Whether you're just starting out with internationalization or already structured overseas, there's a good chance you've been pushed to buy a Hong Kong company with a bank account.

Hong Kong companies are a favorite of international service providers, lawyers and gurus. Each of these groups pushes Hong Kong as a safe, stable and desirable option for anyone looking to internationalize their business or investment activities.

Hong Kong businesses are tax efficient and relatively low maintenance. In addition, they are registered in a respected international jurisdiction with many banks.

If you decide to buy a Hong Kong company with a bank account, you have two options. First, you can buy a shelf business with an existing bank account. Or, secondly, you can pay someone to incorporate a new company and then get them to help you open a bank account.

While Hong Kong businesses make profits, the problem lies in banking.

Opening a bank account for a Hong Kong company today is a big challenge.

Moreover, the independent and stable Hong Kong that many of us knew and loved over the past few decades are rapidly sliding into China's shadow.

By buying an already established Hong Kong company with a bank account you will become the new owner. In this scenario, after buying the company the bank is informed of the change of ownership. That means they find out about the new UBO and any relevant details.

The bank immediately submits the new UBO (and new shareholders and directors) through the standard due diligence process. If something comes out suspicious, the bank closes the account.

It is important to note that just because you buy a Hong Kong company with a bank account, it does not mean that the attached bank account will remain open. It also doesn't mean you can "bypass" the bank's due diligence process. The bank can still cancel the account at any time if they don't like what they see.

In fact, the only difference between buying a Hong Kong company with a bank account and setting up a new company and applying for a bank account is that you have the old baggage of liabilities, debts, and business history of past owners looming over your head.

Hong Kong used to be one of the easiest places in the world to open a bank account. In fact, banks here would open accounts for any kind of business. For example, if you had an IBC in a distant location and had no ties to Hong Kong, you could open an account here.

Then Hong Kong's banks became strict, over-corrected for their years of lax compliance, and now it is one of the most challenging countries in the world to open a business bank account. 

In other words, if you plan to set up a company in Hong Kong and have no ties to the jurisdiction, you should be prepared to bank outside.

Sufficient links with Hong Kong

If you plan to open an account in Hong Kong, you should be ready to prove your links. If you have ties to Hong Kong, you will need to prove it. If you are not a resident and your company does not have a physical office or a number of other physical requirements in the country, Hong Kong banking is likely to be out of the question.

If you already have a company in Hong Kong and don't feel like restructuring your business, you might be wondering what you should do. Similarly, if after careful consideration, you have decided that Hong Kong is still the best jurisdiction to set up your business, you may be wondering what banking options you have.

Well, in any case, it is still possible to open a bank account for a Hong Kong company. And the banks available to you will depend on some key variables and your customer profile. In fact, with the right information, Foster Swiss can advise you to open a bank account for a Hong Kong company with real physical banks. 

Foster Swiss can help you consolidate an offshore company in Hong Kong with a bank account, we provide you with personalized advice from the moment you choose a corporate structure for your company, until even one year after you have incorporated your company.

In the same way we choose the bank that best suits your requirements and we take care of the whole process for you.

For more information on this topic or any requirement related to our services, you can contact us directly through info@fosterswiss.com