5 Tips to Open a Business Bank Account in Hong Kong
13 September, 2018
Opening up of a corporate bank account is an important step while establishing a new business. However, it is important to note that it is not as easy as opening up of a personal or saving account. You should be well acquitted with all the rules and regulations of the region or country from where you are operating. Moreover, you should know about the banks which are most suitable for opening corporate accounts.
In the same way, if you are looking to open a business account in Hong Kong, you should be acquainted with all the local laws and requirements of the banks. All this information can be collected from the bank personnel or websites of the particular banks.
As a matter of fact, opening a corporate bank account may be difficult in some countries compared to others. In regards to Hong Kong, not only do you need to fulfill all the prerequisites and proper documentation, but you also have to be physically present in the bank to open an account. The rules and regulations are becoming tighter, but all this is to secure your funds and capital in the company.
Here are some tips which will aid you in opening a corporate bank account in Hong kong
Don't be Afraid To Hire a Service Provider
The first step to consider while opening an account is whether to hire a service provider or not. Well, a service provider is well educated about the rules and regulations of the various banks. They know the procedure and may have links with people within the banks.
They also ensure that all the formalities are followed, and also check the bank's role in opening up of a corporate bank account so that there are no further discrepancies.
In addition to it, they will help you in arranging all the business proof and required documents in order to prepare the proper presentation you must acquire while opening a bank account in Hong Kong.
However, the quality of these service provider should be looked into at the time of their selection. An unqualified service provider can harm your case instead of helping it. So, you need to be cautious while selecting the service provider.
Some businesses might not go with the option of hiring a service provider as it will be costly and consider it as unjustified expense. So, for that kind of business, our advice is to hire a service provider only if the budget allows and when the benefits outweigh the cost.
Make a Conversation Strategy
The second thing to do is to prepare your content. The content is the material that you will use in conversing with the bank manager. Consider it as a job interview and prepare accordingly. In fact, tend to anticipate and find the most common questions to be asked in an interview and prepare answers in order to impress the interviewer.
Similarly, you have to forecast all the possible questions that the bank manager is going to ask or seek from you and prepare their answers in advance.
The prime purpose of preparing a conversation strategy is to build up your confidence. Every entrepreneur has a big plan with which they start the business. However, that will not help you in impressing the manager for opening up of the account in Hong Kong.
Most importantly, you also have to be focused for the foundation of your business. The adequate knowledge and experience of a particular industry might be enough in some cases for the bank manager.
List of all Documents
The third step is to make a list of all the essential documents required for opening up of a corporate bank account. You need to collect all the documents and arrange them in proper order and take them along to the bank.
The general list of required documents can be accessed from the bank website or by enquiry to the bank receptionist. However, if you have hired a service provider for opening up of a bank account, they can provide a more specific list of those documents and also tips on how to increase your chances of success.
As a matter of fact, the company formation documents can be some of the important documents required in this process. The document related to valuation of the shares is also required. Moreover, the personal details of all the shareholders and directors along with their passport is also needed.
You also need to display utility bills for documentation purposes. You should be sure while submitting these documents to the bank that the bills and documents should not be in any other language apart from English and Chinese.
Don't forget your Invoices/Contracts
There may be chances that the company had already started its operations in Hong Kong without opening a corporate bank account. In that case, the business can collect all the invoices of the previous sales and arrange them for display along with the documents.
The business might have also entered in contracts for it's early projects which will become another business proof in the bank. These can be an important aid in a quick opening of a bank account.
At the same time, one more document that can be used along with them is your Business plan. You can show both your long term and short term plan to the bank manager. A business plan is usually a brief document that includes the business target audience and the competition in the market. Moreover, these documents will give the bank managers confidence about the future operations of your business.
The Corporate Attire
The last tip which could be helpful in getting a bank account is the way you dress up for the meeting with the bank manager.
There is a popular saying that there is a dress for every occasion. The type of clothes you wear make a great impression on the person you are interacting with. A traditional dress may give a impression about your cultural connection or conservative thinking while a modern attire gives a impression of a modernity and open thinking.
Similarly, a casual dress up shows your level of causality for a particular thing while a formal or corporate attire will depict your seriousness for the issue.
If your business has a proper dress code, that dress code can also be followed. If you want the bank manager should take you seriously, than you have to wear a corporate suit rather than shorts and a tank tops.
These tips do not cover the proper procedure of opening up of the corporate bank account, but can be valuable for you for opening an account. So, follow them and have a path to success.
For first-timers investors, Hong Kong may seems like a business friendly country, but its workplace and regulations are quite based on traditional laws. You don't have to panic about this, just stick to this tips and follow them while running your business in Hong Kong. Just adhere to the right laws and regulations in order to have a profitable business.
« Go Back to Blogs