Opening an international bank account in Hong Kong for non-resident
Hong Kong is one of the best places in the world to trade and do business activities. The bank account plays a vital role in businesses and fits the financial goals of the business owners. Therefore, to make the business transaction easier and more convenient, opening Hong Kong international bank accounts should be considered.
- No tax on interest: This is a huge benefits of a business bank account. The holder will not be charged tax on their earnings.
- Free capital transfer: Hong Kong has various industry sectors. As a result, there is no foreign exchange control on the trade. The international capital transfer is done easily without any problems
- Reputation bank in Hong Kong: Many famous and safe International banks in Hong Kong like HSBC, the Bank of China, Citibank, Standard Chartered Bank that are trusted by foreign investors and business people.
Offshore bank accounts allow business owners to operate through multiple currencies without depleting funds through currency transaction fees. Moreover, it creates more opportunities for investment by minimizing the cost of currency exchanges. All international banks offer online banking options that allow foreign account holders to easily access their funds anywhere in the world. They can manage their business transaction status outside Hong Kong. The offshore Hong Kong bank accounts are always safe and easily transfer money for foreigners.
The investors and foreigners must travel to Hong Kong for opening business bank accounts, it is recommended that they hire an agency so that the agency can help the account applicant with their businesses in arranging and preparing all documents. One IBC will gather all necessary papers for the clients before the customers visit Hong Kong. With our support, the customer’s time will be more flexible and the preparation for the interview will be the best. In addition, it can avoid the unexpected situation that you have missed details or documents when visiting the bank.
The next tip is the most important, the investors and foreigners should understand that different banks in Hong Kong have their own processes and conditions for opening a business bank account in Hong Kong. For the offshore companies, the banks require the applicants to submit a Certificate of Good Standing and a Certificate of Incumbency in addition to the normal documents in opening the bank account in Hong Kong. Moreover, the two main languages in Hong Kong are Chinese and English, so all documents will be translated into English for foreigners.
All in all, with the information above, you can open a Hong Kong bank account easily and quickly. Even if you are either entrepreneurs, business partners, or professional business people, you all can open international bank account in Hong Kong.
If you are looking for a trusted supporter to help you with opening a company and bank account in Hong Kong, One IBC can advise you. With over 10 years of experience in supporting the customers in setting up the company in foreign countries, we believe that to give you the best solution and services to your business. In addition, our clients are well taken care of. All questions you can chat with us at the website: ptg.su or free call to +7 912 257 79 26 for more information.
The International Business Hub Competition between Hong Kong and Singapore
For many years, Hong Kong and Singapore have been competing for the crown of “Best Place of Doing Business” as both are international respected powerhouses within the Asia region and worldwide, respectively.
However, both jurisdictions do have their similarities and differences when it comes to benefits between them which we will disclose for a better understanding as a particular jurisdiction might be more suitable to one person compared to the other.
Their similarities are noted in the table below:
|Location||Centre of Asia||Centre of Asia|
|Access to other cities||Major cities of Asia Pacific, the Middle East, and North America||Major cities of Asia Pacific, the Middle East, and North America|
|Spoken language||English and Chinese||English and Chinese|
|Time to set up a business||1 – 3 working days||1 – 3 working days|
When it comes to the differences, Hong Kong and Singapore offer different benefits revolving around the setup of an offshore company:
|Resident Director required||No||Yes|
|Statutory audits required||Yes||No|
|Corporate Income Tax (CIT) (%)||Capped at 16.5%||Capped at 17%|
|CIT Rebate||50% income under|
|50% income under |
|GST (VAT) Tax (%)||0||7|
|Personal Income Tax Rate||None||A flat rate of 15% charged for foreign-sourced income|
What is a different between LLC vs Corporation, S-corp, C-Corp?
|Limited Liability Company (LLC)||General Corporation||S-Corporation||C-Corporation|
|Formation||Colorado State filing||Colorado State filing||Colorado State filing. Within 75 days of formation, IRS filing of Subchapter S election is required||Colorado State filing. Within 75 days of formation, Form 2553 required to be filed with the IRS|
|Liability||Typically, members not personally liable for the debts of the LLC||Typically, shareholders not personally liable for the debts of the corporation||Typically, shareholders are not personally liable for debts of the corporation||Typically, shareholders are not personally liable for debts of the corporation|
|Raising Capital||Potential to sell interests, contingent upon Operating Agreement restrictions||Shares of stock are usually sold to raise capital||Shares of stock are usually sold to raise capital||Shares of stock are usually sold to raise capital. Venture capitalists and angel investors are typically a good source of funding|
|Taxation||Not taxed at entity level if properly structured. Profit/loss passed through directly to the members||Taxed at the entity level and shareholders receiving dividends are taxed at the individual level||Not taxed at the entity level. Shareholders are taxed at the individual level for profit/loss||Fringe benefits and owners’ salaries can be deducted as business expenses. Shareholders may face double taxation|
|Formalities||Less formal meetings and minutes are required; state reporting required||Board of Directors, formal meetings, minutes and annual state reports required||Board of Directors, formal meetings, minutes and annual state reports required||Board of Directors, formal meetings, minutes and annual state reports required|
|Management||Members have an Operating Agreement that outlines management responsibilities||Shareholders elect Board of Directors to appoint officers for day-to-day management||Shareholders elect Board of Directors to appoint officers for day-to-day management||Shareholders elect Board of Directors to appoint officers for day-to-day management|
|Existence||Perpetual unless otherwise specified||Perpetual unless otherwise specified||Perpetual unless otherwise specified||Perpetual unless otherwise specified|
|Transferability||Contingent upon Operating Agreement restrictions||Shares of stock are easily transferred||Shares of stock easily transferred after observing all IRS regulations and ownership requirements||Restrictions on transferring shares of stock.|