Offshore HK vs. BVI vs. CI

[mrkyc]

Hello,

From the perspective of bank account opening, how would you rate the three offshore locations - Hong Kong, British Virgin Islands, Cayman islands - in the willingness of banks to open an account for such companies and/or their shareholders?

Cheers!

 

[PhantomOf ThePits]

Hi,

depending on your business sector and if you are in a 'clean' or more high risk business.

Also assets and where UBOs live will influence the willingness for banks to onboard

 

[mrkyc]

PhantomOf ThePits said:
Hi,

depending on your business sector and if you are in a 'clean' or more high risk business.

Also assets and where UBOs live will influence the willingness for banks to onboard
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Thanks - I do understand that, but lets assume the sector is clean, and the UBOs live in Germany. If the difference is only the offshore jurisdiction - is there any 'better' or 'worse'?

 

[Fred]

mrkyc said:
Thanks - I do understand that, but lets assume the sector is clean, and the UBOs live in Germany. If the difference is only the offshore jurisdiction - is there any 'better' or 'worse'?
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May I ask you what's the point for Germany Residents banking in 2021 with HK, BVI and CI?

There is CRS reporting in place in all 3 named jurisdictions so if you are for reliable Offshore Banking with CRS reporting then drive to Switzerland or Liechtenstein and open there in person.

If you are looking for non-CRS structures there are other ways to achieve this.

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[PhantomOf ThePits]

If UBOs in Germany, I assume then you'd officially declare the shareholdings and unveil the UBOs with TIN.

There are certain banks which for example service gaming/gambling or crypto.

I'm not qualified enough to speak about HKG Cos, but from my experience BVI and Cayman if unregulated its the same.
Cayman Co usually little more expensive depending what you want to do with it.

 

[mrkyc]

Fred said:
May I ask you what's the point for Germany Residents banking in 2021 with HK, BVI and CI?

There is CRS reporting in place in all 3 named jurisdictions so if you are for reliable Offshore Banking with CRS reporting then drive to Switzerland or Liechtenstein and open there in person.

If you are looking for non-CRS structures there are other ways to achieve this.
Click to expand...

I am not looking to bank with HK/BVI/CI banks - I'm looking to open an account /for/ company registered there and/or the shareholders.
I don't care about CRS, all is clean, not hiding anything.

Can't share more information but let's just say tax has been well planned.

 

[mrkyc]

PhantomOf ThePits said:
If UBOs in Germany, I assume then you'd officially declare the shareholdings and unveil the UBOs with TIN.
Click to expand...

No problem re declaration.

PhantomOf ThePits said:
There are certain banks which for example service gaming/gambling or crypto.

I'm not qualified enough to speak about HKG Cos, but from my experience BVI and Cayman if unregulated its the same.
Click to expand...

What do you mean by 'if unregulated' - regulated by who/what for?

PhantomOf ThePits said:
Cayman Co usually little more expensive depending what you want to do with it.
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You mean for the maintenance of the company - I don't mind that, I want to know whether when I go to open an account - banks would go "we don't work with Cayman! we're ok with BVI or HK" - as in, do they consider one jurisdiction considerably worse than the other to work with?

 

[Fred]

mrkyc said:
I am not looking to bank with HK/BVI/CI banks - I'm looking to open an account /for/ company registered there and/or the shareholders.
I don't care about CRS, all is clean, not hiding anything.

Can't share more information but let's just say tax has been well planned.
Click to expand...

Are we talking about active trading companies or passive holding companies?

Where do you intend to bank?

If you are existing client of a bank we have seen from clients that UAE Banks, Poland Banks and Hungary Banks are open for active trading Hong Kong companies. Switzerland you can try with CIM Banque. Singapore with a very low chance for Hong Kong company as well.

If we are talking about passive holding companies you have more options in Switzerland and Liechtenstein and depending on the amount we are talking about all 3 jurisdictions can be managed.

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[mrkyc]

Fred said:
Are we talking about active trading companies or passive holding companies?
Click to expand...

Passive

Fred said:
Where do you intend to bank?
Click to expand...

Europe mostly

Fred said:
If you are existing client of a bank we have seen from clients that UAE Banks, Poland Banks and Hungary Banks are open for active trading Hong Kong companies. Switzerland you can try with CIM Banque. Singapore with a very low chance for Hong Kong company as well.
Click to expand...

Thanks will give it a try

Fred said:
If we are talking about passive holding companies you have more options in Switzerland and Liechtenstein and depending on the amount we are talking about all 3 jurisdictions can be managed.
Click to expand...

Examples welcome 🙂

 

[Fred]

mrkyc said:
Examples welcome 🙂
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All private banks in Liechtenstein and most Private Bank esspecially the smaller ones in Switzerland.

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[JustAnotherNomad]

Just out of curiosity, how are you avoiding issues with CFC rules?

 

[abchongkong]

mrkyc said:
Hello,

From the perspective of bank account opening, how would you rate the three offshore locations - Hong Kong, British Virgin Islands, Cayman islands - in the willingness of banks to open an account for such companies and/or their shareholders?

Cheers!
Click to expand...

Rating which country is more willing to open a bank account for foreign entrepreneurs will vary depending on their internal regulations and policies. Knowing how each of these regions treats international applications can help you evaluate which jurisdiction works best for your venture when doing global business transactions.

Hong Kong
* Hong Kong banks allow international business owners to open their account in the region. However, the procedure can be a bit lengthy and tedious to comply with their Know-Your-Client (KYC) procedure, helping them properly assess each application they receive.
* Due to the current COVID-19 situation, processing a bank account might take time since most of them require a physical appearance from the company's directors and/or shareholders if they are not residing in Hong Kong. One exception is Citibank - we can help our overseas clients doing TMT (Technology, Media, and Telecom) business get a Citibank account with HK, Singapore or UK company, even if you can't fly to HK.
* Opening a HK FinTech (EMI) digital account is a good option too for instant global transactions, with a multi-currency platform from HKD, ISD, CNY, and EUR, and under the monetary protection of regulated licensed custodian partner banks in HK.

British Virgin Islands
* While HK allows foreign entrepreneurs to set up their business account in the region, BVI, on the other hand, has restricted Canada and USA signatories due to their strict Foreign Account Tax Compliance Act (FATCA).
* In addition, if your company is outside the jurisdiction mentioned above, you can remotely open your bank account.
* Another benefit that BVI can offer their account holder is its 100% confidentiality when it comes to their clients' accounts.

Cayman Islands
* In contrast to the first two countries, foreign entrepreneurs might find it difficult to open an account in Caymans Islands as they have stricter rules when opening an offshore account.
* The region looks at at least 3 factors before formally accepting a client's application: personal, business, or residential connection to the Cayman Islands, a relationship with a bank, or required account balance or investment.

Last edited by a moderator: Mar 11, 2022

 

[kkein]

what are HK EMI that offer accounts to international customers? I tried BEA but they require HK residency..