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.