It’s no secret that Hong Kong offers one of the most business-friendly ecosystems in the world. One of the reasons for that is because of its robust, innovative, and dynamic banking sector that offers a good mix of traditional financial institutions and neobanks.
It’s not surprising that many don’t only consider Hong Kong to be Asia’s premier business hub, but financial center as well. This makes it the perfect destination to look for the ideal option to handle your corporate account for your Hong Kong-registered business.
What does the corporate banking system in Hong Kong look like?
According to the Hong Kong government, companies have their pick of banking services, with 163 licensed banks. There are also 17 restricted license banks, 13 deposit-taking companies, and 42 local representative offices of overseas banking institutions. This constitutes Hong Kong’s three-tiered banking system, overseen by the Hong Kong Monetary Authority (HKMA):
- Licensed banks: The most common type of bank in Hong Kong. They typically offer current (checking) and savings accounts, take deposits, and accept paychecks.
- Restricted license banks: These organizations operate similarly to investment banks in capital markets. They can take deposits greater than HKD500,000, but can’t accept deposits from the general public – only corporate, high-income, or other eligible clients.
- Deposit-taking companies (DTCs): These are non-bank financial institutions, usually still associated with licensed banks. They may accept deposits, but cannot issue cheques, lend money, or offer credit facilities. Deposits must be at least HKD100,000 with a maturity of 3 months.
Hong Kong thus features a large and diverse financial sector that caters to all corporate needs.
How to open a corporate account in Hong Kong
Here is a quick checklist you can follow to open a corporate account for you business in Hong Kong:
1.Research and choose a bank
2. Gather the necessary documents, which may include:
- Certificate of Incorporation
- Business Registration Certificate
- Articles of Association or Memorandum and Articles of Association
- Hong Kong ID or passport copy of directors and authorized signatories
- Proof of address of directors and authorized signatories
- Business plan or proposal
- Other relevant financial documents
3. Schedule a meeting with the bank to discuss opening a corporate account
4. Meet with a representative of the bank and bring all your documentation
5. Submit your documentation and wait for approval (may take several days up to several weeks)
6. Once your account is approved, you will receive instructions on how to activate the account and start using it
Bank and neobank options in Hong Kong
Here are some of the top bank and neobank options to consider for corporate banking services in Hong Kong:
- HSBC (Hong Kong Shanghai Banking Corporation Ltd.): HSBC offers a range of corporate banking services in Hong Kong, including account opening, cash management, trade finance, and investment services. The bank also provides dedicated relationship managers and online banking platforms for corporate clients.
- Citibank (Hong Kong): Citibank specializes in corporate banking services, such as account opening, cash management, trade finance, and foreign exchange services. Business can leverage its international approach and global network of multinational corporations.
- Hang Seng Bank: Hang Seng also offers account opening, cash management, trade finance, foreign exchange, and investment services. However, it stands out for its personalized approach to banking solutions with dedicated relationship managers for businesses of all sizes.
- Bank of China (Hong Kong): This bank offers clients a strong presence in Mainland China and expertise in cross-border transactions, making it ideal for expanding in this direction. You can also expect essential services like account opening, cash management, trade finance, and investment services.
- DBS Bank (Hong Kong): DBS Bank is somewhat unique thanks to its focus on digital solutions and sustainability initiatives for businesses. On top of account opening, cash management, trade finance, and investment services, you can expect streamlined digital tools with superb user experiences.
- China Construction Bank (Asia): As the name suggests, this bank specializes in infrastructure and real estate financing. Business can leverage their expertise in these industries in combination with account opening, cash management, trade finance, and investment services.
- Bank of East Asia: Like Bank of China, Bank of East Asia maintains a strong presence in Mainland China. It can help clients facilitate business relationships and cross-border transactions with Greater China.
- Airwallex: While not a fully licensed bank, business can open a corporate account with Airwallex in Hong Kong. Businesses can leverage its real-time rates and competitive conversion fees when making international transactions.
- MOX: Mox is a digital bank in Hong Kong that holds a restricted banking license. This means it offers corporate accounts and banking services, including debit cards, e-wallets, and digital payments. It’s known for its user-friendliness and competitive rates.
What to know about the top bank and neobank options in Hong Kong
Let’s dig a little deeper into the pros and cons of some of the top corporate banking options in Hong Kong:
HSBC
One of the most internationally-recognized names in banking, HSBC is considered one of the top 10 banks in the world and one of the top two in Asia. According to its 2023 annual report, it has nearly USD 3 trillion in assets under management. It has also been named Hong Kong’s best domestic bank.
Pros:
- Offers a wide range of corporate banking services
- Expertise in international trade and global markets
- Convenient access with large local and international network of ATMs and branches
Cons:
- Relatively high fees for corporate banking services, including forex
- Stricter account opening requirements, making it harder for small businesses
- Has faced some regulatory scrutiny in recent years
Hang Seng Bank
Hang Seng is also considered to be one of the top 10 banks in Asia, with USD 241.28 billion in assets under management. Asiamoney named Hang Seng the best bank for SMEs in Hong Kong in 2021, thanks to facilities such as allowing them to pre-register online for priority processing of their applications.
Pros:
- Strong rewards programs for card and accountholders
- Convenient and innovative range of e-services
- Robust local presence with large ATM network
Cons:
- Narrower range of corporate banking services than other top banks
- Doesn’t have as robust global presence
Bank of East Asia
The largest independent Hong Kong bank, Bank of East Asia (HKBEA), reported assets under management valued at USD 113.1 billion as of December 2022. Despite being a locally-owned and operated bank, they offer a large range of multi-currency accounts.
Pros:
- Well-established reputation in Hong Kong
- Surprisingly strong presence in Mainland China and the rest of Asia
- Caters to a diverse customer base
Cons:
- Its presence does not extend far beyond Asia
- Being a smaller bank, customer service does suffer under strain at times
Airwallex
Airwallex is a Hong Kong-Australia fintech startup that offers cross-border payment solutions, foreign exchange services, and corporate banking services to businesses. In October 2022, it had a valuation of USD 5.5 billion and had raised USD 100 million in funding. It holds a Money Service Operator (MSO) license and allows the opening of corporate accounts.
Pros:
- Efficient and convenient cross-border payments
- Competitive translation and forex rates
- Good customer support
Cons:
- Limited services compared to traditional banks
- No physical branches or ATMs
- Transaction limits may not be suitable for larger businesses
Finalizing
Hong Kong’s robust and innovative banking sector, which includes a mix of traditional financial institutions and neobanks, makes it the perfect destination for opening a corporate account. However, this does mean that one has to carefully study the available options to choose the most suitable option for your business needs.
