Complete Guide to Opening a Bank Account for a Company in Hong Kong

Hong Kong is a leading financial center in the world. Year after year, it attracts hundreds of companies thanks to its transparent legal system, developed banking system, and ease of doing business. 

Opening a bank account in Hong Kong is an important step for any business aiming to enter Asian markets. It is one of the most crucial tools for effectively conducting international operations. In this article, we will explain how to open a bank account for your company in Hong Kong using alternative solutions instead of traditional banks, and why this might be relevant for many entrepreneurs coming to Hong Kong for international business. 

Advantages of Opening a Bank Account in Hong Kong 

Opening a bank account in Hong Kong offers a number of unique advantages, including: 

• Free Movement of Capital 

The absence of currency control allows for international transfers without restrictions, providing flexibility in financial management. 

• International Status 

Hong Kong banks are widely represented in global financial markets, providing access to multi-currency accounts and creating favorable conditions for conducting international business. The high speed of payment execution and processing of international SWIFT transactions makes them particularly attractive for global operations. 

• Stable Banking System 

Hong Kong’s banking system is one of the most reliable and secure in the world, ensuring safety and confidence in the preservation of funds. 

• Ability to Open Accounts for Foreign Companies 

Hong Kong offers favorable conditions for opening accounts for companies registered outside the jurisdiction, making it attractive for international business. 

Features of Traditional Banks in Hong Kong 

Hong Kong banks hold key positions in international financial operations, serving not only Chinese companies but also many of the world’s largest corporations. Given the scale of the Chinese economy and the volume of trade with other countries, measured in trillions of dollars, many large banks in Hong Kong prefer to focus on serving companies with established reputations and significant turnovers, rather than actively competing for startups and small businesses. 

Profile of a Potential Client Company in Hong Kong Banks 

Many large traditional banks in Hong Kong are geared towards serving large corporations and have strict requirements for the profile of a new potential client. First and foremost, companies should have a business history of at least one year, as banks prefer to work with organizations that have a certain reputation and stability. It is also important to have detailed information about the company’s activities: account statements should demonstrate financial stability and the legality of operations with reputable clients and suppliers. 

Additionally, having contracts with counterparties from China or Hong Kong is an important indicator of interaction with local partners. Recommendations from existing bank clients can significantly increase the chances of successfully opening an account. The business must conduct real activities in Hong Kong, and foreign founders and directors are required to have the appropriate visas for work and residence in the region. Having local staff, officially employed and matching in qualification and number to the field and scale of the company’s activities, is also an important requirement. 

However, this is no longer a significant issue, as alternative solutions for handling company payments have long existed in Hong Kong, especially for small and medium-sized businesses. These alternative banking solutions have become commonplace and offer flexible and convenient payment options, almost on par with traditional banks. 

Alternatives to Traditional Banks: Fintech Solutions 

For companies that do not meet the strict requirements of traditional banks, online banks and payment systems (money transfer operators) offered by fintech companies with MSO or SVF licenses become an excellent alternative. These innovative solutions can replace traditional banks by providing a wide range of services, including domestic and international transfers, currency conversion, and secure money storage. 

Payment Systems or Money Service Operators 

Payment systems in Hong Kong are fintech companies with Money Service Operator (MSO) or Stored Value Facility (SVF) licenses. These companies are regulated by government authorities and provide financial services focused on flexibility and convenience for businesses. 

How Payment Systems Work 

All operations performed by payment systems are supported by the largest international banks located in Hong Kong, such as DBS Bank, Standard Chartered, Citi Bank, and JP Morgan. The payment system acts as an intermediary between the client and the bank, providing technical support and an innovative approach to account management. However, the infrastructure for making money transfers is based on the work of traditional banks. Additionally, payment systems usually have accounts in banks in other countries besides Hong Kong, allowing them to make payments worldwide quickly and with minimal costs. 

To draw an analogy, for second-tier banks (traditional commercial banks), the servicing bank is usually the country’s central bank, and international correspondent banks are used for international transfers. In contrast, for payment systems in Hong Kong, the operator is Hong Kong and international banks. 

Types of Payment System Licenses in Hong Kong 

In 2015, a special Ordinance was enacted in Hong Kong to regulate the activities of payment systems (money transfer operators) in this jurisdiction. The concept of a payment system in the SAR has a special significance: their number is limited, and they are strictly regulated by local authorities. 

Currently, the Ordinance distinguishes between two types of licenses for payment systems operating in the field of business bank transfers: 

1. Money Service Operator (MSO) — This license is issued and regulated by the Hong Kong Customs and Excise Department. The MSO license allows companies to conduct money transfers and currency exchange, providing flexibility and convenience for businesses. 
2. Stored Value Facility (SVF) — This license is issued and regulated by the Hong Kong Monetary Authority, which functions as the central bank of Hong Kong. The SVF license offers a broader range of services, including e-money operations, and allows for the storage of client funds in accounts. This makes SVF licenses particularly attractive for companies seeking to offer their clients modern and secure financial solutions. 

Functions of Payment Systems with an MSO License 

Money Service Operators (MSO) are becoming increasingly popular among companies, especially startups and international businesses, seeking to manage their finances quickly and efficiently in Hong Kong. MSOs provide modern and flexible solutions for handling payments, multi-currency operations, and currency exchange through fully digital platforms. 

Key functions and services of MSOs: 

1. Fast and Remote Account Opening: 
   • Ability to open accounts in various currencies quickly without the need for physical presence. 
   • Simplified document submission process and comparatively minimal requirements for clients (e.g., the company should not engage in prohibited activities or activities with heightened AML risks). 
2. Multi-Currency Accounts or Separate Accounts in Different Currencies: 
   • Support for multiple currencies, allowing companies to easily work with any countries (except sanctioned ones). 
   • Competitive exchange rates and low fees for currency transactions. 
3. Local and International Transfers: 
   • Ability to conduct both local and international transfers with minimal delays. 
   • Support for various payment methods, including Faster Payment System (FPS), Clearing House Automated Transfer (CHATS), Telegraphic Transfer (TT), SWIFT, SEPA. Additionally, MSOs can perform internal fund transfers between accounts in different countries, eliminating the need for any payment gateway and making the speed of international payments for clients virtually instantaneous. 
4. Corporate Bank Cards: 
   • Issuance of corporate cards (Visa, MasterCard) for convenient expense management. 
   • Ability to set limits and monitor employee card usage in real-time. 
5. Convenient Digital Interfaces: 
   • Intuitive and functional interfaces for managing accounts and transactions. 
   • Access to analytical tools and reports for monitoring financial activities, integration with accounting and bookkeeping software. 

Depending on the specific payment system, they may have all or only some of these functions. For example, not all payment systems may issue corporate cards. Before applying to open an account, it is always important to verify the availability of the functions you need with the specific payment system. 

Limitations of MSO 

Despite several advantages, Money Service Operators (MSO) also have certain limitations that are important to consider when choosing financial solutions for your business. 

Key limitations of MSO: 

1. Fund Storage: 
   • The primary function of MSOs is to ensure fast and efficient payment processing and currency exchange, not fund storage. MSO activities involve targeted settlements and currency conversion. The MSO license does not provide for long-term storage of large sums of money in company accounts. 
2. Transaction Limits: 
   • Some payment systems may have restrictions on the maximum transaction amounts, which is important to consider for large international payments. 
   • Companies should verify transaction limits and conditions with the chosen MSO in advance. 
3. Lack of Lending: 
   • MSOs do not provide business lending or trade financing services. 
   • Companies needing credit products should turn to traditional banks or specialized financial institutions. 
4. Limited Range of Services: 
   • Money service operators focus on payments and currency operations, not offering solutions such as investment management or insurance products. 
   • Comprehensive financial services may require the use of additional financial institutions. 
5. Deposit Insurance System: 
   • MSOs are not part of the deposit insurance system in Hong Kong. Currently, the maximum deposit protection is up to HKD 500,000 per depositor, including principal and interest. From October 1, 2024, this limit will be increased to HKD 800,000. Only organizations with a banking license, including traditional and online banks, are participants in the deposit insurance system. However, bank bankruptcies in Hong Kong are extremely rare. 

Leading MSO Payment Systems for Businesses in Hong Kong 

World First (Money Service Operator)   

WorldFirst was founded in 2004 with the aim of helping small and medium-sized businesses overcome the challenges and high costs associated with international currency transfers and payments. In 2019, the company became part of Ant Group, a Chinese company that is a subsidiary of Alibaba Group, which owns the payment system Alipay. 

Example of World First Bank Details  

• Account Holder Name: XXX Limited (your company) 
• International Collections Account 
• Currency: USD, EUR, GBP, HKD, CNH, CAD, SGD, JPY, AUD, NZD 
• Account Number: 00000000000 
• SWIFT/BIC Code: CHASHKHHXXX 
• Bank Name: JP Morgan Chase HONG KONG BRANCH 
• Bank Region: HK 
• Bank Code: 007 
• Branch Code: 863 
• Bank Address: CHARTER HOUSE, 8 CONNAUGHT ROAD, CENTRAL 
• Account Created On: 2023-04-27 

Statrys (Money Service Operator) 

Statrys was founded in Hong Kong by French entrepreneur Bertrand Théaud with the aim of making international transactions easier, faster, and more affordable. Today, Statrys proudly serves over 3,500 companies from more than 70 countries. 

Example of Statrys Bank Details 

• Account Name: XXX Limited (your company) 
• Account Number: 000000000000 (your company’s account number) 
• Swift Code: DHBKHKHH 
• Bank Name: DBS Bank (Hong Kong) Limited 
• Bank Address: 11th Floor, The Center, 99 Queen’s Road Central, Central, Hong Kong 
• Bank Code: 016 
• Branch Code: 478 

Airwallex (Money Service Operator)   

Airwallex was founded in 2015 in Melbourne, Australia, by Jack Zhang and Max Li. The main goal of the company is to make international payments for businesses simpler and more affordable. 

Today, Airwallex is a global fintech company providing multi-currency accounts, virtual cards, and integration with various platforms for international business. The platform ensures fast and transparent international transfers, currency operation management, and optimization of financial processes for companies worldwide. 

 Example of USD Details for Airwallex: 

• Beneficiary’s name: XXX Limited (your company)   
• Beneficiary’s bank account №: 00000000000 (your company’s account number)   
• Beneficiary’s bank: Standard Chartered Bank (Hong Kong) Ltd   
• Beneficiary’s bank address: 32nd Floor, 4-4A Des Voeux Road Central   
• City: Hong Kong (China)   
• SWIFT: SCBLHKHH   
• Bank code: 003   
• Branch code: 474 

Currenxie (Money Service Operator)   

Founded in 2014, Currenxie provides payment solutions for companies of all sizes.   

In Hong Kong, the company holds two licenses: a money service operator and a money lender. The company is also registered as a foreign financial business in Canada, a licensed financial services provider in South Africa, and registered with AUSTRAC in Australia. Currenxie UK Limited is authorized as an Electronic Money Institution (EMI). 

Example of Currenxie Details:   

• Bank Name: DBS Bank (Hong Kong) Limited   
• SWIFT Code: DHBKHKHH   
• Bank Code: 016   
• Branch Code: 478   
• Account Number: 000000000   
• Location: Hong Kong   
• Currencies: AUD, CAD, CHF, CNH, DKK, EUR, GBP, HKD, JPY, NOK, NZD, SEK, SGD, USD   
• Account Holder: XXX Limited (your company) 

Payoneer (Money Service Operator) 

The multifunctional digital platform Payoneer simplifies global trade for millions of small businesses, marketplaces, and companies from 200 countries and territories. Utilizing robust technology, compliance, and banking infrastructure, Payoneer provides services including cross-border payments, working capital, tax solutions, and risk management. Payoneer supports growth for both emerging market entrepreneurs and leading global brands such as Airbnb, Amazon, Google, and Upwork. Founded in 2005, Payoneer has teams worldwide, making global trade simple and secure. 

Example Payoneer Account Details: 

HKD:   

• Account Name: XXX Limited (your company)   
• Account Number: 000000000000 (your company’s account number)   
• Swift Code: DHBKHKHH   
• Bank Name: DBS Bank (HK) LTD   
• Bank Address: 18th Floor, The Center, 99 Queen’s Road, Central, Hong Kong   
• Bank code: 016   
• Branch code: 478   

EURO:   

• Baking Circle S.A.   
• IBAN: LU000000000000000000 (your company’s IBAN)   
• BIC: BCIRLULL   
• Bank address: 2 Boulevard de la Foire, Luxembourg   

USD:   

• Community Federal Savings Bank   
• Account Number: 00000000000 (your company’s account number)   
• Bank address: 810 Seventh Avenue, Suite 1115, New York, NY, 10019, USA 

*Note: The rates of payment systems and all other details are indicated as of the publication date of the article and based on the information available to us. The data may be incomplete or vary under different circumstances. It is recommended to verify the current information directly on the websites of the payment systems or directly with the payment systems. 

Functions of a Payment System with an SVF License 

Payment systems with an SVF license perform the following functions: 

1. Fast and Remote Account Opening: 
   • Ability to quickly open accounts in various currencies without the need for physical presence. 
   • Simplified document submission process and minimal requirements for clients, provided there is no prohibited activity or heightened AML risks. 
2. Multi-Currency Accounts: 
   • Support for multiple currencies, allowing companies to easily interact with any countries (except sanctioned ones). 
   • Competitive exchange rates and low fees for currency transactions. 
3. Local and International Transfers: 
   • Ability to conduct both local and international transfers with minimal delays. 
   • Support for various payment methods, including FPS, CHATS, TT, SWIFT, SEPA, and the ability for internal fund transfers, making international payments virtually instantaneous. 
4. Corporate Bank Cards: 
   • Issuance of corporate cards (Visa, MasterCard) for convenient expense management. 
   • Setting limits and real-time monitoring of employee card usage. 
5. Convenient Digital Interfaces: 
   • Intuitive and functional interfaces for managing accounts and transactions. 
   • Access to analytical tools and reports for monitoring financial activities, integration with accounting software. 
6. Money Storage: 
   • The license allows for the secure storage of company funds. 

Different payment systems may offer all or only some of these functions. For example, not every system issues corporate cards. Before opening an account, be sure to check which functions are available in the chosen system. 

Requirements for Obtaining an SVF License in Hong Kong 

An SVF license allows for a broader range of services, so the requirements for applicants are stricter: 

• Capital Requirement 

  The minimum capital amount must be at least 25 million Hong Kong dollars (HKD). 

• Risk Management 

  The payment system must develop and implement procedures for effective risk management. 

• Compliance with AML/CTF Regulations 

  Systems must comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements. 

• System Reserves 

  The applicant must ensure a cash flow management system is in place to always maintain a minimum reserve. 

SVF Limitation 

Despite the advantages, Store Value Facility (SVF) has limitations that are important to consider when choosing financial solutions for business. 

1. Transaction Limits: 
   • Some systems may limit the maximum transaction amounts, which is important to consider for large international payments. 
2. Lack of Lending: 
   • SVFs do not provide business loans or trade financing. However, some SVFs may have a separate lending license. 
3. Deposit Insurance System: 
   • MSOs are not part of the deposit insurance system in Hong Kong. The maximum protection is up to 500,000 HKD, increasing to 800,000 HKD from October 1, 2024. Only organizations with a banking license are participants. Bank bankruptcies in Hong Kong are rare. 

Leading SVF payment systems for businesses in Hong Kong 

RD Wallet (Stored Value Facility) 

RD Technologies, based in Hong Kong, was established with the mission to simplify and reduce the cost of cross-border payments, as well as to enhance financial inclusion for businesses. RD Wallet is the first multi-currency mobile wallet focused on businesses. It facilitates local and international payments, provides currency exchange services for corporate clients, and offers money storage solutions. 

Example bank details for RD Wallet might look like this: 

• Account Name: XXX Limited (your company) 
• Account Number: 0000000000000 (your company’s account number) 
• Bank code: 016 
• Branch code: 478 
• Swift Code: DHBKHKHHXXX 
• Bank Name: DBS Bank (Hong Kong) Limited  
• Bank Address: G/F, The Center, 99 Queen’s Road Central, Central, Hong Kong 

Register of Licensed Stored Value Facilities (SVF) 

The Register of Licensed Stored Value Facilities (SVF) is a list of current SVF licensees who have been granted a license to issue or facilitate the issuance of SVF under the Payment Systems and Stored Value Facilities Ordinance of Hong Kong. In accordance with section 8ZZZF of the Ordinance, the Register is available to the public online. 

Fintech companies and banks licensed as SVF in Hong Kong 

Opening a bank account in Hong Kong is an important and complex process that requires careful preparation and understanding of all aspects of working with financial institutions. Whether you choose a traditional bank or an electronic payment system, each option has its own advantages and disadvantages. It is important to understand which services your business needs and which requirements you can meet. 

Hong Kong offers a wide range of opportunities for conducting business, and the right financial partner can significantly impact your company’s success in the international market. However, given the complexity of procedures and strict requirements, many companies face challenges.