3 reasons Singapore companies - Offshore companies cannot open bank accounts in Singapore

Establishing a company in Singapore - opening a bank account in Singapore to take advantage of incentives, open policies, reputable financial system in Singapore, convenient when doing business with international partners and customers is the choice applied by many investors. 

However, as Singapore banks' policies are increasingly tightening, successfully opening a bank account in Singapore is not easy, especially for Offshore companies (companies established abroad that want to open a bank account in Singapore).

From practical experience in supporting many businesses to open bank accounts in Singapore and experience working with Singaporean banking partners, GLA is proud to be a consulting unit that understands the procedures for opening bank accounts in Singapore for Singaporean companies, Offshore companies, and Hong Kong companies. 

The following article by GLA will provide customers with 3 reasons why Singapore companies - offshore companies cannot open bank accounts in Singapore.

1. Top 3 reasons why you cannot open a bank account in Singapore for your company

1.1. Nationality

For the work min a bank account for a Singapore company or Offshore company With foreign directors, the Singapore banking system imposes some strict requirements regarding the nationality of the account holder.

Even some banks have regulations Do not open bank accounts for customers with citizenship in certain countries.

Therefore, many customers have difficulty opening a bank account in Singapore due to nationality issues.

More specifically, if you apply to open a bank account in Singapore, the bank will consider not only your nationality - the real owner of the account, but also the nationality of the following related members:

• Nationality of the director (in case the director and the real owner of the account are two different people).
• Nationality of shareholder.
• Nationality of partners, suppliers.
• The country where you registered your company.

If the nationality of the members concerned (as described above) not on the bank's list of restricted nationalities, the success rate of the application will be high.

This means that if your bank account opening application falls into a special case due to nationality, the possibility of your bank account opening being refused will be higher.

However, in some cases, the bank will not immediately refuse, but will carefully check the information and ask the business owner to provide additional documents such as: invoices, vouchers, etc.

Therefore, during the process of preparing documents, customers need to carefully check the information about nationality and residence status of related members to see if they are on the restricted list of the bank they choose.

Basically, most banks in Singapore provide a similar list of restricted nationalities as follows:

• Countries in list Financial Action Task Force (“FATF”).
• Countries in UN sanctions list.
• List of restricted nationalities depending on each bank's policy (if any).

Note: Singapore banks may reject your application to open a bank account if any of your partners, suppliers or associates are linked to the restricted list as mentioned above.

2. Company business field/industry

The business sector may affect the approval of bank account applications by Singapore banks. In particular, Most Singapore banks value trading companies highly. Because these companies often provide complete business records and background. This contributes to increasing the percentage of successful bank account opening of this type of company. 

Besides, not all applications from business owners will be appreciated by the bank.

Because in the case that the customer establishes a Singapore company/Offshore company but has not made any transactions, and has not provided any evidence to prove the company's cash flow is operating, in these cases, there is a high possibility that the bank will reject the application immediately upon receiving it.

Business sectors on the list “high risk” as finance, investment, oil and gas exploitation, gemstones, gold, silver, diamonds, etc. There is a high chance that Singapore banks will not approve the opening.

Similarly, related fields such as cryptocurrencies, forex or Fund management are also classified as having low bank account opening rates in Singapore. Except in some cases where you have a corresponding business license issued by the competent authority of Singapore.

3. Lack of documents or incomplete documents

If you have been doing business with Asian partners, especially Singapore companies, Singapore banks will also appreciate this advantage and will help increase the chances of successfully opening a bank account.

When you The more detailed and specific the supporting documents are, the higher the success rate. in opening a bank account. More specifically, when the documents are complete, customers can submit their application at most banks in Singapore.

In addition, Singapore banks require customers to provide the following information to ensure that the bank account opened in Singapore will be used for practical and legitimate purposes, specifically:

• List of business partners (including partner name, nationality, company website, etc.).
• Bill.
• Business contract.
• Bank account statement.
• Other relevant documents proving business activities (company website, purchase orders, etc.).

Note: The required documents included in the above application may vary from bank to bank in Singapore. 

To Giam Percentage of bank account application files rejected by Singapore banks refuse, Customers need to do well in the document preparation stage. Specifically, Customers need to consider the requirements and policies at the bank where they choose to open an account. This not only helps Customers save time and costs, but also easily find a solution in case the registration application is unfortunately rejected.

With many years of experience as well as positive relationships with Singapore banks, GLA commits to a Singapore bank account opening rate for Singapore companies/Offshore companies of up to 98%To do this, GLA will accompany customers, carefully review information before receiving documents and inform customers in advance about the success rate.

In case your Singapore/Offshore company cannot open a bank account in Singapore (due to bank regulations, customers lacking contracts, invoices, documents, unable to prove their business activities with international partners, etc.). GLA will advise customers to open reputable online payment accounts in Hong Kong and the US to suit their business and investment needs. 

4. Frequently asked questions about opening a bank account in Singapore