Opening a Corporate Bank Account - Banking in the World

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Opening a Corporate Bank Account

Corporate Banking

A business current account works in a similar way to a conventional bank account, but enables you to keep your business transactions separate from your personal finances. This makes life much more straightforward when it comes to managing cash flow and calculating your tax liability at the end of the year.
Anyone who has started up as a limited company or partnership must have a business bank account. The most basic business accounts consist of a chequebook and paying in book.
 
Opening a Corporate Bank Account
Registered companies have plenty of options when it comes to opening a corporate bank account. Most of the banks in offer attractive features such as multi-currency accounts, internet banking, credit cards, trade financing, freedom to move funds across countries and more. To Open a corporate bank account is a relatively simple and straight-forward procedure. However, before you open an account with a bank, it is important to compare corporate accounts features of the various banks and decide on the bank that comes closest to meeting your particular needs.

Remember that you will need to provide various documents in order to open your account, including a business plan and details about your company. These will include your Certificate of Incorporation if you have set up as a limited company, as well as documents proving your identity such as a passport and driver’s licence.

The purpose of this guide is to provide an overview of requirements for opening a bank account and to assist you with choosing a bank for the banking needs of your company. The focus is on banking needs of small to mid-size companies.

Note that the information presented here is for general guidance only. Once you have narrowed down your choice to fews banks, you should confirm the account features with the bank(s) directly to ensure you are aware of their latest policies and offerings. Banks work in a very competitive environment and periodically make adjustments to their offerings to stay competitive.

ACCOUNT OPENING REQUIREMENTS
Remember that you will need to provide various documents in order to open your account, including a business plan and details about your company. These will include your Certificate of Incorporation if you have set up as a limited company, as well as documents proving your identity such as a passport and driver’s licence.

In general, banks have the following requirements for opening a corporate bank account for companies. Generally, the list of documents required include:

Completed Corporate Account Opening Forms (signed by authorized signatories as per the board resolution)
Board of Directors Resolution sanctioning the opening of the account and the signatories to the account (most of the banks have their own format and you just need to sign it)
Certified True Copy of Certificate of Incorporation (must be certified by the company secretary or one of the directors)
Certified True Copy of Company’s Business Profile from Company Registrar (must be certified by the company secretary or one of the directors)
Certified True Copy of Company’s Memorandum and Articles of Association (MAA) (must be certified by the company secretary or one of the directors)
Certified True Copies of Passport (or Singapore IC) and Residential Address Proof of Directors, Signatories, and Ultimate Beneficiary Owners. If you are in Singapore, just bring the originals and the bank will make a copy.
The banks may require additional documents on a case by case basis. Many banks require that the account signatories and majority directors be physically present in the Bank for paperwork signing at the time of opening the company bank account. Some banks will accept the signing of documents at one of their overseas branches or in front of a Notary Public.

If you are a sole trader you can use your own personal account, but many people still prefer to set up a separate small business bank account. Business accounts are also available for charities and clubs, pension funds and client's money.

Bank provides Online business banking, so that you can check the status of your account day or night.

Some business current accounts require a regular monthly or quarterly standing charge.

Some banks have a dedicated small business advice team, while others offer a telephone helpline, so check to see what is on offer when comparing accounts.

A commercial bank (or business bank) is a type of bank that provides services, such as accepting deposits, giving business loans and basic investment products.

Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking).

In the US the term commercial bank was often used to distinguish it from an investment bank due to differences in bank regulation. After the great depression, through the Glass–Steagall Act, the U.S. Congress required that commercial banks only engage in banking activities, whereas investment banks were limited to capital markets activities. This separation was mostly repealed in the 1990s.

Commercial banks engage in the following activities:

  • processing of payments by way of telegraphic transfer, EFTPOS, internet banking, or other means

  • issuing bank drafts and bank cheques

  • accepting money on term deposit

  • lending money by overdraft, installment loan, or other means

  • providing documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures

  • safekeeping of documents & other items in safe deposit boxes

  • sales, distribution or brokerage, with or without advice, of: insurance, unit trusts and similar financial products as a “financial supermarket”
  • cash management and treasury
  • merchant banking and private equity financing
  • traditionally, large commercial banks also underwrite bonds, and make markets in currency, interest rates, and credit-related securities, but today large commercial banks usually have an investment bank arm that is involved in the mentioned activities


 
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