This includes the ability to customize corporate cards with specific spending limits, rewards, and benefits that align with the unique requirements of each client.
Additionally, Aspire's budgeting features are adaptable to accommodate the distinct financial structures of mid-market enterprises. The platform also allows for fine-tuning approval policies, ensuring they align with the specific workflows and compliance standards of individual mid-market businesses. This commitment to customization empowers mid-market clients to optimize their expense management in a way that best suits their financial goals and operational preferences.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD, EUR, GBP and IDR Accounts activated.
Can Aspire's corporate cards be customized to cater to the specific needs of consulting teams on the go?
Yes, Aspire's corporate cards are highly customizable. Consulting teams can benefit from tailored spending limits, travel-centric perks, and real-time transaction tracking, ensuring that the cards meet the unique requirements of professionals on the move.
How does Aspire support budget management for consulting projects and travel expenses?
Aspire's platform offers sophisticated budget controls that consulting companies can adapt to project-specific needs. This includes setting project budgets, tracking expenditures, and receiving real-time insights to ensure that expenses align with project goals.
What are Aspire Corporate Card FX rates?
At Aspire, we want you to pay the lowest rates in the market.
- Zero card activation fees
- Zero card transaction fees
- Best FX rates, up to 2x cheaper than banks
How does Aspire help consulting companies enforce expense policies and approvals for travel expenses?
Aspire streamlines the claims and approval process, allowing consulting companies to establish and enforce expense policies seamlessly. Customizable approval workflows ensure compliance with company policies and industry regulations.
Is Aspire's platform scalable for consulting companies of varying sizes?
Yes, Aspire's platform is scalable and caters to consulting companies of all sizes. Whether you're a boutique consultancy or a larger firm, the platform's features can be adapted to meet your specific travel and expense management needs.
How can I open a business account in Singapore?
For a business account in Singapore, Aspire is an excellent choice. With a focus on startup and SME needs, Aspire offers a seamless and transparent banking experience.
Benefit from their user-friendly online platform, no minimum balance or account opening fees, and dedicated support for businesses of all sizes.
Aspire is designed to streamline your financial management, making it an ideal partner for entrepreneurs in Singapore.
How long does it take to open an Aspire business account?
Registration with Aspire takes less than 10 minutes which you can do via our website or mobile app.
Once registered, we will get back to you within 5 business days on whether your account has been activated or if we need further documents from you.
Our account verification process varies according to the nature of your business. In exceptional cases, it can take up to 7 days to process your documents.
How can Aspire's corporate cards benefit my startup?
Aspire's corporate cards offer a range of benefits for your startup. Earn 1% unlimited cashback on qualified spends, simplify expense management, enjoy streamlined transactions, and gain real-time insights into spending. With customizable limits, integration with accounting software, and enhanced security features, Aspire's corporate cards are designed to empower your startup's financial efficiency and provide added convenience for your team.
Is Aspire suitable for both early-stage and established startups?
Absolutely, Aspire caters to the needs of both early-stage and established startups. Whether you're just beginning your entrepreneurial journey or have an established business, Aspire offers tailored financial solutions to help streamline your operations.
From managing expenses and optimizing workflows to providing valuable financial insights, Aspire's platform is designed to adapt and scale with your business as it grows. The flexibility and scalability of Aspire make it a suitable choice for startups at various stages of development.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD and IDR* Accounts activated.
However, we recommend keeping your subscription plan amount available on your balance to ensure you're up to date with your payment every month.*
To create a recipient or make any transaction on your IDR Account, you'll need to have a minimum balance of IDR 10,000 on your account.
