HK Insider’s Playbook : Your Ultimate Guide to Smooth Company Setup & Next-Gen Banking

Hong Kong is recognized as one of the top worldwide urban communities to start a business. A straightforward, secured, astounding business climate and low-tax collection framework — these factors help companies to grow better in this city.

If you want to start your business in a secure and stable financial point, Hong Kong Company Incorporation is a great alternative.

Let us show you the advantages of setting up your business in Hong Kong PLUS an overview of how you can open your bank account in this city.

You will find in this blog

• Why Choose Hong Kong as Your Start-up Gateway
• How to Build Your Empire in Hong Kong
• Safe, Secured, & Competitive Banking Service
• A Detailed Outline of Online Bank Account Opening
• Make It Easy with AsiaBC

Hong Kong — viewed as the best spot for investors and entrepreneurs from around the globe, but let us see the significant advantages why this city stays priceless and an outstanding location to set up a business

I. Prominent Business Spot

It is probably the most impressive factor for entrepreneurs to set up their business in Hong Kong since it is in the heart of Asia. It gives them easy access to various exchange points, especially to Mainland China.

II. Incorporation Made Easy

Another factor that makes Company Registration Hong Kong outstanding to entrepreneurs is how direct and easy the enrollment and joining measures are. In around 3 to 5 days, you can already start your company.

III. Appealing Tax Regime

A low-tax collection system is one of the main concerns every company has, which puts Hong Kong at an advantage. The city follows a regional tax system suitable for a business (8.25% or 16.5% depending on the assessable profits); the foreign income generated by a company will not be liable to charges. In addition to that, there is no retention charge on profits or interest, no business charges, no capital additions expense, and no inheritance charge.

IV. Dynamic & Motivated Manpower

Hong Kong has a pool of skilled and knowledgeable labor force who are versatile and well-informed with developing the industry culture.

I. Learn the Basic HK Business Structure

When starting a business in Hong Kong, the most important thing you need to consider is the type of business you are setting up. It will help you manage the tax regulation and its business approaches. HK has four different business structures you can choose from : Limited Liability Company, Sole Proprietorship, Partnership, and Foreign Company Office.

The Limited Liability Company is the most common business structure in Hong Kong. It has a lesser risk as this type of company protects its assets from risks and liabilities.

II. Creating Your Image in HK

Understanding the type of business you want to set up in Hong Kong will help you focus on different factors contributing to the company’s development. To further build your reputation in the region, you must choose a company name that best represents your business, and it can be in Chinese, English, or both, as long as another company does not use it. Ensure to register it with the public authority to give you protection from any business danger and liabilities.

III. Finance Your Business Venture

Once you successfully set up your company, it is time to open a business bank account to fund your business needs. Remember to present your company incorporation documents, certified true copy of your Business Registration Certificate, and prepare all supporting documents such as audited financial statements, business plans, contracts or agreements, and invoices.

I. A Quick Overview

Hong Kong has more than 71 global banks and a FOREX trade amounting to 274.6 billion USD every day. It is an impressive reason to be at the focal point of a worldwide monetary center.

II. Moving Away from the Traditional Method

Because of internet and digitization exposure, most companies opted out of traditional methods that prompted numerous banks in Hong Kong to do virtual banking.

III. What are Virtual Bank & FinTech Accounts?

Virtual Banking digitalizes banking services and offers them through the internet to cater to their client’s needs both locally and internationally. Their products and services are all performed online, making them accessible to all users anytime, anywhere. Note that virtual banks differ significantly from traditional banking since the traditional ones have on-site branches and staff that customers can interact with.

On the other hand, FinTech is a banking alternative that provides business accounts for entrepreneurs getting a multi-currency transaction platform quickly after their companies are set up. This service allows business owners to open an account remotely and initiate global money transfers at any moment. But it is important to note that these service providers also don’t have any physical branches.

While both platforms cater to every banking transaction and don’t have any physical branches present, note that the two are still distinctly different from one another. While FinTechs are popular these days, it is not a bank per se, although all of their accounts are powered by custodian partner banks such as DBS or Standard Chartered in HK. On the other hand, virtual banks are indeed banks and regulated by the Hong Kong Monetary Authority (HKMA) like traditional banks.

And since the outbreak of COVID-19, which hinders foreign business owners from traveling, they find virtual banking or FinTech money transfer beneficial. They can open a business account without being physically present and have round-the-clock access to their finances from anywhere in the world.

IV. What is an Offshore Bank Account?

An offshore or international bank account is opened in a different jurisdiction from where the company is incorporated. Business owners can operate through multiple currencies without high fees, obtain credit and debit cards linked to various banknotes, and enjoy particular investment opportunities and discounted international payments.

I. Prepare & Submit the Essentials

Fill out their online application form and submit a scanned or PDF version of the documents required attached with your signatures. An officer from the bank will schedule a video call interview to verify your application.

For banks like HSBC, ICBC, Bank of China, Citibank, and other HK banks, you need to submit the following :

• A physical registered address in Hong Kong. If it is on a lease, submit the office rental agreement in Hong Kong’s company name.
• Business operations must be involved in a business-related to China or Asia.
• The company director should preferably have an HK ID card or an HK work visa.
• Company incorporation documents
• A certified true copy of the Business Registration Certificate; and 
• Supporting documents such as audited financial statements, business plans, contracts or agreements, and invoices.

If the applications on the following banks are rejected, you can still arrange an appointment with banks such as Hang Seng, OCBC, Wing Heng, or Standard Chartered.
Note that opening an offshore bank account can be difficult as banks need to comply with the Know-Your-Client (KYC) and due diligence process.

II. What is Know-Your-Client (KYC) Process & What Do I Need to Present?

Know-Your-Client or known as KYC is a process banks follow to evaluate an application, and to increase the chance of application approval, it is best to present the following :

• A KYC personal certificate
• A certified true copy of passports of all directors, beneficial owners, and shareholders who own 10% or above shares in the company
• Bank references

III. How Long Does It Take To Open a Bank Account in Hong Kong?

It takes about 7-20 working days to have a confirmed appointment with the banks. Business owners, beneficial owners, shareholders, and directors must be physically present in Hong Kong. However, due to COVID-19, some banks are using an online application method.

AsiaBC has partnered with more than 30 local and overseas banks and can facilitate online corporate bank account opening. We have also incorporated thousands of companies over the years with high customer satisfaction.

If this article helped you understand the nitty-gritty details of company formation and corporate bank account opening — it is time for you to take the leap! AsiaBC is here to help. Feel free to email our consultants at business@asiabc.com.hk or WhatsApp us at +852 6547 1314 for detailed advice. We will be more than happy to guide you in the right path.

We want to hear your dreams and turn them into reality. Let us set it in motion together!