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Banking in Hong Kong

calendar 5/15/2020 8:00:00 AM
author Raymond Banking

DOWNLOAD BROCHURE Hong Kong is one of the best-established international financial hubs and business centers in the world. 

This small city of just 1,000 sq km and 7.3 million people may not seem as much at a first look. But if you know something about the global financial system and China's economy, you know that Hong Kong is a key player.

The city is the star of the new global economy, and its success depends on assuring its position as a top international financial center.

And guess what? That's exactly what they've done. Hong Kong had the freest economy in the world, according to the Index of Economic Freedom for 25 years. Yes, you read that correctly. Last year, Hong Kong fell to second place. All streaks must come to an end, but Hong Kong is still one of the world's best places to do business, the country enjoys unparalleled fiscal health, and, even after months of social unrest, it's a hub for global investors.

All this means Hong Kong has a top-notch stock market and a solid, reliable, and stable banking and finance industry.

As you probably know, Hong Kong is a semi-autonomous region in Southeast China. After a century and a half of British rule, the city was ceded to China under the "One Country, Two Systems" principle as a special administrative region.

That means China owns Hong Kong's sovereignty, but the city has a distinct political and legal system than that of China. This allows Hong Kong to have a significant degree of autonomy, which enables it to espouse a free-market economy, an independent judiciary with a strong rule of law with a common law system.

Hong Kong's importance on the global financial arena is understood when you see the HKD (Hong Kong Dollar) is the ninth-most traded currency in the whole world.

What's the key to Hong Kong's success? Simple: Simple taxation system with low taxes, almost free port trade, and a robust, reputable, banking, and financial market.

Why is Hong Kong so vital for the world's economy? First of all, it's China's economic getaway. It's the only place in all mainland China that permits a free flow of capital, which means more than half of the outward investments of China pass through Hong Kong, being the largest source of FDI in China.

Add that it is one of the freest economies in the world with a reliable financial and legal system and its significance for China, and you'll understand both Hong Kong's potential and importance for the global economy.

Thus, Hong Kong is the place you must look at if you want your business to go global, or want to start operating in the Far East, especially China. The entire world trusts Hong Kong as a financial and commercial global hub with some of the largest and freest business activities.

At the same time, it has one of the most impressive regulatory services and systems for taxing and banking services, so fraudsters don't take advantage of its pro-business policies and regulations.

So, you have one of the freest economies in the world, all the major commercial players, a hub for international investment, a gateway to investing in China, a favorable tax system, a robust regulatory frame, and full OECD and international compliance.

You're in the big leagues.

Thus, it's not hard to understand why it's a must to open a bank account in Hong Kong to take your business to the next step.

Banking in Hong Kong is made up of a three-tier system:

  • Licensed banks: institutions that serve the public accepting deposits and operating accounts

  • Restricted licenses: they offer investment consultancy, specialize in capital markets, and take deposits of at least HK $500,000 (around $64.5k)

  • Deposit-taking companies: they provide specialized services in consumer financial services and take securities as long as they have deposit of at least HK $100,000 (around $12.9k).

There are more than 150 licensed banks in Hong Kong. Nevertheless, only a handful of them open accounts for non-residents. The ones who do it are mainly international banks such as Citi, HSBC, Standard Chartered, and some local banks.

In general, to open a personal bank account in Hong Kong, you'll be generally asked for a proof of address and a valid passport. Sometimes, if you are a non-resident, they may also ask for a recommendation letter, source of funds, and a minimum deposit. All documents should be in English or Chinese. If not, they must be translated by a bank-approved translator.

To open a corporate bank account, they will usually ask for the same documents for a personal account of all signatories of the account, plus certified copies of the company documents (registry, articles of association, etc.), and sometimes banking and commercial references. Some banks may also ask a significant number of questions such as the nature of your clients, how you handle transactions, your transaction volumes, among others

So, this process seems simple right? You may think that opening a personal bank account is something you can handle, and opening a corporate bank account is something your lawyer may do easily. You may be wondering why you need an expert if everything is so easy.

Well, that's because there is a gigantic if: You need to be physically present in the bank to open the account.

And that's where we do our magic.

But first, why should you open a bank account for your business in Hong Kong?


Five benefits of opening a corporate bank account in Hong Kong

A global financial hub

As we said, Hong Kong is one of the drivers of the global financial system. The Hong Kong dollar is the 9th most traded currency in the whole world. HK is the best way to enter the Chinese market, which is the second-largest on the entire planet.

Almost every major economic power is interested in Hong Kong. If you want to get there, you know where to start. Opening a corporate bank account in Hong Kong is opening a new ocean of possibilities for you

Open to complex cases

Venezuelan and Russian clients and offshore companies generally have a tough time opening bank accounts in many jurisdictions, even if they are completely legit and have no ties with shady businesses. That's not the case with Hong Kong. Yes, to be sure, the process may take a bit longer, and some banks may ask for a higher minimum balance, but they are open to these companies and individuals if they prove they are legit.

Multi-currency accounts with terrific online banking

You can handle your Hong Kong account with a secure and steady online banking service with ease.

Likewise, corporate banks account in Hong Kong are naturally multi-currency. That means that if you operate a global business, you can receive and send all major currencies, including US dollars, euros, pounds, yen, yuans, and more.

Favorable tax regime

Hong Kong has one of the best tax regimes in the world. They have low personal and corporate income tax rates, no capital gains tax rate, no VAT, and no withholding taxes on dividends and interests.

Likewise, it has a territorial system, meaning you'll only be taxed on Hong Kong-sourced income. 

The corporate tax rate goes from 8.25 % and 16.5 % for corporations, and from 7.5 % to 15 % for unincorporated businesses, while the income tax rate goes from 2 % to 17 %.

Ease to do business

We've told you that Hong Kong was the freest economy in the world for 25 years in a row, and now it's the second. Businesses are easy to register, there are few regulations, the jurisdiction enjoys fantastic fiscal health, and the country is pretty much a free port.

All this means that opening a corporate bank account can be just the first step towards operating in one of the freest and most prestigious global financial hubs in the whole planet.

Who are we and what can we do for you?

In Mundo, we have 25 years with NTL helping high net worth individuals, investors, and businesspeople handle their businesses and investments with as much freedom as possible.

We want to help you protect your legacy.

Our core value is freedom. And to help our clients live, work, invest, and enjoy their money freely, we've built an unmatched network of experts.

We know that if you want your business to go global, one of the musts is having a bank account in Hong Kong.

It's the best way to access the second-largest market in the world, China. And because of its amazingly free economy and unparalleled financial services, all major financial and commercial powers operate in the city.

That's why we work with top-level experts in Hong Kong that have an incredible multidisciplinary team with plenty of experience in corporate and financial services in Hong Kong. They offer a wide array of services, including company incorporation, immigration, investment, and banking.

Our partners have won Business Advisor Awards given by some of the top banks in Hong Kong and are certified by the Hong Kong Trade Development Council (HKTDC). The HKTDC is a statutory organization that promotes Hong Kong trade and organized worldwide exhibitions and conferences, meaning it's one of the top authorities regarding Hong Kong corporate and financial services.

We've told you. We work with the best of the best.

What can we do for you?

They can help you open a corporate bank account. They operate with plenty of banks in Hong Kong, meaning they can offer a plethora of options from which you can choose the ones that suit you the best.

Furthermore, the bank account is multi-currency with online banking services. You can make use of many different currencies, such as USD, EUR, JPY, CNY, AUD, NZD, and HKD.

Likewise, they offer a pre-approval test. That means they make a previous evaluation of your profile to see if it is acceptable to Hong Kong banks beyond the KYC and CDD compliance requisites.

What are the steps?

  1. They will ask for the passport copy and address proof copy of all beneficial owners and the business plan of the company

  2. Somewhere between two to seven working days, our partners will let you know if your profile is acceptable for Hong Kong banks

That means they don't limit themselves to do bank introductions or booking appointment as other service providers do. They actually provide you with top-notch, tailor-made KYC and CDD support to improve your approval possibility.

In fact, they refund your service fee if the banks reject your application. But don't worry. They have an incredible success rate.

So, what is the general process to open a bank account in Hong Kong with our experts?

  1. First, consult us to get you in touch with our experts. When you start the process, they'll tell you if you're eligible for the refund system.

  2. You'll email copy of the documents the banks will ask to do a pre-approval test, which is an entirely free service. They may ask you to improve your application, so your possibilities improve.

  3. Then, they'll tell you the upfront service fee depending on the banks you've matched, plus the amount that can be refunded if you're rejected. If you wish to continue the process, then you'll pay the professional fees, which includes the bank fees, which are non-refundable

  4. That's it. You have a Hong Kong corporate bank account. If you're rejected (and that's a big if), they will instantly pay you the refundable part of the fee.

So, why choose to work with our Hong Kong partners?

They know Hong Kong banks. They are up to date with the latest KYC and CDD requirements and have a fantastic network of Hong Kong bankers and experts to offer the best services for you.

They save you a ton of work. Opening a corporate bank account in Hong Kong, even if you're physically present, can take around 28 hours of work. They save you a lot of time in the process by 1) selecting feasible banks for you, 2) preparing personalized applications, and 3) Arranging all supporting documents.

Lastly, they follow the process. Some service providers limit themselves to just applying and then let the process alone. That's not the case with our partners. They follow the complete process and streamline communication with banks, so you're aware of the progress of your application at every step.

What documents will you need to start the process?

  • Company document in HK (if applicable)

  • Passport copy of directors and shareholders

  • Passport copy and address proof of all directors and shareholders

  • Operating company document in the main country

  • Business card or company website (if applicable)

  • Issued invoice, contracts, and/or agreements to buyers or clients of no more than three months old

  • Purchase contracts, and/or agreements from supplier or vendors of no more than three months

  • Business plan

  • Email correspondence with main suppliers and buyers

  • Three-month bank statements (personal and corporate)

  • Financial report

  • KYC survey

  • CV of the directors and shareholders

Opening a bank account in Hong Kong may seem like a tiresome process. However, it is a must. With our experts, it's a much simpler process with amazingly high success rates. If you want your business to go global, opening a corporate bank account in Hong Kong is not only an option, but a necessity, and Mundo is here to help.

Do you want to open a corporate bank account in one of the major global financial hubs in the world? Enquire now, and you will get the best experts in Hong Kong!Contact us now!

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