Statistically, Singapore ranks first in Asia and seventh internationally per the number of startups. According to Statista, the value of this country’s startup ecosystem is approx $25 billion. On average, the early-stage funding of a startup in Singapore is nearly $202,000.
Therefore, it’s easy to guess how important it is for the citizens of this country to know the quick and easy steps to open a business account Singapore. Still, this blog will help readers worldwide open a business account for their companies, as the steps of opening a business account are more or less similar worldwide.
So, without further ado, let’s start!
First, what is a business account?
A business account, often known as a business bank account, is a current account with some extra features. Banks provide different business accounts based on the type of your business. For instance, some banks offer business accounts designed to fulfill the demands of import-export companies and e-commerce firms.
With these specialized accounts, your company can network with peers in initiatives managed by the financial institution. Additionally, organizations benefit from services tailored to their specific needs.
So, business accounts come with features and services customized to their particular requirements. Some banks even include resources with these accounts to assist entrepreneurs in expanding their businesses.
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Why do you need a business account?
Firstly, a business account helps you easily maintain your business’s accounting and tracking. With a business account, you get a constant source to find out your annual or monthly expenses.
Secondly, a transaction from a personal account might raise red flags from security. It would be a problem for the recipient. It also needs to be more professional when startup owners pay vendor bills with their account details.
Thirdly, several startups deserve tax deductions as per their expenses. But you can’t track your business expenses if you transact from your account. So, you can only claim tax deductions if you have your business account.
Steps for opening a business account in 10 minutes:
You can open a business bank account for your startup in a few simple steps. Have a look!
Step 1: register your business as a company, partnership, or sole proprietorship, under the company’s act. Your following action should be applying for licenses (depending on your business type) and registering with other Acts as needed, such as Customs, Income Tax, DGFT guidelines, etc.
Step 2: now it’s time to apply for a startup business account on a financial institution’s website. If the bank where you want to open an account does not support it, you need to apply for the same at its nearest branch.
Step 3: Gather the essential KYC documents for opening the business account and deliver them to the financial institution. When the bank’s officials are pleased with your documentation, they will open your business account.
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Essential documents for opening a business account:
Now, check out the documents you need to open a business account.
- Incorporation certificate
- PAN card
- Account opening check is drawn on a current bank account
- Identity proof (any of them): PAN card, Voter ID card, passport, Aadhaar card, and driving license are all acceptable forms of identification.
- Address proof: Aadhaar card, Rent agreement, voter ID card, electricity bill, telephone bill, water bill, passport, and driving license, are all acceptable forms of proof of address.
- Recent passport-size photograph
It’s easier than you thought, right? Now start your business account and keep growing your startup. All the very best!