Bank or EMI account for HK offshore company with holding structure

[Justastranger]

Hi All!

I'm looking for reliable bank account or EMI for HK offshore company with complex structure. HK company is owned by a EU holding company. Activity - wholesale in spare parts for mining machines. Markets: Africa, CIS countries. I have been refused by number of banks and EMIs. Reason has not been given, Does anyone can share positive experience with similar structure and activities?

 

[Martin Everson]

Please explain which CIS countries and which African countries?

What are HK director nationalities and residency and UBO of EU holding company?

I think the problem is high risk regions and high risk activity - mining industry. Does not matter if your selling snacks in the industry.....the industry is "mining" which is high risk. Oh and I forget a HK company which is without economic substance or activity in HK i.e offshore is that correct?

I would personally not bank the HK company and I do not even know the full details yet.

 

[Justastranger]

Hi!

CIS: Kazakhstan, Kyrgyzstan, Uzbekistan
Africa: Guinea

Director, holding company and UBO are all Belgian

Although non of the listed countries are on the sanctions list neither the mining is not prohibited it looks that banks do not want to seal with these. I'm really surprised that one can much easer to open bank account for p***O sites or FX trades than for my kind of traditional business. Wierd!

 

[Forester]

1) Have you tried Statrys and Currenxie (HK EMIs)?
2) If failed, could you abandon this HK company and form a new one via Statrys? If yes, an account with Statrys is guaranteed.
3) Bottom line: for what reason you are using especially HK company in this case? E.g. in UAE your situation would be better, I think.

 

[Justastranger]

1) Have you tried Statrys and Currenxie (HK EMIs)?
2) If failed, could you abandon this HK company and form a new one via Statrys? If yes, an account with Statrys is guaranteed.
3) Bottom line: for what reason you are using especially HK company in this case? E.g. in UAE your situation would be better, I think.

1) No these EMIs I didn't tried yet
2) There are running contracts through current company, so forming new one not really an option
3) HK company is relative cheap to maintain. I heard UAE companies are much more expensive. Or is this wrong?

 

[Forester]

1) No these EMIs I didn't tried yet

So do it (If you evt. need some advice, ask here)

2) There are running contracts through current company, so forming new one not really an option

OK, understandable.

3) HK company is relative cheap to maintain. I heard UAE companies are much more expensive. Or is this wrong?

Honestly, I cannot say for sure as I am not oriented re: HK companies in detail. Nevertheless, I am convinced that if you run any remarkable business (as you seem to do), the costs of maintaining a UAE company are bearable. E.g. @Fred here can give you a qualified insight.

 

[Martin Everson]

CIS: Kazakhstan, Kyrgyzstan, Uzbekistan
Africa: Guinea

Zero chance then. Unless your Glencore Or BHP Group then when it comes to anything mining related in Africa/CIS the banks and EMI's in EU give it a wide berth. If you do open an account i.e sneak past compliance the account will be closed eventually. It's just simply outside most banks risk appetite both industry wise and geographically.

You can maybe try UBA Bank UK branch as a wild shot.

https://www.ubauk.com

 

[Justastranger]

Zero chance then. Unless your Glencore Or BHP Group then when it comes to anything mining related in Africa/CIS the banks and EMI's in EU give it a wide berth. If you do open an account i.e sneak past compliance the account will be closed eventually. It's just simply outside most banks risk appetite both industry wise and geographically.

You can maybe try UBA Bank UK branch as a wild shot.

https://www.ubauk.com

Thanks Martin, I'll try the UBA

 

[Forester]

Zero chance then. Unless your Glencore Or BHP Group then when it comes to anything mining related in Africa/CIS the banks and EMI's in EU give it a wide berth. If you do open an account i.e sneak past compliance the account will be closed eventually. It's just simply outside most banks risk appetite both industry wise and geographically.

In EU – yes, I agree fully. But do you think that it concerns also HK EMIs mentioned above? (I'm just asking, I've never tried to open an account with them for a mining company , I only have some notion about their risk appetite in general...)

 

[Mike Forman]

In EU – yes, I agree fully. But do you think that it concerns also HK EMIs mentioned above? (I'm just asking, I've never tried to open an account with them for a mining company , I only have some notion about their risk appetite in general...)

Why do you need to specifically mention the mining industry? Spare parts for machinery are spare parts for machinery. Giving examples should be sufficient, as infrastructure machinery etc also requires spare parts.

Whats your connection to Hong Kong? Are the spare parts purchased from Mainland China? Are you living or residing at times in China or Hong kong?

If you can provide any relationship to China and Hong Kong with historical purchase/sales record you have a chance but know that even for local Hong Kong residents (native Hong Kong citizen) it's very challenging nowadays to open a business bank account. Recently it took us 6 months with a not so famous bank (Dah Sing) for a legit business with business records in China including bank transactions from one of the top Hong Kong banks for that existing company and shareholder /director a Hong Kong citizen.

I would recommend to use a reputable agent who has a direct contact with a bank corporate account manager. They will also screen first before filing with the bank, to make sure you don't burn your one shot with that bank.

We will have a new setup soon using third party services who guarantee a corporate bank account in Hong Kong or Singapore (for HK corporation) within 6 weeks. But our situation is different and we don't do business with those countries you mentioned as well have ties to China and Hong Kong.

 

[Martin Everson]

But do you think that it concerns also HK EMIs mentioned above? (I'm just asking, I've never tried to open an account with them for a mining company , I only have some notion about their risk appetite in general...)

Yes. African and CIS mining industry is difficult to bank in general. If no one is based in HK and the company is just a shell company for tax purposes with no local staff and operations it makes it even worse for any bank to even look at.

 

[Forester]

Yes. African and CIS mining industry is difficult to bank in general. If no one is based in HK and the company is just a shell company for tax purposes with no local staff and operations it makes it even worse for any bank to even look at.

Well, @Martin Everson, I must admit that (although I believed you ) your posts motivated me to perform a quick check with Currenxie (I have some relationships with them) – and I can confirm that you are right: No chances with Currenxie, really. A relationship to mining industry is perhaps not such a problem but the destinations represent the unsolvable problem. No payment operations neither with Guinea, nor with Kazakhstan, Kyrgyzstan, Uzbekistan – currently.
I cannot check for Statrys, however.
@Justastranger, sorry for misleading you

 

[Justastranger]

Hi Forester,
No problem. Thank you for your advise in any case. Being too busy I didn't apply yet to any of suggested EMIs . So now for sure one less. to check

 

[Ivkide]

Hi!

CIS: Kazakhstan, Kyrgyzstan, Uzbekistan
Africa: Guinea

Director, holding company and UBO are all Belgian

Although non of the listed countries are on the sanctions list neither the mining is not prohibited it looks that banks do not want to seal with these. I'm really surprised that one can much easer to open bank account for p***O sites or FX trades than for my kind of traditional business. Wierd!

Hi.
We are talking about Cummins? If yes, drop me a line