Open A Corporate Bank Account in Hong Kong - Guide
17 December, 2019
Done with the incorporation and registration of your business in Hong Kong? What's your next step? After incorporating the business in Hong Kong, several people start wondering, 'how do I open a bank account in Hong Kong?' Generally, people find it difficult to fulfill the bank's obligations and exact requirements, which is why they get rejected at the beginning.
New entrepreneurs often inquire from bank professionals, the details of business bank opening in Hong Kong:
- What are the requirements for opening a bank account in Hong Kong?
- What are the procedures to start a bank account in Hong Kong?
- What are the exact bank requirements for opening an account online?
- Are there any other necessary requirements needed?
- Which are the most popular banks in Hong Kong?
- How to consider the best bank for your needs?
- Do you need the help of professionals to open your business bank account in Hong Kong?
Get answers to all these questions by reading this article and make things easier for yourself. Opening a business bank account in Hong Kong means maximizing the chances of your business success.
Bank Account Opening Requirements in Hong Kong
If you want to experience Chinese culture, but aren't ready to leave the West completely yet, Hong Kong would be your best choice. This city is one of the most dynamic and vibrant cities in the World, and also a place where the East meets the West. In Hong Kong, nowadays, companies can choose to either run their bank accounts from international or local banks.
A large percentage of companies choose to operate SME's bank account because of their excellent cash management facilities(credit cards, debit cards, cheques and internet banking). With these facilities, they can keep track of money movements, trade financing, short term, and long term loans.
Procedures to start a bank account in Hong Kong
Ready to gather important information related to the procedure of business bank opening in Hong Kong? Here's how to go about opening one.
Setting up a business bank account in Hong Kong is quite simple and straightforward. When you have all the required documents and are aware of the procedures, it just takes about two to three weeks to complete the process. Here are some tips to start a bank account in Hong Kong-
- Schedule the Appointment Well in Advance
- Schedule a meeting with shareholders, directors, and beneficial owners.
- Prepare initial deposit, also maintain the minimum balance for corporate accounts, each bank may vary.
- Prepare all the required company and personal documents.
- The documents should be accompanied by the proof of residence, their identity card, and any other proof related to the business activity. These activities may either include your banking history or your business plan.
- Which documents are needed to open an account?
In order to open a bank account in Hong Kong, owners need to carry some company documents along with them during their visit to the bank. Below are some of the standard documents that almost every bank asks for:
- A certified copy of the Certificate of Incorporation and the Articles of Association of the company
- Address proof - a copy of, driving license, bank statements, utility bills, etc. (3 months old)
- A valid identity document - passport or Hong Kong ID card, and visa if applicable.
- Detailed and well-structured business plan
- Your experience in the field - CV of directors and shareholders, previous relevant work experience proof (such as previous employment contract, business cards)
- Proof of source of funds and/or source of wealth
- Proof of business, such as business sales contract, partnership contract, purchase order, business license, invoice (the company may issue invoices once it has been incorporated. Any invoice helps demonstrate actual business engagement.)
- A dated, signed statement on company letterhead, naming directors and/or principal shareholders.
- Audited financial statements
- Company Structure Chart
- Register of Significant Controllers
- Board of a resolution approving the opening of the business bank account in Hong Kong
- Account signatories, principal directors, and shareholders who have to be physically present in Hong Kong at the time of the corporate bank account opening.
Other Supporting Requirements
Along with the documents mentioned above, most banks also ask for the following requirements-
- For offshore companies, Certificate of Good Standing and a Certificate of Incumbency.
- Copies of agreements with suppliers, if any.
- A bank reference letter issued by a bank where you currently have a business or personal account will be helpful. It should include the name and ID or passport number, Proof of transaction with the bank, contact information, the stamp of the bank (if any), and signature of a bank officer.
- Follow the due diligence procedures strictly.
Major Hong Kong Banks
Hong Kong is the home of a wide range of sophisticated financial organizations and international or local banks. All these banks offer slightly different services and have different requirements from the clients. Therefore, you have to choose that bank which would be suitable for your needs from many other institutions.
Although the demand for the details and the required documents to open a business bank account for every bank is different, you will get every information clearly on the website of the bank. The best part about every bank is that, you will not have to face any language issue because the details are in both languages usually, i.e., English and Chinese.
However, if you still find problems while applying to open a bank account, then you can take the help of professionals that are familiar with this bank. Being familiar with every detail of this bank, Startupr can assist you on the requirement of your application with the bank by providing a guideline.
And here is a list of Hong Kong banks, you should be familiar with if you are looking to open a business bank account in Hong Kong easily:
The first and foremost bank is HSBC bank, which is reputed as one of the largest banks in Hong Kong. It was founded more than 150 year ago and is also one of the three commercial banks licensed to issue the Hong Kong dollar banknotes. With a wide banking network within the Asia Pacific region and in other countries, HSBC is professional in providing different levels of services and products to clients. In this bank, you can apply different types of corporate accounts to fulfill your business models and needs.
If you would like to apply to open an account in this bank, you need to visit the HSBC business banking center in Hong Kong once. As soon as the application and the requirements have been approved, you would be able to operate it flawlessly with the payments cards, PINs, HSBC Token within a few weeks.
OCBC Wing Hang
OCBC Wing Hang is ready to serve their clients with online financial management services like their 24-hour comprehensive and reliable online corporate banking. If you want to get help in managing your financial accounts, then this bank would be your best choice. OCBC Wing Hang provides the privilege offers via "Business eBanking" which will act as your personal assistant on managing risk efficiently.
The business owners have to deposit the initial payment of about HKD 50,000 (minimum monthly deposit HKD 100,000) along with a maintenance fee of HKD 500 per month. To be more precise, the approval rates for this bank are genuinely very high especially for business bank accounts. OCBC Wing Hang understands the importance of time and money in this fast-moving world, they are striving to provide the most efficient and excellent service with their extensive branch and service network throughout Hong Kong.
Hang Seng Bank
The other Hong Kong based bank is Hang Seng Bank which was founded in 1933 by a group of Hong Kong locals, then it became a member of HSBC group in 1965. It is obvious from the background and history that Hang Seng is focusing on the Hong Kong local market, compared to HSBC. Thus if your business will be operated in Hong Kong, Hang Seng could be a good choice to open an account. As per the need and objective of the business, you can get a choice between two different business accounts- the UpBiz Integrated Account and Integrated Business Solutions Account during the application process. This bank also offer discounts to anyone who uses internet banking services primarily. Besides that, many other financial services like investment tools and loans can be offered to clients including corporates and individuals.
Bank of China (Hong Kong)
Bank of China (Hong Kong) is the second largest bank in Hong Kong, with more than 100 years of existence. It was however restructured in 2001. Here, you will have easy access to a vast range of banking and related financial services for your company, as well as for individuals. Bank of China (Hong Kong) is well-known for being a bridge between the banking environments of Hong Kong and China, as they have a massive banking network in China under Bank of China Group. This bank is popular on operating in three segments: Personal Banking, Corporate Banking, and Treasury.
Standard Chartered Bank (Hong Kong)
Known for being an internal bank among entrepreneurs, the Standard Chartered bank also has its headquarters in Hong Kong. Standard Chartered is one of the three commercial banks which has been issuing banknotes since the 1860s till date. It also has a solid and stable networking development in Hong Kong. Thus, you can enjoy its services and facilities, such as an easy and comfortable access to large branches and ATM networks across the region and the country. Along with this, there are several dedicated business banking centers of this bank in Hong Kong that can assist you in setting up a Hong Kong business bank account.
How to consider the best bank for my needs?
Now you have a better idea about the banks of Hong Kong and where you can open an account. Even though the process of starting a bank account in Hong Kong is not too complicated as mentioned above, every bank has its own requirements that you need to follow. And now, banks are working under greater Due Diligence and KYC (Know Your Client) rules which is why the process of opening an account has became more strict. So, before opening a bank account, you should find out the answers of the below-mentioned questions and then decide which bank suits your business.
- What is the nature of your business?
- How old is the business?
- How many employees?
- What is your business address?
- In what countries do you sell products?
- What would be the trading currency?
- What size is your customer base?
- What is your current or expected annual turnover?
How can Startupr help to start your business bank account?
Now that you know the requirements and processes to open a business bank account in Hong Kong, you can move ahead with it. If you want any help to open a business bank account in Hong Kong, Startupr has got your back after successful registration and incorporation of your Hong Kong company.
As stated above, the requirements of opening a business bank account have recently grown more strict in Hong Kong. So, to make every process simple and stress-free, Startupr has extensive experience in bank account opening and liaising. So we'll be glad to help you.
We are well-suited to help make your appointment with the different banks in Hong Kong which require at least 20 to 25 working days to make an appointment and receive confirmation. We will provide guidelines and assistance for you to prepare documents before meeting with the banks.
Since all the banks have different requirements, we provide the necessary documents and assistance to meet the standard of your required bank. That's why we take some time, just to make sure that everything works out on our client's side. Make up your mind to open a bank account in Hong Kong. As we know that if somehow one option doesn't work, you can have more ideas on the next one!
Disclaimer - Be aware that banks reserve the right to decide whether to open a specific company account. Startupr itself is neither responsible nor liable for any bank's decision. Startupr reserves the right of final decision in case of any dispute.
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