NEWS
Feb-12-2010 Opening Bank Accounts in Hong Kong for Offshore International Business Companies
Individuals and companies wanting to maximise their revenues, minimise their potential tax liabilities and protect their assets often set up an offshore international business company (IBC) or companies incorporated overseas and not registered in Hong Kong. A key component to attaining these objectives is to open a bank account for the offshore company.
Having a bank account in Hong Kong allows the IBC to directly receive funds, either as the equity contribution from its stakeholders or as revenue from its business operations, or as dividends from its investments. In turn, it can make payments for various operational and capital expenses as well as distribute dividends from these bank accounts.
To open a bank account in Hong Kong, the IBC must submit various documents and comply with a bank’s internal policies on due diligence or on “Know Your Customer” (KYC).
In general, banks in Hong Kong require applicants to submit the following documents, together with the bank’s application form and signature cards:
1. Certificate of Incorporation;
2. Memorandum and Articles of Association;
3. Certificate of Incumbency;
4. Board Resolution to open the bank account, indicating the type of account/s, type of currencies, the authorised person/s to administer the account and whether they are authorised to sign singly or jointly (if more than one signatory).
5. Proof of residential address and passport copies of the authorised signatories and principal shareholders or beneficial owners.
Each bank has different requirements regarding applications for opening an account, so it’s important to be fully aware of all the requirements and procedures for each bank.
Some banks may require the director, shareholder or beneficial owner of the IBC to submit a declaration. Likewise, an applicant must submit certification by a certified public account/lawyer of an FATF member or comparable jurisdiction acceptable to the bank, certifying that the information contained in the declaration is correct and accurate. An organisational chart may be required if there are shareholders that are corporate entities.
Certain banks also require an initial deposit and may also charge an additional fee for processing the account-opening application for offshore companies.
In compliance with the KYC policies and regulations, a bank may require that a due diligence interview be conducted with the shareholder or beneficial owner in person, to gather certain basic information. The bank may also inquire as to the nature of the business, the purpose for opening the bank account, the source of funds, the estimated number of banking transactions and the estimated amount for each banking transaction with a given period of time.
Based on the documents submitted and the information gathered from the due diligence interview, the bank has the sole discretion to approve the account-opening request. The bank may reject or deny the application without providing a reason.
Professional intermediaries and corporate service providers are able to give invaluable assistance if you want to open bank accounts for your offshore companies.