Hong Kong Company Bank account? (Real Bank)

[banafinfodafuggiano]

I strictly require to open a Real physical bank account for my Hong Kong company.

I heard it's very hard nowdays, however, is it actually possible? What is the timeframe?

I can fly to Hong Kong if required, for a week or two.

I strictly require a bank account in Hong Kong or even a real bank account in nearby jurisdictions if that is possible,
as long as these are real banks like HSBC, DBS, etc... because the company that pays my business, does not pay to EMIs.


my current business is registered in Canada and I'm shortly switching to HK due to the tax benefits. (I'm already a Canadian non-resident)
My canadian business is in the ecommerce (toys for children niche) and making high 6 figures in sales a year. 100% of my customers are in the EU/USA.

 

[Marzio]

banafinfodafuggiano said:
100% of my customers are in the EU/USA.
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So why did you chose a HK company? You margins will be eroded bu currency conversion and processor fees.

 

[Sols]

banafinfodafuggiano said:
I strictly require to open a Real physical bank account for my Hong Kong company.
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If you were a bank: why would you open an account for this business?

The owner doesn't live in Hong Kong. The business has no customers in Hong Kong. Is there an office in Hong Kong? Some employees? Are there any suppliers in Hong Kong that you require a HKD bank account to pay?

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This is the probably the answer to your question.

 

[banafinfodafuggiano]

Marzio said:
So why did you chose a HK company? You margins will be eroded bu currency conversion and processor fees.
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It's 0% tax on foreign income, that's maximum a 2-4% in conversion fees , essentially a 2-4% tax , Correct me if I'm wrong?

Sols said:
If you were a bank: why would you open an account for this business?

The owner doesn't live in Hong Kong. The business has no customers in Hong Kong. Is there an office in Hong Kong? Some employees? Are there any suppliers in Hong Kong that you require a HKD bank account to pay?
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I have suppliers that are based in Shenzen, if that counts?

The company is incorporated in Hong Kong and my previous companies have a long track record of several millions of USD in sales over the past 3 years, would this be enough to show them?

 

[Marzio]

banafinfodafuggiano said:
It's 0% tax on foreign income
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The fact that your customers are outside HK doesn't automatically means that it's foreign income.

Where the work is performed? Where the managers are located and taking decision?

 

[Sols]

banafinfodafuggiano said:
I have suppliers that are based in Shenzen, if that counts?
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That helps, especially if you plan to pay them in HKD or CNY from your HK bank account. Add a locally resident director, settlements from Hong Kong payment processors, and it's starting to become more interesting to the bank.

banafinfodafuggiano said:
The company is incorporated in Hong Kong and my previous companies have a long track record of several millions of USD in sales over the past 3 years, would this be enough to show them?
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In the overall application review, this will be something they consider. Having a proven track record helps.

Toggle signature
This is the probably the answer to your question.

 

[banafinfodafuggiano]

Marzio said:
The fact that your customers are outside HK doesn't automatically means that it's foreign income.

Where the work is performed? Where the managers are located and taking decision?
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I'm not based in HK, customers are not based in HK, suppliers are not based in HK. The management is all outside HK, therefore it should be exempt from local corporate taxes.

Sols said:
That helps, especially if you plan to pay them in HKD or CNY from your HK bank account. Add a locally resident director, settlements from Hong Kong payment processors, and it's starting to become more interesting to the bank.


In the overall application review, this will be something they consider. Having a proven track record helps.
Click to expand...

Settlements would be from Stripe, in HKD, does it make any sense?

 

[Sols]

Seems like your only genuine connection to Hong Kong or the nearby region is a supplier in Shenzen. The HKD settlements from Stripe could just as well be shifted somewhere else, i.e. where your business is operated from.

I've seen companies with more ties to HK than that be declined. But you can try. Worst case they say no.

Toggle signature
This is the probably the answer to your question.

 

[JackAlabama]

banafinfodafuggiano said:
I strictly require to open a Real physical bank account for my Hong Kong company.

I heard it's very hard nowdays, however, is it actually possible? What is the timeframe?

I can fly to Hong Kong if required, for a week or two.

I strictly require a bank account in Hong Kong or even a real bank account in nearby jurisdictions if that is possible,
as long as these are real banks like HSBC, DBS, etc... because the company that pays my business, does not pay to EMIs.


my current business is registered in Canada and I'm shortly switching to HK due to the tax benefits. (I'm already a Canadian non-resident)
My canadian business is in the ecommerce (toys for children niche) and making high 6 figures in sales a year. 100% of my customers are in the EU/USA.
Click to expand...

Offer a halfway impressive deposit, it could be on a private account, and shop around.
Maybe they are interested if its high enough.

Chances are better than in the recent years, since many folks left for Singapore.

 

[banafinfodafuggiano]

Sols said:
Seems like your only genuine connection to Hong Kong or the nearby region is a supplier in Shenzen. The HKD settlements from Stripe could just as well be shifted somewhere else, i.e. where your business is operated from.

I've seen companies with more ties to HK than that be declined. But you can try. Worst case they say no.
Click to expand...

I understand what you're saying, however I don't really want to pay all incorporation fees and go through their due diligence for incorporating in HK for then just getting denied for a simple thing such as a Bank account.

Do you know any good bank that has more success rate at opening accounts than others to avoid?

 

[Sols]

banafinfodafuggiano said:
I understand what you're saying, however I don't really want to pay all incorporation fees and go through their due diligence for incorporating in HK for then just getting denied for a simple thing such as a Bank account.
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The incorporation costs are small. Due diligence will take a long time regardless of when you start, so might as well start now.

banafinfodafuggiano said:
Do you know any good bank that has more success rate at opening accounts than others to avoid?
Click to expand...

Stick with the big banks. HSBC, DBS, UOB, OCBC, and Standard Chartered. Sometimes Hang Seng and BEA work.

Toggle signature
This is the probably the answer to your question.

 

[Marzio]

banafinfodafuggiano said:
I'm not based in HK, customers are not based in HK, suppliers are not based in HK. The management is all outside HK, therefore...
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....no bank account will be opened in HK.

 

[banafinfodafuggiano]

Marzio said:
....no bank account will be opened in HK.
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Do you think I stand zero chance?

 

[thomasparra]

banafinfodafuggiano said:
Do you think I stand zero chance?
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I assume you considered EMIs but given your revenue levels your perception of the best solution for you is a bank?

 

[Marzio]

banafinfodafuggiano said:
Do you think I stand zero chance?
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Why would a bank open you a bank account if there are literally zero ties with HK.

I don't say you have zero chance but unless you convince them with a large deposit i don't think they will be ever interested in dealing with you.

 

[Mercury]

Marzio said:
I don't say you have zero chance but unless you convince them with a large deposit i don't think they will be ever interested in dealing with you.
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It's fascinating how money, when reaching the right threshold, can open all closed doors despite rules and laws.

 

[banafinfodafuggiano]

Marzio said:
Why would a bank open you a bank account if there are literally zero ties with HK.

I don't say you have zero chance but unless you convince them with a large deposit i don't think they will be ever interested in dealing with you.
Click to expand...

The Tie is the company is incorporated in Hong Kong and the money would be sitting in the Hong Kong bank, isn't that a good enough reason to open a bank account? After all they make money out of fees from transactions and interest rates on the deposits.

Mercury said:
It's fascinating how money, when reaching the right threshold, can open all closed doors despite rules and laws.
Click to expand...

How much money are we talking about? I can easily deposit $200K but I presume that is not enough for them?

Is it possible to open a Singaporean bank account for the Hong Kong company?

Last edited: Oct 10, 2023

 

[Marzio]

banafinfodafuggiano said:
The Tie is the company is incorporated in Hong Kong
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This is the only tie, everything else is outside HK (customers, suppliers, management, shareholder).

Imho you should investigate first which banks will be willing to open a bank account for your company.

 

[Mercury]

banafinfodafuggiano said:
How much money are we talking about? I can easily deposit $200K but I presume that is not enough for them?
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You will have to ask the banks directly (OCBC, UOB, DBS, Standard Chartered, ...)

banafinfodafuggiano said:
Is it possible to open a Singaporean bank account for the Hong Kong company?
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Sure it is and common practice. Banking offshore is a way to mitigate HK country risks and benefit from the reliability and stability of the international banks in Singapore.

 

[JackAlabama]

Mercury said:
It's fascinating how money, when reaching the right threshold, can open all closed doors despite rules and laws.
Click to expand...

Yup. Thats how this system works and maybe have worked since the dawn of time...

Mercury said:
You will have to ask the banks directly (OCBC, UOB, DBS, Standard Chartered, ...)


Sure it is and common practice. Banking offshore is a way to mitigate HK country risks and benefit from the reliability and stability of the international banks in Singapore.
Click to expand...

That will require much more deposit (maybe 2-3x?) which you have to deposit in HK to make the banks look at you.

banafinfodafuggiano said:
The Tie is the company is incorporated in Hong Kong and the money would be sitting in the Hong Kong bank, isn't that a good enough reason to open a bank account? After all they make money out of fees from transactions and interest rates on the deposits.


How much money are we talking about? I can easily deposit $200K but I presume that is not enough for them?

Is it possible to open a Singaporean bank account for the Hong Kong company?
Click to expand...

You could use that as a starting point to get you in.
It could be working now in HK, since they have suffered recently but Im not up to date with hk.