Establishing your offshore business in Singapore could turn out to be one of the best business decisions you’ll make. Why? For a very long time, the country has consistently ranked among the world’s top places to do business. For example, the latest business environment rankings of the Economist Intelligence Unit (EIU) for Q2 2023 indicate that “Singapore has retained its position as the best business environment over the next five years.”
Earlier, the 2020 Ease of Doing Business rankings of The World Bank ranked Singapore second in the list of countries that are the easiest for doing business, a position the little red dot has impressively maintained for several consecutive years.
Indeed, Singapore has attracted a great number of foreign entrepreneurs and businesses to come and invest due to a wide range of advantages that the country can offer, including:
- Ease of establishing your company (it is possible to open your Singapore company online and within 24 hours)
- Favourable immigration policies
- A skilled and highly educated labour force and a comparatively higher standard of living
- Favourable taxation policies. Not only are the tax rates low but there are also a variety of schemes designed to enable offshore companies to legally reduce their payable tax.
- The strategic location of Singapore as well as its modern infrastructure network
- Robust intellectual property regulations
Importance and Benefits of Setting Up a Bank Account for an Offshore Company in Singapore
No matter how solid your business credentials are, you’re not allowed to run an offshore business in Singapore without a business account. Again, Singapore also ranks very highly when it comes to efficient banking sector operations. Specifically, the country is known to have the best banking system in the entire Asia Pacific region as well as some of the safest banks in Asia.
Singapore boasts modern, efficient, and easily accessible world-class banking institutions, comprising a set of highly reputable domestic and foreign-owned banks serving both domestic and international businesses. One benefit of having an offshore business account in Singapore is that it helps you diversify your risk portfolio of currencies to check volatility.
In other words, an offshore bank account in Singapore is a convenient platform to hold your funds in foreign currencies, from which you can send and receive funds to bank accounts in every part of the world. What this simply means is that the Singapore dollar (SGD) is not the mandatory base currency for operating an offshore bank account in the country. Hence, it is possible to hold a broad range of money in your offshore Singapore bank account.
This multi-currency possibility means that the account holder can moderate the volatility of the base currency in the market and therefore secure its purchasing power. Notably, Singapore’s banking sector does not impose capital controls, meaning that currencies can be exchanged freely in and out of the city-state.
Other benefits of a Singapore offshore business account include remote account setup, credit and trade financing, internet banking, and more.
Step-By-Step Guide on Opening a Bank Account In Singapore
Singapore’s reputation as the world’s top business destination makes it a place you should seriously consider for your offshore business investments. Like noted above, one of the requirements for establishing an offshore business in the country is having an offshore business account.
Though requirements may slightly vary according to the financial institution, the following are the steps you are likely to pass through when seeking to create your Singapore offshore business account.
Step 1: Choose a reputable platform that offers offshore banking services and meets your financial needs and goals. You may want to compare different banks based on their fees, interest rates, security, customer service, and reputation.
Step 2: Understand the documentation requirements for opening an offshore bank account. You will need to provide proof of identity, proof of address, proof of income, and proof of the source of funds. Some banks may also require additional documents, such as a bank reference letter or a professional reference letter.
Step 3: Engage professional services to help you with the offshore banking process if required. They will help you comply with the relevant regulations.
Step 4: Prepare for the due diligence procedures that the bank will conduct to verify your identity and background. You may need to provide more information or documents to the bank or answer some questions about your personal and business affairs. You should be honest and transparent with the bank and cooperate with their requests.
Step 5: Submit your application to the bank along with the required documents and fees. You may need to fill out an online or paper form or visit the bank in person. You should review your application carefully to ensure accuracy and completion before submitting it.
Step 6: Pass through the compliance and verification process the bank will perform to ensure that you are a legitimate and trustworthy customer. This may take some time depending on the bank and the complexity of your situation. You should be patient and follow up with the bank if needed.
As shown, opening a bank account can indeed be a complex and time-consuming process, often involving stringent measures for approval. However, in recent years, business owners have sought out better alternatives and overcome the challenges posed by traditional banks. Hence, you can look for free alternatives like us.
Benefits Of Having a Business Account for Small Business Owners
Opening a business account comes with several valuable benefits, some of which are captured below.
Separates Personal Finance from Business Finance
A key benefit of creating a business bank account is that it allows individual operators to separate their personal finances from those related to their business. Separating your personal and business transactions ensures easier and less confusing management of your finances. In addition, it gives you clear insights about the financial health of your business. A business account also makes preparing financial statements and tax documentation less stressful since all transactions carried out by your business will be in one location.
Being able to easily identify business expenses helps make sure your business pays the right amount of tax. You pay tax on the profit your business makes. When you calculate the profit, tax rules allow for certain expenses to be deducted from your business income, reducing the amount of tax payable.
Saves You Time
Entrepreneurs who don't use a business account typically waste a lot of time sorting company expenses from their personal bank accounts. By opening a separate business account, entrepreneurs can avoid the hassle of sorting out expenses from their personal accounts and ensure accurate bookkeeping.
Business account also comes with real-time expense tracking function and easy statement generation. In today's competitive business world, taking such small yet significant steps can help you stay ahead of the game and achieve success.
Ensures More Credibility and Professionalism
When you have a business bank account, there is a greater likelihood that you’ll enhance the credibility and professionalism of your business. This is because a business account presents your business as serious and organized and portrays the owners of the business as those who attach significant importance to financial obligations or transactions.
Such a good reputation can be useful when dealing with clients, vendors, and other businesses that prioritize credible and professional accounting practices.
How To Set Up a Business Account?
Before registering for a Grof Business account, you must first already incorporate and set up a company in Singapore under Accounting and Corporate Regulatory Authority (ACRA) to qualify for our Grof Business Account.
As noted previously, one of the benefits of operating a business account is that it simplifies your finance processes. You can rely on us to help achieve this. In a nutshell, our business account is your one-stop shop for managing payments, transfers, and accounting. It is a single tool that covers everything you need.
Managing your Singapore offshore business finances has never been easier. Skip the norm of queueing endless hours in banks and making frequent visits to the branches physically. Just visit our page and follow the on-screen step-by-step instructions, upload scanned documents and wait to get approved. It’s simple as that!
Alternatively, you can simply login to your account if you've created one.
Whether you're a local Singaporean or a foreign entrepreneur seeking to expand your business in Singapore, we've got all the services tailored for your needs.
→ Sign up with Grof
Free Onboarding with No Monthly Fees
Complimentary account setup. No visits to our premises are required! Get started anytime and from any location in the world! All you need to do is simply upload the relevant documents for registration and leave the rest to Sprout. To make it even better, the whole process is completely free of charge. No hidden fees!
No Minimum Balance Required
Experience the ultimate freedom in managing your cash flow with a Grof account. Designed with your business needs in mind, Grof offers you unparalleled flexibility to organize your finances in the best possible way, keeping your funds effortlessly liquid and instantly accessible.
Start a Business Account with Us
If you are seeking a faster and more efficient way to open a bank account for your business, your search ends here. Experience the convenience and benefits of signing up with a business account today.
Don’t let complex account opening procedures and monthly charges hinder your business growth. To make things easier, feel free to schedule a complimentary onboarding call with us to ensure smooth transition. Sign up to experience the freedom of simplified business finances with us today!
