How to Choose Your Bank in Hong Kong?
Planned out all the important company details, such as preparing the company, selecting the right bank that matches your business’ requirements? After registering the business, you need to open a bank account in Hong Kong to start operating your business activities. It is just like any business that requires a bank account to operate the finances; Hong Kong companies also need a business bank account to save all the profits and revenues.
Always remember that the process and documents required for opening a bank account should not be overlooked. Therefore, search for the bank account that suits your business’s requirements to operate the Hong Kong business. This article will help you gather all the important information about Hong Kong banks and top-notch banking services that you can opt for your business. Keep on reading!
Choosing a Bank in Hong Kong
Hong Kong is a hub for most financial institutions and the world’s biggest banking operations. Because of its financial services, Hong Kong stands out on the top among other countries. In fact, Hong Kong is worth considering as it is the best-reputed destination for foreign investors and expats.
Why choose Hong Kong banking service?
Hong Kong has been crowned as the ”heart” of the worldwide financial industry in the business marketplace. When applying to opening a bank account from an offshore bank, Hong Kong is typically on the top of the choice list.
Hong Kong follows a pro-business environment with friendly tax schemes that motivate entrepreneurs to set up their business. The banking system in Hong Kong is relatively sophisticated and follows a simple and straightforward procedure to open up a bank account.
In fact, Hong Kong’s three-tier banking system separates this place from other parts of the world. A wide pool of international banks from different parts of the world offers various opportunities to the business founder to open a bank account.
Moreover, Hong Kong is well equipped with an advanced banking system. The banking infrastructure in Hong Kong is quite flexible, and English-speaking staff members in most of the Hong Kong banks facilitate every step in the communication process with a non-resident who desired to open a bank account. As the process of opening a HK bank account for foreigners may vary from bank to bank, every entrepreneur is advised to gather all the important information about the selected banks.
Advantages of globally-recognized bank institutions in HK
There are many significant benefits to having a a business bank account in Hong Kong. If you are stressing out the advantages or the reasons to choose HK banking services, there is something good behind it.
However, not all banks share the same benefits for the business founders because of their different services and offerings. Below shared are the advantages of most of the HK banks that you need to know.
- Lower Minimum Bank Account Balance – The minimum bank account balance to open the account is as low as HKD 10,000 with a monthly fee of HKD 100. However, the requirements or policies for different HK banks vary from each other.
- No Tax on Interest – HK banks don’t impose any tax on the business founders’ earned interest. After you have set up a Hong Kong business bank account is no tax on interest earned in the bank account.
- Convenient access to a bank account – HK banks also offer internet banking and phone banking services to entrepreneurs. Now, business founders can easily access the offshore bank account anytime, anywhere, without any hassle. This facility has spurred up the companies’ benefits and facilities to view their account statements and transaction advice via internet banking.
- RMB Trade Settlement – HK banks have also permitted people to handle RMB agreement for cross-border trading with Mainland China. The RMB trade settlement permits business founders to trade with RMB’s designated enterprises in Mainland China. Now, there will be a reduction in the cost of buying and selling RMB while giving the option to receive and keep the RMB trade receipts offshore.
- Free Capital Transfer – Hong Kong is driven by free markets and free trade policies with no foreign exchange controls. There is no restriction on capital transfer internationally, including the profit of transferring dividends to your own country.
- Sound Banking System – Hong Kong is known for following high-quality banking industry regulations. The account holder’s identity and their transaction information are also subjected to a very high standard of confidentiality. Therefore, your bank account data is saved in the right hands once you set up a business bank account in Hong Kong.
Which bank in Hong Kong should you choose?
Before choosing the right Hong Kong bank for your business, there are certain parameters that you need to take into account. You have to check the minimum balance requirements, lower deposits rate, high-end banking services, and other facilities to operate your business smoothly.
In fact, business ventures should also consider the due diligence requirements for the selected bank account. There are certain certified copies of the company’s documents that need to be submitted to start the process of opening a bank account.
The requirements for opening an HK bank account differs from bank to bank. Therefore, business ventures should do a thorough examination of your bank’s required documents before applying.
Major Hong Kong Banks
Hong Kong is crowned for being the home of the majority of the world’s biggest banking operations. Here are the top best banks in Hong Kong that you think of:
DBS Hong Kong
The first bank you should consider when applying for a business bank account in Hong Kong is the DBS bank. The bank headquarters is located in Singapore, but it has its presence in approximately 18 countries globally. This bank is crowned with the awards, ”World’s Best Bank” by Euromoney” and “Best Bank in the World” by Global Finance, and so forth. DBS Hong Kong is the most suitable bank for both small and medium-sized enterprises (SMEs).
This bank has also launched various campaigns for small-sized business ventures such as DBS BusinessClass to Hong Kong SMEs and startups, loan application schemes, credit checks for financing requirements in urgent cases, and online models for SME academy series.
When the outbreak of COVID-19 affected businesses worldwide, DBS bank offered various relief practices for SMEs. In fact, prominent measures have been adopted to open a bank account remotely in order to curb the infection from spreading. Moreover, the video conferencing options have been introduced to open the HK bank account easier and conveniently access the bank account.
Another world’s biggest financial institution, business ventures can choose to open their business bank account in Hong Kong is HSBC. This bank offers an extensive range of services such as wealth and personal banking, commercial banking, and global banking in more than 60 nations and regions worldwide. HSBC bank has secured the fifth rank as the global collaborator of equity capital markets transactions in Hong Kong.
The reputation of HSBC is well-attached with its top-notch banking facilities and offerings. This bank is the best option for high-net-worth people to open a business account in Hong Kong. In fact, the initial deposit for this bank is around HKD 50,000, which is quite higher than that of many other banks in Hong Kong.
Looking for a bank for high-end digital banking services and offerings? It would help if you headed towards the Standard Chartered Hong Kong bank account. Being established in Hong Kong in 2004, Standard Chartered has attracted many business ventures around the world in opening business bank accounts. This bank is titled with third note-issuing banks in HK along with BOCHK and HSBC.
This bank has won a place in the hearts of business founders as the most reliable and trustworthy bank in terms of digital marketing because of its sustainability and advanced services.
The bank’s digital active base has climbed up by 56% from 47% average growth in Hong Kong. Standard Chartered Bank has also started an initiative to allow customers to open bank accounts remotely and withdraw cash with QR code application.
Hang Seng Bank
The second-largest bank in Hong Kong is the Hang Seng Bank, which has attracted many business founders to open up business accounts in its bank. This is one of HSBC’s prominent members focuses on local markets of HK business founders. This bank offers two types of business accounts to the founders.
As per the business requirements and needs, you can choose from two types of business accounts- the UpBiz Integrated Account and Integrated Business Solutions Account during the application process. If you are looking for a local business bank, then Hang Seng would be your best choice.
Bank of China Hong Kong
Bank of China is one of three commercial banks in Hong Kong which issues HK dollar banknotes by the HKMA. This banking group has been covering the most significant network of HK bank branches combined by other major nine banks. The Bank of China offers services like investment, wealth management products, and services, and finance.
This bank has maintained its good standing in developing social and corporate responsibility from the beginning. In fact, this bank has also been awarded the best bank for CSR in 2019 because of its reliable efforts and services during the COVID-19 outbreak.
Some of the key prompt reactions include remote-working approach, support for personal and commercial customers, principal-mortgage moratorium, financial support practices like fee waivers, new loan modal for SMEs, and donations to local NGOs.
OCBC Wing Hang
And last but not least, a bank that business ventures can choose for opening a business bank account in Hong Kong is OCBC Wing Hang. Though this is a Singaporean bank, it also has a branch in Hong Kong. This bank offers numerous benefits for creating a business bank account for business ventures.
The initial deposit for this bank is HKD 50,000, along with the maintenance fee of HKD 500 per month. The approval rate for this bank is quite higher than other banks. It takes approximately 15 to 20 working days to open up the business bank account.
Choose an Overseas or Offshore Bank If you can’t Visit Hong Kong
If you couldn’t visit Hong Kong because of the outbreak of COVID-19, an offshore bank account would be your best choice. Many banks are offering business founders the option to apply for business bank accounts remotely and video conferencing without visiting the bank branch. In fact, banks are also offering digital services, so now customers can access their accounts anywhere, anytime, without any hassle. With an international bank account, you can enjoy the international diversification strategy’s benefits in your business transactions.
It will act as a shield from capital control and protect you from any political and economic risks. It will be much safer as having a more conservative management system.
So, if you have tried all the ways to set up a Hong Kong account and still need it for your business, apply for an offshore or overseas business bank account.
Advantages of international bank account opening
If you want to enjoy the maximum benefits of opening a business bank account and running a business in Hong Kong, you should opt for an offshore or overseas bank account. This account offers an array of benefits to business ventures. Below shared are some of them:
- No need to visit in-person and online process to open up the business bank account
- High approval rate
- Multilingual Support team
- Credit and Debit cards are supported with various currencies
- An account with multi-currencies without any high conversion fees.
- International exclusive investment possibilities & discounted payments
- Online banking for uninterrupted access.
Major overseas or offshore banks we work with
The application for the bank account is addressed through the company service provider. It helps to increase the approval rate of opening a bank account in Hong Kong. However, it doesn’t guarantee that the bank officers will approve your file. Different banks have their own rules and policies.
Startupr, as your company service provider, will assist you. And we will help you to complete and submit all the required documents to support the banks with the requests. Below shared are some of the major banks we work with:
|Time to Open Bank Account^
|Fees & Charges
|CIM Banque – Switzerland
|15-20 working days
Fees and commissions
|ABC Banking – Mauritius
|15-20 working days
|OCBC – Singapore***
|15-20 working days
|DBS – Singapore***
|SGD/USD 250,000 **
|1-2 weeks after meeting
All fees are for reference only and remain subject to change.
* TT charges comprise of 3 components – Handling Commission, Cable Charge and Commission in Lieu.
** Application Fee: Minimum SGD 2,500, additional $500 per corporate layer. Average Minimum Balance to Maintain: SGD 250,000. Fall Below
monthly Fee: SGD 250.
***Personal visit required
# different sums of initial deposits and maintenance deposits are required for each one currency account.
^ Upon completed compliance procedures
Update on October 2020: CIM Banque has changed their compliance requirements, please contact us at Startupr for more details. We can further assist you if you’re interested in opening a bank account in Singapore.
Need Any Assistance in applying for Bank Accounts in Hong Kong?
This article is all about the reasons for selecting high-end Hong Kong banking services and top selected bank accounts you can choose to open your business bank account with in Hong Kong. If you find difficulty in visiting the HK branch, you can also opt for offshore or overseas banks.
As a company service provider, Startupr will help you in incorporating and registering your business. We will also help you to open the bank account in Hong Kong. We can help you choose the right bank based on your needs and help with the process of account opening in the same bank. For information about our services, contact us now!