What Are the Best options?
Your Options: An Overview
If you’re reading this, you’re probably aware that developing a business bank account within Hong Kong for the company has gotten more difficult in recent years.
The days are gone when you could go into any branch and create a business bank account the same day.
But it’s not all doom and gloom. In Hong Kong, there are three ways to handle payments for your firm these days:
• Open a “standard” bank account in Hong Kong (as I previously stated, this has gotten more difficult, as I shall describe in further detail later in this post);
• Open an off-shore bank account: this may be easier, but it is more expensive, and it will make it difficult to take payments via Paypal or debit cards via Stripe or Braintree (the most popular payment processors).
• Open an “alternative” account with Currenxie, which provides free business accounts in Hong Kong that let you deposit, send, and receive payments (both domestic and international) using your company name, as well as accept payments through all of your main online payment platforms (Paypal, Amazon, Stripe)
Creating a Currenxie business account?
Advantages
• Quick and simple to use
• You may obtain a bank account number and use it to transmit and receive money in a variety of currencies (HKD, EUR, USD, and more)
• The account may be linked to Paypal, Stripe, Square, Amazon Pay, and a variety of other services.
• You c威而鋼 an create an account online (without having to travel to Hong Kong) and keep many currencies in it.
Disadvantages
• It is not a “standard” bank, which may be a problem depending on your needs. It does not, for example, provide financial assistance.
Steps to open an account
The following are the papers you’ll need to open a Currenxie account:
• Copies of all directors’ and shareholders’ passports with a little more than 25% ownership • A brief description of the company’s business strategy
There is no charge to create an account, and there is no need to travel to Hong Kong. Currenxie typically approves requests in three business days but may take longer if further documentation is required.
Click here to go to the cuuenxie website to get started.
How to create a “conventional” Hong Kong business account
Advantages
multi-currency account (HKD, USD, EUR, etc. ); integration with Paypal, Stripe, and Braintree; credit may be provided (depending on the situation).
Disadvantages
Acquiring one has now become incredibly sluggish and complicated (to the point where doing it without the help of an agency is practically impossible, in particular for small businesses); it may be expensive; customer support is delayed; you is in Hong Kong to create the bank account.
As previously said, the days are gone when you could go into any bank and create a business account in one day by presenting your passport, curriculum vitae, company documentation, and a business plan (exactly I did it in 2013, without having any business experience).
We created a business bank account again for the company earlier this year, and the procedure was a little more difficult. The following are the papers they requested:
• Shareholders’ and directors’ passports and curriculum (as is customary at this time);
• Business strategy (a lot more thorough than the one we requested in 2013, although there aren’t many surprises here);
• Documents pertaining to the business for which you wish to create a bank account (articles of registration, business license, etc., all routine processes);
• 10,000 HKD (the account opening fee) + 10,000 HKD to invest (which they repaid); Please keep in mind that the amount varies depending on the bank you pick.
• Business experience of the director, particularly accounting balances of other enterprises in which the director (or boards) is a shareholder and significant participation. This is the reference that made me think because it means that if you still don’t have a company of at least a year of experience, entering a business bank account appears to be impossible;
• Months, because many of the documents require certification by a signature (or at least an official recognition by Hong Kong) or aren’t readily available.
So, in reference to the past, the most significant issue was the time it took to create the account, as well as the fact that if you don’t already have a company (which might be in another nation, not only Hong Kong), obtaining a business bank account is becoming incredibly difficult (if not impossible).
Furthermore, and this is critical, we could not have opened a bank account without the assistance of an onsite agency.
There are also the costs of the bank, notaries, and accountants, as well as the agency.
How to register an off-shore business account in Hong Kong for your company.
Advantages
it appears to be easier than creating a “conventional” bank account in Hong Kong at the present.
disadvantages
Can be costly; likewise, collecting payments through Paypal, Stripe, and Braintree can be difficult (if not impossible); this is an off-shore account, so you need to think about the tax consequences, whether for the company or the director’s income taxes (depending on where you are an inhabitant, check the CFC regulations which change according to country of residence).
Much when creating an off-shore account, you’ll almost always need to employ an agency (if they provide this service, it’ll be even easier, but it isn’t always achievable).
In this situation, the administrative process (as well as the expenses) would vary depending on where you create your off-shore accounts (opening it in the Seychelles Islands is rarely different than opening one in Singapore).
This option is not recommended if you want to take payments using Paypal, Stripe, Braintree, or other similar services.
There’s a good reason for this: when you establish a Paypal business account, for example, you must enter the address linked with your firm (so an address in Hong Kong, in this case). Furthermore, Paypal only permits you to connect a bank account from the same nation, based on my own experience (I possess three Paypal business accounts in distinct countries) (Hong Kong).
As I discovered, you can’t move Paypal payments to an off-shore account (which, by definition, isn’t in Hong Kong). Stripe is in a similar scenario. I’ve never used Braintree, but I imagine the issue is similar given that these restrictions are imposed owing to capital control legislation (which must be obeyed by all commercial services such as Paypal, Stripe, etcetera)
犀利士 Click here, If you’d want to contact an organization that can assist you with opening an off-shore bank account for a company in Hong Kong (or in starting a business, if that’s what you’re after right now).
Frequently asked questions
In Hong Kong, can a foreigner create a business bank account?
Yes, there are no restrictions on foreigners’ access to commercial (or personal) bank accounts in Hong Kong. You will be able to create a business bank account if you can present all of the required docum樂威壯 entation (as we did).
Is it possible to register a business bank account in Hong Kong through the internet?
“No,” is the short response. To create a business bank account, all major banks (HSBC, DBS, Bank of China, and so on) need you to visit a branch in Hong Kong.
Note that the meeting in Hong Kong will not last over a couple of hours if you make an appointment ahead of time and have all of the relevant papers.
Also, new firms, such as Neat, have emerged in recent years that allow you to register an account online. However, as mentioned in this article, such narratives have certain drawbacks.
To register a business bank account in Hong Kong, what documents do I need?
The following are the basic requirements:
All directors of the company must provide a copy of their passports (and/or HK ID card, if available);
If the firm is new, a thorough business strategy; if the company is already operating in Hong Kong, prior audit reports and accounting data;
Documents related to your business (certificate of incorporation, for example);
Proof of the director’s (or directors’) previous business experience;
Any other documentation that the bank requires (the list might vary).
Please note that we go over the needed paperwork in further depth in this article.
Disclaimer of restrictions and responsibilities:
We are not providing financial advice in this post; instead, we are strictly listing your options based on our own experience from 2013 to now. I recommend that you talk to your agency or accountant about it to figure out what the best solution is for you.