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Business Bank Account Suggestions

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  1. #11

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    Just remember if you go for a smaller bank you will have a lot less flexibility in branches should you need to visit one (before you dismiss this, please understand that HK works on a PAPER based system and going into the branch to sign things is a fact of life). Similarly I would carefully check out their internet banking before signing up as most banks in HK are gravely deficient in this. HSBC's is actually not bad once you get over the frustrating of using the security device. None of them are what I could call good.


  2. #12

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    Sep 2011
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    Thanks for the tips Moving. Pragmatic advice that I'll keep in mind.

    The not so fully developed internet banking was my main concern but probably not so big an issue for me as, quite literally, in the first year I envisage less than 5 deposits coming from local HK companies for advisory fees. My intention is to then transfer these funds to pay company related expenses and transfer the remaning balance to my personal account in HK. So I'm happy with the most basic internet banking so long as its a secure platform.


  3. #13

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    Are you sure a Sole Proprietor is not what you really want? Then able to use personal bank account and none of the costs of company setup. If all it is is for advisory work that;s what people usually use. (my husband does, for example).


  4. #14

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    Sep 2011
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    Thanks for the suggestions Moving.

    At the immediate stage I can get away with going down the Sole Prop route. My personal balance and fee free HSBC in Hong Kong, however, prohibits the deposit of business receipts. Not sure how they will keep track of it but it only allows for wage and personal deposits.

    While I say the initial revenues will be advisory fees (for the first year anyway), the nature of the business and its source of revenues will most likely change so it could do with the benefits of being an incorporated separate legal entity. There may also be a need to apply for a financial services license which means a Ltd company down the track.


  5. #15

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    You sure must have some strange HSBC account given how many sole proprietors I know use HSBC (my husband included).


  6. #16

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    I too use my personal HSBC account for all the transactions associated with my Sole Proprietor business, so I really don't understand what you're going in about.


  7. #17

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    I should have been clearer on my HSBC personal account. It is an account setup through HSBC's international services, not setup in HK locally. If you have an account with HSBC in your local country, HSBC's intl services group can establish an account for you in Hong Kong on your behalf for a fee (the setup fee for Australian customers is A$200). The main purpose of these accounts are for those who are moving to Hong Kong, the assumption being that you are transferring with an existing employer or have secured employment in HK, hence the requirement that the account only be funded with your personal funds or with your wages. Hope that clears up any confusion for the retail banking product experts out there.

    Just an update on the business account. Over the last few days I have reached out to a number of banks in HK, both local and international, regarding corporate current account options. As expected the responses from the banks, if any, have been pretty poor. Chong Hing, as suggested by bryant.english, however, was a pleasant surprise. Nice, carefully considered email response where they actually showed some sort of understanding of my circumstances. They then followed this up with a telephone call to discuss how exactly my account will be used, their banking options and the practical aspects surrounding the process of setting up HK accounts. And of course they advised of the no minimum balance option they have available. I remember when I was last working in HK, quite a few locals using Chong Hing and being more than happy with their service so they sound like a good, safe option to go with.

    So there you have it, the option for no minimum balance requirements is available if you are willing to look. And I am sure if you go to your preferred bank and sat down with them personally you could negotiate something similar rather than just taking their off the shelf offerings.


  8. #18

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    Useful info - thanks for the update.


  9. #19

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    Thanks for the clarification, though I'm still very unsure as to how HSBC would police the source of the money that you put into your account. As far as I'm aware HSBC HK doesn't have different accounts for "expats" so I think there may be some misunderstandings in all this somewhere. As noted, many, many people here (including me) use their HSBC personal accounts for their Sole Proprietor business transactions.The good thing about HSBC personal accounts is that if you bank with them in several countries and have a decent-sized relationship with them in one of those countries then you automatically get free personal banking in the other countries and free & instantaneous transfers between your accounts round the world.


  10. #20

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    Quote Originally Posted by Gruntfuttock:
    Thanks for the clarification, though I'm still very unsure as to how HSBC would police the source of the money that you put into your account. As far as I'm aware HSBC HK doesn't have different accounts for "expats" so I think there may be some misunderstandings in all this somewhere. As noted, many, many people here (including me) use their HSBC personal accounts for their Sole Proprietor business transactions.The good thing about HSBC personal accounts is that if you bank with them in several countries and have a decent-sized relationship with them in one of those countries then you automatically get free personal banking in the other countries and free & instantaneous transfers between your accounts round the world.
    I have a sole proprietorship and I initially used my personal HSBC account and of course nobody bothered me about all the ins and outs...

    What prompted me to change was that some of the companies I have contracts with weren't happy with depositing money to a personal account...I came to realise there is still a bit of a prejudice towards sole proprietorships, at least in the public sector, (My contracts are with schools). The sticking point seemed to be my name as opposed to my business name being on the account.

    Anyway, HSBC were no help, ditto Hang Seng....

    I chose Chong Hing because my landlord recommended them to me..... no minimum balance and very low fees. I can only speak for Tuen Mun but their (several) branches are very convenient for me. Their website is as good as HSBC/Hang Seng. There are never any queues and you're never on hold, not that I've had much reason to call them. They've obviously not dealt with foreigners much as they were a bit confused about my visa status and why I couldn't provide a UK address....For me, they tick all the boxes...HSBC and Hang Seng just tick me off!
    Last edited by bryant.english; 11-01-2013 at 12:48 PM.
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