The Ultimate Guide to Opening a Business Bank Account in Hong Kong

With increased regulatory scrutiny and the rise of fintech, opening a business bank account in Hong Kong has evolved significantly in recent years. The requirements for setting up a business account have become more stringent, yet more flexible. You’ll still need to pass customer due diligence checks, but gone are the days of mandatory in-person meetings and reams of paperwork.

Today you have three paths to open a business account:

1. choose one of Hong Kong’s new virtual banks which provide quicker setup with less paperwork, or
2. go with a traditional bank like HSBC which offers a wider range of services but requires more documentation, or
3. don’t open a Hong Kong bank account at all but rather open a bank account offshore

Each option has its own set of pros and cons.

In this guide, we’ll explore the nuances of each approach and help you decide the most suitable path for your business banking needs in Hong Kong.

Open a Business Bank Account at a Traditional Bank

While virtual banks may be faster and put a greater focus on SMEs, nothing beats the established reputation and wider range of specialized services (especially across markets) from the traditional banks.

To their credit, the biggest traditional banks in Hong Kong like HSBC and DBS have started initiatives to facilitate online bank account opening for corporate customers. Others are coming, and it is expected that this will spread further.

Generally the process to open a business bank account at a traditional bank in Hong Kong looks like this:

1. You should first collect the required documents and submit them to the bank.

   • Corporate Identification documents of the Hong Kong company. (f.i. Certificate of incorporation and Articles of Association, Business Registration, Board resolution).
   • Corporate Identification documents of Corporate shareholders, owning more than 10% of the shares. (Certificate of incorporation and Articles of Association, Certificate of Incumbency. Organization Chart).
   • ID/Passport and address proof from directors, authorized signatories, and beneficial owners (owning more than 10% of the shares).
   • Business proof, showing that your business is real (Business Plan for the Asia region and/or last Audited financial statements).

2. Wait for the Internal approval by the bank

   • Once the bank gets all documents, they will start the internal Due Diligence and may require additional documents

3. Online meeting with the bank officer

   • Next step comes when the pre-Due Diligence is approved. The bank will then organize a call with the Directors of the company before final approval.

4. Bank account activation.

   • After the bank’s approval, the business bank account is opened, and you may use the online banking freely and easily.
   • You will commonly be asked for a deposit (from 10,000-50,000 HKD)

Open a Business Bank Account at a Virtual Bank

Virtual banks may be a better fit for SMEs and startups looking for cost-effective, convenient banking solutions. Banks like Currenxie, Statrys or Airwallex offer smart solutions to operate in Hong Kong in multi-currency accounts.

These business accounts can be opened for free, allow you to make and receive local and international payments, and integrate with major online payment gateways like Paypal, Stripe, and Amazon Pay.

The opening procedure is usually simple. You open the account online (without being in Hong Kong) and preparation of documents are easy to comply with (basically, copies of the passports of all the directors and shareholders with more than 25% shares and a brief explanation of the company’s business model)

This is a growing option as it offers all basic banking services for most companies, and it’s the fastest option, too. It typically takes between 2-7 days only to open your fintech bank account.

Open a Business Bank Account at an Offshore Bank

Sometimes your own bank in your home country can be a good alternative to opening a bank account in Hong Kong. For those cases, it will basically depend on a case-by-case basis, considering your business model as well as your financial background. Otherwise destinations like Singapore, British Virgin Islands, and Seychelles are popular offshore banking destinations. They’re all well-regulated jurisdictions with a long history of financial stability and offer a high degree of privacy and confidentiality. For each of these cases, it will basically depend on a case-by-case basis, considering your business model as well as your financial background.

Additionally, some private banks in other jurisdictions don’t require meetings, so you may also be able to open the bank account for your Hong Kong company based on certain conditions.

While choosing the right bank account is an important first step, maintaining healthy finances requires ongoing attention and expertise. At Monx, our team of accounting and tax professionals can help you manage your finances effectively. For seamless financial management and peace of mind, contact us or book a meeting with our consultants here to know more.

FAQs

How long does it take to open a corporate bank account in Hong Kong?

At a traditional bank it typically takes 4-6 weeks, while a virtual bank takes between 2-7 days.

What is the easiest bank to open a business account in Hong Kong?

Virtual banks in general, Airwallex in particular.

What are the requirements to open a business bank account in Hong Kong?

Whether you go to a traditional or virtual bank, you’ll need:

• Certificate of Incorporation
• Business Registration
• Written resolutions of the board
• HKID or passport of all directors and the ultimate beneficial owner
• Plus the bank wants to check that the company is not just trying to launder money but has economic substance.

Any difference in opening an account as a non-resident?

There’s no difference in what’s needed for non-residents to open a business bank account in Hong Kong.

What’s the best business bank account in Hong Kong?

It depends on your actual circumstances, but for many the best bank would be Airwallex. They offer low fees, great customer service, and quick opening.

Which bank account is best for a small business?

Virtual banks in general, Airwallex in particular.

What is the minimum amount to open a business bank account in Hong Kong?

0 with virtual banks, 100,000 HKD with HSBC, otherwise you pay the monthly fee.

How long does it take to open a HSBC business account?

Typically 4-6 weeks.