Avoid these pitfalls when applying for a corporate bank account to ensure smooth approval and operation.
Many entrepreneurs face delays or rejection when applying for a business bank account due to preventable mistakes. Common issues include:
- Missing Documents – Incomplete or outdated ACRA records can stall your application.
- Unclear Business Model – Banks may flag “high-risk” or vague industries like crypto, gaming, or consulting.
- Nominee Directors – Foreign-controlled companies without real Singapore presence often get rejected.
- Overseas Founders Without Local Contact – Lack of local address or phone number may delay verification.
- No Initial Capital Explanation – Not declaring where your seed funds come from may trigger compliance red flags.
Be transparent, prepared, and proactive. Having a local corporate secretary or advisor helps immensely.
FAQ:
Q: Can I use a nominee to open a bank account?
A: Most banks prefer actual business owners or directors to appear.
Q: What industries are considered high risk?
A: Cryptocurrency, online gambling, adult content, shell companies.
User Comments:
- “I got rejected twice until I explained my funding clearly.”
- “DBS asked for my full business plan—not just a one-liner.”
Editor’s Note:
Your first impression matters. Treat the bank application like a business pitch.
Tags: SME mistakes, bank rejection, Singapore startup, compliance issues
About the Author
Helen Lili – Editor, Research Lead
Helen leads tariff analysis and product change tracking. She maintains the normalized dataset that powers our comparison tables and ensures each claim links back to a dated primary source.
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