How To Open An Offshore Bank Account In Singapore?

May 27, 2021

Singapore is definitely one of the most sought after and well-regulated banking jurisdictions in the world today. Many foreigners are keen to open a Singapore offshore company bank account. But, increasingly strict compliance rules, new reporting requirements, and ever-changing banking laws are making account opening far more difficult. So exactly how can you as a foreigner open an offshore bank account in Singapore? In this article, we will share how you can open an offshore company bank account here.

Benefits of a Singapore Offshore Company Bank Account

Opening a bank account in a foreign country is not easy. Especially with the current restrictions on travelling. With the deposit requirements, fees, and travel expenses involved, it is important to decide where and which banks to work with.

The benefits of opening a Singapore offshore company bank account are:

A highly respected banking jurisdiction
Political and economic stability
Fiscal responsibility and well-capitalized banks
Low levels of corruption and a strong rule of law
Accepts foreign companies
Deposit insurance up to SGD$75,000
Favourable taxation agreements with multiple countries

We discuss below who should be opening a Singapore offshore company bank account. There are many factors that will determine if Singapore is right for you and your offshore company.

Companies Registered in Classic Offshore Jurisdictions

Opening a Singapore offshore company bank account is possible for most countries, but certain countries will be easier than others. Like most international banking jurisdictions, if your company is registered in sanctioned or high-risk countries, it will be impossible for your company to do so.

For companies from classic offshore hubs such as the British Virgin Islands, Bahamas and Isle of Man just to name a few, it is possible to open Singapore offshore company bank accounts. The company must be able to meet account opening criteria for whichever bank you choose. Your company must have an acceptable risk profile to the bank.

Deposit Requirements

Singapore offshore company bank accounts generally come with higher minimum deposit requirements than other jurisdictions. The reason is that Singapore is a well-known banking hub. So, the Monetary Authority of Singapore (MAS) wants to attract higher calibre companies.

Regional Ties and Presence

Singapore banks are connected to the region, hence Singapore can achieve a financial hub status. Your reason for wanting to bank in Singapore is important. If you have local or regional ties and can provide supporting proof, will better your chances. Such ties can be personal or commercial.

Not Engaging In Regulated Activities

Singapore, like most countries, will not allow companies doing regulated activities to open bank accounts here unless they are operating here.

Businesses such as broker-dealers, transfer agents, money services businesses, or similar activities involving regulated financial activities are unlikely to open accounts. Companies that are set up to skirt regulations by claiming such regulations do not exist in their home country need not apply as well.

Other Factors

There are other considerations when opening a Singapore offshore company bank account. One such factor is the nationality of the ultimate beneficiary owner or residency of all the directors. Hence Accounting and Corporate Regulatory Authority (ACRA) require all companies to set up the register of controllers. You will need to show proof of business relationships and operations. It will be useful to show proof such as invoices to customers.

Different banks may prefer certain sectors of business, but in general, the rules are the same for all.

Opening a Singapore Offshore Company Bank Account Remotely

It is becoming increasingly difficult to open offshore company bank accounts. If your business is high-risk, or engaged in regulated activities and has no ties to Singapore, it will be even more difficult.

In some cases, business owners can open a Singapore offshore company bank account without ever visiting Singapore. But there are quite a number of requirements that need to be fulfilled. Not all banks offer this option though. Additionally, the banks may make additional requests for information about your business and conduct more checks.

If you are ready to open a Singapore offshore company bank account or have more questions about how to do so, reach out to us today!