Why using  HSBC bank account of Hong Kong ?

Hope acting as finance centre for international trading group

Background

  1. USA company (USA Ltd) is buying from China and selling to USA
  2. A China company (C Ltd) is setup for the sourcing function;
  3. Frequent payment to China suppliers are required;
  4. Money transfer from USA Ltd to supplier takes time and complicate in procedure;
  5. Money transferred into China (to C Ltd) is difficult to remit out of China again, and is subject to usage restriction.

New Way

  1. A Hong Kong company (H Ltd) is setup with Hong Kong company correct bank account (such as HSBC);
  2. Role of H Ltd is to handle money matters for group companies – receive money and transfer money;
  3. Hong Kong comany correct  bank account can be operated by internet banking;
  4. H Ltd has no income.

Benefit

  1. Money to China can be done when required and can be done swiftly;
  2. Money control is centralized and earns higher opportunity gain (such as interest rate, exchange rate etc.);
  3. Money flow into and out of HK enjoys high level of freedom (no supporting document required to convince reason of money movement);
  4. No profits tax effect to H Ltd as there is no income.