6 Banking Mistakes Foreign Entrepreneurs Make in Singapore

If you’re a foreign entrepreneur, getting a business bank account in Singapore usually takes more time than you think. Even after your company is incorporated, banks often ask for extra proof about your directors, shareholders, or local presence. That can mean weeks of waiting — and sometimes a rejection.

In many cases, it comes down to simple missteps or not knowing what banks expect. That’s why in this guide, we’ll walk through six common mistakes and how to avoid them. We’ll also cover when it makes sense to use digital banks or payment platforms, so you can keep your business running while working toward full banking access.

It’s easy to assume that once you’ve set up your company, any bank will take you on. The reality is different for foreign-owned firms. Every bank has its own checklist, and some are stricter than others.

For instance, some DBS accounts are generally viewed as less suitable for 100% foreign-owned companies. OCBC limits its Business Growth Account to locally registered SMEs, while digital banks such as MariBank require at least one Singaporean or Permanent Resident (PR) shareholder or director.

If you skip this research, you may spend weeks preparing documents only to be turned down. Multiple rejections can also work against you, since banks often ask if you’ve applied elsewhere before. For a foreign-owned SME, that wasted time can slow down invoicing and supplier payments.

👉 What to do instead:

• Check the bank’s SME onboarding page before applying.
• Confirm director requirements, accepted industries, and in-person verification.
• Call the SME hotline for clarification.
• Work with a corporate service provider who knows which banks accept foreign-owned setups.

Setting up a company is only the first step. Most banks want to see more than just a registration certificate. They look for signs that your business genuinely operates in Singapore, like an office lease, local staff, or contracts with Singapore-based clients.

Without this, banks may see your company as a shell. Even if you meet the basic eligibility rules, a lack of presence often raises red flags.

For example, as mentioned in the previous section, digital banks like MariBank require Singaporean or Permanent Resident (PR) directors or shareholders, while DBS applies closer scrutiny if there’s no local footprint.

👉 What to do instead:

• Show substance with an office address, local contracts, or proof of operations.
• Appoint a resident director where possible, since many banks expect this as a compliance baseline.
• Collect supporting evidence such as invoices, employment contracts, or lease agreements.
• Use a licensed payment platform to keep operations running while you build presence.

Opening a business account in Singapore comes with strict know-your-customer (KYC) checks. Banks don’t just want incorporation papers. They need a full pack of documents covering your company, directors, shareholders, and proof of real operations. If anything is missing, unclear, or uncertified, your application is likely to be delayed or rejected.

Even when everything is in order, account opening can take one to eight weeks. In practice, approvals take anywhere from 4–8 weeks for foreign-owned companies, though some cases can stretch longer if banks request additional checks. Submitting an incomplete pack almost always means longer delays.

👉 What to do instead:

• Prepare a full KYC pack (ACRA Bizfile, IDs, proof of address, board resolution, business activity evidence).
• Check the bank’s checklist, as requirements vary.
• Certify documents as true copies if required.
• Translate non-English documents into English with proper certification.
• Confirm if your industry needs extra supporting evidence.

Submitting documents alone does not guarantee approval. Banks go further, looking at your business model, cross-border flows, counterparties, and the industries you work in.

Singapore’s regulators highlight banking as one of the highest-risk sectors for money laundering. That means companies with complex ownership structures, offshore ties, or links to higher-risk areas like remittance, fintech, or digital tokens face tougher checks.

If you cannot explain your business activities and transactions clearly, banks may delay or reject your application, even if your operations are fully legitimate.

👉 What to do instead:

• Understand your risk profile and prepare for extra checks if your industry is higher risk.
• Explain your business model clearly and show evidence of operations (such as invoices, contracts, or client details).
• Disclose ultimate beneficial owners (UBOs) with supporting documents.
• Keep ownership structures as simple and transparent as possible.

Even if your documents are complete, the interview can make or break your application. Banks want to confirm that your business is real, that you understand how it works, and that your answers line up with your paperwork. If your responses are vague or inconsistent, your credibility takes a hit.

👉 What to do instead:

• Anticipate common questions: why Singapore, what your business does, who your clients and suppliers are, and how funds will flow through the account.
• Practice clear answers that match your documents. If your paperwork shows cross-border clients, explain how you onboard them and manage compliance.
• Bring sample contracts or invoices to back up your explanation.
• Treat the interview as part of due diligence, not a formality. Banks value clear, consistent answers over lengthy detail.

Many entrepreneurs focus only on opening a bank account and underestimate how long it can take. In Singapore, approvals often stretch from weeks to months, and repeated rejections can prevent you from issuing invoices, paying suppliers, or receiving funds.

Payment platforms can help bridge that gap. Licensed under Singapore’s Payment Services Act, providers like Wise, Aspire, and Airwallex offer multi-currency accounts, low-cost FX, and digital tools with fast online onboarding. While they don’t provide loans or cheques, they’re often enough to keep your business moving while you build the local presence banks want to see.

👉 What to do instead:

• Explore licensed payment platforms if you need to start invoicing or paying suppliers quickly.
• Use them to handle FX, payments, and collections while your bank application is pending.
• Check MAS’ register to confirm the provider is licensed under the Payment Services Act.
• Plan ahead: start with a payment platform, then add a bank account once your local footprint is stronger.

Traditional banks are still important, especially once you need lending, trade finance, or advanced treasury services. But as you’ve seen, approvals can take time, and that delay can hold back new businesses.

If you simply need to start invoicing clients and paying suppliers, waiting months for approval isn’t practical. That’s where alternatives help. Digital banks and licensed payment platforms offer faster, simpler ways to keep operations running while you work toward full banking access.

Here’s how they compare:

Opening a bank account in Singapore is rarely simple for foreign entrepreneurs. From eligibility checks to compliance reviews, the process often takes longer than expected. It can feel like a hurdle, but it doesn’t have to stop your business from moving forward.

The most practical path is to balance both options. Use a payment platform to handle invoicing and payments right away, then apply for a bank account once you’ve built local presence and a track record. Together, they give you the speed to start operating and the long-term benefits of traditional banking.