COMPANY ACCOUNT

　　The importance of bank account

　　A company bank account is necessary for the business to apply and receive the Letter of Credit (L/C) in the event of purchase or sale of stock. It also helps the deposition on the large amount of cash created by the company.

　　Therefore it is an essential consideration for a company in creating a bank account. GSC provides service to assist client for the creation of company bank account in Hong Kong in which it would save a significant amount of tax expenses with a suitable tax planning. The banks in Hong Kong are famous, stable and recognized internationally, thus it would help the company to create a better image and provide a stronger confident to the clients/business partners by holding a bank account in Hong Kong.

　　The procedure to open a bank account is very easy as the client do not require to come to Hong Kong. (Except opening HSBC Bank) Client is only required to complete and sign the application form at one of our local offices for bank account to be completed in 25 working days.

　　The meaning of the Letter of Credit

　　A Letter of Credit is a conditioned agreement of payment issued by the bank. The bank will issue the letter at the request of the importer (applicant) to the exporter (beneficiary) as an evident to guarantee the payment. The beneficiary must provide the service on the stock according to the L/C together with an invoice to the importer in order to receive payment from the bank. And because the L/C is owned by the bank, thus the bank will then become the first payer of the L/C.

　　The use of L/C is suitable to the situations below:

　　— Trading

　　— To reduce the risks in international trading

　　— To increase the enforcement on the date of shipment and the receipt of the imported stock

　　The advantages of L/C

　　The L/C can greatly reduce the risk in receiving payment on the exporter where it can also reduce the risk of payment on the importer when the stock is not agreed with the Letter of Credit.

　　It is necessary to create a bank account before requesting a Letter of Credit from the bank to purchase stocks with an L/C bank account. GSC provides a convenient and complete service for the client from opening a bank account to an L/C account.

　　Requirements on the creation of bank account and its procedures

　　There are new arrangements on the requirement on the creation of bank account due to the government policy on the prevention of illegal monetary activities internationally. For this reason, the banking authority has restricted the requirement on the creation of company bank account especially to the offshore companies. Therefore, to adapt to the policies, clients are suggested to provide the documents below for the creation of bank account:

　　— A signed and chopped declaration form of the company’s business nature is also required from the client;

　　— Proof of address of the account holder (depends on different bank requirement);

　　— Proof identity of the account holder;

　　— Director who do not want to be appointed as the controller of the bank account must sign on the location "Not include signature" of the bank account application form for confirmation;

　　— The bank has reserved the rights to reject any account application.