Hong Kong company with merchant account
Hong Kong company with merchant account is easy to set up with Tetra Consultants’ assistance.
With our lean-and-mean mentality, you can rely on our team of experts to provide you with a seamless experience throughout the whole procedure to register a Hong Kong company with merchant account. Our ultimate goal is for your Hong Kong company to be operationally ready within the stipulated time frame.
Our service package includes everything you will require to set up a Hong Kong company with merchant account:
- Company registration with the Hong Kong Companies Registry
- Provision of company secretary and legal registered address
- Corporate bank account and merchant account opening
- Annual accounting and tax services
What is a merchant account?
- A merchant account refers to a business bank account that enables companies to both receive and make payments for various business purposes. These are usually carried out through transactions made with credit or debit cards.
- A Hong Kong company with merchant account is governed under the Payment Card Industry Standards (PCI) Council and will have to comply with the official guidelines set out by the Council.
What is the difference between a merchant account and a corporate bank account?
- Although these 2 types of accounts are both for businesses, they have different functions and serve different purposes.
- A corporate bank account is mainly meant for the management of a business’ daily expenses, and can be used to withdraw or deposit money meant for the payment of utility fees, rent or other ordinary expenses. However, a corporate bank account cannot perform transactions that are made via debit or credit cards.
- On the other hand, a merchant account enables fast and convenient transfers that take place through credit or debit cards. However, the steps to open a merchant account are often less simple than for a corporate bank account, as the former necessitates a lengthier series of KYC checks to safeguard against financial crimes.
- With Tetra Consultants’ simple and efficient payment solutions, you no longer have to fear the steps to open a merchant account, as our team of experts will turn the procedure into an easy and hassle-free one that allows you to begin using your account as soon as possible.
How long to register Hong Kong company with merchant account?
- To set up a merchant account, you must first have a registered Hong Kong business. Tetra Consultants’ team of experienced professionals assists our clients to register a Hong Kong company with as smooth and hassle-free a process as possible.
- Tetra Consultants will complete Hong Kong company registration within 1 week after receiving the necessary due diligence documents. Our team will submit a quality incorporation form and register the Hong Kong company without requiring our international clients to travel.
- Once the company is registered, Tetra Consultants will courier the business registration certificate and certificate of incorporation to our clients.
- Within 4 weeks after the company is incorporated, Tetra Consultants will advance corporate bank account opening with a reputable Hong Kong bank such as Citibank, HSBC or Hang Seng Bank.
- Tetra Consultants will then proceed to assist you to set up a merchant account for your new business. The full procedure will take about 3 weeks.
- All in all, our international clients can expect to start operations in Hong Kong with a merchant account within 8 weeks upon engaging Tetra Consultants.
How to start a Hong Kong company with merchant account?
Step 1: Choosing an optimum business structure
- Hong Kong features a wide range of business structures that suit a variety of purposes. For most clients, a limited liability company would be most suitable. Regardless, prior to every engagement with our clients, Tetra Consultants will seek to understand our clients’ business plan and needs and recommend the most optimal company structure for your business.
Step 2: Reservation of company name
- Tetra Consultants will then conduct a name search to check the availability of your preferred business name and reserve it. Tetra Consultants will then complete the name approval application forms and submit them to the Hong Kong Companies Registry.
- Tetra Consultants will also provide our international clients with a local registered address and company secretary.
Step 3: Preparation of supporting documents to register Hong Kong company
- Upon successful approval from the Registry, Tetra Consultants’ legal team will also draft the articles of incorporation, business plan and other required incorporation documents for your review. Once confirmed, we will submit them to the Hong Kong Companies Registry.
- It is mandatory to submit the appointment notification of directors and secretary, consent to act as director, registered address notification and other applicable documents as required by the Hong Kong Company Registry.
- Once the company is registered, Tetra Consultants will courier the documents of your new corporate home, including the Certificate of Incorporation, Memorandum & Articles of Association, Register of Directors and Register of Shareholders, to your preferred address.
Step 4: Opening a corporate bank account
- Once the above is completed, Tetra Consultants banking team will proceed to open a corporate bank account with a reputable Hong Kong bank such as Citibank or HSBC. These banks are world-class institutions with excellent internet banking facilities.
- However, Hong Kong banks will require our clients to travel to the country to sign the account opening forms. Our banking team will accompany our clients to the bank meetings to ensure a seamless and swift account opening experience.
Step 5: Opening a merchant account
- After opening the corporate bank account, your business can now begin to carry out activities and conduct transactions. Tetra Consultants will then assist your company in submitting a merchant account application to a trusted merchant account provider.
- The list of merchant account providers available for Hong Kong businesses are as follows:
- Besides these merchant account providers available for businesses specific to Hong Kong, there are also many international merchant account providers that serve businesses based in any jurisdiction. They are as follows:
Step 6: Tax registration
- After setting up the corporate and merchant bank accounts, Tetra Consultants will assist your business to register for tax with the Hong Kong Inland Revenue Department. The deadline to complete this is within 1 month from the incorporation date. Upon registration, the Inland Revenue Department will issue a business registration certificate with your new company trade register number.
What are the advantages of a Hong Kong company with merchant account?
Ease of transaction
- As a Hong Kong company with merchant account allows access to payment services via credit or debit cards, they will allow your business to simplify and speed up the transaction procedure and payment processing, through a one-stop payment gateway. The cards that will be accepted include Visa cards, MasterCard, Diners Club, American Express and more.
Higher customer satisfaction
- More than 80% of companies that allow transactions to be made with credit cards were reported to have better business than those that did not take in credit card payments, according to a GoPayment Survey conducted by Intuit Inc.
- As such, accepting credit card payments through a merchant account will afford a great advantage for your business in creating high customer satisfaction.
Access to a wide range of digital payment services
- Merchant accounts allow a wider range of digital payment services to be accessed than corporate bank accounts do. These service options include reporting of payments successfully made, making fund payments, enabling sales transactions and other commerce services in Hong Kong.
What are the disadvantages of a Hong Kong company with merchant account?
Greater risk and vulnerability to fraud
- As transactions for a merchant account are typically made online, this exposes your business to more risks associated with the vulnerability of online transactions. Some of these risks include fraud, online scams and hacking of the merchant account.
- However, these risks can be mitigated. Tetra Consultants will assist your business in securing reliable security software to protect the security of your merchant account and transactions, as well as to safeguard against fraud and scams.
Longer set-up process
- Merchant accounts typically necessitate a lengthier set up-process as they require more strict and in-depth KYC checks than a corporate bank account opening necessitates. This is in order to safeguard against financial crimes and money laundering, as well as to ensure the company stays compliant with financial regulations. As such, the steps to open a merchant account is typically not as simple as for a corporate account.
Travel required for bank meeting
- To open a corporate bank account in Hong Kong, our international clients are most likely required to travel to Hong Kong for a face-to-face meeting with bankers. However, Tetra Consultants will negotiate with the banks to request a waiver and seek non-travel solutions whenever possible. In the event that travel is needed, we will send a trusted representative to accompany you to the meeting with the bank.
Looking to register a Hong Kong company with merchant account?
- Contact us to find out more about how to register a Hong Kong company with merchant account. Our team of experts will revert within the next 24 hours.
FAQ
Does my business need a merchant account?
- You will need one in order to accept payments made through credit or debit cards. Setting up a merchant account may seem complicated at first, but it is easy and hassle-free with Tetra Consultants’ assistance.
Is a business account a merchant account?
- No, a business bank account is not the same as a merchant account. Also known as a corporate bank account, a business bank account is mainly for the deposit of the company’s funds and profit and the deduction of money from the company for bills.
Do you need an LLC for a merchant account?
- No, an LLC is not strictly necessary. You need a legal business entity to own a merchant account, but this can be other types of entities other than an LLC.
What is a merchant business account?
- It is a bank account for companies that enables the companies to receive payments through debit and credit cards.
- Your company will need to already have a corporate bank account in order to apply for a merchant account.
How much does it cost to register a Hong Kong company with merchant account?
- While there are no paid-up capital requirements when starting a Hong Kong company with a merchant account, Tetra Consultants will recommend setting aside at least US$5,000 as your paid-up capital to fund your overhead expenditures as well as initial deposit for corporate bank account opening.
- As for Tetra Consultants’ engagement fees, this depends on the exact services required from Tetra Consultants. Our fees are inclusive of government fees and all fees will be clearly stated in our engagement letter prior to the start of the engagement. Tetra Consultants believes in transparency with our valued clients and there are no hidden fees.
What are the requirements to incorporate a business in Hong Kong?
- There are minimal requirements to set up a limited company in Hong Kong. You will only require a local registered office and company secretary. The registrar of companies will approve your company registration without any mandatory paid up share capital. However, every Hong Kong company is required to submit annual returns.
