Opening a Business Bank Account in Hong Kong: A Comprehensive Guide
Opening a business bank account is a crucial step to manage your finances, legitimize your business and facilitate business transactions. In this blog post, we will guide you through the process of opening a bank account in Hong Kong, whether you choose a traditional bank or opt for an online platform to provide your "bank account" details.
How do online bank accounts and traditional banks differ? See our article for details.
opening a Traditional Bank account
Traditional banks in Hong Kong include institutions like HSBC, Standard Chartered and DBS. When it comes to opening a bank account with traditional banks, here are the steps involved:
Step 1: Contacting a Bank
If you have existing relationships with a bank, reach out to them and inquire about their team in Hong Kong. They may be able to refer you to a "Relationship Manager" who can assist you with the account opening process. In case you don't have any existing relationships, you can start the process online.
Step 2: Providing "KYC" Info
"KYC" stands for "Know Your Customer." To complete KYC requirements, you'll need to provide information about your company, shareholders, and ultimate beneficial owners. Your suppliers, flow and volume of transactions and management is all helpful and relevant information.
The required documents may include:
General information on your company and shareholders
Certificates of incorporation
Business registration certificates
Organisational charts
Passports or HKID cards
Proofs of Address
Some documents may need to be certified as true copies by a CPA, lawyer, or similar professional.
Additionally, you may be asked to provide business information such as:
Links to your website
Copy of a brochure
Customer and supplier contracts
Records with other banks
The more information you can provide, the better.
Step 3: Meeting with the Bank
If the bank is interested in onboarding you as a customer, they may request a meeting to sign account opening forms. This meeting typically takes place in person, especially when foreign owners and directors are involved.
Step 4: Waiting for Account Opening
After completing the necessary steps, your bank account will be opened. The timeline for account opening can vary but is often around 8 weeks or more. However, if you're already in Hong Kong and your business is relatively simple, it may take less time.
Opening an Online "Bank Account"
Alternatively, you can consider opening an online "bank account" in Hong Kong. These companies differ from traditional banks in that they don’t have a physical presence.
Examples of these accounts include AirWallex and Wise.
It’s important to note that while some banking functions may be limited, such as receiving cheques and cash, they typically integrate better with other online platforms such as Shopify and Amazon.
The account opening process is typically faster and involves the following steps:
Step 1: Making an Account Online
Choose a service provider that offers online banking services. Create an account on their website or platform. This option offers convenience and flexibility, eliminating the need for in-person meetings.
Step 2: Uploading "KYC" Info
Similar to traditional banks, you will be required to provide basic company information. However, unlike traditional banks, certification of documents is usually not necessary. For business information, a link to your website can be sufficient.
Step 3: Waiting 3-5 Business Days
After submitting your "KYC" information, you'll need to wait for the service provider to review and process your application. The account opening processing time typically ranges from 3–5 business days, offering a faster account opening option.
Why Was My Account Application Declined?
It's essential to note that banks are not obligated to provide a reason if they refuse to open an account for you. Disclosing the reason can be considered "tipping off," which is prohibited. Having a service provider by your side who knows how to present your application materials and can vouch for you can be beneficial, especially if you choose to go with a traditional bank.
Use an Advisor For Support and Assistance When Opening an Account
In conclusion, opening a bank account in Hong Kong for your SME has two clear paths. Traditional banks offer a more comprehensive and thorough review process, while online "bank accounts" provide convenience and faster account opening.
At Shepherd Asia, we offer personalised assistance and support throughout the account opening process. Contact us today to explore your options and ensure a seamless experience for your SME banking in Hong Kong.
Which business bank account is right for you?
