While opening a corporate account brings many benefits to bosses, there may be difficulties and limitations during the account opening process, especially for start-ups or smaller companies. Some frequently asked questions include:
– Business registration must be completed within one month after commencement of business
– There may be a situation where there are insufficient required business supporting documents
– Failure to meet the minimum deposit requirements set by the bank
– Most banks require an initial deposit, which can be a hurdle for small business operators.
At present, many banks provide exclusive corporate account opening services for entrepreneurs and small and medium-sized enterprises, making it more convenient to open accounts and handle banking business. For example, Hang Seng Bank’s Virtual+, OCBC Velocity, HSBC’s HSBC Sprint account, Dah Sing Bank’s “328 Business”, etc., have simplified the account opening process for SMEs and start-ups who only need simple business services.
In addition, major banks are also working to simplify the process of opening an account, and now only need to prepare all the required documents.
Application requirements and required documents
Most banks have similar requirements and required documents for corporate account application, but the following is a list of some documents that must be submitted for Hong Kong companies to open an account with major banks:
- Valid business registration
- Applicant’s identification document and proof of address
- Proof of tax jurisdiction and tax status
- Power of attorney, account opening letter and seal identification card
- Proof of business (proof of business operations, e.g. orders, sales contracts, source of products/funds/wealth, etc.)
- Inland Revenue Department (IRD) Certificate of Trade Name (for partnerships)
- Certificate of Incorporation, Articles of Association, List of Directors and Resolutions, Declaration of Allotment of Shares (for limited companies)
Open an account in person at the bank/online
The process of opening a corporate account usually requires visiting the bank in person. As this involves the process of uploading documents and meeting the requirements of different corporate accounts, opening a corporate account in the past usually required visiting a branch in person, and some additional documents may be required to meet the account opening requirements. In addition, the application is subject to the bank’s approval process and may not be completed immediately in a single branch visit. As a result, opening a corporate account can take some time, sometimes weeks or even months.
Many banks now offer the option to open a corporate account online, and some even promise to complete the account opening process within a few days, which is in line with the needs of start-ups for simple corporate accounts. As long as you meet the online account opening procedures of each bank, according to the application requirements and the preparation of the required documents, you can open a corporate account with major online banks.
Finally, if you don’t feel like it’s fast enough to open an account online, some banks have even launched mobile apps that allow you to complete the account opening process without having to go out, making it easier and faster.
