Why is opening a Hong Kong bank account getting more difficult?
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 costs 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.
Which Bank is the Best Choice for You?
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 Account
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 Account
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 Account
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 Account
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 Account
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.
Documents Required for Opening 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
After providing the documents, the bank will examine and evaluate your materials. In some cases, the bank will ask for an interview to verify your application using either of the following methods:
In-person visit
The directors need to 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 on 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 of Using a 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.
