Hong Kong Open Business
Bank Account Service
Establishing a Commercial Bank Account in Hong Kong
For entrepreneurs looking to embark on their business journey in Hong Kong or those desiring to broaden their existing ventures, securing a hassle-free method to establish a commercial bank account in Hong Kong is crucial. Indeed, it is a challenging chore that necessitates some groundwork. The procedure includes:
Step 1: Select a Bank
Indeed, opting for a bank to manage company resources is one of the most crucial fiscal choices companies make. Different banks offer diverse levels of service, impose varying additional charges, and reward customers with differing interest rates on deposits.
Factors to Keep in Mind Before Setting Up a Commercial Bank Account in Hong Kong
Apart from discerning what kind of commercial bank account Hong Kong banks offer that best caters to your needs, certain elements should be considered.
ATM Network
This factor is essential, particularly for businesses handling cash transactions. Such firms frequently withdraw funds via an ATM or a bank branch. Luckily, most checking accounts now provide access to a broad ATM network, with no associated charges when using the bank’s own ATM network.
Type of Bank and Reputation
There are three main types of financial institutions referred to as banks: traditional brick-and-mortar banks, credit unions, and online banks, each presenting its unique set of advantages and disadvantages. Additionally, assessing the bank’s reputation is critical as it can provide companies with a sense of security, one of the most valuable services a bank can render.
Charges
Like many financial products, different charges are imposed on checking accounts for accessing money. Standard charges exist for ATM usage, overdrafts, monthly service or maintenance, and NSF or insufficient fund withdrawals. Proper management of a commercial bank account can help avoid these charges, besides maintaining the necessary bank account balance. Nonetheless, opting for banks with minimal charges and requirements is recommended.
Insurance
As a best practice, companies should ascertain if the prospective bank is protected by the deposit insurance scheme of the Hong Kong Monetary Authority.
Interest Rates and Incentives
Like elsewhere globally, deposit rates differ among various currencies, types of bank accounts, deposit amounts, and periods. Therefore, it is prudent to compare what prospective banks have to offer in this regard.
Minimum Deposit or Balance Maintenance Requirements
Many bank accounts necessitate the maintenance of a particular balance to steer clear of charges.
Mobile Banking or Online Banking Features
Choosing the appropriate checking account also involves considering the mobile features provided by the bank. Try to locate a bank with a dedicated mobile application and the option to freeze or lock the ATM card. This feature can be handy in case of a loss, preventing unauthorized usage.
On the other hand, online banking offers convenience and is therefore favored by many. So, it’s essential to confirm if the prospective bank offers online banking and understand if there are any charges associated with this service.
Step 2: Arrange Documents
Documents Required for Establishing a Commercial Bank Account in Hong Kong
Typically, the following documents are necessary when setting up a commercial bank account in Hong Kong:
- Authenticated duplicates of the firm’s Association Bylaws;
- A copy of the board resolution supporting the establishment of a commercial bank account;
- Certified copy of the company’s Certificate of Incorporation from the Companies Registry and Business Registration Certificate from the Inland Revenue Department;
- Passport or Hong Kong ID copies, proof of residence, such as bank statements, utility bills, or driving license, and if applicable, proof of alias or former name for each director, authorized signatories, and principal shareholders, in addition to beneficial holders of corporate shares;
- Corporate company shareholders must provide a certified copy of the organization chart depicting each individual’s shareholding percentage and the ultimate beneficial company owners;
- Details of ultimate beneficial owners, if any, for company nominee shareholders;
- A director declaration detailing the personal information of principal shareholders and directors;
- A duly completed bank account form signed by the official signatories as per the company’s board resolution;
- For trusts that are ultimate beneficiaries, a formal copy of the declaration of trust or trust deed with information on settlers, trustees, and beneficiaries is required;
- List of sample signatures of official signatories; and,
- Proof of trade, such as a business plan, industry membership, audited profit-and-loss statement, or latest tax return.
All copies presented to the bank need to be authenticated by the company secretary, CPA, bank, or attorney. Most financial institutions mandate a minimum opening deposit to establish a commercial bank account in Hong Kong.
For offshore companies, they will also need to present a Certificate of Good Standing and Certificate of Incumbency. Please note that almost all Hong Kong banks meticulously adhere to due diligence processes and require the presence of principal directors, account signatories, and stockholders during the bank account’s opening process.
However, some banks do make exceptions. These cases often necessitate the signing of documents at any of the bank’s overseas branches, witnessed by a bank representative.
Stage 3: Navigate the Procedure for Establishing a Corporate Bank Account in Hong Kong
Prior to the initiation of a corporate bank account in Hong Kong, the firm first must undergo the process of business registration and establishment. This step serves as the foundational stage as it collects the necessary documentation demanded by the bank.
Once this step reaches its completion, an initial consultation with the selected bank is arranged. In this meeting, a representative from the bank engages in a discussion with the business delegate to verify the company’s existence, comprehend the nature of its operations, and evaluate the feasibility of the business plan.
Subsequently, the bank conducts a preliminary assessment. Following the approval from the bank, the succeeding step encompasses the signing of all pertinent documents, submission of the application form, and provision of the opening deposit. This step is trailed by a review of the application by a specialized bank department.
The bank then updates the business about the outcome of the evaluation. The commercial bank account is officially opened once the application is approved after the review. Subsequently, the bank initiates the monitoring of the business bank account in accordance with compliance regulations. The business bank account might face closure if it fails to meet these benchmarks.
Why opt for PREMIA TNC for the establishment of a corporate bank account in Hong Kong?
PREMIA TNC provides a straightforward solution for establishing a corporate bank account in Hong Kong. It is a known reality that the process of opening a bank account in Hong Kong can be intricate. Typically, banks mandate the personal presence of every executive head to finalize the procedures associated with account opening.
This requirement has become increasingly challenging in the face of the ongoing pandemic. Nevertheless, these strict rules are enforced to combat unlawful activities, prompting nearly all countries to enforce stringent banking compliance rules. Consequently, banks shoulder the responsibility of understanding their customers and supervising their transactions.
In light of potential hefty fines arising from client-related issues, banks are beginning to perceive the accounts of small to medium-sized businesses as risk-laden. As a result, banks are no longer as eager to provide an effortless opening and processing of corporate bank accounts as they once were.
PREMIA TNC steps in to overcome this obstacle. As part of the company secretarial services we offer in Hong Kong, our team of specialists work diligently to ensure the successful establishment of our clients’ corporate bank accounts. We employ our expertise in document preparation for bank meetings and scheduling appointments, boasting a roster of clients who have successfully opened their corporate bank accounts in Hong Kong.
We even extend a complimentary consultation to address any queries a prospective client might have, as well as discussing other business-related matters within our purview of services.
Services Offered by PREMIA TNC
Catering to those contemplating the launch of a business in Hong Kong, as well as those operating an already registered company, PREMIA TNC delivers a suite of company secretarial services. From regulatory compliance reporting to engagement with shareholders and legal entities, we support businesses in maintaining compliance in Hong Kong, and also assist with corporate secretarial tasks, such as:
- Application or Renewal of Business Registration
- Filing of the Company’s Annual Return
- Offering Company Secretary Services
- Providing Registered Office Services
- Corporate Bank Account Opening Services
- Maintenance of Statutory Records
- Organizing Annual General Meetings and Board Meetings to Address Pertinent Corporate Decisions
- Facilitating Share Transfer or Share Allotment
- Change of Company Name or Inclusion of Branch Business Name
- Mergers and Acquisitions
- Company Deregistration and Liquidation
- Restoration of Struck Off or Deregistered Companies
Frequently Asked Questions Regarding Business Bank Account Services in Hong Kong
Non-residents can also initiate a checking or savings bank account in Hong Kong, provided they submit certain required documents. Usually, these consist of a valid Hong Kong ID or passport, proof of residential address in Hong Kong or home country, a filled-out bank application form, and any additional paperwork as demanded by the bank.
Given that a limited company is regarded as a distinct legal entity, it is mandatory for it to maintain a business bank account. Personal bank accounts should not be utilized for managing the business expenses of limited companies.
Though there’s no absolute solution to this query, companies can implement certain strategies to minimize the chances of this event.
- Providing an audit report
- Ensuring the Hong Kong business bank account remains active
- Keeping a comprehensive record of unusual transactions
- Maintaining up-to-date contact details
The Inland Revenue Department of Hong Kong (“IRD”) also mandates Hong Kong firms to submit their Profits Tax Return along with Audited Financial Statements and Profits Tax Computation.
This is where our comprehensive portfolio of accountancy services in Hong Kong can assist. By delegating your accounting, auditing, and bookkeeping tasks to our firm, we guarantee that our services are of superior quality, competitively priced, and crucially comply with all legal and tax filing obligations in Hong Kong.
Get in touch with us today to avail our accountancy services in Hong Kong.
- Substandard or adverse personal credit history
- Engagement in a high-risk industry
- Location of the registered company
- Rigorous auditing protocols enforced by Hong Kong banks
- Dubious transactional activities
It’s crucial to remember that each bank adheres to its unique set of standards and policies. Therefore, a rejection from one bank does not necessarily guarantee the same result at another.
Prosperous companies in Hong Kong often enjoy the following banking benefits:
- Online banking
This advantage allows companies to manage their banking activities through the bank’s digital platform. However, the features and ease-of-use significantly vary from one platform to another. Therefore, it’s wise to inspect the platform prior to the application to avoid any unexpected revelations. - Multi-currency account
Given that Hong Kong is a significant financial hub in Asia, numerous business bank accounts offer multi-currency facilities. This feature is particularly handy if the company transacts in multiple currencies, and can also save on foreign exchange commissions. Are there any potential disadvantages in the services provided by Hong Kong banks? - Payment card
Typically, banks issue payment cards intended solely for ATM withdrawals and payments within Hong Kong. - Inferior customer service
Perhaps the most effective method of getting an answer to any question about the business bank account is by visiting the bank in person. However, when attempting to contact customer support over the phone, much time is consumed listening to pre-recorded messages, being transferred to another extension, and waiting to speak to a live customer service representative.
The processing of a business bank account application by Hong Kong banks usually spans one to two months.
- Extensive due diligence requirement for new ventures
For innovative enterprises that are establishing new business norms or developing unique products, traditional banks often find it challenging to manage the cost of due diligence. As a consequence, banks tend to be cautious and reject business account applications from such enterprises instead of dedicating more resources for background verifications. - Enhanced anti-money laundering regulations
Owing to the rise in fraudulent activities experienced by global financial institutions in Hong Kong recently, the Hong Kong Monetary Authority (HKMA) has strengthened its anti-money laundering regulations to support banks. As a result, companies now encounter more extensive compliance checks when initiating and operating a Hong Kong bank account.
Do you need
more information?
Business expansion guides to find out more:
Companies can be registered in one to 100% of Hong Kong corporations without discrimination.
The Singapore company registration process is also very simple, and there are few restrictions on foreigners operating Singapore companies.
Taiwan is an easy environment to raise funds, with abundant capital, stable exchange rates, and relatively low interest rates.
As a member country of FTA and TPP, is it a competitive production base for product production an import/export and guarantees low tariffs.
It is rapidly growing nation-oriented emerging industrial country with liberal market policies aimed at trade and entrepreneurship, industrial and economic development.
Premia TNC has the optimal solutions for all your business needs.
Get in touch today for a FREE consultation.
No hidden costs, no obligations.
Feel free to drop us an email too!
[email protected]
Premia TNC has the optimal solutions for all your business needs.
Get in touch today for a FREE consultation.
No hidden costs, no obligations.
Feel free to drop us an email too!
[email protected]
