Hong Kong Company: Possible to open local Bank Accounts?

[banafinfodafuggiano]

I am truly thinking about incorporate in HK due to the favourable Tax laws for ecommerce businesses.

How easy is it to remotely open a Bank account? Talking about real accounts such as HSBC and not just a EMI.
I can also fly there is necessary since I already live not too far from HK.


What banks do you recommend they will allow a multi currency account without any crazy conversion fees
when paying in currencies other than HKD? I make a lot of payments in EUR/GBP/USD

 

[Sols]

Practically impossible unless you have connections to Hong Kong, or in some cases to the nearby region.

If you have a strong connection to Hong Kong but aren't yourself based there, remote account opening isn't as dramatic as it once was in Hong Kong. IIRC, it's part of both DBS' and OCBC's standard offering and many other banks will consider it if you are an attractive enough client.

 

[banafinfodafuggiano]

Practically impossible unless you have connections to Hong Kong, or in some cases to the nearby region.

If you have a strong connection to Hong Kong but aren't yourself based there, remote account opening isn't as dramatic as it once was in Hong Kong. IIRC, it's part of both DBS' and OCBC's standard offering and many other banks will consider it if you are an attractive enough client.

Ok so If I incorporate a HK company, I am unable to open a local bank account unless I permanently reside in HK and I have connections there? Are you sure?

 

[Clank]

Ok so If I incorporate a HK company, I am unable to open a local bank account unless I permanently reside in HK and I have connections there? Are you sure?

You might also be able if the bank thinks they will make a lot of money from you.

 

[Sols]

Ok so If I incorporate a HK company, I am unable to open a local bank account unless I permanently reside in HK and I have connections there? Are you sure?

If you manage to open an account, you would be an exception. Banks operate on risk/reward calculations. How much risk do you pose vs. how much money do they generate? Most HK companies formed by foreigners are not meaningful, serious businesses. It costs time to open and maintain a bank account for a bank, and time is money.

It was relatively easy once upon a time to form a HK company and get a bank account. You just had to show up in person. Nowadays, showing up in person isn't enough. There needs to be a good reason for opening a bank account in Hong Kong, which usually means you have local business partners to transact with, staff/office in HK, or some other meaningful connection. Incorporation alone isn't enough.

If you personally deposit a few million HKD for wealth management, they might be open to giving your business bank account for a business you own.

 

[Clearsky Network]

To open an account in HSBC HK you should be prepared that its a long and annoying process.
You should have a good reason for having an HK account, for example have many clients from HK that hold their accounts in HSBC or other HK banks.
You must have an interview with the bank representative in HK, travelling required.
Keep in mind that if you will be generating income from your HK clients, the taxes might not be so favorable, worth checking with your tax advisor.
If you will operate an ecommerce business, i really see no reason for having a bank account. Go for a good EMI and save yourself lots of headache.

 

[banafinfodafuggiano]

Ok so can you actually open a foreign real Bank account for a HK company ? Except EMIs,
is there any REAL bank that opens Business accounts for HK companies that is located outside of Hong Kong?


My revenue accounts for over $2mil USD a year in transactions I can't just put all my money in an EMI without incuring in risks. (Wise banned people for way less revenue and for absolutely no logical reasons sometimes, just because they didn't like their business model so for me EMIs are a NO-GO and no real solid business uses only EMIs to hold their business funds)

 

[TheCryptoAnt]

Possible? Yeah, depends on BA and amount of money u come with.
Likely? Not for most, same as above.

HSBC is your best bet.

 

[Clearsky Network]

Ok so can you actually open a foreign real Bank account for a HK company ? Except EMIs,
is there any REAL bank that opens Business accounts for HK companies that is located outside of Hong Kong?


My revenue accounts for over $2mil USD a year in transactions I can't just put all my money in an EMI without incuring in risks. (Wise banned people for way less revenue and for absolutely no logical reasons sometimes, just because they didn't like their business model so for me EMIs are a NO-GO and no real solid business uses only EMIs to hold their business funds)

So go for 2 EMIs, FCA licensed with strong background. Withdraw dividends to your personal bank account.
I really see no reason why to beg a bank for an account (just my opinion)...
As for Wise, its a bad example. Wise is known for blocking accounts for no reason, its been like this for years and people still choose them because the fees are attractive.

 

[Sols]

If you're certain that a HK company is the right move for you and banking is the only remaining headache, you can try HSBC, Hang Seng, DBS, UOB, OCBC Wing Hang, and Bank of East Asia. The process may take months and will likely not be successful, unless you can demonstrate connection to HK or otherwise provide value to the bank.

In the meantime, go with EMIs/HK equivalent (MSO/SVF) that most closely aligns with your risk appetite.

Since you run an ecommerce business, make sure that your chosen payment processors can send payouts to bank accounts outside of HK. Some interpret their licensing conditions as only allowing settlements where the company is incorporated.

 

[Clank]

Currenxie and airwallex won't give you any trouble.

No need for that much hassle for a bank account.

 

[MaxFS]

BTW How often can company owner withdraw dividends in Hong Kong? Is there any specific law there?

 

[Clank]

BTW How often can company owner withdraw dividends in Hong Kong? Is there any specific law there?

As much as you want but accounting and audits will get more expensive as you need to file a special form.

 

[banafinfodafuggiano]

So go for 2 EMIs, FCA licensed with strong background. Withdraw dividends to your personal bank account.
I really see no reason why to beg a bank for an account (just my opinion)...
As for Wise, its a bad example. Wise is known for blocking accounts for no reason, its been like this for years and people still choose them because the fees are attractive.

In my country (Canada) you can only withdraw dividends once the company has paid corporate tax.
Does it also apply the same to Hong Kong companies? or you can withdraw a dividend once every few months regardless of how much profit the HK company has made?

If you're certain that a HK company is the right move for you and banking is the only remaining headache, you can try HSBC, Hang Seng, DBS, UOB, OCBC Wing Hang, and Bank of East Asia. The process may take months and will likely not be successful, unless you can demonstrate connection to HK or otherwise provide value to the bank.

In the meantime, go with EMIs/HK equivalent (MSO/SVF) that most closely aligns with your risk appetite.

Since you run an ecommerce business, make sure that your chosen payment processors can send payouts to bank accounts outside of HK. Some interpret their licensing conditions as only allowing settlements where the company is incorporated.

It seems like HK is the best option for me to reduce to the minimum my corporate taxes while keeping high industry standards.
the UAE is also as expensive as HK for company formation, and most payment gateways such as Shopify payments and EMIs do not support UAE companies.

 

[thomasparra]

In my country (Canada) you can only withdraw dividends once the company has paid corporate tax.
Does it also apply the same to Hong Kong companies? or you can withdraw a dividend once every few months regardless of how much profit the HK company has made?


It seems like HK is the best option for me to reduce to the minimum my corporate taxes while keeping high industry standards.
the UAE is also as expensive as HK for company formation, and most payment gateways such as Shopify payments and EMIs do not support UAE companies.

UAE is definitely (much) more expensive than HK, for small companies.