Who doesn't know Singapore? This country adjacent to the island of Batam reaches a GDP per capita of USD 72,766,000 from its statistical agency report (Singapore Department of Statistics) in 2021. GDP or Gross Domestic Product is the total value of production and services produced by all citizens or companies in one country.
This figure is higher compared to 2020 which is USD 60,752,000. The country that is ranked 2nd in the World Bank's Ease of Doing Business category for the 2020 period, implements the Tourist Refund Scheme strategy or claims for a 7% Good and Service Tax refund that you pay when you buy it at a store with the Tax Free logo.
Singapore's economic system has been forged to become the main pillar of the economy in the Asian region, one of the indicators is its banking system which holds an important role in guaranteeing profits and customer substantial data. Moreover, banking institutions in Singapore allow foreign companies to conduct international transactions to various destinations with competitive fees, through a fast and secure system.
If you are interested in expanding to Singapore, and trying to open a company account there, then take a look at the article below!
Singapore's export growth percentage, which grew around 33.6% at the end of July 2022, also boosted the government's revenue forecast for 2028, which was released at SGD 137,005. This is because the Singapore government not only opens up opportunities for foreign entrepreneurs to do business on a massive scale, but also provides remission in their tax system.
The most important component in opening a business account in Singapore is the document requirements, we will describe some of them:
At the verification stage, the bank will ask for original documents or additional company documents, so don't forget to prepare both copies and the original documents.
The procedure for opening a Singapore business account will largely depend on the Bank and the type of account you choose. However, the general registration steps can be summed up in the following list:
Most banks in Singapore do not charge account registration fees (with certain conditions) to their customers. Usually, the monthly administration fee is charged from SGD 10 to SGD 40 per month. Some banks, however, exempt monthly fees to the customers from startups, small companies and traders that fulfill the qualifications. So that they can focus more on their business needs, not on banking costs.
Like the account registration fee, the minimum threshold set applied by each bank also differs. Some Banks set a minimum threshold balance regulation of SGD 1,000 and even up to SGD 3,000. If the balance is below the minimum threshold, the penalty fee will be around SGD 15 to SGD 35.
Some banks even offer initial deposits for corporate business accounts for as low as SGD 500, and also waive the minimum average monthly balance requirement and monthly administration fees within a certain period of time.
Free transfer fee is the best service that is commonly used to transfer SGD funds from one bank to another. If the transfer is made beyond the country's territorial limits, an additional fee of SGD 10 to SGD 40 will be charged.
There are several factors to consider before opening a company account in Singapore, including:
Those are some requirements on how to open a business account in Singapore. For growing businesses that want to expand into the Singapore market but do not yet have an entity or do not yet meet the required documents to do it, there are various financial technologies that can help your business to overcome this.
One of them is the all-in-one finance platform Aspire. It provides a multi-currency account solution that can be managed through one Aspire dashboard, covering currencies from Indonesian Rupiah, USD, to Singapore dollar / SGD, and many others. Aspire accounts can be used to receive or send funds via virtual accounts or other bank accounts, and will be directly linked to the company's budgeting reports.
For your business transfer needs, Aspire also provides virtual account transfer facilities for expense management or company receivables. All of this can be accessed without having to go through the complicated process of opening a conventional bank account. Check the Aspire feature page to find out other features that can be used to help manage and streamline your business operations finances.
Keep Aspiring with Aspire!