Your Startup Guide in Hong Kong Bank Account Opening

Contributed by AsiaBC | 22 April 2022

#EntrepreneurTip : Create a separate bank account for your business.

This has to be every entrepreneur’s rule of thumb when managing their business finances, but many startups are still wondering — WHY?

Opening a designated bank account for your small business might not be a requirement (for now) but having one at this point is a smart and ideal move since it can offer many benefits.

To help you slowly navigate the business world, we prepared an entrepreneur-friendly guide in business bank account opening. Here, you’ll learn

  • What Is a Business Bank Account
  • Benefits of a Business Bank Account
  • How to Choose Your Hong Kong Bank
  • Hong Kong Citibank as Your Bank Partner
  • How to Open a Citibank Bank Account Online
  • Make Things Possible with AsiaBC

What Is a Business Bank Account

Business Bank Accounts are a type of account used by commercial entrepreneurs or sole traders to simplify managing the profits acquired by their business. Opening a bank account lets you monitor the cash flow, receive and issue payments, and pay payroll to employees smoothly.

Benefits of a Business Bank Account

You’re probably wondering what good a bank account can do to your business. Here are your 5 reasons why you should open one today.

Less Tax Problem
Auditing won’t be a problem as you can quickly identify the transactions that happened to your account and take full advantage of business tax deductions.

Professional Relationships
Issuing a check with your business name to your suppliers, clients or paying out to your employees gives you a more established look and a credible business partner.

Easier Finance Management
Having a designated account for your business transactions makes it simpler to track your expenses and oversee your spending.

Track Business Progress
Organized financial records allow you to monitor your cash flow and make necessary adjustments that can help improve your business in the future.

Account Credibility
Your business account can help you build up your credit rating with banks and offer you different benefits, such as business loans, company credit cards, etc.

How to Choose Your Hong Kong Bank

Picking the most suitable financial institution for your business can be confusing and daunting. There’s no telling which platform is the ‘best.’ All can offer different benefits depending on your preference and needs.

But you can narrow it down by considering the following :

Years of Experience
This will show the bank’s expertise in handling banking concerns and needs. This also shows their credibility in the field.

Accessibility
Whether you have a local or international business, having easy access to your account through a branch or online banking services should allow you to have a quick transaction.

Minimum Deposit
One of the most important factors to consider when opening an account. Different types of business bank accounts might have different types of minimum deposits. Remember to check them before opening.

Service fees
Additional charges might occur and knowing what they are and for beforehand is best.

Other services
This includes 24/7 customer support, bank relationship managers, online banking, etc.

Hong Kong Citibank as Your Bank Partner

Hong Kong banks are slowly adapting to the new normal that the pandemic has brought and started to cater to their clients’ needs online. However, remote bank account opening is not yet available due to the strict regulations of the Hong Kong Monetary Authority (HKMA).

As of the moment, Citibank is the only bank that can accommodate remote bank account opening, but here are a few pointers to consider when you choose Citibank as your business bank :

  • Citibank’s remote bank account opening is only applicable to Hong Kong and Singapore operation-based companies.
  • While it is limited to the said regions, there are no nationality restrictions for the shareholders and/or directors.
  • Citibank only accepts companies with specific business nature. We can double-check if your business falls into the bank’s category.
  • Since it will be a remote bank account opening, ensure to submit your completely filled out application form/s and the required documents such as business proofs, company documents, and client information.
  • The bank representative will conduct their interview via Zoom call.

How to Open a Citibank Bank Account Online

With the ongoing battle with COVID-19, the region implemented limited international flights, making it difficult for global entrepreneurs to do their business overseas, particularly in bank account opening.

But Hong Kong banks found a way to accommodate their clients, and here’s how :

Present the Basics
Hong Kong banks like HSBC, ICBC, Bank of China, and Citibank requires their applicants to fill out their online application form and submit a scanned copy of the documents with the signatures attached and :

  • A physical registered address in Hong Kong
  • Company incorporation documents
  • Certified true copy of Business Registration Certificate

The Know-Your-Client (KYC) Process
Take note of the tedious and lengthy process that local and international banks comply with to properly filter applications and establish their clients’ source of funds.

For a higher chance of approval, you must prepare 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

Processing Time
It is best to keep in mind that it will take 8 weeks before banks can confirm an appointment with their applicants due to the current global state.

Make Things Possible with AsiaBC

It can be challenging to narrow down your choices and choose what suits your business with different financial institutions and platforms in the market that offer various benefits. AsiaBC extends our helping hands to guide entrepreneurs in selecting their future bank partners properly.

Having a difficult time finding your Hong Kong bank partner? Take our 3-minutes Bank Account Likelihood Test and discover the best-suited bank for your business. You can also reach out to our reliable consultants and get detailed advice. Simply email us at business@asiabc.com.hk or WhatsApp us at +852 6547 1314 anytime.

Tags: 銀行開戶準則银行开户准则銀行戶口银行户口
銀行開戶银行开户

YOU MAY ALSO LIKE

asiabc-blog-10-tips-about-profits-tax-savings

10 Tips to Wise HK Company up about Profits Tax Calculation & Savings

Every April, it's time to file the Profits Tax return in Hong Kong.

3 Direct Taxes in HK & Why Are They Attractive to Tax-Savvy Startups

Every business owner's dream is for their brand to get recognized globally, and it takes guts to take that leap of faith, but the outcome is always rewarding when you’ve picked the right jurisdiction to start.

Your Quick Guide to Easy Company Setup & Guaranteed Bank Account in HK

Hong Kong is recognized as one of the top worldwide urban communities to start a business.