Banking and Compliance Checklist for Singapore and Vietnam: What Every Foreign Business Must Know

For foreign entrepreneurs and businesses expanding into Singapore and Vietnam, banking and compliance are two of the most practically challenging aspects of market entry. Unlike the relatively straightforward process of company incorporation, banking relationships and regulatory compliance involve ongoing obligations that can catch unprepared businesses off guard.

Part 1: Singapore Banking Checklist

Opening a Corporate Bank Account in Singapore

Singapore's banking sector is well-developed and internationally connected, but opening a corporate bank account has become more rigorous in recent years due to enhanced anti-money laundering (AML) and Know Your Customer (KYC) requirements.

Documents Required: The standard document set required by Singapore banks includes the ACRA business profile (not older than three months), the company's memorandum and articles of association, the register of directors and shareholders, certified copies of passports for all directors and beneficial owners, and proof of residential address for all directors and beneficial owners.

Timeline: Allow two to four weeks for a traditional bank account opening. Digital accounts (Aspire, Airwallex, Wise Business) can be opened in one to three business days.

Singapore Tax Compliance Checklist

Corporate Income Tax: Singapore's headline CIT rate is 17%, but the effective rate for most small and medium companies is significantly lower due to the partial tax exemption scheme, which exempts the first SGD 10,000 of chargeable income at 75% and the next SGD 190,000 at 50% (Source: IRAS — Partial Tax Exemption).

Part 2: Vietnam Banking Checklist

Opening a Corporate Bank Account in Vietnam

Opening a corporate bank account in Vietnam is more complex than in Singapore and requires in-person visits to the bank. The process typically takes two to four weeks.

Capital Contribution Account: Foreign-invested companies in Vietnam must open a dedicated Direct Investment Capital Account (DICA) for receiving capital contributions from foreign shareholders. All foreign capital must flow through this account.

Vietnam Tax Compliance Checklist

Foreign Contractor Tax: When a Vietnamese company pays fees to a foreign contractor (including the Singapore parent company for management fees, royalties, or technical services), the Vietnamese company must withhold and remit Foreign Contractor Tax at approximately 14.3% on the gross payment (Source: Vietnam General Department of Taxation — Circular 103/2014/TT-BTC).

Part 3: Cross-Border Compliance

Double Taxation Agreement: The Singapore-Vietnam DTA reduces withholding tax on dividends paid from Vietnam to Singapore to 5% (for corporate shareholders holding at least 25% of the Vietnamese company) or 7% (for other shareholders) (Source: IRAS — Singapore-Vietnam DTA).

Transfer Pricing: Both Singapore and Vietnam have transfer pricing rules that require related-party transactions to be priced at arm's length. Companies with significant intercompany transactions must maintain contemporaneous transfer pricing documentation in both jurisdictions.

Conclusion

Banking and compliance in Singapore and Vietnam are manageable with the right preparation and professional support. In both markets, the cost of non-compliance — in fines, penalties, and reputational damage — far exceeds the cost of getting it right from the start.

Read our related guides: How to Start a Company in Singapore (2026 Guide) and Can Foreigners Own a Company in Vietnam?.

--- *Royce Consulting provides ongoing compliance support for foreign businesses in Singapore and Vietnam, including corporate secretarial services, tax filing coordination, and cross-border compliance management. Get in touch to discuss your compliance needs.*