How do you get a business credit card - Acquiring a business credit card in Hong Kong can streamline your company's financial operations. It can simplify expense tracking, offer rewards, and potentially provide a line of credit. However, the application process may seem a bit daunting.
This guide will walk you through the necessary steps to obtain a business credit card in Hong Kong.
Understanding Business Credit Cards in Hong Kong
A business credit card in Hong Kong is a financial tool designed specifically for companies to manage their expenses and cash flow. These cards function similarly to personal credit cards but are tailored to meet the unique needs of businesses operating in Hong Kong.
They provide a convenient way for companies to make purchases, track expenses, and access short-term financing.
Types of business credit cards available
Hong Kong offers a variety of business credit cards to suit different company needs. Some popular options include:
- HSBC Business Mastercard
This card is suitable for international businesses and frequent business travelers. It offers features like spending breakdowns by country and category, as well as quarterly and annual reports.
- DBS VISA Business Card
Ideal for SMEs needing flexible credit solutions, this card allows customization of credit limits for individual cardholders and provides liability waiver protection.
- American Express Gold Business Card
This card caters to international businesses looking for generous rewards on both local and foreign spending. It offers access to exclusive privileges and various point-earning opportunities.
- ICBC UnionPay Dual Currency Corporate Card
Designed for businesses operating in Greater China, this card offers dual currency functionality in HKD and RMB, making it convenient for transactions across Hong Kong and mainland China.
- Dah Sing Business Card
This card is suitable for startups and small businesses, offering easy application processes and cash rebates on spending.
Eligibility Requirements for Hong Kong Business Credit Cards
In Hong Kong, various business structures can apply for business credit cards. These typically include companies, limited companies, sole proprietorships, and partnerships. Each card issuer may have specific requirements, but generally, most business types are eligible.
For instance, the HSBC Business Mastercard accepts applications from companies, limited companies, sole proprietorships, and partnerships, providing they have legitimate proof of a business address.
Required documentation
To get a business credit card in Hong Kong, you'll need to provide several key documents. These usually include:
- Proof of business registration in Hong Kong
- Verifiable documentation confirming your business location (such as a recent bank statement or utility invoice)
- HKID or passport of shareholders, directors, or business owners
- Financial statements or tax returns to demonstrate business income
- Business bank account statements
Some card issuers may have additional requirements. For example, HSBC Hong Kong requires HKID or passport information unless you already have an active account with them.
Minimum revenue or time in business
The minimum revenue or time in business requirements can vary depending on the card issuer and the specific card product. For instance:
Some cards, like the Dah Sing Business Card, require sole proprietorships or partnerships to have been established for at least 6 months, while limited companies need to have been in operation for at least 2 years.
Other cards may have minimum annual revenue requirements. While specific figures aren't always publicly disclosed, higher-tier cards often require higher revenue thresholds.
For startups or businesses with limited operating history, some issuers offer alternatives. The Dah Sing Business Card, for example, allows applicants to use a fixed deposit instead of providing proof of company assets, making it easier for new businesses to qualify.
It's important to note that even if your business doesn't meet the standard eligibility criteria, some issuers may still consider your application. They might evaluate factors such as the business owner's personal credit history or the potential for future revenue growth.
Step-by-Step Application Process
1. Researching card options
To get a business credit card in Hong Kong, start by researching the available options. Consider cards from major issuers like HSBC, DBS, American Express, ICBC, and Dah Sing Bank. Each card has unique features, benefits, and eligibility requirements.
For example, the HSBC Business Mastercard offers spending breakdowns by country and category, while the DBS VISA Business Card allows customization of credit limits for individual cardholders.
Compare annual fees, interest rates, rewards programs, and other perks to find the best fit for your business needs.
2. Gathering necessary information
Before applying, gather all required information. This typically includes:
- Legal business name, address, and phone number
- Type of business and industry designations
- Legal business structure (e.g., sole proprietorship, partnership, limited company)
- Federal tax identification number (business EIN and/or your SSN)
- Number of employees
- Approximate annual business revenue
- Estimated monthly expenses on the credit card
Some cards may have specific requirements. For instance, the American Express Gold Business Card requires applicants to have a gross personal income over HKD 200,000 per annum and be a resident or citizen of Hong Kong or Macau.
3. Submitting the application
Once you've chosen a card and gathered the necessary information, submit your application. Most issuers offer online application processes. Be prepared to provide both personal and business details.
For example, when applying for the Dah Sing Business Card, you'll need to prove that your company has been established for at least 6 months (for sole proprietorships or partnerships) or 2 years (for limited companies).
Some issuers may allow you to apply with a fixed deposit instead of providing proof of company assets, making it easier for startups and small businesses to qualify. Provide truthful and precise information on your application to improve your likelihood of acceptance.
4. Follow-up and approval
Once you submit your application, the issuer will evaluate your details and perform a credit assessment. This evaluation may take between several days and two weeks. The issuer will reach out to you if they require any additional information.
Upon approval, you'll receive your business credit card along with the terms and conditions. Carefully review this information, including the credit limit, interest rates, and any promotional offers. Some cards, like the Dah Sing Business Card, offer welcome bonuses such as annual fee waivers for the first few years.
How to Open a Bank Account in Hong Kong
Remember that getting a business credit card in Hong Kong requires careful consideration and preparation. By following this step-by-step process and choosing the right card for your business needs, you'll be well on your way to managing your business finances more effectively.
