Offshore Bank Account in Singapore: How To Open an Account

As one of the most influential financial centres in the Asia Pacific region, Singapore is undoubtedly a strong choice for international entrepreneurs to set up a business, providing security and flexibility favourable for global growth. 

An offshore bank account can be an efficient way to manage both local and international transactions seamlessly, fully leveraging Singapore's advantages as a business hub.

In this article, we’ll cover what an offshore bank account is, how to open one in Singapore, its benefits, and the top providers you can consider. Let’s start with the definition of an offshore bank account.

Simply put, an offshore bank account is a bank account held outside your home country. This can include corporate accounts opened in a foreign country where your company doesn’t primarily operate, such as an account for a subsidiary of a parent company.

For example, if a company based in the UK opens a business bank account in Singapore to manage funds for its Southeast Asia subsidiary, that account is considered an offshore account. This setup allows the company to handle regional transactions more efficiently and benefits.

Having an offshore bank account itself is not illegal, but it’s essential to report all financial holdings and sources of income in offshore jurisdictions to relevant tax authorities to ensure compliance with regulations and avoid association with financial crimes like money laundering or tax evasion.

Singapore is one of the world’s leading financial and business hubs, known for its strong economy, business-friendly environment, and advanced banking infrastructure. Often ranked alongside Hong Kong and Switzerland as a top choice for offshore banking, Singapore stands out for more than just asset diversification and investment opportunities, and here are the reasons why. 

Overseen by the Monetary Authority of Singapore (MAS), the country’s financial sector includes a diverse mix of traditional banks, digital banks, and fintech service providers, offering a broad range of services from basic savings accounts to mobile banking services, multi-currency accounts, and cross-border payment solutions. Individuals and businesses can select financial services that align with their specific needs, whether for international banking, foreign currency management, or wealth management products. 

Many major banks in Singapore offer streamlined processes for opening bank accounts and offshore business accounts. This convenience is particularly helpful for international businesses looking to establish a presence in the country and region without being physically present. 

Moreover, foreigners can also open bank accounts, as some local and foreign banks accommodate international banking needs. 

Companies doing trade in global markets can significantly benefit from an offshore bank account in Singapore, as many financial institutions offer multi-currency or foreign currency accounts. These accounts allow businesses to hold and transact in multiple currencies without frequent currency conversions, saving on transfer fees and foreign exchange rate costs.

In addition to the Singapore Dollar (SGD), bank accounts in Singapore commonly support the Chinese Yuan (CNY, CNH, or RMB) and the US Dollar (USD). However, the available currencies may vary depending on the bank and account type.

Singapore’s banking system is globally recognised for its stability. With its strict yet business-friendly regulatory environment, the country provides strong asset protection while maintaining compliance with international anti-money laundering standards. 

Singapore is a welcoming hub for global businesses, offering tax benefits for startups and incentives for specific industries. Additionally, the city-state’s financial sector is highly adaptable to digital banking, making it as easy to maintain an offshore bank account as a domestic account, with convenient access from anywhere.

An offshore bank account can make it easier for you to save and spend money in SGD without the need for regular currency conversion. For businesses, having a business account in Singapore also simplifies local transactions as it provides access to local payment methods, such as PayNow and GIRO. 

Consider offshore banking in Singapore if you:

1. Regularly travel to the country
2. Operate a business that has suppliers or clients in Singapore
3. Would like to diversify your financial holdings
4. Need access to multi-currency accounts for international payments
5. Are paid in SGD
6. Seek a stable and secure banking environment

Typically, your company should be locally incorporated in Singapore to open a business bank account there. 

Although non-resident and foreign companies can open bank accounts in Singapore, most banks have specific requirements and may request additional documents. Each bank typically has its own terms and conditions for offshore account applications, but the following are generally required when opening an offshore business account:

• Interview with the directors and signatories: Most banks require directors to attend an in-person meeting or interview with a bank representative. While some international banks with overseas branches may allow this meeting outside Singapore or online, it is not common.
• Company incorporation documents: As the company will be the account holder, banks typically request original or certified true copies of incorporation documents, such as the Certificate of Incorporation and Articles of Association.
• Identity documents: You will also have to provide your identity documents, such as a passport, to verify your identity. 
• Initial deposit: Most offshore corporate accounts require an initial deposit, often around SGD 5,000, with a minimum balance requirement over time, depending on the bank's terms.

It is also worth noting that some types of bank accounts might not be available for companies incorporated outside Singapore, so it’s essential to verify eligibility and account options with the bank beforehand. Incorporating a Singapore company or branch office might grant you access to a wider range of account options and streamline the account opening process.

If you have already incorporated your company in Singapore, you will typically have to prepare the following documents and information:

• Unique Entity Number (UEN) which can be found on your ACRA Business Profile. 
• Tax Identification Number (TIN) that confirms the company’s tax registration. 
• Proof of address such as utility bills of the company and the directors. 
• Passports of the directors and signatories.
• Board Resolution, Memorandum, and Articles of Association

The bank will ask for additional documents if your company is not registered in Singapore, typically the following:

• Certificate of Incorporation or equivalent
• Certificate of Incumbency
• The purpose of the account opening
• Recommendation letter from your current bank or a reputable bank.

While these are the commonly required documents, each bank has different requirements that can vary by account type and specific circumstances. Make sure to check with the bank and prepare the documents according to their checklist.

Now that we’ve covered the requirements, let’s move on to the steps for opening an offshore business bank account: 

Step 1 - Search for Banks

If your company is not incorporated in Singapore, search for banks that offer offshore accounts to foreign companies. These banks are typically major local banks like DBS and OCBC or international banks like HSBC and Standard Chartered. 

Choose the bank that best suits your company’s financial needs and activities, considering factors like transfer quotas, ATM access, company debit card availability, and international payment fees. Also, compare pricing structures and requirements, as some banks charge substantial account opening fees, initial deposits, monthly fees, and minimum balance requirements for foreign companies, which can add up significantly over time. 

Step 2 - Apply for the Account

Review the bank’s specific requirements and prepare the necessary documents based on their checklist, which may include passports of the directors, company incorporation documents, and an initial deposit.

Depending on the bank, you may need to visit a branch in person, either in Singapore or at one of their international locations, to complete the application process. Once your documents are ready, submit the application through the bank’s preferred method, whether online, in-person, or via a representative.

Step 3 - Get Your Account Details

After submitting the documents, wait for the bank to review and approve your application. The processing time may vary depending on the bank’s internal procedure and the complexity of your company's operation, but it could take at least a week to a month. 

Once your application is approved, you will receive your account details, which will allow you to access and manage your offshore account and set up digital banking services if applicable. 

Although there are many financial institutions in Singapore to choose from, not all banks offer offshore accounts to foreign companies. Here are some banks that do, which you can consider.

Overall, getting an offshore account in Singapore is straightforward, but it requires you to know exactly what the banks want, and sometimes it is not easy to find all the information, especially if you are not a local.

If you’re still deciding where to set up an offshore account, consider Hong Kong as an option. Statrys offers a fully remote account setup with multi-currency business accounts designed for SMEs registered in Hong Kong, Singapore, and the BVI, with every account including a dedicated account manager.

But if you’ve decided to open an offshore account in Singapore, Statrys can assist with your company registration, helping you get set up within 5 days for a quick start.