4 Steps to Open a Bank Account in Hong Kong

Whether you’re planning a visit, an extended stay, or launching a business venture in the vibrant city of Hong Kong, and you find yourself in need of a bank account, you’ve found the right article.

This comprehensive guide will be your passport to navigating the intricacies of Hong Kong’s banking landscape. I’ll take you step by step through the process of opening both personal and business bank accounts, shedding light on essential details along the way. Furthermore, I’ll introduce you to some noteworthy banking options that can help make your financial journey in Hong Kong as smooth as possible.

Understanding the Hong Kong Banking System

Before we discuss how to open a bank account in Hong Kong, let’s get to know some basic information about the Hong Kong banking scene.

Three-Tier Banking System

Hong Kong’s banking system is structured into three tiers: Licensed Banks, Restricted License Banks, and Deposit-taking companies.?

• Licensed Banks (LBs): These institutions offer the essentials - current and savings accounts, handle deposits of any size, and manage checks drawn and deposited by their clientele. Unless granted an exemption by the Board, all licensed banks are required to participate in the Hong Kong Deposit Protection Board (DPS) as Scheme members. Consequently, deposits held in licensed banks are safeguarded up to a maximum of HKD 500,000 per deposit per Scheme member.
• Restricted License Banks (RLBs): These entities are tailored for more specialised banking needs, primarily merchant banking and investment products like capital markets. Unlike the fully licensed banks mentioned earlier, this type of bank may be restricted from some banking activities. Restricted License Banks can manage deposits starting at HKD 500,000 and upwards. However, Restricted License Banks are not members of the Hong Kong Deposit Protection Board (DPS).
• Deposit-taking Companies (DTCs): Often linked to or owned by larger banks, Deposit-taking companies specialise in areas like consumer finance, commercial lending, and securities. They can handle deposits starting at HKD 100,000, provided they align with a minimum three-month maturity term. Deposit-taking companies are not members of the Hong Kong Deposit Protection Board (DPS).

Each of the three tiers has its unique offerings, but all operate under the vigilant eye of the Hong Kong Monetary Authority (HKMA).?

The HKMA ensures that all banking corporations emphasise the importance of due diligence and adhere to stringent anti-money laundering regulations.?

Account Types

There are two primary types of bank accounts to choose from.?

• Personal Bank Accounts: Tailored for individuals and everyday banking needs?

• Corporate Bank Accounts: Often referred to as business or commercial accounts, these are eligible for registered businesses, such as limited companies and offshore companies in Hong Kong.?

For business owners, it is recommended to maintain a clear distinction between personal and business finances, so always open at least one dedicated business account.?

Fees & Charges

Different banks have different charges and fee structures, so you must check with your chosen bank for the exact details.

To give you a quick overview, here are some standard fees and general figures.

• Minimum Balance: Between HKD 50,000 and HKD 500,000. If you go below, banks may charge around HKD 200 account maintenance fee each month.
• Starting Deposit: Usually between HKD 10,000 and HKD 50,000
• Setting Up Fee: From HKD 200 to HKD 10,000
• Credit Card Fees: Around HKD 300. For cards used worldwide, it can be from HKD 30,000 to HKD 50,000
• Foreign Transfer Fees: Between HKD 15 and HKD 120?
• Cheque fees: A fee of around HKD 25 might apply for having chequebooks delivered
• ATM fees: Around 2% or over for out-of-network and international fees?
• Closing Account Fee: HKD 200 if closed within the first three months

These figures may vary depending on your chosen bank.

4 Steps To Open a Hong Kong Bank Account

Now that we have covered the essentials, here are the steps for opening an account in Hong Kong.

Step 1: Choose a Reliable Bank

The first step is to select a reputable bank that aligns with your specific needs. Thoroughly research the bank’s offerings, packages, fees, terms, conditions, and eligibility requirements.

Some of the top banks in Hong Kong that you could consider are:

DBS Bank (Hong Kong)

DBS stands as a prominent financial services group in Asia, operating across 19 markets. They were recognised as the “World’s Best Bank” by Global Finance and Euromoney, the “Global Bank of the Year” by The Banker, and the “Safest Bank in Asia” by Global Finance from 2009 to 2023.?

The bank offers a comprehensive suite of services encompassing consumer, SME, and corporate banking solutions, quick account activation, third-party integrations, and a diverse range of account types.?

However, their eligibility criteria can be complex.?

HSBC Hong Kong

HSBC Hong Kong held the 2nd position on The Asian Banker’s list of the most robust Asia Pacific banks and ranks as one of the largest banks incorporated in Hong Kong.

The bank has a global presence, a user-friendly mobile banking experience through the HSBC HK App, and a wide range of financial services encompassing personal, commercial, and corporate banking solutions.

On the downside, they may have higher fees for some services than their competitors.

If you’re considering opening a business account with HSBC Hong Kong, refer to our guide on how to open an HSBC business account.

Bank of China (Hong Kong)

Bank of China (Hong Kong), also known as BOCHK, placed at the top spot on The Asian Banker’s ranking of the most resilient banks in the Asia Pacific region.?

Additionally, they are among the commercial banks authorised by the Hong Kong Monetary Authority to issue Hong Kong dollar banknotes.?

Bank of China’s main advantage lies in its strong network bridging Hong Kong and Mainland China. However, one drawback is a potential language barrier for English-speaking customers.

To open a business account with the Bank of China (BOCHK), review this guide on how to open a BOCHK business account.?

Hang Seng Bank

Established in 1933, Hang Seng Bank is the foremost domestic bank in Hong Kong, offering customer-focused banking, investment, and wealth management services to individuals and businesses.?

On the positive side, Hang Seng Bank has a well-regarded local presence in Hong Kong. However, despite their offerings of local and global services, they have a somewhat limited global presence, and there might be restrictions on certain services access from other countries.

For those interested in a business account, our guide on how to open a Hang Seng business account can be your resource.

Apart from the options listed above, if you’re seeking a personal account, explore our list of the best savings accounts in Hong Kong. On the other hand, if you’re in need of a business bank account, check out this list covering the best business accounts in Hong Kong.

Step 2: Gather the Documents Required

The type of account you want determines the required documents, with the primary ones as follows.?

For Personal Bank Accounts:

• A Hong Kong Identity Card for a Hong Kong resident and permanent resident
• A passport or other identity documents if you are a non-resident and relevant travel documents
• Proof of address - examples of documents that may serve as proof of address include lease agreements, mortgage statements, utility bills, and home insurance. Typically, these documents should be no more than three months old. If you lack a Hong Kong address, proof of address in your home country may be acceptable, depending on the bank.?

Certain banks may request extra information in addition to the primary documents mentioned above.

For Corporate Bank Accounts:

• Company documents, including your Business Registration Certificate, Articles of Association, any partnership agreements, and more
• Your business’s current registered office address
• Your company structure’s details, such as a beneficial owner identification document, a detailed business plan, and proof of business activities
• Bank statements from the last 6 months and a bank reference letter issued within the past 3 months

While the above captures the general requirements, each bank has its nuances. To be sure, consult resources on your chosen bank or reach out to them for specific details.

Once you’ve prepared your documents, liaise with your bank representative for submission. Some banks may also offer the convenience of online document submission, so it is worth inquiring.

Step 3:? Enter the Pre-approval Process

After submitting the required documents, your chosen bank should keep you informed about the progress of your application.

In certain instances, the bank may request a meeting for additional verification, such as fulfilling KYC requirements or providing proof of business activities.?

This step is particularly crucial and likely to be involved if you are opening a corporate account. The KYC process is considered another factor contributing to why it can be difficult to open a business bank account in Hong Kong.??

Step 4: Activation

Once all is in order, the final step is to activate your Hong Kong bank account. Your bank will provide instructions on how to complete this process.

The time it takes to open a bank account can vary, but it usually takes approximately 15 working days.?

How to Open a Hong Kong Bank Account Online

Generally, traditional Hong Kong banks don’t offer fully online account openings. While you can start the process online via “remote branch application.”, you will eventually need to visit a physical branch for identity verification.?

For a truly digital experience, some alternatives, such as virtual banks and neobanks, might be more fitting.

Let’s take a closer look at the two options to open a Hong Kong account online.?

Remote Branch Application

A remote branch application provides a partly online process that offers a degree of convenience.

For instance, if you are a non-resident looking to open an account with HSBC, you can submit the required documents and an application online from your home country.?

Once you arrive in Hong Kong, visit an HSBC branch to verify your identity and complete the process. It is important to note that this entire process may take up to 30 days to complete.

Virtual Banks

Virtual banks are a good option if you want to open an account entirely online. They offer all of their services online, which means there are no physical branches or in-person services. Here are some virtual banks that you could consider:

1. ZA Bank
2. Airstar Bank
3. WeLab Bank
4. Livi Bank
5. Mox Bank

To find out more about these virtual banks, feel free to read this article by Statrys about the 8 Virtual Banks in Hong Kong.

Statrys Business Account: An Alternative Solution

Statrys business account is a payment solution tailored for small-to-medium-size businesses, offering

• 100% online application
• Multi-currency account, with 11 major currencies in a single account
• No minimum deposit
• No maximum transaction
• A Mastercard? payment card for streamlined expense management
• Expert guidance on FX rates and risk mitigation
• Personalised support via a dedicated account manager

Statrys business account is offered by Statrys Limited, licensed as a Money Service Operator (No. 19-02-02726) in Hong Kong, a registered entity with the Hong Kong Deposit Protection Board.

Statrys Is Recommended For

? Businesses incorporated in Hong Kong, Singapore, and the BVI that are looking for a primary or secondary business account.

? Business owners who prefer fast and responsive human customer support and dedicated account managers to support them in case any questions or issues arise.?

? Those who value a transparent pricing structure without any hidden fees.

FAQ

• How long does it take to open a Hong Kong bank account?

Opening a Hong Kong bank account with traditional banks can take up to 15 working days.

• What should I do if my Hong Kong bank account application is rejected?

If your bank account application is rejected, the bank should clarify the reasons behind the decision. Then, you have the option to request a re-evaluation.

• Can I open a Hong Kong Bank account If I am a non-resident??

Yes, non-residents can open a bank account in Hong Kong. You will need a passport or other identification proof and proof of address as fundamental required documents.

However, the verification process might vary compared to Hong Kong residents.

Given the nuances, it’s advisable to talk with your selected bank before initiating the process.

• Is it possible for non-residents to open an account in Hong Kong remotely??

If you are a non-resident and a first-timer, opening an account with traditional banks in Hong Kong entirely remotely will not be possible due to in-person identity verification requirements.?

If you want a completely online account opening process, consider Neobank or virtual bank accounts.?

While not traditional banks, these entities are licensed and provide a safe banking alternative, operating and accepting applications exclusively online.

• Is it possible to open an account in Hong Kong without a Hong Kong identity card (HKIC or HKID)??

Yes, with some banks.?

Individuals aged 11 or older residing in Hong Kong for more than 180 days must register for an HKID within 30 days of turning 11 or arriving in Hong Kong.?

If you have not obtained an HKID yet but want to open a Hong Kong account, some banks will accept other types of identification documents, such as your passport and related travel documents.?

However, you will need to provide valid proof of address.?

In addition, certain services like mobile banking may not be accessible without an HKID.?