A Detailed Guide to Smoothly Opening a Bank Account for Your Singapore Subsidiary

How to Successfully Open a Bank Account for Your Singapore Subsidiary A Comprehensive Guide

As global economic integration accelerates, more and more companies are choosing to establish subsidiaries overseas to expand their markets. As one of Asia's leading financial centers, Singapore attracts significant foreign investment with its stable economy, robust financial system, and low tax rates. For companies planning to set up a subsidiary in Singapore, successfully opening a bank account is the first critical step toward operational success.

However, many businesses face challenges during this process - such as complex procedures and incomplete documentation - which can delay or even prevent successful account opening. This article provides a detailed guide on how to smoothly open a corporate bank account for your Singapore subsidiary, incorporating the latest industry developments.

1. Understand the Basic Types of Corporate Bank Accounts in Singapore

Before starting the account-opening process, it’s essential to understand the different types of accounts available

Current Account Checking Account Designed for daily business transactions and supports multi-currency settlements.

Savings Account Suitable for short-term fund storage, offering minimal interest.

Foreign Currency Account Ideal for international trade settlements, especially for companies engaged in cross-border transactions.

Investment Account Used for managing securities and other investment assets.

Each account type serves a specific purpose and comes with different terms and services. Companies should choose based on their business model and transaction needs.

2. Prepare Complete Documentation

Singaporean banks have strict requirements for account opening documents. The following are typically required

Certificate of Incorporation

Memorandum Articles of Association

Identity proof of directors and shareholders e.g., passport copies

Address verification utility bills or bank statements

Business plan or company introduction

Company business license if applicable

Industry-specific permits if applicable

KYC Know Your Customer verification - often via in-person visit or video call with the bank

Since early 2025, several Singaporean banks have tightened their anti-money laundering AML checks. For example, OCBC recently updated its customer due diligence CDD policy, emphasizing more rigorous background investigations. It is highly recommended to consult with a bank representative in advance to ensure compliance with current standards.

3. Choose the Right Bank and Schedule an Appointment

Singapore hosts several world-renowned banks, including

DBS Bank Known for digital innovation, ideal for tech startups.

UOB United Overseas Bank Strong support for SMEs with fast processing times.

OCBC Offers strong trade finance solutions for export/import businesses.

Standard Chartered Bank Well-suited for multinational corporations with global operations.

Each bank offers different service features, fee structures, and approval speeds. In recent years, some banks have introduced remote account opening options. For instance, in mid-2025, DBS launched an online platform allowing non-resident directors to open business accounts remotely, significantly improving convenience. However, eligibility criteria apply, so prior consultation is advised.

4. Cooperate with Due Diligence and Interview Process

After submitting the application, banks usually conduct a face-to-face or virtual interview to verify the company’s details. Key aspects include

Company Background Description of core business, market positioning, and future plans.

Source of Funds Clear explanation of expected cash flows to avoid suspicion of illicit activity.

Compliance Check Ensuring no legal issues or negative credit history.

Risk Assessment Banks evaluate the risk level associated with the company’s industry.

According to The Straits Times, in late 2025, the Monetary Authority of Singapore MAS reminded financial institutions to strengthen scrutiny of new accounts to prevent illegal capital inflows. Full transparency and honest responses during the interview are crucial to increasing the chances of approval.

5. Pay Attention to Account Activation and Ongoing Management

Opening the account is just the beginning. Post-opening management is equally important

Minimum Deposit Requirements Some banks require initial deposits; confirm in advance.

Monthly Maintenance Fees Many banks charge recurring fees - consider opting for accounts with waived annual fees.

Online Banking Setup Securely configure user permissions for smooth and safe transactions.

Regular Reconciliation Establish internal controls to ensure accurate and transparent financial records.

Maintaining good communication with your bank helps you stay informed about policy changes. For example, UOB revised its corporate account fee structure in early 2025, and failure to update accordingly could result in unexpected costs.

Conclusion

While the process of opening a bank account for a Singapore subsidiary may seem complex, careful planning, thorough preparation, and proactive communication with the bank can greatly improve your success rate. In today’s increasingly globalized environment, having a reliable and well-managed bank account is not only essential for efficient financial operations but also a cornerstone for conducting international business.

We hope this guide provides valuable insights and practical steps to help your business enter the Singaporean market confidently and smoothly.