Hong Kong is considered one of the best places to incorporate a company. A simple, secure, and fantastic business atmosphere and a low-tax collecting framework assist businesses developing in this city.

Hong Kong Company Incorporation is a wonderful option if you wish to launch your business in a safe and stable financial environment.

Let us show you the benefits of establishing a business in Hong Kong and how to open a bank account in this city.

You will find in this blog

Why Choose Hong Kong as Your Start-up Gateway

How to Build Your Empire in Hong Kong

Safe, Secured, & Competitive Banking Service

A Detailed Outline of Online Bank Account Opening

Make It Easy with AsiaBC

Why Choose HK as Your Start-up Gateway

Hong Kong is regarded as the finest destination for investors and entrepreneurs worldwide, but let us look at the many reasons why this city remains valuable and an excellent place to start a business.

I. Prominent Business Spot

Because Hong Kong is located in the heart of Asia, it is perhaps the most appealing feature for entrepreneurs to incorporate company there. It allows them to quickly access a variety of exchange terminals, particularly in mainland China.

II. Incorporation Made Easy

Another feature that distinguishes Company Registration in Hong Kong among entrepreneurs is the simplicity and ease with which the enrollment and joining procedures may be completed. You can start your business in as little as 3 to 5 days.

III. Appealing Tax Regime

One of the key concerns of every offshore company is a low-tax collection mechanism, which gives Hong Kong advantage. The city has a regional tax system suited for businesses (8.25 percent or 16.5 percent depending on assessable profits); an offshore company's income is not subject to taxes. There are no business charges, capital additions expenses, or inheritance charges and no retention charge on earnings or interest.

IV. Dynamic & Motivated Manpower

Hong Kong has a pool of skilled and knowledgeable workers who are versatile and educated about the industry's development culture.

How to Build Your Empire in HK

I. Learn the Basic HK Business Structure

When beginning a business in Hong Kong, the most crucial consideration is the type of business you are starting. It will assist you in managing tax regulations and business strategies. Limited Liability Company, Sole Proprietorship, Partnership, and Foreign Company Office are the four company structures available in Hong Kong.

In Hong Kong, the Limited Liability Company is the most popular company structure. It has a lower risk since it protects its assets from dangers and liabilities.

II. Creating Your Image in HK

Understanding the type of business you want to set up in Hong Kong will help you focus on different factors contributing to the company's development. To further build your reputation in the region, you must choose a company name that best represents your business, and it can be in Chinese, English, or both, as long as another company does not use it. Ensure to register it with the public authority to give you protection from any business danger and liabilities.

III. Finance Your Business Venture

It's time to register a business bank account to support your company's demands after successfully establishing it. Remember to bring all supporting papers, such as audited financial statements, business plans, contracts or agreements, invoices, your company's formation documents, and a certified true copy of your Business Registration Certificate.

Safe, Secured, & Competitive Banking Service

I. A Quick Overview

The Hong Kong Multi-tier Banking System is a well-established system, with 71 global banks, many domestic banks, and substantial banks setting up branches across the Greater China region.

II. Moving Away from the Traditional Method

Because of internet and digitization exposure, most companies opted out of traditional methods, prompting numerous banks in Hong Kong to do virtual banking.

III. What are Virtual Bank & FinTech Accounts?

Virtual Banking is a digitized banking system. It's an innovative and advanced banking system that offers users the ability to access, save, spend, and borrow money online. Virtual Banking digitalizes banking services and delivers them through the internet to cater to their client's local and international needs. Their products and services are all performed online, making them accessible to all users anytime, anywhere.

FinTech is a banking alternative that provides business accounts for entrepreneurs getting a multi-currency transaction platform quickly after their companies are set up. This service allows business owners to open an account remotely and initiate global money transfers at any moment. But it is important to note that these service providers also don't have any physical branches.

The former is a bank that offers banking services electronically or online, while the latter offers a wide range of financial services through an app or an online platform. While both platforms cater to every banking transaction and don't have any physical branches present, note that the two are still distinctly different from one another. While FinTechs are popular these days, it is not a bank per se, although all of their accounts are powered by custodian partner banks such as DBS or Standard Chartered in HK. On the other hand, virtual banks are banks regulated by the Hong Kong Monetary Authority (HKMA) like traditional banks.

And since the outbreak of COVID-19, which hinders foreign business owners from traveling, they find virtual banking or FinTech money transfer beneficial. They can open a business account without being physically present and have round-the-clock access to their finances from anywhere in the world.

IV. What is an Offshore Bank Account?

An offshore bank account is a way to go when you need to move your money worldwide. Businesses that open an offshore or international bank account can operate through multiple currencies without high fees, obtain credit and debit cards linked to various banknotes, and enjoy particular investment opportunities and discounted international payments.

A Detailed Outline of Online Bank Account Opening

I. Prepare & Submit the Essentials

Fill out their online application form and attach your signatures to a scanned or PDF version of the needed documents. A bank officer will schedule a video call interview with you to check your application.

You must submit the following documents to banks such as HSBC, ICBC, Bank of China, Citibank, and other HK banks:

A registered physical address in Hong Kong. Submit the office leasing agreement in Hong Kong's company name if it is on a lease.

Business operations must be connected to China or Asia in some way.

The company director should have a Hong Kong ID card or a Hong Kong work visa.

Certificates of incorporation

A certified true copy of the certificate of company formation; and

Audited financial statements, business plans, contracts or agreements, and invoices are examples of supporting documentation.

If your applications to the following banks are turned down, you can still schedule an appointment with Hang Seng, OCBC, Wing Heng, or Standard Chartered.

It's worth noting that obtaining an offshore bank account can be tough due to the Know-Your-Client (KYC) and due diligence requirements.

II. What is the Know-Your-Client (KYC) Process & What Do I Need to Present?

Know-Your-Client, or KYC, is a method that banks use to evaluate an application, and it is advisable to present the following to maximize the chances of approval:

A personal KYC certificate

All directors, beneficial owners, and shareholders who own 10% or more of the company's shares must submit a certified true copy of their passports.

References from banks

III. In Hong Kong, how long does it take to open a bank account?

A confirmed appointment with the banks takes roughly 7-20 working days. Physical presence in Hong Kong is required for business owners, beneficial owners, shareholders, and directors. Some banks, however, are employing an online application approach due to COVID-19.

Make It Easy with AsiaBC

AsiaBC has partnered with over 30 local and international banks to provide online corporate bank account opening services. We've also incorporated thousands of businesses with outstanding client satisfaction.

It's time to plunge if this article has helped you understand the nitty-gritty intricacies of company formation and corporate bank account opening. AsiaBC is here to assist you. For more information, please contact our consultants via email at business@asiabc.com.hk or WhatsApp at +852 6547 1314. We'll be pleased to point you in the correct direction.

We want to hear about your dreams and help you make them a reality. Let's get it started together!