Hong Kong is a very attractive jurisdiction, popular with vigorous entrepreneurs. Registration of an HK company opens up many advantages for business in Asia, particularly in China. For successful cooperation with Chinese partners and clients, many decide not only to set up a company in Hong Kong, but also to open corporate accounts with local banks. And it is precisely at this stage that they face challenges.
It is not easy to open a bank account in Hong Kong today, especially if the company has foreign shareholders or top managers. Hong Kong banks maintain very strict and complicated due diligence and KYC procedures. Their officers thoroughly screen every client and scrutinize each submitted document. They often ask for additional papers, and the account opening procedure may drag on and on for weeks and even months. Besides, according to the standard rules, the applicants for opening an account with a Hong Kong bank need to visit it in person.
The good news is that we can offer you an excellent alternative to corporate bank accounts: we recommend opening corporate accounts with the Hong Kong payment system. This option is your chance to launch any business and start accepting payments as fast as possible. Over recent years, payment systems have proven their worth and are strong competitors to the banking industry as a whole. Their strengths include new safe technologies, flexibility, and loyalty to their customers.
Hong Kong Payment System for HK Companies: the Scope and Services
Hong Kong Payment System offers the same basic services as any traditional bank:
- special payment orders in HKD, EUR, and GBP to receive payments from customers worldwide without concealed fees
- ability to make money transfers, both domestic and international
- work with third-party services such as PayPal, Stripe, Amazon, and others
- corporate MasterCard cards for you and your team, allowing you to withdraw cash from any ATM worldwide that accepts MasterCard®
- integration with your accounting system (coming soon).
Features of opening a payment system account in Hong Kong:
- no trips to branches – the Hong Kong payment system account can be opened and managed remotely – online
- there is no limitation to the maximum balance on your account
- the payment system in Hong Kong does not provide loans, savings accounts, or investment services
- the Hong Kong payment system account may be used for any reasonable purpose, such as annual audit, visa application, or connection to third-party services.
The account baseline currency is Hong Kong dollars. But you can receive payments in any currency – funds will be automatically converted into Hong Kong dollars at Standard Chartered bank rate.
The goal of the founders of the payment system in Hong Kong was to remove the obstacles that entrepreneurs face when working with traditional financial institutions: time-consuming paperwork, bureaucracy, and long processing times for applications to open an account. The founders wanted to make life easier for aspiring entrepreneurs and startups by using the right technology.
With the Hong Kong payment system, you can conduct necessary money transactions online whenever and wherever you want. The cost of services is reasonable, as there are no hidden fees. Unlike traditional banks, the payment system in Hong Kong is meant to meet individual needs of its customers and take their particular situation into account. The company shares its development plans, appreciates when clients voice their opinions, and really listens to them.
Who can and who can’t open corporate accounts with the Hong Kong payment system?
The payment system works with most types of companies. In addition to limited liability companies, accounts are available to sole proprietorships and partnerships. The directors and shareholders of the company to which the account is opened in the Hong Kong payment system do not have to be residents of Hong Kong and be physically present in Hong Kong.
Currently, the payment system in Hong Kong opens accounts for companies registered in the following states and territories:
- Hong Kong
- British Virgin Islands
- Cayman Islands
- New Zealand
- United Kingdom.
But there are certain restrictions. Thus, accounts with the Hong Kong payment system are not available to companies operating in the following industries:
- aviation business
- adult services industry
- arms trade
- trade in antiques
- cryptocurrency businesses
- defense systems
- gambling and casinos
- IPTV operators
- gem and metal trading
- nuclear energy
- pawn shops
- products/services prohibited by Hong Kong law
- financial pyramids
- transactions in securities and stocks
- VoIP providers.
Also, the Hong Kong payment system accounts are not available to companies whose shareholders and directors are citizens or residents of the following countries:
- American Samoa
- American Virgin Islands
- Bosnia and Herzegovina
- Bouvet Island
- British Indian Ocean Territory
- Burkina Faso
- Cape Verde
- Central African Republic
- Christmas Island
- Cocos Islands
- Comoros Islands
- Costa Rica
- Côte d’Ivoire
- Democratic People’s Republic of Korea
- DR Congo
- East Timor
- El Salvador
- Equatorial Guinea
- Falkland Islands
- French Guiana
- French Polynesia
- French Southern Territories
- Heard Island and McDonald Island
- Marshall Islands
- New Caledonia
- Northern Macedonia
- Northern Mariana Islands
- Papua New Guinea
- Pitcairn Islands
- Republic of Congo
- Republic of Mali
- Saint Helena, Ascension and Tristan da Cunha Islands
- Saint Martin
- SaintPierre et Miquelon
- San Marino
- Sao Tome and Principe
- Saudi Arabia
- Sierra Leone
- Sint Maarten
- Solomon Islands
- South Georgia and South Sandwich Islands
- South Sudan.
- St. Barthélemy
- The Gambia
- Trinidad and Tobago
- U.S. Outer Small Islands
- Wallis and Futuna Islands
- Western Sahara
The procedure of corporate accounts opening with the Hong Kong payment system
In order to open a payment system account in Hong Kong, you need to:
Contact us for professional assistance by e-mail: firstname.lastname@example.org
Pay the service fee for help with opening an account in the Hong Kong payment system. The price starts at 3999 EUR. Different payment methods are available: bank transfers, payment by cards, PayPal, Bitcoin, Western Union, etc.
Prepare the following documents:
- a valid Business Registration Certificate (BR)
- passports of all directors
- passports of all shareholders who own 25% or more shares of the company
- Resolution of the Board of the company.
As you can see, the payment system in Hong Kong requires far fewer documents to open an account compared to Hong Kong banks. This advantage makes your business start much more effortless. All other corporate documents can be obtained by the payment system directly from the Registry of Companies. In some cases, additional papers may be required, for example, a business plan if the company is at an early stage of start-up.
The procedure for opening an account with the Hong Kong payment system is patented and complies with Hong Kong law. In 2017, the payment system even won the Hong Kong ICT Awards from the Hong Kong government. This award is given for achievements in technology. While the system performs all the necessary diligence screening checks as required, it makes them inconspicuous for the customer.
You may be wondering: if a payment system in Hong Kong can make the process of opening an account so easy, why can’t traditional banks do so too? One of the key reasons is that the system designers created it from scratch, and with all the latest technologies and tools. Conventional banks, on the other hand, cannot effortlessly change their existing systems.
The Hong Kong payment system has automated much of the KYC (Know Your Customer) procedure, thus significantly reducing the compliance procedures costs. Therefore, while banks may take months to process your application, opening an account with the Hong Kong payment system takes only a few days.
In the future, if you wish, and if your company has an office in Hong Kong (this is one of the requirements of Hong Kong banks), as well as the capacity to prove the documented business operations over the past few years, you can open an account in one of the Hong Kong banks.
Some people are worried that they will have to pay tax on the money receivable on the payment system account in Hong Kong. As we know, Hong Kong maintains a territorial principle of taxation, which means that only the income of companies generated in Hong Kong is taxed. As for the money from abroad credited to your account in Hong Kong, it will not affect the company’s tax status. It depends not on your HK company’s accounts in Hong Kong, but on who the money on the account has come from or gone to. So if you open an account in Hong Kong, you will not have to worry about taxes: unless you generate income in Hong Kong, you will not have to pay tax on the funds in that account.
What are the benefits of a corporate account with the Hong Kong payment system for individual entrepreneurs and offshore companies?
Such an account is an alternative to a corporate bank account set up with any bank in Hong Kong. You can use it for international and domestic money transfers in any currency, issue payment orders to receive payments from clients without hidden fees in local currency, EUR, and GBP, work with Amazon, PayPal, Stripe, and other services. ATMs in all countries that accept MasterCard can be used to withdraw money. Soon, the account is expected to merge with the accounting system, which will significantly expand its functions. Again, you can conclude that you can conduct virtually all money transactions online with such an account.
What are the peculiarities of opening an account?
The main advantage is that companies, partnerships, entrepreneurs can open and manage a payment system account in Hong Kong remotely. More details about who is not eligible to open such an account can be found on our portal. Please note that the account balance is not limited. Funds can be used for any purpose. The base currency is the Hong Kong dollar, but you can receive payments in any currency converted into the base currency at the rate of the Standard Chartered bank.
What documents are required for opening an account with the Hong Kong payment system, what is the price of our professional help, and how long does it take to get an account?
Accounts with the Hong Kong payment system are opened by special companies-holders of relevant licenses and permits. The company hired by the applicant helps to fill out the application forms and makes arrangements for the following documents:
– the Company registration certificate;
– copies of the passports of the director and shareholders, certified by the notary;
– the Resolution of the Board of the company.
The applicant needs to pay in any convenient way the service fee of about USD 4,515 (in any currency at the current exchange rate). The account will be available within 6 – 15 working days.