Business account opening

How banks decide on a new company account

Banks apply customer due diligence rules set by their regulator. In Hong Kong, the HKMA expects banks to take a risk-based approach: simpler checks for lower-risk customers, more extensive checks for higher-risk ones. Other regulators work on the same principle.

In practice the bank wants to understand four things. Who ultimately owns and controls the company. What the company actually does. Where its customers, suppliers and money flows are. Whether the story is consistent across every document you provide.

Many declines come from gaps in the file. A website that does not match the stated activity, an owner with no evidence of source of funds, or payments routed through a country the bank does not serve can each stop an application.

• Ownership: shareholders, directors and anyone with significant control, with ID and address proof
• Activity: website, contracts, invoices or a pipeline that shows the business is real
• Geography: countries of customers, suppliers and payment flows
• Funds: where the initial deposit and expected turnover come from

Traditional bank or EMI: which fits you

A traditional bank offers a full relationship: local account number, cheque and credit facilities, and a name that counterparties recognise. It usually asks for more documents, may require a meeting, and often expects some local connection.

An EMI (electronic money institution) or payment account is usually faster to open and built for online businesses that send and receive in several currencies. It does not offer lending, and some counterparties or marketplaces ask for a bank account specifically.

Many clients start with an EMI to trade quickly, then add a bank account once they have a trading history. We tell you which order makes sense for your profile.

Check what your customers and platforms accept before you choose. Some marketplaces pay out only to accounts in the seller's name at a bank in a listed country. Some suppliers will not pay to an EMI account. A short list of the counterparties you deal with most often lets us rule out routes that would not work for you.

• Bank: broader services and recognition, more documents, longer review
• EMI: faster onboarding and multi-currency receiving, no lending, not accepted by every counterparty
• Both: the institution decides, and each runs its own KYC

What you provide and what we handle

You provide identity documents, proof of address, a short description of your business and any evidence of trading you already have. If the company is new, a signed contract or letter of intent from a customer helps a great deal.

We handle the rest: matching you to institutions, writing the business profile in the language compliance teams expect, checking every document for gaps before submission, and coordinating with the bank until it gives a decision.

If a bank declines, it rarely gives detailed reasons. We review the file with you, identify the likely cause and advise whether a different institution is realistic.

Keeping the account open

Banks review accounts regularly and may ask for updated KYC, financial statements or explanations for unusual payments. Accounts can be closed if the company stops filing, changes owners without telling the bank, or trades in a way that differs from the application.

Keep your company in good standing, file accounts on time and tell the bank before major changes. Our renewal and accounting services help keep the records banks ask for up to date.