Opening a Business Bank Account in Hongkong

Strong anti-money launching measures:
Due to the increasing incidents of fraud within multinational banks, the Hong Kong Monetary Authority (HKMA) has taken significant steps to enhance anti-money laundering measures for banks. Businesses are now subject to more rigorous compliance checks when opening and utilizing bank accounts in Hong Kong, ensuring stronger methods against illicit financial activities.

Huge due diligence cost from new businesses:
Traditional banks face challenges in managing the due diligence costs associated with innovative businesses that develop new business models or create new products. As a result, banks tend to be cautious and may reject business account applications from such companies, as allocating significant resources for extensive background checks is not feasible for them.

Let Hongda takes care of the hurdles for you so that you will only need to take a rest and wait for the good news!

What Are the Advantages of Opening a Bank Account in Hong Kong?

While opening a bank account in Hong Kong may present certain challenges, the benefits still outweigh these hurdles by a considerable margin:

No restrictions on foreign exchange control and free transfer of funds (You can read more about the foreign exchange control in the Chinese mainland in our blog).
Convenient settlement of international trades.
Exemption from income tax, resulting in higher actual revenues on deposits.
Free currency conversion services.
Easy day-to-day account operations and online banking transactions.
Convenient access to trade financing from international banks.

Which Bank Is the Best Choice for My Needs?

If you are currently banking with a large international bank in your home country, it is advisable to consider opening an account with the same institution in Hong Kong for familiarity and convenience. However, if you are seeking to open your first international bank account in Hong Kong, we are pleased to inform you that Hongda has established partnerships with various banks in the region. We are delighted to offer guidance on selecting the bank that best suits your specific requirements. Please book a free meeting for more information.

HSBC
With a significant presence in Hong Kong and operations spanning 67 countries, HSBC stands as one of the largest international banks. Non-residents looking for a suitable banking option may find HSBC's Hong Kong integrated bank account highly appealing. This comprehensive account grants access to a diverse range of products, services, and benefits. These include credit cards, insurance offerings, deposits, investments, and foreign currency exchange facilities.

Standard Chartered
Standard Chartered Bank, known for its global presence, offers expats and new arrivals a convenient banking option. Their Integrated Deposits Account allows you to efficiently manage both your current and savings accounts from a single platform. Additionally, this account provides access to a comprehensive selection of foreign currencies. However, please note that to open this account, you will be required to possess an HK ID card.

Citibank
Citibank provides a hassle-free account opening process for individuals residing overseas. They offer the convenience of opening a checking or savings account prior to your arrival in Hong Kong. Furthermore, Citibank will assist in scheduling an appointment at a local branch upon your arrival in the city. This streamlined approach ensures a smooth banking experience with Citibank in Hong Kong.

Hang Seng
Hang Seng, being a part of the HSBC group, provides similar rates and services to its customers. With approximately 220 branches worldwide, Hang Seng offers a comprehensive selection of prestige and wealth management services. Additionally, they provide a practical Daily Banking account that fulfills all the requirements of an everyday current account. This account ensures easy access to credit facilities whenever needed.

Bank Of China
If you frequently engage in transactions with the Chinese mainland, the Bank of China (BOC) is an excellent option to consider. They provide top-notch services specifically tailored for those seeking a Chinese yuan (RMB) account. However, if you primarily require everyday banking services, the Bank of China also offers a straightforward Current Account. While it offers basic features such as branch banking, monthly statements, and complimentary checkbooks, it serves as a reliable starting point for your banking needs.

What is the process of opening a bank account in Hong Kong?

The documents required for setting up a Hong Kong bank account:

In order to successfully open a bank account in Hong Kong, it is essential to gather the following documents. Please note that additional requirements may vary based on each bank's specific criteria:

A completed bank account opening form with authorized signatures.
Certified copies of the company's Certificate of Incorporation and Articles of Association issued by the Companies Registry. (To register your Hong Kong company, please visit our Hong Kong company registration page).
Board documents approving the opening of the bank account in Hong Kong.
Business plan or audited financial statements.
Official Business Registration Certificate issued by the Inland Revenue Department.
Address proof, which can include a passport, driving license, bank statements, and utility bills dated within the past two months.
Valid visa or entry permit.
A declaration providing details of principal shareholders and directors involved.

Methods of Opening Bank Accounts in Hong Kong

In-person visit: The directors visit a bank in Hong Kong in person. Typically, the required signature documents can be completed on the same day. The account opening process is expected to be finalized within 20 working days.
Video conference: The directors visit a branch of the Hong Kong bank located in the Chinese mainland. The branch staff witnesses the process remotely. The account opening timeline is approximately 30 working days, subject to the bank's approval timeline.

What are the costs and fees when using my Hong Kong bank account?

It is important to carefully review the terms and conditions of different banks in Hong Kong as they may impose various fees. By doing so, you can make an informed decision and prevent any unforeseen expenses or surprises when opening a bank account in Hong Kong.

Maintenance and minimum balance fees

Typically, banks in Hong Kong impose a monthly account maintenance fee, ranging from 50 to 150 HKD. However, you may be able to waive this fee by maintaining a specific balance in your account. Certain account types, like basic bank accounts, may not have any maintenance fees at all.

In addition, there is usually a minimum balance requirement to open an account, typically around 10,000 HKD. It is crucial to ensure that your balance remains above this minimum threshold to avoid additional fees on top of your monthly maintenance costs.

Early closure fees

In certain cases, banks may apply an early closure fee if you choose to close your account before a specified period. For instance, Standard Chartered Hong Kong imposes an early closure fee of 200 HKD should you decide to close your account within 3 months of its opening. It is important to be aware of such potential fees when considering account closure.

ATM fees

Typically, banks in Hong Kong do not levy fees for using their ATMs. However, if you use an ATM belonging to a different bank, a service charge may apply, and the amount can vary depending on the specific bank.

International transfer fees

The fees for international transfers differ from bank to bank, but it is common to encounter a charge of approximately 120 HKD for sending money overseas. However, certain banks, like Citibank, may offer free international transfers if both the sender and recipient accounts belong to the same banking group.

Can foreigners open a bank account in Hong Kong?

The Hong Kong authorities allow everybody to open a bank account, regardless of whether you are a resident or non-resident. Each bank has different evaluation criteria for reviewing your application. Foreigners intending to open a bank account in Hong Kong may be subject to additional requirements for verification and identification. However, you do not need to be a permanent HK resident to have a bank account in Hong Kong. The process is straightforward, especially if you are an EU, US, or Australian passport holder.

What documents are required to open a bank account in Hong Kong?

To open a bank account in Hong Kong, you typically need to provide the following documents:

A valid passport or Hong Kong identity card (for residents)
Proof of residential address (e.g., utility bill, bank statement)
Employment details or proof of income (such as an employment contract or recent pay slips)
Business registration documents (for business accounts)
Additional documents may be required depending on the bank and your specific situation.

Can a non-resident or non-citizen open a bank account in Hong Kong?

Yes, non-residents and non-citizens can open a bank account in Hong Kong. Many banks offer services for non-residents, such as non-resident bank accounts or offshore banking options.

Can I open a bank account remotely without visiting Hong Kong?

Some banks in Hong Kong offer remote account opening services, allowing you to open an account without visiting Hong Kong in person. However, the availability and requirements may vary depending on the bank and your circumstances.

What are the minimum balance requirements for opening a bank account in Hong Kong?

The minimum balance requirements vary from bank to bank. Some banks may not have a specific minimum balance requirement, while others may require a certain amount to be maintained in the account at all times.

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

The account opening process usually takes a few days to a couple of weeks, depending on the bank and the complexity of your application. Some banks offer expedited account opening services for an additional fee.

Can I open a multi-currency account in Hong Kong?

Yes, many banks in Hong Kong offer multi-currency accounts that allow you to hold and transact in different currencies. This can be convenient if you have international business dealings or frequently travel abroad.

Can I open a bank account in Hong Kong as a sole proprietor or freelancer?

Yes, you can open a bank account in Hong Kong as a sole proprietor or freelancer. You will need to provide relevant business registration documents and proof of your business activities.

Sound United

Jack Peng
Sound United Vice President > Asia Pacific

Sound United is the leading designer and manufacturer of consumer audio products in the US. Sound United has been using Hongda since 2013. Moving one’s operation to China is not a small task, But Hongda’s expert services helped us set up a company and deal with tax issues so we could get on with growing our business in no time at all, and that’s why we continue to use them today.

Travis Perkins

David Finch BA ACMA CMIIA CAMA

Travis Perkins PLC Director of Group Business Risk & Assurance

Travis Perkins PLC (a leading builders merchant in the UK) has been using Hongda Business Services since 2008 for accounting and professional services. Throughout this time, we have found the team at Hongda to be very helpful and professional in their dealings with us. We look forward to working with the company in the future.

Tulip Pacific Ltd.

Erik de Waard

Tulip Pacific Ltd. > Director

Tulip Pacific Ltd. (Business planning and interim financial management services) has been using Hongda Business Services since 2012. Hongda has helped us set up legal entities in China/HK and takes care of our annual company audits. They are the most efficient business service provider I have worked with to-date, and their professional advice has helped me better advise my own clients and provide greater value to my overall business.

Business Service Guidance

Hongda Business Services helps foreign businesses looking to establish in the PRD (Pearl River Delta, Guangdong), Shanghai and Hong Kong take advantage of everything that China has to offer. We typically work with companies in Shenzhen, Guangzhou, Zhuhai, Zhongshan, Shanghai, and Hong Kong.

Hong Kong Bank Account Opening

What are the hurdles
when opening a bank account in Hong Kong?