Archive 27 August 2020

Private Banking Hong Kong

In a very attractive and competitive environment Private Banking Hong Kong is a solution for International Entrepreneurs willing to diversify their risks.

First let’s address the elephant in the room, private banking isn’t personal banking and the difference is just a question of amount, USD 1 million and more and you access private banking, anything less and you should remain in your country of residence.

Services of Private Banking Hong Kong are given by local banks and international banks, the city offers a very important choice of banks, the teams are well trained, the investment opportunities numerous and the overall business environment is favourable.

Advantages of Private Banking Hong Kong

  1. Ease to invest on mainland Chinese stocks
  2. Access to multiples IPO’s
  3. Higher returns expectation, the portfolios are more aggressive as most of the clients are high demanding

Disadvantages of Private banking Hong Kong

  1. Confidentiality training to the team is less efficient than in Switzerland or Luxembourg, culturally the confidentiality doesn’t have the same importance in Asia.
  2. Higher returns also mean higher risks, Chinese mentality towards betting is well demonstrated in the Casino attendance with 90 % of Chinese visitors
  3. Bank compliance is less trained on wealth acquisition outside of China so might ask questions of a lower level than expected

Introduction to Private banking Hong Kong is usually made through wealth managers, lawyers, tax advisors and Corporate services Companies with the support of an adequate compliance report

Hong Kong bank details

In order to transfer funds to an individual or a company the Hong Kong banks details should be completed as follow.

Account holder name: Example limited

Account holder address: 33 F. imaginary building, 99 example road, district, Hong Kong

(Hong Kong doesn’t have postal code)

Account number:

The account number in Hong Kong is composed of 9 to 12 digits, the first 3 being the branch code.

account number in Hong Kong should look like this :  123-456789-111

SWIFT code: Hong Kong doesn’t’ use IBAN

Hong Kong bank details are easy to complete, the SWIFT code can’t be found by googling the Financial intuition name and location.

There is no reason to provide your Hong Kong bank details, except of course on an invoice, you should protect your information and be aware of potential scams.

Caritative company in Hong Kong, not an easy setup!

A Hong Kong non-profit organisation also presented as a caritative company in Hong Kong obey to the following rules:

  • Must be established for charitable purpose and for public benefit
  • The charitable purposes being classified in four distinct areas, charitable nature for the benefit of the Hong Kong community, advancement of a religion, advancement of education and last but not least relief of poverty.
  • It should be recognized by the Hong Kong Inland Revenue Department, the department will not consider as charitable purpose: encouragement of a particular sport, provision of playing field or scholarship for a particular industry or company, attainment of a political object.

In order to benefit from a tax exemption, the caritative company in Hong Kong should submit to the IRD an application with list of activities planned for the next 12 months as well as the draft incorporation statutory returns and the draft articles of association.

This long process, up to six months before COVID 19 disturbances, should satisfy the IRD with the below criteria:

  1. Precise and clear entity’s objectives
  2. Limiting the application of funds to its stated objectives
  3. Prohibiting distribution of funds/assets amongst its members
  4. Prohibiting directors from receiving remuneration and avoiding any conflicts of interests
  5. Specify another charity for the remaining assets if the caritative company in Hong Kong engage with a dissolution

It’s crucial for the Hong Kong non-profit organisation to not receive any donation before the section 88 tax exemption status has been granted.

The process to setup a caritative company in Hong Kong.

  1. Using a limited by guarantee company with at least two members, two directors, one company secretary and later on one auditor but first
  2. Prepare custom drafting of articles of association
  3. Obtain the IRD approval then register the limited by guarantee company, requesting the dispense of the world limited is also an option.