Monthly Archives: April 2013

How to Open a Bank Account for Hong Kong Companies?

Hong Kong is a world-renowned financial center, its sound financial system and banking institutions and services throughout every street, which optimize the business environment and bring a lot of convenience and opportunities for enterprises at the same time. Many investors go to Hong Kong to invest and to open an account, but each bank has its own requirements and procedures for account opening, and requires different information. Corporate directors and shareholders often go repeatedly back and forth between the corporate and banking because of unfamiliar or incomplete information. Conpak CPA is based in Hong Kong, established good relations of cooperation with the international banks in Hong Kong, we have services of Hong Kong bank account opening, enabling our customers to open an account with cost savings and shorten time.

Why open an account in Hong Kong?

There are many benefits of opening a bank account in Hong Kong. First, Hong Kong has no foreign exchange controls, but there are advanced foreign exchange settlement system and improved financial infrastructure, the funds can be freely allocated; second, the currency can be changed freely in Hong Kong, which is facilitate in the international trade settlement of payment; third, Hong Kong is exempt from tax on interest, the real return on deposits is higher; fourth, it is simple to operate for the Hong Kong bank account, and can open online bank for transactions; fifth, Hong Kong’s financial position is excellent, the applicable legal framework is accordance with the Basel standards, which is benefit for investor financing.

The ways of account opening

At present, the ways of Hong Kong bank account opening include face-to-face account opening, video account opening and witness account opening (QI account opening). Among them, face-to-face account opening refers to shareholders and directors of the company going to the Hong Kong bank for account opening, it can be finished on that day under normal. Video account opening refers to the shareholders and directors of the company to visit the Mainland Branches of Hong Kong banks at the appointed time, open the account with the witness of the staff. It normally takes about 15 working days. So far, Conpak has the attestation qualifications for Citibank, HSBC and Hang Seng Bank. The QI account opening refers to the company’s shareholders and directors visit the Conpak office in Shenzhen or Shanghai for account opening under the witness. It is only 10 working days from QI account opening, which is facilitated in cross-border transactions with customers.

Process and information on account opening

The process of Hong Kong bank account opening is very simple, generally including submitting the application, approving the account number, sending a check book, sending online banking password, confirming the online banking password to start, the service of the first online banking logs in, sending or receiving ATM card and password and other details. Of course, the premise of successful account opening is   the applicant must provide the necessary information, such as:

• Original proof of identity of shareholders and directors

• Original certificate of Business registration

• Original certificate of corporate registration

• Original Articles of Association of the Company

• Company seal

• Statutory register documents

• Directors proof of address

• Proof of business (orders, purchase and sales invoices, contracts, bills of lading, etc.)

• Documents of account opening signed by accountants

At the same time, Conpak remind investors that a company can set up multiple bank accounts in Hong Kong, but all accounts are required to apply for the establishment of the company. After opening the account, investors need to well preserve the bank monthly statement, water bill and other various expenses bills, in order to prepare for inspection or later required.

Top Benefits of Hong Kong Company Registration

The overseas offshore company registrations will be still alive in 2013. With the Hong Kong local bank refused BVI and Cayman companies to provide bank account services, more and more investors are beginning to register a Hong Kong company.

According to the data released by the Registrar of Companies in Hong Kong, as of the end of 2012, the total number of Hong Kong local companies in the register of companies reached 1,044,600, compared with 955,400 in 2011; growth rate is more than 9% (http://www.cr.gov .hk/en/publications/press20130113.htm).

Therefore, what is the force in the flock to attract overseas investment to Hong Kong?

1. The Global Freest Economy

On January 10 of 2013, the Heritage Foundation and the Wall Street Journal issued “Index of Economic Freedom” report, Hong Kong named Global Freest Economy in the first place with 89.3 points for 19 consecutive years. There is very free flow and out of people, goods and capital in Hong Kong. At present, Hong Kong has signed visa-free agreements with more than 100 countries, and visa-free exchange travel plans with the Pearl River Delta will come too. In logistics, there are developed land, sea and air transports in Hong Kong, and implemented zero-tariff policy on imported goods except tobacco, alcohol, etc. In addition, Hong Kong has no exchange controls, and a variety of foreign currencies can be readily converted to mobilize.

2. World’s Financial Center

There is a sound financial system and well-developed banking sector in Hong Kong, Hong Kong registered company can carry out remittance transactions to the countries of the world, in addition there are more than 200 kinds of financial services can be operated via the Internet and electronic trading services by banks. On this basis, the enterprises can get more credence and credit for financing. Conpak CPA Limited based in Hong Kong, has abundant bank resources and business advantages. Therefore, Conpak can assist the client apply SMEs loans from the Hong Kong government.

3. Low-tax Environment

There are low tax rates and less tax types in Hong Kong, and tax on offshore profits is zero. Therefore, many international institutions achieve a reasonable tax avoidance purpose by using the tax advantages of Hong Kong. The investors of Hong Kong registered company generally only need to pay two types of taxes: one is the disposable registered capital of stamp duty, the tax rate is one of the thousands, this tax is determined by the actual registered capital; another is profiting tax, the tax rate 17.5%, this tax is calculated based on the actual earnings (net profit).

4. Geographical Advantages

Hong Kong has strategic geographical location, which has the frequent economic and trade exchanges with mainland China. Hong Kong has been joined the bridge between mainland China and the world. Many mainland enterprises registered company in Hong Kong as a springboard for overseas expansion; a growing number of overseas companies and financial institutions also set up their headquarters, branches or offices in Hong Kong enter the Chinese mainland market.

5. Freed Choice of Company Name

Hong Kong allows the company name to contain the region and the nature of the industry, such as: China, Beijing, Zhejiang, Hong Kong, United States, France, International, Asian Institute, Press Association, Group Holdings, industry, development, investment, finance, fraternity, science and technology, health care, fund, association and other words, also can register a Chinese company name.

6. Less Restrictive of Operating Range

In addition to the illegal business, Hong Kong Limited Company can carry on any business, such as clothing, furniture, jewelry, electronic technology, financial, pharmaceutical, shipping and transportation, import and export trade, real estate, construction, decoration, information network, tourism, college, culture, publishing, associations, research institutes and other high-tech industries.

7. Low Registered Capital without Verification

There is no maximum registered capital according to the regulations of Hong Kong Government, but requires a minimum of 10,000 Hong Kong dollars. In addition, there is no verification requirements in Hong Kong and unlimited funds in place. Investors will be able to set up a company in Hong Kong without putting funds to banks.

8. Significantly International Status

The international status of Hong Kong is significant. Clothing, toys, culture publishing and other industries have a competitive advantage in the international arena. Many enterprises register companies in Hong Kong to improve the visibility of the brand and its own international status and image.

Improved financial system, free economic system and good business environment, no matter from which of indicators, Hong Kong are the unique charm of the best offshore registration. Conpak CPA (http://www.conpak.com) is based in Hong Kong, to become familiar with the policies and regulations as well as accounting, auditing, company registration, intellectual property and other operational practices. If you need to know more, please contact us and we will give you a more detailed interpretation.