The short answer
- Open a traditional bank account as the company's main account: GIRO with IRAS and CPF, payroll, large balances, credit and credibility.
- Use a digital account for speed, multi-currency receipts, FX and team spending cards.
- Digital account providers are usually payment institutions, not banks. Check their licence and how your money is protected; bank deposit insurance does not usually apply.
- Some government payments do not work from digital accounts. GIRO direct debits for tax, for example, generally need a bank account.
Which account for which job
| Transaction | Traditional bank (DBS, OCBC, UOB and others) | Digital account (Wise, Aspire, Airwallex and others) |
|---|---|---|
| IRAS tax by GIRO instalments | Yes. Up to 10 interest-free instalments | Generally no. IRAS GIRO direct debits do not work with virtual accounts |
| CPF contributions | GIRO | Some support PayNow QR payments |
| Payroll | Yes | Often yes |
| Receiving USD, EUR, INR from customers | Possible, often costlier | Strong. Local account details in several currencies |
| Paying overseas suppliers | Possible | Usually cheaper and faster on FX |
| Team spending cards | Corporate cards, credit-based | Virtual and physical cards with per-card limits |
| Large balances and fixed deposits | Yes | Not the place for them |
| Loans, overdrafts, trade finance, guarantees | Yes | Limited |
| Cheques and cash | Yes | Generally no |
| Landlords, government tenders, large customers | Expected | Sometimes questioned |
A sensible sequence
- Apply to a traditional bank at incorporation. It is the slow one.
- Open a digital account in parallel so you can trade while the bank reviews.
- Move tax, CPF and payroll to the bank account once it is open, on GIRO.
- Keep the digital account for FX, foreign receipts and spending cards.
Why bank applications get delayed or rejected
- Unclear source of funds or ownership chain, especially with layered corporate shareholders
- No visible business activity in Singapore
- Directors or shareholders in jurisdictions the bank sees as higher risk
- Incomplete documents, or answers that differ from the ACRA record
- Expected transaction patterns that do not match the business described
Prepare this pack before you apply
- Group structure chart down to individual beneficial owners
- A one-page business description: customers, suppliers, countries, expected volumes
- Source of funds for the paid-up capital
- Identity and address documents for directors, signatories and owners
- Board resolution on the bank and signatories
What the bank will ask
Expect the bank to ask, in some form: who owns the company all the way up; where the capital comes from; who the customers and suppliers are and in which countries; what volumes will pass through the account; and why the company needs a Singapore account. Traditional banks often want to meet at least one director, in person or by video. Answers should match the ACRA record and the business description word for word. Inconsistency is the most common reason for delay.
A realistic timeline
| Situation | Digital account | Traditional bank |
|---|---|---|
| Local founders, simple ownership | A few days | One to three weeks |
| Foreign individual owners | One to two weeks | Two to six weeks |
| Foreign corporate shareholder with layers | Two weeks or more | Four to ten weeks |
These are typical ranges, not promises. Every bank sets its own risk appetite and it changes over time.
Questions people ask
Should a company open a digital account or a traditional bank account?
Usually both: a traditional bank as the main account for GIRO, payroll, balances and credit, and a digital account for foreign currency, FX and team spending.
Can IRAS GIRO deduct from a digital account?
Generally no. IRAS GIRO direct debits do not work with virtual accounts, so tax instalments need a bank account.
Talk it through with an adviser
Tell us your structure and deadlines. We reply with what applies to you and a fixed-fee proposal.
Sources
- IRAS: GIRO for corporate income tax
- Aspire help: Paying Singapore government bodies from an Aspire account (secondary source)
General information only, last reviewed 11 November 2026. It is not advice for your situation. Laws and practice change, and the official sources linked above prevail. Speak to a qualified adviser before you act.
