What is an offshore bank account?
An offshore bank account is an account held in a country or jurisdiction outside of the country you reside in. It can normally be opened in the name of an individual, corporation or trust and is often used as a tool to help protect wealth.
Offshore bank accounts offer several benefits, including greater levels of privacy and asset protection, lower taxes and greater flexibility in banking.
What types of offshore bank accounts can I open in Hong Kong?
Offshore bank accounts in Hong Kong can be divided into two main types: private accounts or corporate accounts. Private accounts are typically used by individuals who want to save and manage their money in a secure and low-tax environment. On the other hand, corporate accounts are typically used by businesses for managing the company’s finances.
Both offer plenty of benefits, such as privacy, asset protection and tax savings. However, Hong Kong does require certain requirements to be able to open an offshore bank account in Hong Kong. Our team of experts are well versed in working in Hong Kong and can navigate this process for you.
In terms of requirements, these will be vary depending on the bank, but in most cases, banks in Hong Kong will require a minimum deposit and identification. A select few banks may require further documentation and even a face-to-face interview, but the benefits off the offshore bank account can outweigh this initial set up period.
Why choose Hong Kong when opening an offshore bank account?
Hong Kong is an attractive jurisdiction for offshore banking due to its low tax rates and strong financial infrastructure. Alongside this, Hong Kong is a well-regulated jurisdiction, making it a safe and secure place to open an offshore bank account. There is also the bonus that China actively fights against Western intervention, which means Hong Kong offers the highest levels of privacy to customers.
Alongside opening an offshore bank account in Hong Kong, it could be worth considering setting up a limited company, especially if you deal with the Chinese market. As such a low-tax country, there is currently no corporation tax to pay on profits earnt within the Hong Kong jurisdiction. If you decide to open a limited company, there will be a need to have a bank account alongside this.
If you are considering opening an offshore bank account, it is important to do your research and compare different options available. Additionally, it is important to make sure that the bank is regulated by a reputable authority and has a good track record. At Turner Little, we are well versed in which banks should be your first port of call on this. For information on the best options for your situation, speak to a member of our trusted team today