Bank Account Opening in Hong Kong: Obstacles Small Businesses Face

Introduction

Last week I was speaking to several small business owners and solopreneurs in Hong Kong. They like being here. They want to be here. But a perennial problem kept rearing its head: opening a bank account.

Some of these companies were about to launch, but were just waiting on their bank accounts.  They didn’t want to be signing vendor contracts in their own name.

When I was in private practice working with multinational companies, this was also an issue. It seems nothing has changed—except the problem has got harder for smaller companies.

Hong Kong markets itself as an easy place to do business—and in many ways it is. Company incorporation is straightforward. The tax regime is competitive. But bank account opening remains a real bottleneck.

Why Is This Still So Difficult?

The issue comes down to three core friction points: regulatory burden, profit logic, and the track record trap. Let’s break each one down.

1. Regulatory Burden

Banks in Hong Kong (and across the region) face increasingly stricter Know Your Customer (KYC), Anti-Money Laundering (AML), and Counter-Terrorist Financing (CTF) requirements. While these regulations are necessary, they create significant friction for legitimate small businesses trying to open accounts.

KYC verification has always been present.  Now banks are also having to assess the company’s business model, anticipated transaction flows, and source of funds. The more complex your ownership structure, the harder this becomes.

Foreign shareholders or directors trigger extra scrutiny. If your company has overseas shareholders, layered corporate structures, or directors residing outside Hong Kong, expect additional documentation requests and longer processing times. Banks view these structures as higher risk, even when they’re perfectly legitimate.

Many of these structural issues stem from governance mistakes made during company setup. I’ve written about common corporate governance mistakes here – getting your ownership structure right from day one makes the bank account process significantly smoother.

Industry matters too. Certain business models are considered high-risk by banks—fintech, crypto, and cross-border e-commerce all face additional barriers. Even if your business is compliant and well-structured, banks may decline your application simply because your sector falls into a risk category they prefer to avoid.

From conversations I’ve had, one recurring theme is incomplete or incorrect paperwork. Small business owners often don’t realise what specific information banks need or how to present it. A missing document, an unclear business plan, or vague descriptions of transaction flows can delay an application.

2. Profit Logic

Beyond compliance, banks assess whether you’re worth their time. This sounds harsh, but it’s the commercial reality.

Banks prioritise clients who generate revenue—through loans, foreign exchange transactions, or wealth management products. Early-stage businesses with low expected balances, minimal transaction volumes, and no immediate need for additional services are seen as high effort, low reward.

A start-up with HKD 10,000 in its account and a handful of monthly transactions simply isn’t profitable for a traditional bank to service. The compliance cost of onboarding you may exceed any revenue the bank expects to earn from your business in the first year.

This is why many small businesses report being quietly deprioritised. Applications sit in limbo for weeks. Document requests multiply. Eventually, the application is declined without clear explanation, or the business owner gives up and looks elsewhere.

3. The Track Record Trap

Here’s the catch-22: you need a bank account to start trading, but banks want evidence of trade history before they’ll approve your account.

Banks typically ask for:

• A detailed business plan with revenue projections
• Contracts or invoices showing confirmed business activity
• Proof of source of funds
• A six-to-twelve-month financial forecast

But if you’re a new company, you don’t have any of this yet. You’re stuck in a loop where the thing you need to operate (the bank account) requires proof that you’re already operating.

From the conversations I’ve had, this is where many small businesses stumble. They assume opening a bank account is administrative—something that happens quickly once the company is incorporated. The reality is that bank account opening can take longer than company formation itself, and without proper preparation, it can stall your entire launch.

What’s Helping?

The good news is that the market is responding. Fintechs and virtual banks—such as Statrys, ZA Bank, and Airwallex—are filling this gap for small businesses and solopreneurs.

These providers offer:

• Faster approvals (often 2-5 days instead of 2-8 weeks)
• 100% online onboarding (no need for all directors to attend in person)
• No minimum deposit requirements
• Multi-currency accounts for businesses operating internationally

Virtual banks and fintechs are designed for the type of client traditional banks deprioritise. They’re built on digital infrastructure that keeps costs low, which means they can profitably serve smaller accounts that legacy banks would reject.

That said, fintechs aren’t a perfect fit for everyone. Some businesses still need the services that only traditional banks offer—trade finance facilities, corporate credit cards, or the credibility that comes with banking at a major institution. The key is understanding which option suits your specific needs.

Final Thoughts

Opening a business bank account in Hong Kong shouldn’t be this hard—but it is. The combination of regulatory burden, profit-driven banking logic, and the track record trap creates real obstacles for small businesses and solopreneurs.

The solution isn’t to avoid Hong Kong. It’s to prepare properly. Understand what banks need. Get your paperwork in order. This includes understanding common governance mistakes that trip up small businesses. Sorting these out beforehand saves time when dealing with banks. Know which providers are realistic options for your business structure and sector. And if you’re in a high-risk category or have a complex ownership setup, factor in extra time and be ready to explore alternatives.

Over to You

If you’ve opened a business bank account in Hong Kong recently, I’d love to hear your experience. What was your biggest obstacle? Did you go with a traditional bank or a fintech provider? What would you do differently?

Reply in the comments by signing up or email me directly. And if you found this useful, sign up to my email list for more insights on governance, business setup, and navigating Hong Kong’s corporate landscape.