If you want to grow faster into the Asian market and entire globe, the best place to start is in Hong Kong. Many people refer to it as a paradise for entrepreneurs who want to blossom and grow rapidly. Whether you prefer a limited liability company, special purpose vehicle, or a branch office, one common thing is a bank account. You can only enter into deals, complete transactions, and pay operational bills if the enterprise has a bank account.
Even with this reality, getting a bank account remains a challenge. Though it is a financial hub and many banks have their branches there, investors regularly get their applications declined. In this post, we bring you five mistakes to avoid when applying for an offshore bank account.
Failure to provide sufficient proof of address
Many banks want to understand where their clients are from. Your company application will be declined if all the shareholders do not prove their residences well. Banks consider such requests suspicious and will decline them at the earliest possible instance.
To avoid this mistake, it is important to capture home addresses and actual location using technological applications such as Google Maps. The focus is not to follow you back home, but to completely understand every client.
Making a virtual application
Many banks have become very sceptical about virtual applications. In fact, very few if any will accept virtual bank account applications. Even when such applications are accepted, the fee is very high, and you will still be required to visit the Hong Kong branch. Therefore, it is important to present yourself physically in order to answer all the questions and give clarifications if needed.
Failing to demonstrate the nature of transactions and targeted clients
Over the last ten years, Hong Kong has become extra stringent on who its traders deal with. No bank will agree to open an account for the business if the main transactions involve people from countries blacklisted by Hong Kong authorities. If most of your clients come from countries such as Syria and Somalia, it is advisable to look for customers from elsewhere because your application will be declined.
The banks will also want to know the nature of the business you operate. If you do not provide the business structure, sample invoices, and expected cash flow, there is a likelihood of getting the application declined. This information gives the banks a clear picture of who they are dealing with and what to anticipate.
To avoid these mistakes and others, it is advisable to work with an expert agency that understands all the rules, changes in the banking sector, and government policies. If you pick the right agency to assist when opening a bank account, the chances of being successful go up with a great margin.