As a growing business, either a new business in Hong Kong or an already established one you want to expand into Hong Kong, opening an official corporate bank account is an essential step.
Irrespective of the type of your corporate entity – limited liability company, partnership, sole proprietorship, or a foreign company office, you’ll require a particular kind of bank account: a business bank account (this is a bank account retained under the name of a company and is used to serve businesses needs).
Although Hong Kong has strict rules for opening corporate bank accounts, the process involved is relatively straightforward. Outlined next are the process and everything else relevant to opening a corporate bank account in Hong Kong.
The process for opening a corporate bank account in Hong Kong
The steps may seem straightforward, but the process to open a business bank account in Hong Kong can take anywhere from two to three weeks, and sometimes even up to eight weeks.
Opening a business bank account in Hong Kong is quite simple, but banks in Hong Kong prefer the physical presence of all the relevant parties during the process.
The corporate bank account opening process in Hong Kong starts with meeting a bank representative who will ask the candidate to complete application forms and tell him/her to submit specific documents and details about the company’s business nature. The application will go through a review, and the process ends with either a “YES” or “NO” reply.
The required documents to open a business bank account in Hong Kong
Each bank in Hong Kong has its own requirements, but it generally includes the following documents:
- A resolution by the board of directors that approves the opening of the business bank account.
- Establishment documents proving that the company was duly incorporated and validly registered
- ID documents of the directors, shareholders, and ultimate beneficial owners.
- A decree from one or more directors giving the personal details of all directors and principal shareholders.
- Proof of residence of the directors, shareholders, and ultimate beneficial owners.
- Business plan and a certificate of Incumbency.
Generally, some of these documents must be certified, and/or translated if they originate from outside Hong Kong.
Is it possible to open a Hong Kong business bank account as a non-resident?
Yes, It’s possible to open a corporate account in Hong Kong as a non-resident, but the options available will depend on where the company is registered.
Is it possible to open a business bank account from outside Hong Kong?
It is possible to apply for a corporate bank account for companies whose shareholders and/or directors are outside of Hong Kong.
But, due to the standard of due diligence and KYC (Know your customer) policy that was increased by the authorities of Anti-Money Laundering and Counter-Terrorist Financing in Hong Kong. Hong Kong banks are reluctant to open corporate bank account for clients who aren’t physically present in Hong Kong.
However, if you’re not in Hong Kong, you can select a bank with a global presence, and then attend the bank branch local to you to complete the appropriate documentation.
Opening a Hong Kong business bank account online
You can begin the account opening process online but you have to be present in Hong Kong to complete the bank account opening process. Generally, at least one of the directors of the company must visit the bank in person.
So it is important you do your research before visiting the bank.
Nevertheless, some Hong Kong banks now offer remote sign-up services to open a new business account.
Which bank should I choose?
Hong Kong is one of the largest financial hubs in Asia, it also has a refined financial industry and an extensive variety of famous banks licensed to provide business banking services in Hong Kong. All these banks offer most of the essential services and are slightly different in certain parts. This means you have several options to open a corporate bank account in Hong Kong, but you have to do some research in order to choose the best one for your business.
Banking fees in Hong Kong
Before opening your corporate bank account in Hong Kong, It’s significant to be aware of the fees involved with opening a corporate bank account in Hong Kong.
Each bank has its own set of fees, but the common ones are the following:
- Application fee: some banks in Hong Kong waive this fee, but some don’t.
- Appointment meeting fee: some banks in Hong Kong are known to charge this type of fee.
- Account setup fee: this will depend on the bank you choose
- Initial deposit: the amount varies depending on the bank’s requirements
- Minimum balance: your account is required to keep a minimum balance in Hong Kong
- Foreign transfer fee.
When choosing a bank in Hong Kong to open an account with, it’s important to read the terms and conditions carefully before settling on one.
Is it possible to open a business bank account in Hong Kong with a foreign corporate entity?
Yes, it’s possible to open a business bank account in Hong Kong with a foreign corporate entity. However, due to the standard of due diligence and KYC policy that was increased by the authorities of Hong Kong, which has made Hong Kong anti-fraud laws very strict, some Hong Kong banks may be unwilling to allow this, but it’s not impossible. Just contact your Damalion expert now and let us help.
Advantages of a business bank account in Hong Kong
If the company is successful with its business bank account application, the benefits you’ll get with your account are a multi-currency account, lower minimum bank account balance, no tax on interest earned in the bank account, convenient access to the bank account, and secure banking system, among other.
Being able to open a corporate bank account in Hong Kong is an issue for several people, given the banks’ increased due diligence, but with your Damalion expert by your side, it’ll be a hassle-free process.
Open your corporate bank account in Hong Kong now, contact your Damalion expert.
