In recent years, cross-border e-commerce Amazon and other markets have become popular. Bank account opening positions have become extremely tight, and account opening conditions have also begun to be strict.
Recently, customers have paid more attention, especially some customers have been closed due to account review at the end of the year. Is it better for offshore companies to choose Hong Kong or mainland banks for account opening? Do I have to wait for Hong Kong customs clearance before opening a local bank account in Hong Kong? On this topic, we collect some relevant information for some discussion, hoping to have a certain reference effect for the directors of the company who need to open an account in the near future.
Differences between local banks and offshore banks Local banks in Hong Kong need to send relevant documents to the bank, which is inconvenient in time and communication, but L/C issued or transferred by domestic banks may not be accepted by foreign banks sometimes;
2. From the cost In comparison, Hong Kong local accounts have lower handling fees than offshore accounts , and there is no minimum deposit requirement when opening an account. However, for offshore accounts in China, many banks have minimum deposit requirements. A monthly account management fee of USD30-40 is required. This requirement is different for different banks;
3. From the long-term government policy, Hong Kong local accounts have advantages over offshore accounts because There is no foreign exchange control in Hong Kong itself, and there are unstable factors in the mainland's policies. Although offshore accounts are also a convenient and good choice for foreign traders at present;
4. In terms of operation,Both are more convenient. Because banks have a variety of service systems, such as: telephone banking, fax banking, online banking, etc.;
5. Both can send the money in the account to individuals or companies at home and abroad;
6 , The two ways of withdrawing cash are different. Hong Kong local accounts can withdraw cash directly from the bank, or send instructions to the bank to transfer the money to a personal foreign currency account, and generally have an ATM card that can withdraw local currency at global ATMs; offshore accounts generally cannot withdraw cash directly
7. In terms of recognition and acceptance, many foreign customers recognize Hong Kong banks such as HSBC and Standard Chartered very much, but they are right. Domestic banks know very little, and some indicate that they must use these banks in Hong Kong;
8. In terms of remittance speed, Hong Kong banks have less transfers and are faster, while domestic banks are slower.
What are the current options for mainland bank accounts?
There are two common ways for overseas companies to open domestic accounts: OSA account and NRA account _p1span account are not equivalent to account. Foreign exchange control, free in and out of funds, currently only , Shanghai Pudong Development, Transportation, Ping An, and China Merchants Banks can open. Account opening requirements are very high, and only highly qualified customer banks are accepted. State-owned enterprises or listed companies are easy to open, while private enterprises must also open general accounts in their banks.
NRA account opening requirements are lower than OSA accounts, but NRA accounts are subject to foreign exchange controls.Receiving money is relatively free and unrestricted, but it is more troublesome to transfer foreign exchange abroad. You must provide information to the bank for each transaction, so it is more suitable for export customers.
Choose basic data analysis before opening an account
1. Are there any domestic companies?
2. What kind of product is it, how much is the annual trade volume, and what countries do you have with whom?
3. Is the proof of business complete: contract, invoice, bill of lading , etc.?
4. Are you willing to buy wealth management or fixed deposits? Do you want to open a bank account domestically or overseas?
5. What is the cost budget of ?
. . . . . .
How to choose the bank to open an account
1. The company's small trade volume is only for collecting money. You can recommend domestic banks to open NRA accounts: such as Shenzhen HSBC, Guangzhou HSBC, etc.;
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Customers who have opened domestic HSBC offshore accounts have one thing to worry about: they don’t have to worry about the annual bank review after the Hong Kong account is opened. Because of Hong Kong, many households have been closed for administrative reasons. Domestic banks provide one-to-one service to customers, and the annual review is done by the account manager, so there is no need to worry about the account being closed after the account is opened. In fact, to open an offshore account, for customers, there is no need to run for nothing in the early stage, the account opening speed is fast, and you don’t have to worry about being closed when you open it.If you have any problems, you can also ask the account manager to solve it. The account is also not subject to foreign exchange control, and the advantage is still quite large.
2. Hong Kong corporate customers with good qualifications and no sensitive trade countries and business nature: HSBC, Standard Chartered Bank, DBS and other foreign banks can open. See customer preference;
3. Companies in the archipelago: domestic banks, DBS, OCBC Wing Hang, Singapore Bank , etc.;
4. Companies without domestic companies: Dah Sing, Transportation, OCBC Wing Hang, domestic banks;
5. Companies that require quick account opening time: OCBC Wing Hang, domestic banks.
Hong Kong local accounts: HSBC, Bank of China, Bank of Communications, Citibank, Bank of East Asia, Dah Sing Bank, OCBC Wing Hang Bank, DBS Bank, DBS Etc.;
offshore accounts in the Mainland: HSBC, OCBC Wing Hang, DBS Bank, Standard Chartered Bank, etc.;
offshore company account opening choose Hong Kong or China? Recently, the domestic policy of the bank in Hong Kong has changed greatly. Please understand clearly before opening an account, and accept the bank’s change policy. Of course, if you want to do a letter of credit, it is very convenient to open an account in China. The most important thing is the right bank.
For more bank account options, to learn more about the bank, you can leave a message in the comment area~
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