Opening a bank account for your business is on top of your to-do list as soon as you register your business in Hong Kong.
Having a separate Hong Kong business account is necessary for most business structures and you cannot substitute your personal account for it.
But which bank is the best for opening a business account in Hong Kong? How do you distinguish between personal and business accounts? And can you open a corporate bank account elsewhere apart from a regular bank?
This guide tells you everything you need to know.
Difference Between Business Accounts and Personal Accounts
The primary use of a business bank account is to help business owners hold and manage money that the business makes.
This includes paying various suppliers and employees, making tax payments, and receiving payments from customers.
There are various types of business accounts, such as:
- Business checking account
- Business savings account
- Certificates of deposits account; and
- Foreign currency accounts
On the other hand, personal accounts are meant for managing personal funds. You can use it for paying for any type of personal expense.
Why Do You Need a Company Bank Account in Hong Kong?
Opting for a business account in Hong Kong has several advantages:
- A business bank account lends credibility to your business. This is especially important when you are just starting in a new country.
Having a separate account means your customers and clients can directly pay your business instead of routing the funds to your personal account. This makes your business appear more professional. - Business bank accounts offer tax benefits. The account holder doesn’t have to pay any tax on the earnings.
- Most banks in Hong Kong allow you to open a multi-currency bank account that makes it convenient to hold, send and receive various currencies from one account.
- Since there are no capital control laws in Hong Kong, you can freely transfer the deposits from your business account to accounts elsewhere in the world.
- Having a distinct business bank account offers protection to your business assets. In case your business fails to repay its debts, the assets in your personal account remain untouched.
- A separate bank account for your business makes it convenient to track expenses, keep an eye on your spending and avoid unnecessary expenditures.
Top 5 Business Bank Accounts In Hong Kong
Choosing a company bank account in Hong Kong can be a task given that it is home to an extremely sophisticated banking and finance sector.
Here’s a roundup of the top 5 options you can consider:
1. Standard Chartered
Headquartered in London, Standard Chartered is a key player in the business banking services sector of Hong Kong.
Type of account offered:
It offers two types of corporate bank accounts: business and priority banking.
Both accounts support 11 major currencies.
Who can open an account?
To open a business bank account with Standard Chartered in Hong Kong, you should be one of the following:
- Sole proprietorship
- Partnership
- Limited company; or
- Owners incorporation
You are ineligible to open an account if your business is incorporated in a sanctioned country or operates in a prohibited sector.
How long does it take to open an account?
Can take several weeks to months
Minimum deposit requirements:
Nil
Account opening fees:
HKD 5,000
Currency conversion fees:
For receiving payments via telegraphic transfer, the fee is HKD 55. For outward telegraphic transfers, the fee is HKD 200.
2. DBS Bank
Headquartered in Singapore and the recipient of Hong Kong’s best international bank in 2022, DBS Bank is a top choice for businesses in the region.
Type of account offered:
It offers three types of business accounts :
- Business Entrepreneur
- Business Edge; and
- Business Edge Preferred
All accounts support 14 major currencies.
Who can open an account?
Any limited liability company, partnership, or sole proprietorship business that’s incorporated and registered in Hong Kong can open an account. However, the business shouldn’t have any corporate directors or partners.
How long does it take to open an account?
Within 2 to 3 working days
Minimum deposit requirements:
HKD 10,000 but no deposit fees for the first three months.
Account opening fees:
HKD 1200
Currency conversion fees
No fees if you use DBS Remit, an online overseas transfer service from the bank.
Otherwise, you need to bear correspondent bank charges plus handling and cable charges of DBS Bank.
3. Statrys
A virtual Hong Kong business account is an excellent alternative, especially if you are looking for more features and perks compared to what traditional banks offer.
And a fintech such as Statrys fits the bill perfectly. It also supports the remote application process and you can complete all formalities online.
Type of account offered:
Multi-currency business account
Who can open an account?
Any company registered in Hong Kong.
How long does it take to open an account?
Usually, less than 3 days
Minimum deposit requirements:
Nil
Account opening fees:
Nil
Currency conversion fees
For sending payments, the fee is HKD 75.
For receiving payments, the fee is HKD 55.
4. HSBC
As the largest bank in Hong Kong, HSBC is a good option for opening a business bank account. The HSBC business banking division has offerings for businesses in various stages of growth.
Type of account offered:
You can choose from three types of business bank accounts, namely HSBC Sprint, HSBC Business Direct, and HSBC BusinessVantage.
HSBC Sprint account is perfect for newly set up startups whereas Business Direct is more appropriate for growing SMEs.
For SMEs that have been around for a while, HSBC Business Vantage is a better choice.
Who can open an account?
HSBC allows all limited companies, partnerships, or sole proprietorships registered in Hong Kong and carrying out business operations in Hong Kong to open an account.
However, the business should not have any corporate directors or shareholders. But they should have up to 2 individual directors or authorized signatories.
How long does it take to open an account?
Within 3 days
Minimum deposit requirements:
- Average account balance of HKD 50,000 for HSBC Sprint and HSBC Business Direct account
- Average account balance of HKD 100,000 for HSBC Business Vantage
Account opening fees:
The fees vary depending on the type of business account you wish to open.
Typically, applicants need to pay HKD1,300 as account application fees.
The bank also levies additional fees for inactivity or account closure.
Currency conversion fees
You need to pay additional fees for any currency conversion.
It is usually HKD 65 for receiving payments and HKD 120 for sending payments to any other bank across the globe excluding HSBC bank in Mainland China.
5. Hang Seng
Hang Seng bank, partly owned by the HSBC group, is the second-largest retail bank in Hong Kong.
Type of account offered:
The bank offers two types of business accounts, depending on the type of business entity applying. These are:
- Biz Virtual+ account for startups; and
- Integrated Business Solutions account for established SMEs
Who can open an account?
The applicant can be an incorporated sole proprietorship, partnership, or limited company.
The applicant should not have any corporate shareholders and must meet the annual sales turnover requirement of the bank. The individual directors and authorized signers should hold HKID.
How long does it take to open an account?
Biz Virtual+ account: 3 business days
Integrated Business Solutions account: 5 business days
Minimum deposit requirements:
HKD 50,000 equivalent or above
Account opening fees:
The fees vary based on the type of business account you open.
Typically, for opening Biz Virtual+ account, applicants need to pay HKD 600 if they do it remotely and HKD 1200 if they do it in person.
For Integrated Business Solutions account, the fee is HKD 1200 for both remote and in-person applications.
Currency conversion fees
Charged based on the amount sent or received.
Bottom Line
Having a business bank account is the mark of a real business.
Deciding on which business account is best for your business depends on what you are looking for. Get a thorough understanding of your requirements before you shortlist an option.
To get a complete picture, also calculate the fees you would be paying for every cross-border payment.
If you want to avoid the complicated account opening process of banks, consider a fintech that offers a virtual account.
Get in touch with Air Corporate to set up a remote Hong Kong business account.
FAQs
Every bank follows its unique account opening process and the relevant documents for account opening may vary. Typically, they request the following documents:
- Documents that prove your business is legally registered in Hong Kong such as your Business Registration Certificate or a Certificate of Incorporation
- Identity and address proof directors and signatories; and
- Documents that show business activity, such as a business plan
Every Hong Kong bank follows a strict procedure for account opening.
While you may be able to submit the documents online, you may still need to go in person to a branch to complete the formalities.
Only a fintech providing virtual business accounts in Hong Kong allows you to complete the entire process online from a remote location.
