How to Open offshore bank account in Singapore
Offshore banking is quite important for people with too much money! Well, there is no such thing as “too much” money. Yet, if your funds are big, you can consider opening an offshore bank account.
Over the years, Singapore has turned into a much wanted destination for offshore banking. When you want to open an offshore account in Singapore, you need to hold a good amount of money. This is one of the primary requirements. The process of opening a bank account in Singapore is easier than many other offshore destinations. The banking system is Singapore is well formed, and flexible. You can choose to open an account, even without entering the country.
With this being said, here are few steps to be covered when you want to open offshore bank account in Singapore.
Why do you need an offshore account?
In Singapore, you will come across multiple banks that will let you open an account. These banks will have unique charges, accessibility methods and policies. Before you decide on an offshore bank, it is important for you to understand your purpose in overseas banking. Four common reasons for opening an offshore account would be; you have kids who are studying in Singapore. Or, you have a promising Job in Singapore. Or, you wish to diversify your funds. Or, your home country offers very low interest rates.
Each of these reasons need a separate offshore account in Singapore. Four example, you cannot use an account that diversifies currencies for the education of your child. Nor, can you use your salary offshore account in Singapore as a saving platform. Many a times, people choose to open an offshore account in Singapore without understanding their actual need. This will result in wrong choices, and make the process even more complicated. Hence, sit down, sip a cup of coffee and understand why you need an offshore account.
The opening documents
Once the bank is chosen, you should pull together the required documents. Every bank maintains a separate document to help you understand the most important papers of all. By having these papers in hand, you can speed up the entire process of opening an offshore account in Singapore. In most cases, you will be asked to submit a copy of your passport, identity papers, current bank statements and a valid address proof. Papers for identification include your passport, rental agreement or driver’s license. It is important to ensure that all these documents are valid, and not expired. Also, the documents need to be notarized.
The rules and regulations depend on the location of the bank. Some banks may even ask you to submit documents with apostilles stamp. To receive this stamp, you need to approach government authorities.
Consult a tax advisor
Now, this might sound like an extravagant step. However, you should consider consulting a tax advisor for more details on how to open offshore bank account in Singapore. Many countries expect their citizens to “notify” before opening an offshore account. In fact, you will be asked to file taxes differently. You can rely on a tax advisor for more details on how to file taxes, and keep the local government informed.
Let’s understand this with an example. If you are an American, and if you wish to open offshore bank account in Singapore, the Report of Foreign Bank and Financial Accounts has to be filled on the 30th of June. This report has to be produced annually. Indeed, every other country would have similar requirements. And, as an offshore investor you need to be aware of them to avoid penalties and legal complications. Tax evasion is a common issue faced by foreign investors. Tax evasion identifies people who open offshore bank accounts and fail to file taxes accurately.
Adequate banking opportunities
Moving on, you need to ensure that the banking system followed by the chosen offshore bank is sophisticated. It would be very common to neglect on this point. However, as you start using the bank account, you are bound to look for add-on features. This could be anything like internet banking, or an anonymous credit card.
Read more about the bank before finalizing. For example, you need to be aware of the limitations imposed by the bank on your transactions. Some banks have limits on wired transactions. And, few others don’t allow customers to link their offshore accounts with international debit cards.
Another important aspect to verify during the application process would be additional charges. Does the offshore bank incur extra charges for transactions? Should you pay money for receiving and sending money? Some offshore banking systems prove to be more efficient, and customer centric than the rest. Always check if you have chosen to open an offshore bank account in such an institution. Look for qualities like security, robustness and efficiency in the bank. Learn more about the bank’s investment options. Above all, check if the bank offers round the clock assistance.
Opening the account!
Finally, you need to open offshore bank account in Singapore. The entire process begins with a relationship manager. Most banks that have an offshore facility will assign you a relationship manager. These professionals will be your first, and most important point of contact. They are responsible for guiding you through the entire process. Also, they will keep posted on the current state of your application. If documents are missing, or if details are incorrect – the relationship manager will brief you about the issues. And, if you have sudden questions about opening an offshore account in Singapore, you can get in touch with the relationship manager.
According to experts, you can consider this as an interesting quality for finding and filtering a potential offshore bank. Even after the application gets approved, and your offshore bank account gets opened – you can stay in touch with the relationship manager for policies, opening new deposits and upgrading your account.
This brings to an end the process of how to open offshore bank account in Singapore. Indeed, it is a step by step process that depends on your requirements and papers.