Before Common Reporting Standards (CRS) was passed, the Organization for Economic Co-operation and Development was using Standards for Automatic Exchange of Financial Account Information. CSR was passed in 2014 by 47 countries that sought to share data about residents’ income and assets in a standard manner. Hong-Kong is still a paradise…
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One of the key requirements for operating a business in Hong Kong is a valid bank account. However, it is not uncommon to get companies whose applications for bank accounts have been rejected. In other cases, bank accounts are being terminated.
What do you do in such a situation? In this post, Hong Kong: Introduction for opening a bank account, we explore solutions if your request for a bank account is rejected or the account has been terminated. We also tell you why our services guarantee clients of more than 99% success.
Was your bank account request was rejected?
While some agencies assisting foreign companies to establish themselves is significant, most of them are not doing the right job when it comes to assisting their clients open bank accounts. They only ask for a few documents that do not help to build a solid case to convince banks to open new accounts for foreign companies.
In such situations, the bank accounts are rejected, and the companies are left helpless because they cannot transact. If the agency you contracted to assist you to open a bank account does not have the right idea to restart the entire process, the application will get rejected again, and the situation could jump from bad to worse.
However, we can help! Yes, we can get you the bank account you need. Today, there are few banks that are accepting foreign bank accounts and we know how to go about the process. Simply reach us for details on how we will get your account and your company will be up and running as fast.
Was your bank account terminated?
Termination of bank accounts in Hong Kong is often linked to business jurisdiction. Businesses that opened their bank accounts prior to BVI are being closed.
Though the process of closing the accounts commenced about 1 year ago, the process is always lengthy but you can rest assured your account will also be closed if it is in the same category.
Immediately an account is closed; banks allow the respective company a couple of weeks to withdraw all the deposited funds. If you fail to withdraw the funds, the account is terminated, and all the balance sent via cheque to the company’s beneficial owner. Therefore, you need to act as fast as possible when given the short period to close the account.
Why we guarantee our clients more that 99% success in opening bank accounts
When a client contracts us, we take about 9 hours preparing all the compliance documents as well as comprehensive explanations for the bank. We ensure to include these details in our quotation so that your company application or bank application goes through easily and fast. Well, if you find other agencies offering cheaper services, the risk involved is very high and you are better off working with professionals.
Even if your bank account has been rejected or terminated, do not hesitate to reach us for assistance. We have the solution, goodwill, and will walk with you until the account is ready and business is up and running.
Many people who like international business operations are at some point faced with the question about IBC. In this post, we explore IBC: Definitions and advantages so that you can make the right decision as to whether they are indeed right for you.
IBCs and their roles
What is IBC? IBC are initials standing for International Business Company/corporation. An IBC is a company that is incorporated in a country or region that is tax neutral. This means that the company does not pay any taxes or if it does, the amount is very little. IBCs are limited in their operations and cannot do business in the country of registration to enjoy tax relief.
IBCs observe high confidentiality and will in many cases maintain the name of shareholders as anonymous. The main functions of IBCs are close to those of an offshore limited liability company. In particular, the functions of IBCs include the following;
(i) International trading in countries other than where they are registered
(ii) Establishing baking identities to keep shareholders anonymous
(iii) Running business special entities
(iv) Protecting assets of owners that are held under the company
(v) Bypassing Sanctions and embargoes set by countries to carry business
(vi) Bringing together intellectual property licensing
Advantages of IBCs
1) Lower tax rates: IBCs usually attract 0% tax rates or very minimal taxation. In many cases when they are taxed, the tax rate falls within the range of 3% and 0.25%. This can mean a lot for a business especially if they operate in countries that have very Heavy taxation regimes.
2) IBCs are exempted from levies: Unlike other companies, IBCs do not get stamp duty and are, therefore, exempted from the local taxation system. Consequently, the companies exist in reality but are hidden from taxation. The only thing they must do is ensuring that all the deals are kept away from the local arena.
3) Higher operational freedom: Because they exist as ghosts, they are able to enter into business deals with no limitations. With only a local office, the company can have and work with members all over the world and make huge returns.
4) Rapid formation process: IBCs usually take a very short time to conceive and operationalize. The only requirement is a lot of money, compliance letter, and a single return filing. With your documents as proof of registration and operational license, the offshore company is ready to start. The only step that may take some moments is the Know Your Customer (KYC) that requires verification of those who are involved.
5) Full guarantee of deductions as well as benefits
Though these are dependent on the country of choice, IBCs are sure of many years of waivers, exemptions, and huge benefits. This helps to keep the funds and all associated assets safe from depreciation, taxation by government agencies, as well as accountability through requisite documentation. The guarantee is also extended to exemption from controls so that transferring assets or other high-value items is easy and direct.
6) Flexibility with currency selection
Unlike the common standards in company operations that mainly use pounds, dollars, or euros, IBCs have greater flexibility and can operate in any currency of choice. Accordingly, you can retain the integrity of the wealth under consideration with little or no fear that it will lose value or be affected by unpredictable currency fluctuations of the main currencies.
IBCs are considered the hallmark of independent-minded people who believe in highest standards of operations in their businesses. They are formed by people who want extra efficiency, professionalism, and total confidentiality. Well, you can also open and run an IBC depending on your niche and operational objectives and enjoy the outlined benefits.