Corporate banking in Hong Kong: Opportunities for prosperity in Asia in 2024

Corporate banking in Hong Kong: Opportunities for prosperity in Asia in 2024

In 2024, entrepreneurs can select from numerous multinational and domestic banks when establishing a Hong Kong company bank account. Major local banks provide tailored products and services to suit different business needs. Small and medium-sized enterprises constitute a sizable share of Hong Kong corporates, and thus form a key client segment for banks here. SMEs typically demand sophisticated Internet banking platforms to monitor cash flow, along with trade finance facilities and access to both short and long-term business loans. Therefore, matching your specific financial priorities to a bank's specialisations is advisable prior to commencing the account opening process for your Hong Kong registered company.

Account options for non-residents in Hong Kong

When establishing corporate accounts in Hong Kong, prudent consideration of several key factors can guide selection from among the numerous global banks with local outposts. Prior to setting up any account, assess components such as the institution's reputation, service capabilities, availability of ancillary offerings like financing or trade instruments, minimum deposit terms, digital banking functionality, and any recurring fees.

Non-residents face two primary options when opening Hong Kong bank accounts — personal or business. Whilst personal account initiation follows more standard protocols, corporate accounts entail additional intricacies. Surmounting KYC checks marks only the beginning for overseas enterprises eyeing Hong Kong business accounts. Supplementary documentation must get furnished to substantiate all directors, major shareholders, and beneficial owners. Moreover, in-person interviews with bank representatives stand mandatory for qualifying parties before account approval.

Hong Kong's stringent anti-money laundering regulations, aligned to international best practices per Hong Kong Monetary Authority guidance, mandate local banks to thoroughly vet both potential and current corporate customers. As such, foreigners should anticipate providing extensive disclosures when establishing Hong Kong company accounts. Understanding required procedures and anticipating information requests can smooth navigation of account opening formalities.

Documentation requirements

Hong Kong banks mandate certain documentation from companies seeking to establish local commercial accounts. Required submissions generally include:

• An excerpt of board meeting minutes authorising pursuit of a Hong Kong corporate bank account
• Certified copies of the Certificate of Incorporation and Articles of Association
• A declaration furnishing directors and major shareholders' personal particulars (those with entitlements to 10% or more voting rights)
• Verification of director/authorised signatory identities via Hong Kong ID, passports, and proof of residence like utility bills and bank statements
• List of sample signatures from account authorisers
• Business plan or audited financial statements evidencing operations

For corporate company shareholders:

• A certified organisational chart displaying individual shareholding percentages and beneficial owners
• Expansive beneficial ownership details
• If beneficiary entities include trusts, supply certified trust deeds or declarations enumerating trustees, beneficiaries, and related parties

Adhering to Hong Kong banks' account initiation requirements facilitates prompt processing. Compiling the requisite materials in advance allows businesses to swiftly finalise commercial account establishment upon selection of their preferred financial institution.

Businesses exploring Hong Kong corporate account options may wish to consider top-rated providers:

EastWest Bank

This Philippines-based bank with a substantial global presence, including Hong Kong, stands as a preferred choice for many local small and medium enterprises opening accounts.

OCBC

OCBC boasts offerings spanning 18 countries, with diverse account types suiting startups to large corporations. Its Wing Hang Business Integrated Account provides a range of financial services from deposits to investments for Hong Kong companies.

HSBC

As one of the world’s largest banking and financial services institutions with reach in over 60 countries, HSBC furnishes access to robust commercial, personal, property and global banking capabilities. The bank ranked among the top corporate and investment players in the 2020 AsiaMoney awards, appealing to high net worth individuals and investors.

Those prioritising savings accounts should note HSBC Hong Kong's compelling propositions:

• Extensive international branch and ATM network
• Minimum $1 USD initial deposit
• No monthly fees for maintaining $1,500+ balance
• New client cash bonuses
• Free ATM withdrawals

Citibank

This Hong Kong offering from global conglomerate Citigroup focuses considerable efforts around markets, banking, consumer banking and wealth management. Citibank claims position as a top Hong Kong credit card issuer. Its private bank took home PWM/The Banker's “Best Global Private Bank” honour in 2019.

Additional Citibank benefits include:

• Favourable for expatriates/non-residents
• Account packages with no monthly, annual, or ATM fees
• Investment offerings spanning bonds, insurance, stocks
• Tailored private bank services for high net worth entrepreneurs and executives

Bank of China

With New York, London and other China hubs comprising its investment banking network, Bank of China presents multiple advantages:

• Multi-currency account options
• Competitive account management expenses
• No cash withdrawal fees
• Streamlined global transfers
• Sophisticated digital banking

Standard Chartered

Alongside HSBC and Bank of China, Standard Chartered retains a top three issuing bank ranking in Hong Kong. Its remote account opening and QR cash withdrawal solutions resonated during COVID-challenged 2020. Minimum balances start around HK$200,000.

Conclusion

The aforementioned institutions represent premier selections when evaluating where to establish Hong Kong corporate accounts. However, fully apprehending specific banks' due diligence prerequisites proves equally crucial. Necessary documentation, interviews, and expectations differ across providers.

Therefore, interested companies would be prudent to seek guidance in navigating preferred banks' unique account opening procedures. Specialist consultation can illuminate and demystify bank-specific requirements. With the benefit of targeted advice at each stage, enterprises can submit well-prepared applications for streamlined approval. TK Deal's listed contact channels facilitate easy access to dedicated specialists for hands-on support throughout your Hong Kong account opening procedure.