Business

Hong Kong Business Bank Account Opening Guide: 9 Steps

Taking into consideration that you are setting up a business in Hong Kong, it is necessary for you to open a bank account in order to trade, pay your taxes, and pay for wages, rent, etc.

Being successful at opening a bank account is not an easy task, so be prepared to invest time and money into the process without guarantee of success.

You can prepare yourself for the test by reviewing the following questions.

What kind of Bank account do I need for my business?

A business bank account is something you will need once your business is launched.

An online banking account under the company name is known as a business account. Some banks refer to this account as a corporate business account.

The reason to clarify this statement; 

When applying for an account, you need to clarify this and use the correct terminology.

Additionally, many companies use their company’s bank account for business purposes, i.e., accounts opened open Hong Kong bank account online overseas under their personal names. Your transactions should not be conducted in this manner. The process of paying your business tax and personal tax will be difficult.

 

What documentation is required?

Prior to anything else, you should fill out the Bank form provided by the bank. Most banks these days have all the information online, so you can fill out the form online before you walk into the branch, and you can download the form when you are ready.

If you wish to open a bank account as a tourist in Hong Kong, you will need to prepare the following documentation so that you can give it to the bank on demand. Moreover, keep in mind that every bank has its own requirements.

  1. Board Resolution: this document confirms who will be in charge and operate the account.
  2. Certificate of Incorporation, Articles of Association, and Business registration certificate: these will be obtained when you have successfully incorporated your business.
  3. Corporate Chart of your company; The chart below shows the management structure of the company, as well as the ownership stake. On one sheet you should include the names, percentages, and ownership interests of this company and its ultimate beneficial shareholders.
  4. ID Documents; A copy of ID documents (Passport copies, ID cards, or drivers’ licenses) of all the directors and shareholders.
  5. Proof of residence; Bank Statements or utility Bills in the director’s name, shareholders indicating their residential address and should not be dated more than three months from the date of application.
  6. Business Plan; The business plan describes the company’s business and its revenue and expense projections for the next twelve months.
  7. Certificate Of Incumbency and Certificate of Good Standing; This is for Offshore companies

Lawyers, Public Notaries, CPAs and company secretaries can all certify these documents. There is a charge for each service. In order to avoid incurring double certification fees, you should verify that the documents provided are correct with the bank.

Can I open a business bank account even if my company is not in Hong Kong?

Yes, non-resident companies are allowed to apply for business bank accounts; this is legal for foreign-registered companies.

However, banks may be reluctant to open bank accounts for businesses not based in Hong Kong.

When you plan to open a business in Hong Kong, you can easily work with an existing company or have an investor who resides there. Making life easier and giving you more time to concentrate on your business is the result of this.

Can I open a business account online?

It is impossible for this to happen. You may be able to submit your documentation online before visiting a bank in Hong Kong to continue the process.

An official of the bank is usually required to visit personally. However, this can vary as well. Several banks require all shareholders and directors to attend meetings for further processing. 

Take your time reading the website before you attempt this.

Can I open a Hong Kong bank account from overseas? If so, you should carefully understand the information before you make your travel plans, make sure the documents you need are correct, or call the bank to inquire about these matters? A difficult process lies ahead. There won’t be a bank account opened immediately after you meet with a representative; you will have to sign forms detailing the documentation they need and any additional information they may need. As a result, you should come prepared.

Are there any costs involved in opening a bank account?

Make sure you review the policies of the banks you are interested in on the internet before making a decision.

Some banks may charge a monthly maintenance fee during your account’s lifetime, and you might be surprised to learn that there is a fee associated with maintaining the account.

It is not easy to open a bank account, so many service providers charge several thousand dollars. You should, however, make sure you hire a company that will refund the fees if they cannot open your account if you employ an agent to assist you.

What is the Time frame for opening the bank account?

Getting the account up and running would take several months. First, the representative would meet with you, and then you would fill out forms, which would take several weeks. Then they would probably ask for more documents and for an explanation at any time.

However frustrating the process may be, remain calm because you have no say in it.

After all the hassle and frustration, the final answer will be a yes or a no. And kindly note that the decision cannot be challenged, or you will not be told why it has been rejected.

What are the benefits of opening a business bank account?

I am assuming that you have been successful with your application. You may ask what the perks that will come with it are.

The Perks that usually come with it are;

  1. Online Banking facilities: you will be able to manage your banking matters online, connecting to the bank’s digital platform.
  2. Multicurrency accounts: Most of the accounts in Banks in Hong Kong now offer Multicurrency accounts. This will make your life easy, receiving and making payments in different currencies without commissions. 

Why is it difficult to open a Bank account in Hong Kong?

A major reason for this is the fact that money laundering takes place around the globe and criminal activities. A majority of countries require all banks to comply with strict laws. As a result, banks opening HK bank accounts overseas must monitor their accounts and know their clients.

There are many countries where opening an account is difficult, but Hong Kong is one of them. Because it’s more complex, it’s more difficult. 

Are there any alternative banking services available?

In general, SMEs tend not to open complicated bank accounts. A virtual bank Hong Kong business account is an excellent example of a service a bank can provide that is more attractive than a standard account.

A Hong Kong bank account in Canada has become a newest trend in financial services in the modern era. The virtual bank is a type of neo bank in which your money is stored in a separate bank account.

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