FAQ

BUSINESS BANK ACCOUNT OPENING

When you establish your own business, a business bank account becomes the most important window between you and your business partners. Under the tightening of Hong Kong regulations, some entrepreneurs may feel frustrated when opening a business bank account due to the stricter bank scrutiny. Manson has extensive experience assisting clients to open traditional bank accounts and virtual bank accounts in Hong Kong and overseas. Manson can help you to quickly get your business started by guiding you on the right choice of traditional bank or virtual bank for your company and advising on the account opening requirements.

Requirements

All banks are required to comply with international Anti-Money Laundering regulations which require the banks to:

  • gain an understanding of the business activities by “Know Your Client” (KYC), and
  • verify your business experience is relevant to the activities of your new company.

The objective of the regulations is to ensure banks avoid providing banking services to criminal organizations.

You will need to provide the bank with a summary of your company’s intended business activity including:

I) Overview of new company

  • Estimated annual turnover (USD);
    • Details of the products or services to be provided such as website   or brochure;
  • Details of who will manage the daily operation of the company;
    • Countries from where the company will receive payments from customers (list up to 3 countries);
    • Countries to where the company will remit payments to suppliers (list up to 3 countries);
  • Source of wealth and fund.

II) Members business experience 

  • Name of member providing details of business experience:
  • Current Employment

o Job Title:

o Name of Employer:

o Website:

o Dates Employed:

o Do you own shares in the above company: (Y/N)

  • Previous Employment

o Job Title:

o Name of Employer:

o Website:

o Dates Employed:

o Do you own shares in the above company: (Y/N)

Process

Step 1

Complete and submit the online account opening application form in the banks website together with the new company registration documents.

Step 2

The online account opening application requires you to create your user profile including password and security questions, provide your personal details, provide details of your business experience, provide details of the intended business activity of your new company and upload your company registration documents.

Step 3

The bank will review your online account opening application and will usually contact you within 2 weeks to arrange a time for the account opening meeting. 

Step 4

You will need to meet Manson prior to your meeting with the bank to collect the original CPA certified true copies of the company incorporation documents you need to present to the bank.

Step 5

You will attend your pre-arranged account opening meeting at the bank to discuss your intended business activities and provide the bank with relevant documents to support your intended activities and your business experience. 

Step 6

The bank will usually require 1 to 2 months to process your account opening application after the completion of the meeting. 

Step 7

The bank will provide the new bank account details to you by email and will request you to arrange a transfer of funds to activate the account. The bank will send the internet banking device to you by courier once your funds to activate the account have been received by the bank.

Step 1

Manson will provide contact details for you to liaise with the bank to commence the account opening. 

Step 2

You will need to complete the banks online account opening application form which requires you to create your user profile including password and security questions, provide your personal details, provide details of your business experience, provide details of the intended business activity of your new company and upload your company registration documents. 

Step 3

The bank will review your online account opening application and will contact you by email to arrange a brief video call.

Step 4

The bank will verify your identity during the video call and discuss details of your intended business activities for your new company and the banking services you require.

Step 5

The bank will provide your new bank account details to you by email and will request you to arrange a transfer of funds to activate the account.

Step 1

Manson will provide contact details for you to liaise with the virtual bank to commence the account opening. 

Step 2

You will need to complete the virtual banks online account opening application form which requires you to create your user profile including password and security questions, provide your personal details, provide details of your business experience, provide details of the intended business activity of your new company and upload your company registration documents. 

Step 3

The virtual bank will review your online account opening application and will contact you by email to arrange a brief video call.

Step 4

The virtual bank will verify your identity during the video call and discuss details of your intended business activities for your new company and the services you require.

Step 5

The virtual bank will provide your new bank account details to you by email and will request you to arrange a transfer of funds to activate the account.

Choice

  • Hong Kong’s banking regulations require all traditional banks operating in Hong Kong to meet with any member hold 10% or more of the shares of the company and all directors before opening a company account.
  • The traditional bank account opening meeting must take place in Hong Kong and must be pre-arranged by submission of an online application. The traditional banks will not accept “walk-in” applications. The banks will also not hold account opening meetings by video.
  • The traditional banks in Hong Kong will usually only open bank accounts if your new company’ business activities or holding investments are within Asia (preferably Hong Kong or China). 
  • If your company will have no business activity in Asia, Manson suggests to open a bank account with an offshore bank or with a FinTech company in Hong Kong.
  • Virtual banks operating in Hong Kong are licensed by the Hong Kong authorities to provide online multi-currency platforms for the receipt and payment of funds. There are no cheque books and it is not possible to deposit cash into the account as the account is entirely online.
  • Virtual bank accounts are quick to open and cheaper to use than a traditional bank account. Another benefit of opening an virtual bank account is that the account is opened online without any visit being required. The account opening is also usually much faster than opening an account with a traditional bank.
  • The main benefit of overseas bank account is that bank accounts can be opened online without the need to travel. However, the initial deposit requirement is usually above USD50,000 and the ongoing charges to operate the account are significantly higher than the fees charged by Hong Kong traditional banks and virtual banks.

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If you need more information on business bank account opening, please email Manson at info@mansoncpa.com or whatsapp at 852 – 64628548 and help you to get a right choice.

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