Below is up-to-date information about company registration and opening a bank account in Singapore for Russian citizens. You can also read this information in our video.
Currently there are no bans on registration and operation of Russian business in Singapore, except for financing and financial operations of companies/activities subject to Singapore sanctions against Russia;
Given the difficult international situation around the Russian-Ukrainian conflict and the harsh international sanctions imposed on Russia by most countries of the world and Singapore, opening bank accounts in Singapore for companies whose shareholders/directors are Russian citizens is currently difficult and requires a significant package of supporting documents and sub-standards in Singapore.
Possible Options Depending on your goals and capabilities, in the current situation, we would recommend you to consider 4 main scenarios for starting a business in Singapore:
If you don't care about having a bank account in Singapore:
Registering a company with a payment system account (no bank account)
Registering a Company with a bank account outside Singapore
If you need a bank account in Singapore:
Registering a company with a bank account in Singapore (with providing the most complete set of documents and ensuring the company's physical and economic presence requirements in Singapore)
Registration of fully nominal company
Comparative table of options
Company registration with an account in the payment system (without a bank account)
You can register a company with Russian directors/shareholders and apply for an account in the Singapore payment system after registration.
Advantages of Registration of the company in Singapore with the account in the payment system provides the following advantages:
Fast company registration procedure
Fastest time of account opening
Fastest way to open an account without a personal flight to Singapore
Minimum initial deposit and monthly average balance requirements for company accounts
Minimum set-up and administration costs in Singapore
Disadvantages
Payment system account is not a 100% substitute for company bank account
Not ideal if you plan to relocate and grow your business in Singapore
Timeline
Company Registration:#nbsp; Company registration procedure in Singapore will take 1-3 business days from receipt of all signed documents from your side.
Account opening in the payment system: The entire payment system account opening procedure can take 2-4 weeks. The decision to open a payment system account is at the discretion of the payment system.
IMPORTANT:
At the moment, the best option is the Singapore payment system Aspire, the functionality of which can replace the bank account by 80-90% and which currently has no restrictions on opening accounts for Russian citizens).
At the moment, the Singapore payment systems open accounts for companies with Russian participation, but in the case of deterioration of the international system and the adoption of additional sanctions, the situation may change for the worse.
Most Singapore payment systems have temporarily suspended the acceptance/sending of funds to/from Russia.
2. Registering a company with a bank account outside of Singapore You can register a company with Russian directors/shareholders and after registration to apply for a bank account in the country where you plan to do business.
Advantages of
Fastest company registration procedure
Lowest company formation costs
Choice of the country and bank best suited for your operations
Disadvantages
No current account in Singapore
No substandards in Singapore
Impossibility to relocate to Singapore / relocate employees
Additional costs for legalization/apostille and notarization of documents
Timeline
Company Registration: Company registration procedure in Singapore will take 1-3 business days from receipt of all signed documents on your part.
Account opening in the payment system: The entire bank account opening procedure depends on your choice of country and bank.#nbsp;
IMPORTANT:
Currently, banks in many countries of the world can open a bank account for a Singapore company if you provide the required set of documents.#nbsp;
The possibility of opening an account in a particular country, the procedure, the cost, as well as the list of documents depend on the country and the bank of opening an account;
Costs of legalization/apostille and notarization of incorporation documents will be required.
3. Company registration with a bank account in Singapore (with the provision of a full set of documents and requirements to the company presence in Singapore) You can register a company with Russian directors/shareholders, open a bank account, obtain a work visa and meet other requirements for physical and economic sabstance and then to apply for account opening in a Singapore bank.
Most banks in Singapore may consider opening a bank account with Russian directors/shareholders if the following conditions are met:
The company is not subject to the sanctions list adopted by the Singapore Ministry of Foreign Affairs
The company can provide the most complete list of documents on the company, confirming the seriousness of its activities
The company has a presence in Singapore
In order to prove the presence of the company in Singapore, two criteria must be met - physical and economic sub-standards:
physical sabstance is the company's actual presence in the country (having a real office, employees, director, etc.).
Economic substance is the actual operation of the company on the territory of the country (local expenses, contractors, generation of income, payment of taxes, etc.).
Advantages of
Gives high chances of opening a bank account
Gives high chances to get work and long-term visas in Singapore
Creates all the conditions and infrastructure for doing business in Singapore
Minimal risk of having your bank accounts closed
Opportunity to apply for grants and government support
Tax benefits
Disadvantages
High cost of setting up and maintaining a company
High cost of setting up substands in Singapore
Does not guarantee a bank account
How to set up a substandard foreign company:
Physical Substance:
A real physical office in Singapore
Resident Visa with company shareholder (Employment/ Entre Pass)
Company director with appropriate education and experience;
Local employees with salary and contributions to mandatory funds
Local website, phone line, etc.
Economic Substance:
Local counterparties (customers and suppliers)
Financial transactions within Singapore
Tax resident status in the country
Payment of taxes in the country
Procedure:
Company registration
Account opening in the payment system
At the present moment the best option is Singapore payment system Aspire, which can replace the bank account on 90% and where at this moment there are no restrictions on opening accounts for citizens of the Russian Federation).
Crediting of the authorized capital/working capital in the amount of not less than 100 000 SGD to the company account in the payment system*.
Employment pass for director/shareholder
Prepare website in English with hosting in Singapore
Rent/sub-rent an office/workplace
Prepare company business plan and business documents**
Find partners/clients in Singapore
Hire at least one employee in Singapore
After approval of Employment pass, apply to the bank to open bank account
** - The amount of equity/working capital required depends on the number of work visas you want to issue. ** - If there are no documents for the Singapore company, you can provide documents for the related/parent company in another country.
Timeline
Company Registration: Company registration procedure in Singapore will take 1-3 business days from receipt of all signed documents on your part.
Bank Account Opening: The whole procedure to set up a Substance Company in Singapore, obtain a work visa and open a bank account can take 4-6 months from the date of approval of the work visa (Employment pass). The decision to open a bank account is at the bank's discretion.
IMPORTANT:
We can help you with all the necessary steps and issues of setting up a sub-account in Singapore
At the moment Singapore banks open accounts for companies with Russian participation, but in the case of deterioration of the international system and the adoption of additional sanctions, the situation could change for the worse.
Many banks in Singapore have temporarily suspended the receipt/sending of funds to/from Russia.
4. Registration of a Fully Nominee Company
You can register a fully nominee company, i.e. a company where local director and shareholder are nominees and the real beneficiary of the company does not appear in the official sources and open a bank account in it.
Fully nominal company is used in cases where it is necessary to hide the data on the actual beneficiary of the company and is in great demand to solve problems with opening bank accounts for Russian citizens. Fully nominee companies have become especially popular since the beginning of the military conflict in Ukraine and the imposition of harsh sanctions against Russia in many countries of the world.
Advantages of Registering a fully nominee company in Singapore offers the following advantages:
The details of the ultimate owner will be hidden in public registries
Full confidentiality. Information about the beneficiaries can be found only on request of the Singapore Supreme Court.
Highest chances of opening a bank account
Ability to open an account without flying to Singapore in person
Fastest timeframe for opening a bank account
Minimum initial deposit and monthly average balance requirements for company bank accounts
Virtually the only current option for Russian citizens to open bank accounts with top banks in Singapore
All legal responsibility for the company lies with the nominee director and shareholder
Disadvantages
Higher cost of opening and maintenance (as compared to nonnominal company)
Potentially higher risks for both the nominee and the beneficiary of the Company.
Timeline
Company Registration: The Company registration procedure in Singapore will take 1-3 business days from receipt of all signed documents on your part.
Bank Account Opening: Opening a bank account will take 2-4 weeks from receipt of all required documents on your part. Examination time depends on the chosen bank and completeness of the documents provided.
Approximate cost: ~ USD 20 000 - 30 000 per year.
IMPORTANT TO KEEP IN MIND
At the moment this is probably the most guaranteed way to open a bank account and to do it in the shortest possible time
You can replace the shareholder at any time, but we recommend to do it only after getting a work visa and creating at least a basic company presence in Singapore and starting operations
If you want to personally manage the company, you will need to obtain a working visa for the director/shareholder to personally manage the business after opening the company and bank account.
*-The amount of registered/working capital required depends on the number of working visas you wish to issue, but not less than SGD 100,000 per working visa.