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PayPal for Hong Kong Limited Company + Hong Kong Bank Account - Any problems?

Discussion in 'Business & Tax Advice' started by SantaInThailand, Nov 25, 2016.

  1. SantaInThailand

    SantaInThailand Junior Member

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    Hey guys,

    I recently set up a Hong Kong Ltd company to run my dropshipping business. Business is all legit and I have a virtual office address in Hong Kong. Currently I am in the process of applying for a Hong Kong bank account.

    I have a UK PayPal that I want to keep using for business, since it's an aged account, has masspay enabled etc. and it's crucial for my business. However, in order to transfer profits to my Hong Kong bank account, I will need a separate Hong Kong Business PayPal account for withdrawing funds to my bank.

    Would using two linked accounts like this cause any problems? I am not trying to hide from PayPal that both accounts belong to me. When talking to PayPal support on the phone, they have advised me to specifially open a separate PayPal account for each country where I need one.
     
  2. Sardosa

    Sardosa Regular Member

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    Very likely - YES.
    Santa in Thailand using UK PayPal acc on grey company in HK. Sounds like perfect washing machine for me.
    I'd say either you cleanup your tracks or they'll be after you straight after Santa Holidays
    been there done that
     
  3. SantaInThailand

    SantaInThailand Junior Member

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    Not sure it's really a "grey company", as it's been set for a perfectly legitimate purpose. I'm not resident in the UK, haven't lived there for many years so I'm not liable for taxes over there. Having a company in Hong Kong makes most sense, in general for online businesses and because I'm going to be making dropshipping deals with mainland Chinese suppliers. But at the same time I see where you are coming from, since it sounds possiby a bit dodgy possibly from PayPal's point of view. Anyways I'd be more than happy to hear more about your own experience? I use a UK PayPal because I have it since many years.

    You never know, they tell you one thing and do another. I'm wondering if bank account, registered company and company address are all in Hong Kong, should be no problems with PayPal?

    I was just on the phone with PP (Hong Kong) and they told me no problem to have two accounts, one for UK side business and one for Hong Kong side. Just saw some bad experiences on other forums, checking if BHW crew have had similar issues.
     
  4. Sardosa

    Sardosa Regular Member

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    well:
    first - on the phone with PayPal HK -? the PayPal is an USA Company, so you likely spoke with Customer Support Rep. to Support Customers in HK area - i.e. speaking that funky Chinese plus pinglish plus mandarin. Very likely you spoke with students in KL, Malaysia as PP outsources there ... And they don't give a damn.
    second - HK Company is for what ever you like, but it is one of the Asian offshore biz, so we might consider it greyish. However call it pink. don't care
    third: The simple rule of get fucked by PayPal is to use account from the country other than your residence except you confirrm that with PayPal and they don't like it very much. Why ? Example - some countries are sanctioned by YouKnowWho, so providing financial services will cost PayPal huge fine.
    And why do you have to use PayPal for this purposes if you can use normal Banking provided in HK almost everywhere?
    PayPal is to sell dried bananas on Ebay and pay for domains and hosting. Not for shipping drops
     
  5. justmedia

    justmedia Jr. VIP Jr. VIP

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    Paypal is country specific so you can only have UK addresses / financial info on a UK paypal account and you can only have Aussie addresses /financial info on an Australian paypal account. So you need to open another paypal account in Australia and add an Aussie bank account or card to that account.
     
  6. SantaInThailand

    SantaInThailand Junior Member

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    Yeah true lol, the one sounded like a Chinese student who had no idea about anything. In any case, after talking with more senior PayPal reps they've always telling me that people who spend a lot of time in various countries should use a PayPal for each country. Also told me I could send money like this between my own, different locale PayPal accounts which is of course good business for them.

    Hmm, I have been using my UK PayPal from a Thai IP for one year, and processing around £30k per month in revenue and so far no issues, maybe it's just on the edge for the shit to hit the fan. It's connected to a UK personal bank account. I had a problem verifying the account before as I had my Thai address as my billing address, so after talking to PayPal they advised me to change my billing address to UK and send the bank statement to them again. PayPal is needed because 95% of my business is dropshipping those dried bananas on eBay, so no way around it.
     
  7. Sardosa

    Sardosa Regular Member

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    £30k per month? really?
    cool bananas it must be. or really groovy mushrooms. whatever ;)
     
  8. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    To get a PayPal account and bank account in Hong Kong you simply take the next flight there and find a lawyer to walk with you into HSBC or any other bank to open the account. It will require you to stay a week or two in HK. once the bank account is operative you can open an PayPal account in HK hile you are there using the debit or credit card and the lawyers utility bill to verify your HK PayPal account.

    It is going to be complicated and you will have to spend some money on it. That's the legit way to do it.
     
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  9. Jeffersontalks

    Jeffersontalks Regular Member

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    In replace of attorney, you can get a bank reference letter and notarized it at a local embassy. Usually bank account in Hong Kong can be open the same day if your company documentation are in place. Buy a shell offshore company that is already in existence. It will be faster. Paypal Account is easy to create even without a bank account. Just make sure you register with the exact Company name that you want and verify it using a VCC. You can start to use it immediately. For HK, the limit is $5k revenue received before Paypal ask for documentation of Company incorporation as per legal requirement by Paypal Asia HQ based in Singapore.

    There is a min deposit requirement for HK bank corporate bank account setup, do take note. Try to setup a bank account with HSBC. They are usually much more accommodative.
     
  10. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    Do you actually tried that or do you just read the Internet? Mention me just 1 bank that don't require personal visit in Hong Kong and that will open the account in 1 day?
     
  11. Jeffersontalks

    Jeffersontalks Regular Member

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    @RuthSam If you are a privileged client of HSBC. It can be done on the same day (or the next day depending on what hour you walk into the bank( provided all documents are notarized and in place. Note I did not say that you do not require to walk in for ID verification. I mention that you need a bank reference letter instead of an attorney. Anyhow both Singapore and Hong Kong offer same day account opening. This is common knowledge if you are an active international business that uses banking facilities in tax haven like HK and Singapore. Nothing special and nothing unique.

    HSBC Hong Kong Business direct: http://www.business.hsbc.com.hk/en-...ness-integrated-accounts/hsbc-business-direct (I suggest that you call your local HSBC banker, they can perform some magic if you have good business volume with them).

    Applying for a business account is simple and easy, please follow the below steps:

    Apply online

    We will get in touch with you to arrange an appointment at your preferred HSBC Business Centre for account opening. Please bring along all required documents and initial deposit of HKD10,000 to the appointment for account opening.

    Or

    Call our dedicated hotline 2748 8282

    Call us to make an account opening appointment at your preferred HSBC Business Centre, then bring along all required documents and initial deposit of HKD10,000 to the appointment for account opening.
     
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  12. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    Common knowledge maybe! You are turning this discussion into something different, but hey I don't care. If someone rather want to waste time to find some unregulated service in HK than to go to an regulated attorney or accountant that's fine. Take your reference letter and walk into the bank lol!
     
  13. Sardosa

    Sardosa Regular Member

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    Great point. I went to HK few times last years - bloody difficult to open Personal Saving Account. I have an account with HSBC in Bangkok, however they didn't issue a letter for me, so I felt like an idiot in HK (2011 and 2013)
    Next time I went to Hongkong (2015) and went to Standard Chartered - smooth as silk. Show them my passbooks for 10 years and got me honky account with initial deposit of 1K with online banking. But don't connect to PayPal - what for?
    For my experience the worst place is Singapore and KL. HK is ok, however they rather don't open acc for you than do so.
    Scared shitless of AMLO
     
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  14. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    Second that, thank you ;)
     
  15. SantaInThailand

    SantaInThailand Junior Member

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    Thanks, yes I've already done this, flew to Hong Kong and the HSBC account is currently pending approval. Hoping it gets accepted. Once done, I will open a HK PayPal to regularly withdraw all my profits on that account.

    What is the "lawyers utility bill" you mentioned, by the way? Is it not enough to give them a HSBC bank statement with the Hong Kong virtual office address?

    I was just worried if such system will work in the long term. My UK PayPal will be probably exceeding 100k/month in revenue in the next months, of which approx 10% profits will transferred to Hong Kong PayPal account monthly, and then withdrawn to HBSC bank account. So I'll use a UK and Hong Kong PayPal from my Thai ip address simultaneously.. I mean I've been honest with them about this, telling them that I travel a lot and have business in many places. Was just thinking if anyone has been limited or had any problems with them due to such arrangements.
     
  16. GringoMonkey

    GringoMonkey Power Member

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    Why don't you just transfer all the Paypal money via Paypal Uk to your UK bank account? No issues then and no need for HK Paypal.

    Then transfer whatever % you require from UK bank account to HK bank account. You can call it a management /licensing fee or whatever, but you can zero your UK profits.

    Basically that is a variation of what google, amazon, starbucks and all the other companies do to avoid tax and I assume why you set up the business in HK as opposed to Bangkok.
     
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  17. Sardosa

    Sardosa Regular Member

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    Sorry, is it Ireland, not UK, right? esp. freaking Google is laundering their Ad revenues through Ireland.
    btw, thinking of better taxes and doing biz in SE Asia look at them again. If you paid once for Adwords with your credit card you can see where is destination. Sure it says "Google adwords" but actual beneficiary is intermidiate company NOT in US and/or Ireland. And not HK or SG.

    I found it seriously over-rated the whole "HK dream" thingy in 2016. Maybe 20 years ago, but today there's nothing really special to run business in almost-Chinese almost offshore
     
  18. GringoMonkey

    GringoMonkey Power Member

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    You misunderstand. What I mean is Google, Amazon etc are moving their profits out of the UK - in their case they ultimately end up in the Caribbean somewhere, via Ireland, Holland etc. But the HK concept is the same, that you pay little or no tax. The point being you do not need a HK Paypal account, as the op asks, to do it.
     
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  19. PB Person

    PB Person BANNED BANNED

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    I think you should consider getting a UK ebay instead mate?
     
  20. Sardosa

    Sardosa Regular Member

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    Geographically there would be some hickups. as they differ at PayPal Inc your location.
    Even if you make it very clear that your acc is Brittish, but for health reason you're in Zimbabwe trading chinese toys to US, they still will send emails and re-confirmations.
    That happened to my pal with US acc here in Bangkok. Ends up with local account. However ....