Starting a company bank account can be a tedious process for entrepreneurs. But by following these steps, you will have a company bank account in Singapore in no time.
Step 1: Choose Your Account Type
There are several types of accounts that your business could open. The different kinds of accounts include Multi-Currency Accounts, Digital Banking Accounts. Business Foreign Accounts (for companies incorporated outside of Singapore) etc.. Most businesses would prefer to get their hands on a couple of accounts to suit their needs such as accounting and spending purposes. Make sure to open a banking account that suit your business needs and not more. Start preparing the required documents needed for account opening. Visit the Bank’s website and select their Corporate Banking Account opening section. Most banks will state the required documents clearly. Bank accounts usually requires the Authorized Signatories to be present to sign the documents. Make arrangement for all parties to be present to avoid any delays. Step 2: Take Note of the Fees and Charges
Many a time new business owners neglect the need to look through the Fees and Charges. These charges might not seem hefty to begin with. However, they could add up on the long run. Let's look at the common charges to look out for. 1) Minimum Balance Fall Below Fee. (Depending on the account type, some accounts require a minimum balance to be maintained to avoid fall below fees)
2) Cheque Book Fees
3) Cheque Clearing Fees
4) Overdraft Charges
5) Early Closure Fees
6) Over the Counter Branch Transaction Fees
Step 3: Why Open A Separate Company Bank Account?
At this point of time when setting up company bank account with any of the banks, there will be a lot of questions on why you should open a Company Account instead of using your personal bank account. There are a couple of reasons for opting for a separate company account.
The high transaction frequency transaction in your personal account will be flag out by banks as the purpose of personal bank accounts are for personal use and not for commercial use. Company transactions should be transacted through proper company bank account. In addition, there is the need to maintain accurate accounting records and thus for this purpose it makes more sense to have separate accounting software and accounts payable and receivable ledgers.
With the accounting for company transactions between different parties like supplier, client and bank is easier to make analysis on accounting records. The accounting entries are kept accurate with relevant information of your suppliers and clients. From an accounting perspective, it makes sense to maintain a separate accounting system for business operations.
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