Bank accounts for Singapore companies

Bank accounts for Singapore companies

Bank account is essential for company activity. With our help, opening an account in Singaporean financial institution is quick and easy. We work with several big banks in Singapore and always look out for the latest developments in the banking sector. We fill out all bank forms and questionnaire so that you do not have to. If banks in Singapore are not enough for you, we may suggest other options. Get in touch with us for more information.

Factors that have contributed to the success of the banking industry in Singapore include:

• Liberalisation of the domestic banking market.
• Local banks strengthened their regional presence through mergers and acquisitions.
• Expansion of foreign banks, some of which made Singapore a regional or even global platform for important banking services, which in turn led to increased competitiveness.
• Increased competition spurred the development of innovative products and more competitive pricing models.
• Provision of sophisticated banking services like corporate and investment banking activities, apart from traditional lending and deposit-taking functions.
• Strict banking secrecy laws, tax friendly policies and a suite of wealth management services created a private banking boom. Swiss giants Credit Suisse Group and UBS AG have expanded private-banking operations in Singapore to cater to new demand from Asians and Europeans.
• Recognising and catering to the needs of Small and Medium Enterprises who comprise a sizable banking market in Singapore.

There are different categories of banks in the Singapore banking system:

Banks providing a full range of services
Currently, there are 28 banks, offering the full range of services and operating under the Banking Act in Singapore. Five of them are registered and owned by the local 3 local banking groups, and the remaining 23 banks are branches of banks registered abroad. Six of the 23 branches of foreign banks have the privilege to implement a full range of banking services.

Wholesale banking
Wholesale banks may engage in the same banking activities that banks offering a full range of services, except that they do not have the right to provide retail banking services in Singapore dollars. They operate in accordance with the Guidelines issued by MAS to work wholesale banks. In Singapore, there are 37 wholesale banks, and all of them are subsidiaries of foreign banks.

Offshore banks
Offshore banks have the right to engage in the same activities as banks, providing a full range of services, as well activities involving Asian currencies, expressed in units of Asian currencies (ACU). Units of Asian currencies – is an accounting unit used by banks to account for all their foreign currency transactions carried out on the Asian market. Banking operations in Singaporean dollars are accounted separately in the domestic banking unit (DBU). The volume of transactions carried out in the domestic banking units of offshore banks a bit more limited in terms of transactions with residents compared with wholesale banks. Offshore banks operate in accordance with the Guidelines issued by MAS for offshore banks.

As a part of the liberalisation of the banking activities, offshore banks were given greater leeway in the implementation of wholesale operations with the Singaporean dollar. Limit on loans in SGD to offshore banks was increased to 500 million now, these banks may transact “swap” in the Singaporean dollars in relation to the proceeds from the issuance of

Singapore dollar bonds, which are run or released by banks.
In total in Singapore operate 48 offshore banks, and all of them are subsidiaries of foreign banks.

Merchant banks
In addition to these three categories of commercial banks, there are financial institutions that can operate as merchant banks. Merchant banks are approved by Monetary Authority in accordance with the law, and their activity is subject to the directives of the trade banks. Operations of these banks in terms of Asian currencies also performed in accordance with the Banking Act. Typically, commercial banks engaged in the financing of corporate entities, the subscription to shares and bonds issued, mergers and merger of companies, investment portfolio management, management consulting and other reimbursable activities. Most commercial banks with the permission of MAS work with Asian currencies, through which they compete with commercial banks in the Asian dollar market. As for DBU, then merchant banks have no right to demand deposits, savings deposits or borrow from the public. However, they are allowed to accept deposits or borrow from banks, finance companies, shareholders and companies controlled by their shareholders. Total in Singapore there are currently 52 commercial banks.

Financial companies
Financial companies concentrate their activities on a small scale financing, including loans to purchase cars, consumer durables, and extend loans for real estate purchase. Financial companies are licensed and operated in accordance with the Law on financial companies. Financial companies are not allowed to open deposit accounts, which allows withdrawing the funds at the request of checks, promissory notes or payment request. They are not allowed to provide unsecured loans in excess of 5,000 Singaporean dollars to any person or for any transaction in foreign currency, gold or other precious metals or acquire shares, denominated in foreign currencies, equity or debt securities.

However, financial companies with capital of more than 10 million Singapore dollars, may apply for permission to carry out transactions in foreign currencies, precious metals and shares denominated in foreign currencies. Such permit shall be issued, provided that at any time the aggregate amount of credit granted in foreign currency will not exceed 10% of equity finance company.

Do you wish to start the procedure?

Just drop us an email or give us a call and we will send you short list of information that we need. After you provide it to us you can come anytime to proceed with the formalities.