BUSINESS PROOF REQUIRED BY THE BANKS IN 2021

Opening a corporate bank account is a relatively simple and straightforward procedure in Hong Kong. However, before you can open an account with your desired bank. You have to almighty understand what information and document the bank are requesting. For example, the bank needs your business proof. Then what does Business Proof mean? What document and information you have to provide? In this article, Centre O is going to take about Business Proof. 

What are the General Ideas of Business Proof?

Some entrepreneurs think Business Proof means the proof of business ownership. Then the entrepreneurs will provide all the documents when they establish the business. In fact, some entrepreneurs think Business Proof means the existence of the business. And then the entrepreneurs will prepare the office tenancy agreement to show the office is still here. Unfortunately, the concept of Business Proof is far more than the ownership and the existence.

What is the concept of Business Proof in Banks?

Acceptable business proof includes but not limited to:

• Business operation information, such as:

‒ Confirmed order

‒ Sales contract

‒ Invoice

‒ Packing list

‒ Documentary credit

‒ Lease of office

‒ Provisional sales and purchase agreement (for property holding company)

• Product or service information, such as:

‒ Applicant’s website

‒ Applicant’s leaflet / brochure

• Information on counterparties (suppliers, buyers, customers), including related countries/regions and their products or services, such as:

‒ Counterparties’ website

‒ Counterparties’ leaflet / brochure

• Latest financial information of the applicant, such as:

‒ Audited report

‒ 3 – 6 months bank statements

• Source of fund information (the origins of the applicant’s initial deposit)
• Source of wealth information (the origins of the applicant’s ongoing and accumulated business funding)
• Notice of participation issued by MPF trustee
• Information on relevant experiences of Directors, Authorised Signatories, Beneficial Owners and Key Controllers, such as:

‒ Employment letter

‒ Relevant certificate

‒ Relevant license

(If applicable) For applicant with parent or related company

• Information on the relationship between applicant and parent or related company, such as:

‒ Director appointment letter from parent or related company

‒ Annual report of parent or related company

‒ Parent or related company’s website which indicates the relationship between applicant and parent or related company

• Latest information of the parent or related company, such as:

‒ Incorporation documents of the parent or related company

‒ Latest audited report

‒ Latest 3 – 6 months bank statements

For newly established company

• Latest financial information/source of wealth of the Beneficial Owners, such as tax demand note, bank statement of personal account
• Agreement or communication with potential buyer or supplier 

Last but not the least, the above stated are the basic concept of the Business Proof. You are welcome to provide additional documents and information to facilitate your account application. We know it is time consuming to gather all the required information. But you still need to aware some of the documents such as bank statements are valid within certain time period. 

For further information, please contact us. 

You may want to read: NEEDING CONSULTATION FOR BANK ACCOUNT OPENING?