Opening a corporate account for a company incorporated in Singapore is a step that requires consideration. There will be quite a number of options – solid European jurisdictions (including the Baltic States – Lithuania or Estonia), midshores (Singapore, Hong Kong), as well as classic offshores. And none of them is perfect for everyone – so let’s look at the pros and cons.
- Opening a corporate account with a bank in Germany, Spain or Switzerland implies a fairly high entry threshold, so this option will be unavailable if the budget was consumed almost entirely by the company’s registration in Singapore.
- Opening an account for a company in Singapore or Hong Kong is a more realistic task, but you should expect quite a high refusal rate and exceptionally tight control by the security service of banks.
- Opening a corporate account in offshore jurisdictions (Dominica, Belize, BVI, etc.) will help to save money as banks rarely ask too many questions. But it is hard to predict implications in the long run: in some cases, the fact of having an offshore bank account may prove to be a reputational disadvantage for a company registered in Singapore.
But that does not mean there is no optimal solution! Opening a corporate account for a Singapore company in the payment system of Lithuania will solve many problems as it provides an extremely favorable balance of characteristics for the client. You will get a modest list of requirements (similar to the one in the offshore jurisdiction), a sufficiently high status (like in the banks of Switzerland or Luxembourg), and a friendly attitude to customers from a variety of jurisdictions (but without undue permissiveness of many offshore jurisdictions).
Opening a corporate account in the Lithuanian payment system is not an ideal option, but it is very close to it. If you need a reliable financial partner for your company in Singapore with a good balance of consumer properties, we recommend that you take a closer look at our offer!
A Corporate Account in the Payment System
This format is rarely considered for Singapore-based companies due to a widespread myth that payment systems are a compromise business option. It makes people believe that the opening of an account in the payment system (Lithuania or another jurisdiction) is a time bomb that will explode at any unexpected moment. But this is based on some irrational thinking rather than facts.
In reality, payment systems are just as reliable and profitable as traditional banks. The format of working with clients naturally differs from the one used by traditional banks, but you still have high-quality banking. And we would like to dismiss any ideas that a Lithuanian payment system may be “unprofitable” to use: it is a full-fledged financial instrument, perfectly suited for real business.
Pros of payment systems (in general, not just in Lithuania):
- Service availability from anywhere in the world
- Extremely high speed of making payments
- Sufficient level of security. SSL protocol, secure communication channels, and 2-factor authentication reduce the probability of hacking to almost zero
- Favorable terms of service for corporate customers. The fee charged by payment systems is much less than the bank fee (see the information on the rates below). Therefore, if you need a reliable financial partner with affordable fees for your Singapore-based company, the Lithuanian payment system will be a good choice that our experts strongly recommend
- Full control over the payment history
Cons of payment systems:
- Sufficiently high requirements for the communication channel and its stability
- Consumer information on payment systems is scarce, so your customers can ignore the opportunities they don’t know anything about
- Reputational risks subjectively associated with the greater popularity of traditional banks
Alternative service options
Opening a corporate account in the Lithuanian payment system for a Singapore company is a modern and very effective alternative to traditional banks. But even high-quality service with a focus on the customers’ needs and requirements can be even more profitable!
- Simultaneous registration of a company in Singapore and opening an account for it in the Lithuanian payment system (from EUR 7,000). The service allows you to significantly speed up all procedures, and your personal participation is not mandatory.
- A ready-made company with a valid account on a turnkey basis (from EUR 15,500). This is a good option for those of our customers who cannot afford even a small waste of time.
Our popular services in Singapore that we provide:
- Open a Company in Singapore + an Account in the Caribbean Bank.
- Establish a Company in Singapore in 2022 and Open an Account with a European Bank.
- Set Up a Company in Singapore in 2022 + Open an Account with a Local Bank.
- Open an Account for a Singapore Company with the Bank of Belize.
- Remote account opening for a Singapore company with a Seychelles bank.
Documents Required to Open an Account for a Singapore Company in the Lithuanian Payment System
The list is not very long, but make sure to prepare the documents with due care. The Lithuanian payment system almost never turns down a prospective client (especially considering that the company is registered in Singapore) provided that they receive compliant documentation.
Note that all documents must be notarized and translated into English to minimize the risk of refusal!
The basic list of documents required to open an account in the Lithuanian payment system:
- A standard application signed by an authorized representative of your company
- A sample list of recipients and senders of funds
- A completed questionnaire (required for some activities only. Please check the details with our expert who will handle your case)
Corporate documents of the Singapore company required to open an account in the Lithuanian payment system:
- Standard certificates: Certificate of Incorporation, Share Certificate, Certificate of Registration, Certificate of Incumbency
- The register (list) of directors and secretaries of the Singapore company
- Memorandum & Articles of Association /Constitution /Bylaws
Additional documents of the Singapore company required to open an account in the Lithuanian payment system:
- Copies of passports for all officials (directors, beneficiaries, shareholders)
- Confirmation of the actual residence addresses declared in the document. The simplest option is a utility bill paid via the bank (certified extract)
- Proof that your company in Singapore owns a domain with valid registration
- Financial statements of the Singapore company confirmed by an audit. If the company has not been active for the past year and a half and you can prove it, a standard bank statement will do
- A valid license (if required)
- A structural diagram of a company in Singapore that contains data on affiliated business partners, true owners, and other similar information
The data you will need to provide when documents are processed in the office of the Lithuanian payment system:
- Last and first name
- Company name
- Registration number
- Business profile. Available options: B2B, C2B, corporate accounts, payment service, fund management, settlements, etc.
- Phone number
- Company website
Mind that the Lithuanian payment system complies with the European banking rules, so it will be impossible to open a corporate account for a Singapore company if it is somehow related to a high-risk business!
The Lithuanian payment system is customer-oriented, so the level of service will be fairly high and the list of services is sure to cover all your requirements. A corporate account in the Lithuanian payment system for a Singapore company is not a premium option, but it is definitely associated with a much better quality and range of services than an account opened in a semi-legal bank working with “grey” customers.
Distinctive features of the Lithuanian payment system:
- Improved security
- Consideration of all the client’s wishes if they do not contradict the requirements of the legislation
- Mass payments (including partner remuneration, payroll projects, etc.)
- SEPA Transactions
- Issuance of plastic cards upon customer’s request
- Modest requirements for the minimum account balance – 500 EUR, USD and GBP (these are the main currencies of the payment system)
- Full-fledged corporate accounts
Lithuanian payment system maintenance rates:
- Minimum down payment – EUR 1,800
- Commission for incoming, SEPA and non-SEPA payments: 1-15% (minimum 12) / 22-38 / 0.35% (minimum 60-70)
- Cost of monthly service: EUR 49-140
So, will you benefit from opening an account in the Lithuanian payment system for a Singapore company? We are confident that the answer to that question is positive. Email us (firstname.lastname@example.org) right now to start the account selection process.
Is it true that Lithuanian banks and payment systems do not work with high-risk companies?
Yes, that is right. Sometimes it is possible to register an account, but we would not recommend counting on chance as the probability of success will tend to zero. Therefore, if your company operates in one of the areas listed below, you’d better consider another jurisdiction:
1) Gambling, gaming
2) Production and trade in nutraceuticals
3) Travel agencies
4) Reservation services
5) Adult entertainment industry
7) BTC Trading
8) Anything related to electronic cigarettes in one way or another
9) Cannabinoids cultivation, production and trade
10) Escort services
12) PC hardware and software
13) Collection services
How do I get a payment system license in Singapore?
The procedure is quite complicated, but it is possible to get it if you address the issue competently. MAS (Monetary Authority of Singapore) sets the following mandatory requirements:
1) A real office in Singapore (yet another argument in favor of substance)
2) A local executive director
3) An officially appointed auditor
4) A reserve capital of SGD 100,000 (guaranteed by the bank or fully contributed)
5) 100% compliance with GFPC criteria (Guidelines on Fit and Properties)
6) Taking into account the interests of society and potential customers
7) A non-refundable registration fee paid in full
But it should be borne in mind that the regulator may request any additional documents. Therefore, we recommend that you seek individual advice from our experts.