You may be conversant in an international bank account, but does one know everything there to understand about an international bank account? it's an account during a bank that's not located within the same country during which the company has been incorporated. This suggests if you're incorporating your company in Hong Kong, you'll open an international account in a bank of another country apart from Hong Kong. And yes, this is often perfectly legal and acceptable!
An international bank account is often highly recommended in comparison to opening a business bank account in Hong Kong. an international bank account is a thing that might benefit not only you but also your company on an international stage. Aside from this, you'd never need to visit Hong Kong even after you've incorporated your business there.
Regardless of what you would possibly hear people say about an international bank account, international banking is completely legal and may be highly advantageous for a few companies. So, turn a deaf ear to all or any those that are advising you otherwise. An international bank account type is more about legally diversifying your political risk by putting your capital funds in well-capitalized, and sound institutions where they're treated the simplest.
Moreover, there's no huge secret that it's becoming a tough thing to open a company bank account in Asia, so it’s best to possess a backup plan. The success rate of opening a world corporate bank account is significantly higher for those, alongside a sound business plan, in comparison to others applying for a Hong Kong business account.
Here we'll walk you through the processing and details of an international bank account, after which you'll decide if you would like to open an international bank account or a business bank account in Hong Kong.
If you probably did not know, many banks allow you to open an international bank account easily with no need of visiting the bank. This just means you as a foreigner can comfortably open a bank account without the necessity to visit Hong Kong within the least or maybe the bank in the country that you simply are opening an account in.
Let’s have a glance at the method involved in opening an international bank account.
At first, you'd got to incorporate your company in Hong Kong, or share your idea with an excellent agency like ours and complete the method of getting the business incorporated and registered. After this, you'll either search for the bank on your own or ask the agency to allow you to realize the banks out of Hong Kong where you'll open an international bank account.
As per your business requirements and the activities that happen, the bank that suits the simplest would be shared with you by the agency. If you're searching on your own, you'd need to understand the transactions of the business and therefore the nature of the account that you simply would wish, since all the bank accounts aren't an equivalent. Also, confine mind that a lot of international banks are keen on company introductions by agencies, as they'll not openly accept a person’s company bank account request due to their due diligence policies.
Also, it's vital to know that your company has to be incorporated and registered before you'll move ahead with opening a Hong Kong international bank account. This is often since you'd have to present the documents to the bank during the method, without which you can't open a business bank account in the least in any bank.
For opening the Hong Kong international bank account, you'd need to fill the web application for it and the banks online would wish you to fill all of your credentials that include the private details, provide details of your business background, explain the intended business venture of your new company, and upload your company registration documents. These details are vital since it is the rationale why you're opening the bank account thereupon bank.
The staff at the bank would review the appliance and analyze everything to see if you're eligible for the business international bank account in their bank. If your application is approved, you'd be contacted via the email mostly to rearrange a quick video call with an officer at the bank for the method to start. you would like to be prepared for the decision and for any questions that they could ask you during the decision for opening the business bank account.
During the video call, your identity would be verified by the staff of the bank. alongside this, they might also ask you the small print that you simply shared with them including the intended business activities for the new company that you just opened along and the way much you'd want to grow the company. they might also discuss the business background and therefore the international banking services that might be required by the business also like you.
After this has been done, you'd now need to courier the bank account application documents including your genuine and valid copy of your passport that's certified and signed by a lawyer, CPA, or company secretary. If you've got a hired workplace to try to do the work for you, they might look out of getting the copies signed alongside the company registration copies also that must be signed and couriered too.
The bank would take about a fortnight to process the appliance for the method of the bank account opening after they need to receive the signed application and therefore the genuine certified copies that are signed by the CPA of the company. twiddling my thumbs during this point and confirm that you simply have sent all the needed documents to the bank. Most of the delays in opening a bank account are thanks to some missing documents or overlooked detail during the method.
The bank would then provide the new international bank account details to you through an email and would request you to manage the transfer of the funds to activate the account. After you've added the funds to activate your bank account, the bank would then send the web banking device via courier in order that you'll begin to use it for the transactions in your business.
Overall, it's vital to require some time and confirm that you simply are prepared properly before you submit the account opening application to the bank. Since the failure to supply the documents or the specified information can always cause delays also as a possible rejection of opening an international bank account for your Hong Kong company.
Documents needed to open an account
Don’t get nervous about the documents that are needed to open an international bank account as this bit is more formality and due diligence on the part of the bank. These are the papers that you simply have already got or would get once you incorporate a corporation in Hong Kong
The following documents would be needed by the banks as you apply for the international bank account:
This is something that every bank account opening would wish since you're opening the account for the business you only incorporated. the subsequent documents would be required by the bank:
All of those documents would be certified by the Company Registry of Hong Kong SAR, and their copies that are sent to the bank need to be signed by the CPA. The agency that you simply hire for the incorporation of your Hong Kong company would look out of this if you hire them for this service also.
These are vital because the bank would really like to know the character of the business, and also what proportion of experience you've got therein field. This eventually would determine how long your business would exist and therefore the possibilities of the business to succeed at a better level alongside the quality it can reach, if possible. The documents needed here are:
These are the foremost obvious things that are needed once you open any quiet bank account and not just the Hong Kong international bank account. the most required documents are:
Just confirm that you simply have kept all the documents prepared before you apply for opening the international bank account. And a tip for being successful is to call the bank before time in order that you recognize exactly what you would like to point out or send to them alongside the application for opening the Hong Kong international bank account.
As mentioned above, there's more good than bad if you decide on opening an international bank account, else why would this be emphasized here? So, that you simply understand the rationale behind why it's said to be the simplest option, the advantages shared below:
One main point that everybody considers when it involves applying for a world account is the approval rate of the bank. There are a couple of banks that don't approve the applications for the business bank account easily or have tons of requirements. But many banks have a high approval rate for international bank accounts, allowing people from around the world to share the advantages of getting a bank account within the country.
The very first advantage of an international bank account is that you simply would be ready to bank in several currencies and even within the multi-currencies. This is often an excellent benefit for people such as you that have a financial commitment for every deal they create in addition to one currency or nation thanks to your business in Hong Kong.
The international accounts are designed to supply the purchasers with the utmost flexibility regarding account usage. you'll benefit greatly from this regardless of where you're within the world as this suggests you'll access the funds from ATMs or perform online transactions at any time. Moreover, there's the choice for phone banking that features a great benefit also, regardless of the zone you're in.
With the political and economic stability towards their assets, opening an international bank account would offer you a way better security during a country that has more significant economically stable jurisdictions.
You would be ready to enjoy tons more of the account privacy by moving internationally since in places like Switzerland where the bank puts a lot of emphasis on the confidentiality of the client’s information whenever. So, for people that want to guard their assets against any unfair or speculative hostile behavior.
With a Hong Kong company that involves business trades or transactions everywhere around the planet, it's obvious that you simply could be restricted with each country’s laws and regulations as you reside there in terms of banking. Through the international account, you'll easily avoid these and be free where all the business transactions are often directed therein account with no trouble.
If you decide to open an international bank account, you'd be ready to obtain the banking services that aren't available within the domestic banks where the company is incorporated. These services include special investment opportunities, discounted international payments, and low rates on loans. aside from this, you'll make sure about the privacy where many banks offer more privacy of situations like taxes, or bankruptcy.
Yes, everything during this world has both good points including the bad ones. So it's with the international bank accounts, wherewith all the benefits that you simply get as mentioned above, there are some disadvantages to it too. the subsequent are the disadvantages of the Hong Kong international bank account:
This doesn't contradict the advantage of the financial security mentioned above, but there are chances where a political turmoil, natural disaster, or depression can cause the danger of you losing the cash that you simply have deposited therein bank. Though this is often not something that might be 100% certain, some people do consider it albeit it's going to happen in any country around the world.
Many people like better to have a bank account locally thanks to the convenience and therefore the incontrovertible fact that they will easily visit the bank as and when required. International banking issues are often taken care of via email and telephone, but there are many that might find this inflexible and inconvenient. And for them to travel are some things that are tough due to the additional money they need to spend. This disadvantage is merely for people that aren't able to explore the benefits of an international bank account.
Another thing about the international bank account is that a lot of banks have a high initial deposit and a good higher monthly fee in comparison to Hong Kong banks. this is often not the case for all the banks, as there are a couple of who have a lower initial fee. However, some support and like wealthy people to return and open a bank account in their bank. Though this won't be a problem for some, it's a serious disadvantage for those that have a limited allow starting their businesses in Hong Kong.
Choose the account within the jurisdiction that you simply are familiar about, or make sure you are told about the bank account accurately by either a trusted person or the agency that you are taking help from for the Hong Kong company incorporation. This is often since the principles and regulations aren't an equivalent in every country and it's better to know them better than to fall under a trap.
Overall, it's vital to possess a glance at the terms and conditions of the bank before you blindly just walk into a bank and open an international bank account to regret later. This is often one reason why it's better to rent the workplace to require care of all this for you, but it's still recommended to read all the conditions.
Now that you simply know what you're stepping into, you would like to settle on the proper bank that might be perfect for the Hong Kong business transactions that you simply would have. There are two categories under this, one list is of banks you'd need to visit the bank personally, and the other list of banks where there isn’t any requirement of personally visiting the bank for opening the Hong Kong international bank account. Here are a number of the banks that are recommended and preferred by many that open Hong Kong companies.
Opening an international bank account by just filling the web application and not visiting the place is feasible in only a couple of decent banks. a number of them that are recommended to you are:
This is a bank in Switzerland that allows an individual to simply open a Hong Kong international bank account in their bank. It has a low maintenance fee of $40 with a non-refundable application fee of $175. Obviously, since it's been mentioned that the international banks support multiple currencies, this bank does an equivalent thing. After the appliance has been submitted, your bank account would be opened within 15 to 20 working days.
Europacbank may be a bank that's located in Puerto Rico and is another much-recommended bank for an individual who owns a Hong Kong business where it supports multiple currencies a bit like most of the opposite international bank accounts.
But this bank is far more preferred since it accepted the business bank account applications for those that own a corporation in Hong Kong. With a monthly maintenance fee of $30, the bank account would be opened within 15 to 20 business days of submitting the appliance to the bank online.
ABC Banking Corporation (Mauritius) may be a fully-featured international bank. It offers savings and current accounts, corporate accounts, term deposits, call deposits, and short term fixed and floating deposits. they supply debit cards and online banking services for their clients. No credit cards are available at the instant. ABC Banking requires an in-depth business plan – confirm it'll be well-prepared.
Other than the straightforward method of opening an international bank account for your Hong Kong company online, there are many banks that might require you to go to them personally. There are many banks under this category but the foremost recommended banks that might be the simplest for your Hong Kong business are:
From the name, it's understood that the bank is a bank in Singapore. With an application fee of $372 and a maintenance fee of just $100 monthly, you'll enjoy many benefits of this account alongside the Multi-currency advantage.
The only thing during this account is that you simply would need to visit the bank in Singapore with all the specified documents for opening within 15 to twenty business days. make sure that you call the bank to verify the documents needed and to book a meeting in order that you are not wasting your precious time by reaching there rather than doing this.
DBS may be a regulated bank in Singapore and that they are subjected to banking secrecy. The bank has also been named “Safest Bank in Asia” by Global Finance for nine consecutive years from 2009 to 2017. they provide a Multi-Currency Account for the purchasers. To open the bank account, you're required to possess 50000 USD for the initial deposit.
After reviewing your company’s documents, they're going to arrange a bank meeting with the applicant and you'll expect your account to be opened in 15 to twenty working days.
It is a standard thing for several people to concentrate more on the company incorporation in Hong Kong, but there's something else that's vital, which is that the bank account opening. aside from the Hong Kong international bank account, you'll open a business bank account in Hong Kong also or maybe in your country, counting on the simplest option that you simply got and the benefits you get consistent with your business needs.
In case you would like to open an account in Hong Kong, the recommended banks that are employed by many of us who incorporate their companies in Hong Kong are:
Another solution could also be to open a company bank account for your company in your home country. This might be beneficial as you'd be more conscious of the banks in your country and it might be more convenient for you. you'll contact the bank for the documents required, and have your agency assist you with gathering the required company documents.
Choose the bank consistent with your needs, though an honest option to open a bank account is often a world bank thanks to the various advantages. Cross-check everything about the bank and don't forget to offer them a call to book a meeting and ensure the documents required before you visit them, both on the web video chat also as physically at the bank.
For the simplest guidance, the neatest method is to rent a workplace that would look out of these things, ensuring that you simply get the simplest as per your business needs.