To start a corporation in Hong Kong, do you need to register a Hong Kong company with bank account? Today, businesses opening corporate bank accounts in Hong Kong have a variety of international and local banks to select from. All Hong Kong’s domestic and foreign central banks have created products and services to cater to various demands. This article compares corporate bank account features offered by Hong Kong’s top banks.
In Hong Kong, SMEs make up a considerable portion of businesses. And make up a sizable portion of the bank client base. The main financial requirements of any firm include first-rate cash management services, Internet banking that makes it easier to trace money transfers, trade financing, and short- and long-term loans. It is a pretty easy and quick process to open a corporate bank account. To be able to match your banking demands with what each bank offers. Knowing what they are is crucial before opening an account with a specific bank.
Hong Kong Company Formation with Bank Account
All required legal requirements: Company Secretary for one year. Local Registered Address for One Year. All government costs for the first year.
Corporate secretarial services:
- Check for name availability.
- Preparation and filing of documents.
- Organizational Setup in 24 hours.
- Digital corporate records.
Most of Hong Kong’s banks will need the following information and papers from offshore and Hong Kong private limited corporations to open a corporate bank account.
Opening a Corporate Bank Account in Hong Kong: Required Documents
Form for creating a bank account that has been filled out for the company registration HK. And signed by those allowed to do so, per the Board’s decision.
- An excerpt from the board resolution authorizing the creation of a business bank account.
- A true copy of the certificate of incorporation of hong kong company, as issued by the Companies Registry.
- A legitimate certified copy of the business registration certificate for the organization. As issued by the Inland Revenue Department.
- A legitimate certified copy of the articles of association for the business.
- A director statement that identifies the principal shareholders and directors. A principal shareholder is a person with the right to cast at least 10% of the company’s votes or the authority to command such casting.
- For each of the directors, authorized signatories, and principal shareholders. And also the beneficial owners of corporate shareholders. A copy of the Hong Kong incorporated company identity card or passport and residential proof. Like utility bills, bank statements, driving licenses, etc. And former name or alias proof (if applicable).
- A list of authorized signatories’ sample signatures.
- A business strategy or audited financial accounts are evidence of a business.
- For corporate shareholders of the company: A certified copy of an organizational chart indicating. The ultimate beneficial owners of the business as well as the percentages of shares held by each individual.
- Information on the ultimate beneficial owners for a company’s nominee shareholders.
- A certified copy of the trust deed or declaration of trust with information on the trustees and settlers. And beneficiaries are required for ultimate beneficiaries who are trusts.
Important information: Company registration in hong kong. The copies of all submitted documents must be signed by a banker, lawyer, certified public accountant, or company secretary.
Other Requirements
Besides the information mentioned above, most banks in Hong Kong need it. The least deposit to open a bank account. Offshore companies opening bank accounts in Hong Kong must submit proof of employment, quality assurance, and standard documents. Almost all banks in Hong Kong follow due diligence procedures. And when opening a bank account, signing the account, registering. And shareholders must be present in Hong Kong. But, some banks may be allowed to open bank accounts even if the directors and shareholders. And signatories are not present in Hong Kong. Documents can be signed in a bank of an offshore company between witnesses. Once you have decided to base your business in Hong Kong, the next step for many is to set up a business bank account. Hong Kong is a banking mecca.
As of December 2020, in Hong Kong, there were:
- 161 licensed banks
- 17 restricted license banks
- 12 deposit‑taking companies
- Forty-three representative offices of overseas banks.
Many businesses also provide business accounts, currency exchange, and payment services. Through possession of a Money Service Operator license or an Electronic Money Institution. (EMI) license (read more about these unbanked solutions below). Here we explain everything you need to know about setting up a corporate bank. Or a business account in Hong Kong.
Incorporate the Company in Hong Kong
Step 1: Choose your business type and name.
- Choose the type of business that best suits your business goals.
- Company limited by shares Member: The articles of association limit members’ liability to the amount paid for the shares they hold.
- Company Limited by Guarantee: The articles of association do not limit the capital. Any liability of the members to the amount that each member agrees to pay into the company’s assets at maturity. Non-profit organizations are often registered as chartered companies.
Step 2: Submit the request.
Submit the following documents and fees to Shroff on the 14th floor of the Queensway Government Building. Either via the “e-Registry” or “CR e-Filing” mobile app or hard copy.
- Form of incorporation of hong kong company – Form NNC1 (for companies limited to shares).
- Or Form NNC1G (for companies not limited to shares).
- A copy of the joint action (the copy is available in the e-Register).
- A Notice to the Companies Registry (IRBR1).
Step 3: Complete the certificate.
Once the application is approved, we will upload it. Or print a Certificate of Incorporation and Business Registration (“Certificate”). Certificates are issued or on paper, depending on how the application is submitted. Electronic certificates or hard copies have the same legal rights.
Application delivered in electronic form: Electronic Certificates for private companies limited. Shares will usually be issued within 1 hour. Email notification for downloading the Certificates will be sent to the message box. And the registered email address of the registered user who delivers the application.
Application delivered in hard copy form: Certificates for companies limited. Shares in hard copy form will usually be issued within four working days. The presenter will be notified by fax when the Certificates are ready for collection.
Step 4: Get other permits or licenses.
Please visit the Ministry of Trade. An Industry website for information on other licenses, permits, and certificates. And approvals related to Hong Kong’s import and export business and other businesses.
Offshore company formation in Hong Kong
Facts about company formation HK incorporation
- There must be a minimum of one director.
- The maximum number of directors is infinite.
- Directors may be corporations or real beings.
- Directors may or may not reside in Hong Kong.
- Directors may be from any country.
- Director nominees are accepted.
Shareholders:
- There must be at least one shareholder.
- There may be up to 50 shareholders.
- Companies or natural persons may be shareholders.
- Shareholders may or may not reside in Hong Kong.
- Shareholders may be from any country.
- Shareholders may be nominees.
- 100% of shares may be owned locally or abroad.
- The lone director may exercise shareholder rights.
Company Secretary:
- It is required by law to appoint a company secretary.
- A corporate resident or a local person might serve as the company secretary.
- A professional degree is not necessary.
- The company secretary cannot be the sole shareholder or director.
Registered Address:
Hong kong company incorporation registration address must be a local physical location that is not a PO Box.
Share Capital:
- Any share capital amount must be deposited into the business’s bank account.
- Bearer shares are not accepted.
Taxation:
A company tax rate of 16.5% is only applied to income “generated from or arising “in” Hong Kong. Hong Kong does not levy taxes on income earned abroad or from foreign sources.
Guide Ongoing Compliance:
The business must follow all compliance requirements for Hong Kong companies. It includes an annual audit of the company’s books and notifying. The Companies Registry of any changes to the company or its members, filing annual returns with the Companies Registry. Filing tax returns with the Inland Revenue Department. And holding annual general meetings (AGMs) on time. Maintaining company records, accounting records, and other business documents. And renewing the business registration certificate, among other requirements.
What factors should be taken when opening a bank account?
In Hong Kong, most of the world’s central banks are represented. Before selecting a bank to open your business account, factors like these must be taken into account.
- Reliability of banks
- Offered services and resources
- Future support services, including loans or trade financing, are accessible.
- Minimal deposit amounts
- The availability of online banking
- Monthly costs (if any)
Conclusion:
It’s simple to establish a business in Hong Kong. After determining that incorporation is the best business structure for you in Hong Kong.
You can begin the incorporating hong kong company procedure:
Choosing a name, initial share capital, shareholders, and directors. And a company secretary is all part of this process. The firm’s articles of association should include all essential company information. The Companies Registry must then receive all supporting documentation.
All businesses should know their ongoing tax and compliance responsibilities in Hong Kong once registered. This includes submitting compliance returns to the Companies Registry. And keeping accurate financial records audited annually.