When addressing the subject to open a bank account for a foreign company the following should be taken into account.
The bank compliance teams are trained to open accounts for companies registered in multiples jurisdictions, the perceived quality of the jurisdiction will first have to be determined.
A company registered in BVI or in Belize will face difficulties, less to say, to open a bank account in Asia.
Contrarily Seychelles companies and Samoa companies are well perceived, and regularly used as part of a structuration, with Singapore and Hong Kong banks.
The concept is to present to the potential bank a company from a jurisdiction they know and accept well. A bank could be very comfortable to open for a UK company and reluctant to do the same for a Seychelles company or vice versa.
Targeting the right bank is the work of Corporate Services Providers, preparing the compliance report and aligning interests is a job requiring up-to-date information about the risk appetite of Financial Institutions.
Why opening a foreign bank account for a company?
Whatever the jurisdictions of either the company or the bank the business logic is the most important.
There are multiples reasons to open a bank account for a foreign company:
- Accessing particular currency, i.e RMB is required when working with the People’s Republic of China
- Allowing the company to invest in stocks and financial investments locally
- Risks diversification, as under the current economic environment having all your eggs in one basket is dangerous.
- Easing payments and reducing transfer delays
Considerations by the banks
The banks in Hong Kong will consider the following factors prior to open a bank account for a foreign company:
- the nationality of the beneficial owner
- the country of residence of the beneficial owner
- the locations of the clients
- the locations of the suppliers
- the expected turnover
Working with a well-known Corporate Services Provider presenting the compliance report to the bank is crucial. To open a bank account in Asia, it should be handled by professionals.
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
- Ease to invest on mainland Chinese stocks
- Access to multiples IPO’s
- Higher returns expectation, the portfolios are more aggressive as most of the clients are high demanding
Disadvantages of Private banking Hong Kong
- Confidentiality training to the team is less efficient than in Switzerland or Luxembourg, culturally the confidentiality doesn’t have the same importance in Asia.
- Higher returns also mean higher risks, Chinese mentality towards betting is well demonstrated in the Casino attendance with 90 % of Chinese visitors
- 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
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)
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.