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]

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]

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.

 

[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]

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]

No problem re declaration.
What do you mean by 'if unregulated' - regulated⁣ by who/what for?
You mean for the maintenance of the︀ company - I don't mind that, I want to know whether when I go to︁ open an account - banks would go "we don't work with Cayman! we're ok with︂ BVI or HK" - as in, do they consider one jurisdiction considerably worse than the︃ other to work with?

 

[Fred]

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

 

[mrkyc]

Passive
Europe mostly‍
Thanks will give it a try
Examples welcome 🙂

 

[Fred]

All private banks in Liechtenstein and most Private‌ Bank esspecially the smaller ones in Switzerland.

 

[JustAnotherNomad]

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

 

[abchongkong]

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

British Virgin Islands
* While HK allows foreign︊ 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 Act︌ (FATCA).
* In addition, if your company is outside the jurisdiction mentioned above, you can︍ remotely open your bank account.
* Another benefit that BVI can offer their account holder︎ is its 100% confidentiality when it comes to their clients' accounts.

Cayman Islands
* In️ 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.

 

[kkein]

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