7 best banks Hong Kong entrepreneurs can consider for a business account

Overview of banks in Hong Kong

As a leading international financial hub, Hong Kong boasts a sophisticated and highly competitive banking industry. The sector is meticulously regulated by the Hong Kong Monetary Authority (HKMA), which ensures the stability and security of the financial system, providing peace of mind for individuals and corporations holding bank accounts and conducting international payments¹.

The benefits of banking in Hong Kong are manifold. The city operates under a territorial tax system, meaning profits sourced outside of Hong Kong may not be subject to local taxes. This, combined with the free flow of capital and the absence of foreign exchange controls, makes it exceptionally attractive. Businesses benefit from the widespread availability of multi-currency accounts, allowing for seamless transactions in HKD, USD, EUR, RMB, and other major currencies. Furthermore, Hong Kong's unique position as a gateway to Mainland China provides unparalleled access to the world's second-largest economy² ³ ⁴ ⁵ ⁶.

The banking landscape is dominated by a mix of international and local banks. Giants like HSBC Hong Kong, Standard Chartered Hong Kong, and Citibank Hong Kong offer extensive global networks and a comprehensive suite of services, from retail banking and wealth management to complex investment banking and trade finance. Alongside them, strong local players like Hang Seng Bank and the Bank of East Asia provide deep-rooted local market knowledge and personalised services. This blend ensures a high level of transparency, efficiency, and innovation, particularly in the realm of digital banking and mobile banking⁷.

Is it mandatory for you to open a business bank account in Hong Kong?

For any entrepreneur establishing a limited company in Hong Kong, the answer is an unequivocal yes. Opening a dedicated business bank account is not just a best practice; it's a fundamental legal and operational requirement.

The core reason lies in the legal principle of "separate legal entity." When you incorporate a limited company in Hong Kong, you create a legal person distinct from its owners (the shareholders) and managers (the directors). This separation is crucial for liability protection, but it also mandates financial separation⁸ ⁹ ¹⁰ ¹¹.

Here’s why it's mandatory:

Legal compliance

The Companies Ordinance and anti-money laundering (AML) regulations require clear financial segregation. Mixing personal and business funds can raise red flags with regulators and auditors, potentially leading to investigations and penalties⁹ ¹¹.

Taxation

The Hong Kong Inland Revenue Department (IRD) requires meticulous financial records to accurately assess your company's profits tax. A dedicated business account provides a clear, auditable trail of all income and expenditures, simplifying accounting and tax filing².

Professionalism and credibility

Operating through a corporate bank account enhances your company's professional image. Clients, suppliers, and partners will expect to make and receive payments from an account in your company’s name, not a personal one¹⁰.

Liability protection

Commingling funds can "pierce the corporate veil," potentially making shareholders personally liable for the company's debts. Maintaining a separate account is a critical step in preserving the limited liability protection that incorporation provides¹².

Operational efficiency

A business account is essential for accessing business-specific services like commercial lending, merchant accounts for accepting credit card payments, payroll services, and trade finance.

In short, a business bank account is the financial backbone of your Hong Kong company, indispensable for compliance, credibility, and growth¹¹.

7 Best banks in Hong Kong to open a business account

Choosing the right banking partner is a critical decision. Here’s a detailed look at 7 of the top banks in Hong Kong for businesses, each with its unique strengths.

1. HSBC

The Hongkong and Shanghai Banking Corporation Limited, or HSBC, is the largest bank in Hong Kong and one of the three institutions authorised to issue currency. Its extensive global network and deep roots in the city make it a default choice for many businesses¹³ ¹⁴.

Key Services: HSBC offers a tiered range of business accounts, including the "HSBC Sprint Account" for startups and new SMEs and the "BusinessVantage" account for more established businesses. They provide a full spectrum of services, including multi-currency savings, trade finance, business loans, foreign exchange, and sophisticated wealth management solutions¹⁶.

Features & Benefits: HSBC’s primary advantage is its unparalleled global reach, making it ideal for companies with international trade operations. Its digital platform, HSBCnet, is a powerful tool for managing global payments, cash flow, and trade services. The HSBC HK app further enhances mobile banking convenience.

Pros and Cons:

2. Hang Seng Bank

Founded in 1933, Hang Seng Bank is a principal member of the HSBC Group but operates as a distinct brand with a strong local identity. It is widely regarded for its exceptional customer service and focus on the Hong Kong SME market¹⁷.

Key Services: Hang Seng offers the Business Integrated Account, which provides a consolidated view of HKD and foreign currency deposits. It excels in providing SME-focused services, including business loans, insurance, and payroll management⁵ ¹⁸.

Features & Benefits: Hang Seng combines the robust infrastructure of the HSBC Group with a more personalised approach. Its Hang Seng Business e-Banking platform is user-friendly and efficient, offering streamlined, easy banking. The bank's deep understanding of the local market makes it a preferred partner for businesses primarily operating in Hong Kong and the Greater Bay Area.

Pros and Cons:

3. Standard Chartered Hong Kong

As another of the three note-issuing banks, Standard Chartered has a long and storied history in Hong Kong. It leverages its significant presence across Asia, Africa, and the Middle East, making it an excellent choice for businesses operating along these trade corridors¹⁴.

Key Services: Standard Chartered Bank offers a variety of business accounts tailored to different needs, with a focus on trade and cash management. It provides robust services in trade finance, foreign exchange, and cross-border payments.

Features & Benefits: The bank is a leader in digital banking innovation. Its Straight2Bank platform and the SC Mobile app offer powerful tools for managing finances on the go. For high-net-worth clients, their priority banking services provide exclusive perks and dedicated relationship managers¹⁹.

Pros and Cons:

4. DBS Hong Kong

DBS Bank, headquartered in Singapore, has a significant and growing presence in Hong Kong. It has successfully positioned itself as a digitally-focused, agile, and SME-friendly bank, earning accolades such as "World's Best Bank" multiple times²⁰.

Key Services: DBS offers business accounts that can often be opened entirely online, a major differentiator in the Hong Kong market. They provide a full suite of services, including working capital loans, FX services, and cash management solutions²¹.

Features & Benefits: DBS's key strength is its digital-first approach. The DBS IDEAL online banking platform is intuitive and efficient, simplifying everything from local transfers via the Faster Payment System (FPS) to international remittances. This focus on technology translates to a faster and more convenient banking experience²².

Pros and Cons:

5. Citibank Hong Kong

A subsidiary of the American multinational Citigroup, Citibank Hong Kong caters primarily to multinational corporations, high-growth SMEs, and high-net-worth individuals. It's a top choice for businesses with strong ties to the United States.

Key Services: Citibank offers comprehensive corporate banking solutions, including treasury and trade solutions, securities services, and world-class cash management. Its multi-currency accounts and global payment systems are among the best in the industry due to its extensive international network and strong presence in global financial hubs.

Features & Benefits: Citibank’s global network is its crown jewel. The CitiDirect BE platform provides businesses with a single window to manage their finances across multiple countries and currencies. The bank excels in handling complex cross-border transactions and offers sophisticated wealth management and private banking services²³.

Pros and Cons:

6. Bank of East Asia

Founded in 1918, the Bank of East Asia (BEA) is Hong Kong's largest independent local bank. It offers a compelling alternative to the global giants, combining a full range of services with deep-seated local and Mainland China expertise.

Key Services: BEA provides integrated business accounts, SME financing, trade services, and insurance. Its Corporate Cyberbanking platform offers a comprehensive suite of online tools for managing accounts²⁴.

Features & Benefits: BEA's key advantage is its strong relationship-based approach and its extensive network in both Hong Kong and Mainland China. This makes it a formidable choice for businesses trading heavily with or investing in the mainland. They are often perceived as being more flexible in their decision-making than larger, more bureaucratic banks.

Pros and Cons:

7. Bank of China (BOC) Hong Kong

As the third note-issuing bank in Hong Kong, Bank of China (Hong Kong) is a major player with an unrivalled speciality: facilitating business with Mainland China. It is the designated clearing bank for Renminbi (RMB) business in Hong Kong¹⁴.

Key Services: BOCHK offers a range of corporate banking services, with a clear emphasis on cross-border finance. Their iGTB NET platform is designed for corporate customers to handle trade, payments, and cash management²⁵.

Features & Benefits: If your business involves significant RMB transactions, trade with Chinese suppliers, or investments in the mainland, BOCHK is arguably the best-equipped bank. They offer superior services for RMB exchange, settlement, and financing, leveraging their parent company's vast network across China.

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Tips for choosing the right bank in Hong Kong

Selecting the ideal banking partner requires careful consideration of your unique business needs. Here are key factors to evaluate:

1. Business scope and nature

First, analyse your primary markets. If your operations are global, an international bank like HSBC or Citibank may be best. For trade focused on Mainland China, BOC Hong Kong or BEA are strong contenders. If your focus is local, Hang Seng Bank offers excellent service⁶.

2. Fees and balance requirements

Scrutinise the fee schedule. Look at the initial deposit, minimum balance requirements to avoid a monthly fee, charges for international transfers, and other transaction costs. These can add up significantly.

3. Account opening process

The difficulty of opening a bank account in Hong Kong is a well-known challenge due to strict KYC regulations. Research the bank's reputation in this area. Newer or digitally-focused banks like DBS may offer a smoother onboarding experience compared to more traditional institutions¹¹.

4. Digital Banking and Technology

In today's world, a powerful digital banking platform is non-negotiable. Evaluate the bank’s online portal and mobile banking app. Can you execute all necessary transactions online? How intuitive is the interface? Look for features like multi-currency support, easy international access, and integration capabilities²².

5. Customer support and relationship management

Good support can be invaluable. Do they offer a dedicated relationship manager? Is support available in your preferred language? Check reviews and ask peers about their experiences with the bank's customer service.

6. Full range of services

Look beyond a basic current account. As your business grows, you may need access to commercial lending, trade finance, treasury services, or wealth management. Choose a bank that can scale its services with your ambition.

Aspire Business Account: A comprehensive, modern alternative to business banking

Selecting a business account is essential when starting operations in Hong Kong. However, for new businesses, opening an account with traditional banks can be costly due to rigid requirements such as account opening fees, initial deposits, and minimum balance requirements.

While traditional banks form the bedrock of Hong Kong's financial system, the rise of financial technology has introduced powerful and flexible alternatives. For modern, digitally-native businesses, a solution like the Aspire Business Account presents a compelling proposition.

Aspire isn't a bank but a financial solution designed for modern businesses. It offers a multi-currency business account that can be opened 100% online, often in just a few days—no initial deposit, no monthly fees, and no minimum balance required. This stands in stark contrast to the weeks or even months of paperwork and in-person meetings required by many traditional banks.

With Aspire, you can:

• Streamline International Operations with Multi-Currency Account: Effortlessly hold, send, and receive funds in HKD, USD, EUR, and GBP—essential for any business operating in an international hub like Hong Kong.
• Spend Smart with Corporate Cards: Empower your team with corporate cards that have built-in spending controls and automated expense tracking, eliminating tedious manual reimbursement processes.
• Simplify Payments and Receivables: Manage local and international transfers, automate invoice payments, and integrate with accounting tools like Xero to keep your books pristine.
• Efficient cross-border transactions: Send and receive funds in over 30 currencies at competitive FX rates.

Whether you're starting up or scaling your business in Hong Kong, Aspire gives you the confidence to manage your finances efficiently and focus on growth.