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HONG KONG BUSINESS BANK ACCOUNT OPENING

Hong Kong business bank account has always been an important issue for a lot of people because Far East, especially China is among the world’s biggest economies and Hong Kong in China is a big economy center and people are migrating to there to start their business or maintaining it. Being located in China which is the world’s most populated country, Hong Kong has its own administration, that is, it can be said that it is an autonomous region inside the borders of People’s Republic of China. The country is a big economy and an important export and import source for almost all the countries around the world. Despite being a part of the country, Hong Kong has its own economic policy. It follows an independent taxation of China, namely, it has a low taxation policy. Hong Kong is considered to be having the most simple and transparent taxation system in the world. China uses Chinese Yuan while Hong Kong uses Hong Kong Dollar as currency. The currency is issued legally by some of the most important international banks. The economy is highly depending on the international import and export.

What Is a Business Bank Account?

In Hong Kong there is no banking system that has legally been accepted but there are of course a bunch of banks, but what is a bank and why do we need them? A bank is an institution that we need for our financial purpose like money withdrawal, keeping our money safe or loan. We need to have a legal account in a bank to meet these needs via a bank. There are different types of bank accounts like personal bank account and business bank account. Personal bank account is used just by one person. On the other hand, a business bank account is specifically opened for business transactions not to be engaged in personal banking operations. That business bank account helps a business owner to clearly and transparently see the incomes and outcomes of his/her own business.

How To Open a Business Bank Account in Hong Kong?

As it was mentioned before, Hong Kong is a big economy and has a low taxation policy which is why most entrepreneurs want to know about the Hong Kong business bank account opening process. It was an easier process before because there weren’t many frauds identified, but for today’s world it can be said that business bank account opening in Hong Kong has become a little bit harder for security precautions and it is totally fair. To apply for Hong Kong business bank account opening process a person should hand in some documents. These documents are the proof of identity of that person (the ID of director, Hong Kong ID or a valid passport), a document that proves you are a resident in Hong Kong such as a rental lease or a property license under the name of that certain person, the documents showing formation of the person’s business, like certificate of incorporation, business registration, and M&A. If the company is over six months, the person will also need to proof his/her business for Hong Kong business bank account opening, for this the person should hand in some other documents such as the payments of the clients or contracts. If the person is starting a new business, he/she has to show a detailed plan of the business. Opening and maintaining a business bank account in Hong Kong costs some money. At first, the bank will take an initial deposit changing from HK$5000 to HK$50000. Some banks may charge the owner of the account with a processing fee between HK$400 to HK$10000. Note that, you don’t have to be a resident in Hong Kong or your business doesn’t have to be centered in Hong Kong for Hong Kong business bank account opening, it is totally legal but banks may not want to cooperate.

Which Bank to Choose for a Business Bank Account in Hong Kong?

When doing the process of Hong Kong business bank account opening, a person has a range of opportunity to choose from. That’s why the person may ask “which is the best bank account to open?” For business bank accounts we can put HSBC in the first place because it has appealing services and investment opportunities and moreover it is an international bank. Standard Chartered is another important bank for business bank account because it is the best for digital using and DBS Bank is very attractive for small or medium sized businesses.

Does a Sole Proprietor Need a Business Bank Account in Hong Kong?

A person who starts his/her own business, namely a sole proprietor, of course, needs a bank account but he/she may be confused about if there is a need for business bank account for a sole proprietor. Because of the fact that a sole proprietor does not legally corporate with any limited companies and is his/her own boss, he/she doesn’t need a business bank account, the person can do his/her banking processes with a personal bank account.


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