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Rules for Hong-Kong Company Bank account

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When you open a business in Hong Kong, it cannot start operating until a bank account has been created. A couple of years back, opening a bank account used to be simple and fast. But, things have changed so much. Today, many companies are getting their accounts requests declined while others are being terminated in record numbers. To get your Hong Kong company bank account, it is important to understand and follow these rules.

Provide company registration documents

Banks are only allowed to open bank accounts for businesses that are duly registered. This means they are legal entities that can transact businesses in Hong Kong. Therefore, you are required to provide the business registration documents including the certificate of incorporation. This means that you can only open a Hong Kong company bank account after the incorporation service is complete. You would need the support of experts like to get that done.

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These documents demonstrate that a business is operating legally, point its location, and outline the top executives especially the company secretary and shareholders. Note that the bank may ask for more details about a business before opening the account.

Provide identity and address of directors, shareholders, and nominees

While the entity under consideration is your business, the identity and addresses of all the directors, shareholders, and nominees must be provided. These are the most crucial people who are involved in the incorporation and decision making in the company. This requirement makes it easy for Hong Kong to know people running businesses in its jurisdictions. If one of the directors, shareholders, or nominees is from a country whose citizens are prohibited from operating in Hong Kong, the bank account request will be declined.

Give evidence of the business activity

Hong Kong is not only interested in knowing the people who own and run the company, but more details are also required. You must provide the right business structure to the bank before a bank account is opened. This gives the bank a clear image of the business operations.

Many banks apply the Know your customer guidelines that involve looking at the business activity to know its history. For example, if your company is affiliated with another enterprise back at home, you must provide documents such as invoices, contracts, and bank statements. They not only demonstrate the business in good light but also point what to anticipate.

Demonstrate the expected transactions and funds

Demonstrating the expected transactions is one of the main requirements that every business must do. By providing the business balance sheet for the subsequent one or two years, the bank can establish the funds to anticipate in the account. If the stated funds are surpassed, or a very large amount hits the account, the bank could ask the company management for confirmation. In such a situation you have to provide additional details such as tenders and won contracts.

Opening a Hong Kong company bank account has become an uphill task for many businesses. Both the Hong Kong administration and the respective bank have their rules that must be followed to get the account opened and continue running. The main focus should be ensuring you understand these regulations and responding promptly to requests for clarifications when sought. Besides, your company secretary should be vigilant to note when changes to banking laws are instituted so that the company can redefine its operations appropriately.

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