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Opening a Bank Account in Hong Kong

A Startup Guide for Opening a Bank Account in Hong Kong

#EntrepreneurTip: Open a separate bank account for your business.

When it comes to handling your company’s finances, this should be every entrepreneur’s first guideline, yet many businesses are still questioning – WHY?

Opening a dedicated bank account for your small business may not be required (for the time being), but doing so is a wise and ideal choice because it may provide several benefits.

We produced an entrepreneur-friendly guide on obtaining a company bank account to assist you slowly navigate the business world. You’ll discover

  • What Exactly Is a Business Bank Account?
  • The Advantages of a Business Bank Account
  • How to Select a Hong Kong Bank
  • HK Citibank as a Banking Partner
  • How to Open an Online Citibank Account

With Stephen M.S Lai & Co CPA Limited, everything is possible.

What Exactly Is a Business Bank Account?

A type of account used by commercial entrepreneurs or single proprietors to facilitate the management of their company’s income is known as Business bank accounts. Opening a bank account allows you to keep track of your financial flow, receive and issue payments, and pay personnel on time.

The Advantages of a Business Bank Account

You may be doubting what a bank account can achieve for your business. Here are five reasons why you should open one right now.

Less Tax Issues

Auditing will be simple since you will be able to immediately identify the transactions that occurred in your account and take full advantage of company tax benefits.

Professional Connections

Issuing a check in your company’s name to suppliers, clients, or workers gives you a more established appearance and makes you a respectable business partner.

Simple Finance Management

Having a separate account for business transactions makes it easier to track and manage your expenditures.

Monitor Business Development

Organized financial records enable you to track your cash flow and make required modifications to help your firm grow in the future.

Account Reputation

Your business account can help you establish your credit rating with banks and provide you with several benefits.

How to Select a Hong Kong Bank

Choosing the best financial institution for your company may be difficult and time-consuming. It’s impossible to say which platform is the ‘best.’ Depending on your preferences and needs, each might provide distinct benefits.

However, you may limit it down by taking into account the following:

Years of Expertise

This will demonstrate the bank’s skill in dealing with banking problems and demands. This also demonstrates their authority in the sector.

Accessibility

Whether you run a local or multinational business, having rapid access to your account via a branch or online banking services should allow you to complete a transaction quickly.

The Minimum Deposit

While creating an account it is one of the most crucial considerations. Various types of corporate bank accounts may have various minimum deposit types. Make sure to check it properly before opening an account.

Service charges

Additional costs may be levied, and understanding what they are and why they are levied is preferable.

Other offerings

This includes 24-hour customer service, bank relationship managers, internet banking, and so on.

HK Citibank as a Banking Partner

Hong Kong banks are gradually adjusting to the new normal brought about by the epidemic and have begun to respond to their consumers’ requirements online. However, according to Hong Kong Monetary Authority restrictions (HKMA), remote bank account opening is not currently accessible.

Citibank is now the only bank that can support remote bank account opening, however here are a few things to consider before choosing Citibank as your corporate bank:

Citibank’s remote bank account opening service is only available to firms with operations in Hong Kong and Singapore.

There are no nationality limits for shareholders or directors as it is restricted to the aforementioned locations.

Citibank only accepts firms of a specified sort. We can double-check to see if your company belongs inside the bank’s category.

Be sure to provide your application form(s) and all relevant documentation, such as business proofs, corporate records, and client information since this is a remote bank account opening.

The interview will be conducted through Zoom call by a bank representative.

How to Open an Online Citibank Account

Due to the continuous conflict with COVID-19, the area adopted limited international flights, making it difficult for global businesses to conduct business abroad, notably in the creation of bank accounts.

However, Hong Kong banks discovered a means to accommodate their customers, as follows:

Introducing the Fundamentals

Hong Kong banks such as HSBC, ICBC, Bank of China, and Citibank need applicants to fill out an online application form and submit a scanned copy of the papers with signatures attached, as well as:

A physical Hong Kong registered address

Company formation paperwork

Business Registration Certificate, certified authentic copy

Know-Your-Client (KYC) Procedure

Take notice of the lengthy and time-consuming procedure that local and foreign banks go through to correctly screen applications and determine the source of cash for its clients.

You must prepare the following to increase your chances of approval:

A personal KYC certificate

A certified genuine copy of all directors, beneficial owners, and shareholders who own 10% or more of the company’s shares

Bank references

Time Required for Processing

Due to the current global state, it is best to keep in mind that it will take 8 weeks for banks to confirm an appointment with their applicants.

With Stephen M.S Lai & Co CPA Limited, everything is possible.

With so many financial institutions and platforms on the market offering various perks, it might be difficult to narrow down your options and determine what is best for your company. Stephen M.S Lai & Co CPA Limited gives its assistance to entrepreneurs in correctly selecting their future bank partners.

Having trouble locating a Hong Kong bank partner? Take our 3-minute Bank Account Likelihood Test to choose the best bank for your company. You may also contact our dependable specialists for detailed help. Simply contact us at [email protected] or call (+852) 27858778 at any time.