SME Bank Account Registration & Profit Tax Declaration Guide

For many entrepreneurs, setting up a new company is rather complicated and requires a lot of preparation. Whether registering a company bank account or declaring tax returns, you need to prepare many documents to get things done. Cigna Smart Health lessens the workload for start-up and SME owners by gathering business account registration details among Hong Kong banks, such as account opening fees, minimum balance, and notes on tax declaration.

Required Documents for Registering Your Business Account

Generally, business organizations can be categorized as sole proprietorships, partnerships, and limited companies. For setting up a company bank account, you should provide respective documents and information to your bank according to the types of business organizations.

Types of Business Organization	Required Documents
Sole Proprietorships	Effective business registration Information of the owner(s) and authorized signatory(ies), such as identification document and proof of address Corporate identification documents (for example Invoices, commercial contracts, development plans etc.)
Partnerships	Effective business registration Information of the partners and authorized signatory(ies), such as identification document and proof of address Corporate identification documents (for example Invoices, commercial contracts, development plans etc.)
Limited Company Registered in Hong Kong	Effective business registration Identification documents and proof of address provided by the board of directors, all beneficial owners and authorized signatories Details of the ownership and control structure of the company Corporate identification documents (for example: Invoices, commercial contracts, development plans etc.)

Business Account Registration Fees and Minimum Monthly Balance

When setting up a company account, your bank will charge you the application fees by items and search fees. Nowadays, there are business accounts tailored to the needs of start-ups available in the market with a lower threshold on minimum monthly balance. Below are the account opening details gathered from common local banks.

Banks	Account Application Fees	Company search at the Business Registration Office/Companies Registry (Search Fees)	Minimum Monthly Balance
Bank of China	$1,200	Unlimited company: $100 Limited company: $150	Business Integrated Account: $50,000
Standard Chartered	-	$150	SME Account: $200,000
HSBC	$1,400	$150	HSBC Sprint Account: $50,000
Hang Seng Bank	$1,200	$150	Integrated Business Solutions Account: $50,000

A Guide to Profits Tax for Start-Ups

18 months after starting your business, you will receive the Profits Tax Returns Forms issued by the Inland Revenue Department of HKSAR. However, account and audit works take time for preparation. You are advised to start handling the financial work early to avoid cramping in the last three months. Let’s take a look at the below guidelines.

1. Documentation and Filing

Prepare the required documents for your company’s daily operations, such as sales invoices, income proofs, expenditure reports, bank statements, for account recording

2. Save Your Documents to the Cloud

Storing your financial documents on the cloud can lower the administration fee and risks of human error. It is the fastest and most convenient way to handle a large number of documents and save necessary information.

3. Seek help from an Account Consultancy

Auditing needs to be completed by certified accountants in Hong Kong. It is necessary to provide complete accounting records that comply with accounting standards, such as balance sheets, income statements and financial trial balances, for accountants to conduct audits and follow up related matters.