Corporate Bank Account in Hong Kong

Due to increased regulatory scrutiny and the rise of fintech, the process of opening a business or corporate bank account in Hong Kong has undergone significant changes in recent years.

There are three approaches to opening a business account:

1. Hong Kong's new virtual banks, which facilitate a quicker setup with reduced paperwork.

2. Select a traditional bank such as HSBC, which provides a broader range of services but may require more extensive documentation.

3. Consider establishing an offshore bank account instead.

   
   

Each option presents its own advantages and disadvantages:

A. Open a Business Bank Account at a Virtual Bank

Virtual banks may be more suitable for small and medium-sized enterprises (SMEs) and startups seeking cost-effective and convenient banking solutions. These institutions can provide innovative options for conducting business in Hong Kong through multi-currency account

s.

These business accounts can be established at no cost, enabling users to make and receive both local and international payments. Additionally, they offer integration with major online payment gateways such as PayPal, Stripe, and Amazon Pay.

The procedure for opening an account is generally straightforward. You can complete the process online without being physically present in Hong Kong, and the documentation requirements are easily manageable. Typically, you will need to provide copies of the passports of all directors and shareholders, along with a brief description of the company's business model.

This option is increasingly popular, as it provides essential banking services for most companies and is also the fastest alternative available. The typical timeframe for opening a fintech bank account ranges from 2 to 7 days.

B. Open a Business Bank Account at a Traditional Bank

While virtual banks may offer a quicker process and place a stronger emphasis on small and medium-sized enterprises (SMEs), they cannot match the established reputation and broader array of specialized services provided by traditional banks, particularly across various markets.

The process for opening a traditional bank account is as follows:

Step 1: Documents required to open a bank account

• Identification documents of the Hong Kong company such as Certificate of incorporation and Articles of Association, Business Registration etc.

• Identification documents of corporate shareholders and Organization Chart.

• ID/Passport and address proof from directors, authorized signatories, and beneficial owners.

• Business proof, showing that your business is real such as commercial and shipping documents and/or last audited financial statement.

Step 2:  Internal Approval from Bank

Once the bank gets all documents, they will start the internal Due Diligence and may require additional documents.

Step 3:  Meeting with the bank officer

            The next step occurs once the pre-due diligence is approved. The bank will subsequently        arrange a meeting with the company's directors prior to granting final approval.

Step 4:  Activation of Bank Account

Following the bank's approval, the business bank account will be established, allowing you to utilize online banking services freely and conveniently.

C. Open a Business Bank Account at an Offshore Bank

In some instances, a bank in another country besides Hong Kong may serve as a viable alternative to opening a bank account for your company. The appropriateness of this option will largely depend on individual circumstances, including your business model and financial background. Ultimately, the decision on where you open your bank account should be made on a case-by-case basis, considering your specific business model and financial situation.

Furthermore, certain private banks in other jurisdictions do not mandate meetings, which may allow you to open a bank account for your Hong Kong company under specific conditions. While selecting the appropriate bank account is a crucial initial step, maintaining sound financial health necessitates continuous attention and expertise.

Important Notes:

1.     At a traditional bank, the account opening process typically requires 4 to 6 weeks, whereas a virtual bank can complete the process within 2 to 7 days.

2.     Virtual banks, in general, are the easiest to establish.

3.     Whether you go to a traditional or virtual bank, you’ll need:

• Certificate of Incorporation

• Business Registration

• Written resolutions of the board

• Certified passport of all directors and the ultimate beneficial owner

• Your company will go through a due diligence and the bank will analyze if your company has economic substance.

4.     Non-residents are allowed to open a bank account in Hong Kong.

5.    The minimum amount required to open a business bank account is 0 HKD with virtual banks, while traditional banks like HSBC requires a small deposit. Otherwise, a monthly fee will apply.

At BRASIA, our team can help you manage your bank account effectively with our full package of services.

For seamless financial management and peace of mind, contact us or book a meeting with our experts at info@brasia.hk.