Are you planning to move to Hong Kong? Do you aspire to open an offshore account in Hong Kong? Hong Kong has won praise far and wide because of its stable banking and political systems. Its operational independence from Mainland China has given the jurisdiction a unique opportunity to enchant its own path.
For years, the process of opening an account in Hong Kong for expatriates, corporates, and those who want to secure their cash offshore was very easy.
However, things have changed so much over the last couple of years. The dangers associated with fraud, tax evasion, and drugs have become clear in the recent past. In 2008/9, the global recession and its painful impacts that affected very many countries was a result of fraud. Now, Hong Kong is committed to being part of the new force to weeding out fraud from its system through rigorous bank account assessment. The following is the assessment to anticipate in Hong Kong.
Personal details and source of revenue
The assessment of a personal account starts with personal details. The banks will require you to provide personal details such as name, address, and proof of address. Further, you are required to provide references and details about the next of kin.
The banks will want to know your source of revenue getting into the account. If you are employed, the letter of appointment and previous pay slips will be required. Some banks will even require you to indicate the transactions to anticipate in every month.
Tax compliance back at home
This is one of the latest assessments required by the Hong Kong administration under the CRS (common reporting standards) guidelines. This means that your tax info back at home will be required. If you are at a high risk of evading tax, your name and details will be captured on the info to be exchanged between Hong Kong and the home country.
Bank account assessment Hong Kong: Corporate assessment
If you are looking forward to opening a corporate bank account, the bank account assessment Hong-Kong will be more rigorous. In particular, the banks will be looking for the following;
- Proof of business activity: These are documents that help to demonstrate that the business is actually involved in legitimate trade. These are documents such as contracts, invoices, and receipts.
- Proof of shareholders and directors address: The objective of this assessment is ensuring that the business is properly constituted. Note that every shareholder has to provide info such as passports, proof of address, and tax compliance details.
- The business structure and targets: The structure of your business and targets give a pointer on what to anticipate. For example, if your business anticipates growing to $5 million mark but has suddenly hit $8 million, the bank will want to get details of the additional growth rate.
- Certificate of incorporation: This is the main document that indicates you are a legal entity. In fact, this is the first thing that banks check.
- The bank account assessment Hong-Kong targets to help banks to know their clients more. The assessment seeks to get more information about clients to ensure they are not involved in fraud. Therefore, if you plan to open an account in Hong Kong, start gathering as much info as possible and get ready to explain when a lot of cash suddenly hits the account.