Guide to opening a business account in Singapore

As one of the most competitive economies in Southeast Asia, Singapore has become a top destination for Hong Kong companies looking to expand globally. Businesses can enjoy the country’s robust financial infrastructure and attractive tax environment. 

In this guide, we will walk you through the advantages, requirements, and process of opening a business account in Singapore. We also compared the difference in opening an account with leading banks and financial platforms, helping you to choose an option that suits your business needs.

Why open a business account in Singapore?

As one of the world’s leading financial centres, Singapore offers businesses a secure and reliable banking environment with global connectivity. Its stable political climate and well-developed legal system provide sufficient protection for company assets. By opening a Singapore business account, Hong Kong companies can collect payments from Singaporean clients in local currency. They can also pay Singaporean employees and suppliers directly in Singapore dollars (SGD). These can reduce currency exchange costs and foreign exchange risks.

Additionally, Singapore’s pro-business tax regime is another major draw. The standard corporate tax rate stands at 17%. Non-startups established for over three years can apply for partial tax exemption schemes. This brings down the effective tax rate to between 4.25% and 8.5% on the first S$200,000 of chargeable income, allowing businesses to optimise profits and invest more in growth.

All these advantages make Singapore an increasingly attractive base for companies around the globe to tap into its market.

What can you do with a business account in Singapore?

Singapore’s central location in Southeast Asia makes it an ideal financial bridge for companies expanding into the region. A Singapore business account allows Hong Kong companies to send and receive payments in SGD and various currencies. This streamlines transactions and reduces potential risks from foreign exchange volatility. The account can also improve companies’ cash flow management by facilitating cross-border trade and international settlements.

Meanwhile, the Singapore government actively supports overseas businesses through various grants and incentive schemes, such as the Market Readiness Assistance (MRA) Grant, Productivity Solutions Grant (PSG), and Enterprise Development Grant (EDG). Eligible small and medium-sized enterprises (SMEs) from Hong Kong can access funding for international trade fairs, market research, and expansion activities. They can also use the funding for operational upgrades, such as integrating IT solutions to boost productivity, etc. Having a Singapore business account would allow companies to manage operating funds and handle grant disbursements flexibly and efficiently.

Requirements for Hong Kong companies to open a business account in Singapore

To open a business account in Singapore, company directors are usually required to visit the bank in person to complete the procedures. However, some banks, including the Development Bank of Singapore (DBS), the Overseas-Chinese Banking Corporation (OCBC), and the United Overseas Bank Limited (UOB), offer online application options. Below are some common requirements for opening a business account in Singapore:

• Prepare essential documents, including Certificate of Incorporation, Business Registration Certificate, company constitution, and annual return. These are used for demonstrating your company’s legal establishment and operational eligibility.

• Submit application forms, along with the passport or ID copies of your company directors and shareholders. Please also prepare proof of residential address for identity verification.

• Provide supporting documents such as purchase orders, contracts, or invoices as business proof

• Prepare financial documents to meet the compliance standards of the Monetary Authority of Singapore.

Opening a Singapore business account: Airwallex vs. major Singapore banks

The table below compares Airwallex and three major Singapore banks – DBS, OCBC, and UOB – covering their account opening procedures, minimum deposit requirements, fees, remote account opening options, and processing times.

*Remote account opening at DBS is only available for companies incorporated in Singapore with local or foreign ownership.

Limitations of traditional bank accounts in Singapore

Traditional banks in Singapore impose strict due diligence standards. Applicants must provide detailed business information and supporting documents. Companies in high-risk industries, such as finance, mining, or oil, usually face more stringent and complex scrutiny processes. They may experience longer approval times, or even rejection. These restrictions make it challenging for certain companies, particularly startups and SMEs, to open a bank account in Singapore, and these can eventually hinder their liquidity and business growth.

Features of Airwallex Business Accounts

Airwallex offers free account opening for Business Accounts with no opening or hidden fees. The application process is completely online, and approvals are granted in as little as 48 hours. Once set up, businesses can collect payments in SGD directly to avoid unnecessary currency conversions and associated fees. Meanwhile, Airwallex supports multi-currency transfers, covering 150 countries, as well as more than 60 trade currencies. Airwallex also offers competitive foreign exchange rates and no minimum transaction volume, with 95% of transfers arriving within the same day. These help to streamline international transfers for businesses.

Additionally, Airwallex provides company Visa cards to help businesses manage daily expenses and cash flow with greater flexibility. Hong Kong startups and SMEs looking for a comprehensive financial solution for setting up a business account in Singapore can consider Airwallex as a fast and cost-effective option.

Frequently asked questions

1. What are the common reasons for bank account application rejection?

The most common reasons are incomplete documentation or failure to meet bank compliance standards. Besides, high-risk business sectors, complex company structures, or failed identity verification can also lead to rejection. Since banks maintain high due diligence standards, a lack of transparent business information can affect the approval process and result. 

2. How to choose the right bank or platform for opening a business account?

When choosing a bank or platform for opening a business account, consider the range of services, ease of account opening, and fee structure. Also, check whether remote applications are supported. For SMEs, financial platforms like Airwallex that offer flexible multi-currency management and cost-efficient remittance services may be a strong alternative.

Sources:

The information regarding opening a business account in Singapore was sourced in May 2025 from the following references. This content is for reference purposes only. Please visit the bank's official websites for the latest details.

1. https://www.ocbc.com/business-banking/smes/accounts/business-foreign-account-traditional-cn

2. https://www.ocbc.com/business-banking/help-and-support/accounts-and-services/business-foreign-accounts-pricing-guide

3. https://www.dbs.com.sg/documents/276102/282855/pricing-guide.pdf/0773e2ea-4475-834e-d328-8aa396d0679b?t=1698727557839

4. https://www.uob.com.sg/business/accounts/uob-ebusiness-account.page

Disclaimer: This article was written in May 2025 based on independent online research. While we strive for accuracy, we have not personally tested all tools or service providers mentioned. The content is for educational purposes only, and readers should evaluate service providers independently. We update our articles every six months. For updates and inquiries, please get in touch with us at [email protected]