Opening Bank account in HK

[seobuddy]

Anybody around with experience in opening a Bank Account in HK today for a freshly incorporated Ltd in HK without any activity in HK
Hence the primary reason to have an account and ltd in HK being "Claim Offshore Status".

PS: I'm a Permanent Resident of The Bahamas for more than 10 years.

 

[Spinat]

So what taxes do you pay in the Bahamas?

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[James Turner]

Do you have a good reason to wish to bank in HK?

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[seobuddy]

In The Bahamas, if you have an IBC (International Business Company) the rate for Corporate Tax is still 0%
However, this special treatment might disappear soon due to pressure from the OECD.

The worst-case scenario is they might start to request the IBC to pay the Business License rates as if they were a domestic company.

The current Business License rates are as follows:

• New business ”“ $100.00;
• Business with turnover greater than $50,000 per annum but not exceeding $500,000 per annum ”“ 0.5%;
• Business with turnover greater than $500,000 per annum but not exceeding $5 million per annum ”“ 0.75%;
• Business with turnover greater than $5 million per annum but not exceeding $50 million per annum ”“ 1.25%;
• Business with turnover greater than $50 million per annum ”“ 1.5% of turnover.

The real problem in the Bahamas is the outrageous cost to open a Bank Account (some bank such as Royal Bank of Canada charge $5,000 setup cost + $250 / month) and the frustrating KYC/AML rules that make it almost impossible to do business, even if your business is 100% legit... Open a bank account here take a minimum of 3 months.

In my situation, my business is 100% clean (Software as a Service for SEO) and I would rather have a bank in HK and claim "Offshore Status" than dealing with the headache to do business with a Bahamian bank (unfortunately).

 

[Spinat]

So you try to evade taxed for 1,5% oh man if you lived where I live you would feel to be in paradise if you only had to pay 1,5% !

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[seobuddy]

The real problem is not the Business License Rate, it's the outrageous Banking Fees ($5,000 setup + $250 / month) for IBC.
Not even mentioning the quality of service you get from these banks is really weak compared to what you get in HK or USA.

Moreover, the AML Law in The Bahamas is so painful that basically, for every transaction you receive you have to fill 5 pages of paperwork and looks like a criminal.

Another option is if you find a way to open a Banking Account for a Bahamian IBC outside of The Bahamas.
I'm currently exploring an option in "Puerto Rico"

 

[Martin Everson]

Have you seen whats happening in Hong Kong lately....lol?

I would look elsewhere until things stabilize or hop on a plane and see things first hand yourself there.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Silvio]

You will need to come to HK physically which probably you won't want to do in the current situation ..
2nd of all there's zero chance they'll open unless you can show strong ties to HK and a good reason you NEED to bank there

 

[seobuddy]

maxmmm said:
You will need to come to HK physically which probably you won't want to do in the current situation ..
2nd of all there's zero chance they'll open unless you can show strong ties to HK and a good reason you NEED to bank there
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It's obviously not good timing to travel to HK right now, but eventually, it will get better.

I'm more concerned about the reality your point "2nd" (no strong ties to HK = zero chance they'll open) as I actually experienced that in the past... (a refusal to open an account in HK in 2017/2018). However, I always wonder if the situation has changed, or if I simply had a bad "introduction".

Martin Everson said:
Have you seen whats happening in Hong Kong lately....lol?
I would look elsewhere until things stabilize or hop on a plane and see things first hand yourself there.
Click to expand...

Any suggestions?

Another option would be to open a Bank Account for my Bahamian IBC, just not in The Bahamas.
I'm currently exploring to open a Bank account in Puerto Rico (EPC) for this IBC.

It's just this bank is not super famous... so it's kind of scary.

 

[MRRIGHT101]

I have good had deal with most of the bank and have recently made applications to following banks :

Standard Chartered Bank, required 500,000 USD average daily balance, if you have this much to show you can easily open with them.
HSBC has started a new process for startup with less than 2 years of incorporation and yearly turnover less than 2 million , most of application process is done online
https://www.business.hsbc.com.hk/en...iness-integrated-accounts/hsbc-sprint-accountHang seng
Bank of china
DBS
and OCBC wing hang

Most of above bank account applications can be made online and preliminary reviews are done remotely before they can schedule interview with you

you can also try virtual bank , currenxie and neat.hk

 

[seobuddy]

Thank you Majeed for the tips, I will try this "HSBC Sprint Account" online application right away.
Can you do an introduction with Standard Chartered Bank?

 

[Martin Everson]

seobuddy said:
Another option would be to open a Bank Account for my Bahamian IBC, just not in The Bahamas.
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As someone who lives in the Bahamas...wise decision.

Go for a big bank but whatever you decide to do open accounts in at least 2 different banks.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[seobuddy]

Martin Everson said:
As someone who lives in the Bahamas...wise decision.

Go for a big bank but whatever you decide to do open accounts in at least 2 different banks.
Click to expand...

For this route, I'm trying to open with "Euro Pacific Bank" (Puerto Rico), and with HSBC HK (Sprint Account).
But do you have any other suggestions of Bank that could accept working with a Bahamian IBC?

 

[Martin Everson]

seobuddy said:
For this route, I'm trying to open with "Euro Pacific Bank" (Puerto Rico), and with HSBC HK (Sprint Account).
Click to expand...

Hell no!!!!!!! to Euro Pacific Bank. Stay away from this shell bank with no financials and that offers services only to shell companies. The bank operates in bankrupt Puerto Rico that has had 3 governments in last few weeks. Your moving from light instability (HK) to third world instability (PR). If you can get HSBC stick with it but chances are zero. Don't get desperate and pick EPB you will regret it long term.

Trust me all those fake TrustPilot reviews of EPB where people post positive feedback on EPB for a password reset or simple quick reply to an email are fake as hell.....read them....lol. Who leaves feedback on trustpilot for trivial stuff unless incentivized ns2

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[seobuddy]

Martin Everson said:
Hell no!!!!!!! to Euro Pacific Bank. Stay away from this shell bank with no financials and that offers services only to shell companies. The bank operates in bankrupt Puerto Rico that has had 3 governments in last few weeks. Your moving from light instability (HK) to third world instability (PR). If you can get HSBC stick with it but chances are zero. Don't get desperate and pick EPB you will regret it long term.

Trust me all those fake TrustPilot reviews of EPB where people post positive feedback on EPB for a password reset or simple quick reply to an email are fake as hell.....read them....lol. Who leaves feedback on trustpilot for trivial stuff unless incentivized ns2
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Got it, but if HK is zero chance, and Euro Pacific Bank is even worse, then what are the option left today 🙂 ?!

 

[MRRIGHT101]

seobuddy said:
Thank you Majeed for the tips, I will try this "HSBC Sprint Account" online application right away.
Can you do an introduction with Standard Chartered Bank?
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if you can show enough bank balance and can provide proof of source of funds along with a business plan, most of HK banks will accept you.

 

[Martin Everson]

seobuddy said:
Got it, but if HK is zero chance, and Euro Pacific Bank is even worse, then what are the option left today 🙂 ?!
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Maybe Cimbanque in Switzerland. Maybe someone knows if they accept HK companies?

To be honest with a HK company and Bahamian residence you are limited somewhat with retail banks unless you move up to private and investments banks which require high minimum's.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[seobuddy]

Martin Everson said:
Maybe Cimbanque in Switzerland. Maybe someone knows if they accept HK companies?

To be honest with a HK company and Bahamian residence you are limited somewhat with retail banks unless you move up to private and investments banks which require high minimum's.
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If we put HK aside (I like the idea of having HK Company, but only if the Bank was also in HK, and then claim "Offshore Status")

So if it's:

Company: Bahamian IBC
UBO: Bahamian Resident

Any recommendation of a reliable bank I could deal with?

 

[Martin Everson]

Where have you tried with the IBC?

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[seobuddy]

Martin Everson said:
Where have you tried with the IBC?
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- Royal Bank of Canada (Nassau / Bahamas), but they want $5,000 setup fee and then $250 / month + annual review of $150
- Euro Pacific Bank (Puerto Rico) <- approved, just need to certify my documents and get going.
- HSBC (Hong Kong) <- sent document, waiting for Compliance to review and then set up appointment <- but I doubt this will works.