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Why Your Business Account Opening In HK Is Rejected

Why Your Business Account Opening In HK Is Rejected?

Undoubtedly, Hong Kong is an ideal place for business-minded people. It is why so many moves towards this area for startups. A bank account is needed for money transactions to start a business. As in all the countries, Hong Kong residents also apply for business account openings, but many fail.

You must also be the one that is why you landed here; stay here; this article will provide you with enough information but the reasons for account rejection from the bank and what is next to do? You will also get tips to make your account opening process successful, so let’s head toward the content.

Why did your bank account get rejected?

Opening a corporate bank account is essential to list items before a business startup. It provides the local identity to your business and enables you to receive and transfer money to employees. 

Many locals and foreigners apply for the account opening, and also opening a bank account for the startups is a one-day working procedure, but what if you get rejected by the bank? Then it could be challenging to get selected for account creation. 

So, you must be wondering what the reasons for rejection are?

Reasons for rejection;

Opening the account is the requirement for business setups, but if it is rejected, there might be other reasons for its failure. So, they may include;

  • Many Hong Kong banks require the business owner to fulfill the ‘know your client policy,’ but their profile fails to fulfill the policy, so they got rejected.
  • Hong Kong banks enforced the applicant for some extra requirements like information about the backgrounds of business partners, business contracts, business addresses, and many more. It could also be the reason for rejection.
  • Providing information about business contracts and business turnovers is difficult for startups as they have no such background; that is why they got rejected from account creation.
  • Many Hong Kong banks avoid creating accounts for business activities due to money laundering cases as it is now very common globally so that it might be risky for the banks as two banks of Hong Kong, HSBC and standard chartered bank, are found of involved in money laundering cases as reported by us federal beauro of investigation. So this can be the reason for account rejection.

What to-do list if your account got rejected from the bank?

If you are starting a business as a startup in Hong Kong and you failed to achieve the public identity of your business. As mentioned earlier, there could be many reasons, but what to do next? Here are some tips that could help to get your way;

Be actual;

If you set your mind to starting a business in Hong Kong, you must keep it in mind to be real. It might be challenging for you to be acceptable as a startup. But you must show actual documents and papers as proof to them of your business.

Firstly, check out the bank’s requirements for account opening and then attach the appropriate real documents required for bank creation.

Almost all the banks follow to know your client policy. So they meet with the applicants and ask them several questions about their business setups to check if there’s any money laundering activity. 

So prepare yourself well to answer their questions but be actual and real. It is the first tip that you should follow for successful account creation.

Be consistent in your way;

This is the must-to-follow tip as many business minds encounter hardships on their way, so the same will happen to you. It would help if you had to prepare yourself for better by encountering the hard ways to make you fly higher.

Applying for account creation is the primary thing to start the business. Apply according to the bank’s requirements. If you got failed from one bank in account creation, go for another, and even multiple probably, you will be selected by any one of them.

Be positive;

Creating a bank account as a startup might be challenging, but it will not remain the same. Grow your business. You will overcome it one day. So stay positive while achieving business success.

Consider contacting to Hong Kong regulatory body;

If you are unfairly treated in the banks, even following all the appropriate requirements, we recommend the entrepreneurs must consider contacting to regulatory bodies of Hong Kong.

Complain against the bank;

There is a last option to follow if you are tired of applying and rejecting banks even following their requirements. You should complain about the file against the banks. Still, if there is no follow-up, go to the Hong Kong monetary authority, and complain a complaint form against the bank.

Conclusion;

Opening the account may be challenging for the new entrepreneurs as there are many rejections from the banks, and banks do not allow them to create a business account. The reasons and solutions to the problem are briefly explained above. We hope so it will help you find your way.