Foreign trade business, the success of the order, the failure in the collection. A safe, efficient, low-cost collection channel is the "lifeline" for foreign trade people to expand their business.

However, in the face of a wide range of collection methods on the market, many foreign traders have made a difficult task: whether to use the traditional mainland U.S. dollar to public accounts, or to use the emerging third-party platform, or to register a Hong Kong company to open an account?

Today, we'll start with theFunding Security, Rate Costs, Speed of Arrival, Difficulty of Withdrawing Funds, Tax ComplianceCore dimensions, in-depth comparison of the three mainstream collection methods. Whether you are SOHO start, or factory transformation, after reading this, you can find the most suitable for your "life collection channel". There is a need to consult the business bosses can also directly add customer service WeChat consulting!(WeChat: jxhqcy890 / Mobile: 16625410105)

Directory

01 Continental United States dollar public accounts: traditional but high thresholds

02 Third-party payment platforms: flexible but with high fees

03 Hong Kong Company Accounts: The Golden Gateway for Foreign Traders

04 A table to see how to choose

01. bigLand-based USD public accounts: traditional but high thresholds

This is the most traditional, the most "root and branch" way of foreign trade collection, mainly applicable to factories or trading companies with import and export rights.

Core strengths:

• The funds are most secure: Funds directly into the domestic four major banks or commercial banks, strictly protected by Chinese law, without the risk of running away.
• Compliance is the strongest: Fully compliant with the regulatory requirements of China's foreign exchange bureau, each fund has a corresponding customs declaration and tax records.

Pit Avoidance Guide and Pain Points:

• The threshold is extremely high: You need to register a mainland company first, apply for import and export rights, and the bank account opening review is strict (need to provide office space rental contracts, utility bills, etc.), for SOHO or individual sellers is extremely unfriendly.
• Risk of "frozen cards": Although safe, bank risk control is extremely sensitive. IfIf the payee involves sensitive countries, or the payment for goods does not match the declared amount, it is very easy to trigger the bank's anti-money laundering wind control, resulting in the freezing of the account.
• The process is cumbersome: Once the US dollars have arrived, you must provide the correspondingCustoms declarations, contracts, invoicesand other documents, go to the bank for settlement procedures, and have poor liquidity.

Good for the crowd:

• Factories or large trading companies with formal mainland companies, import and export rights, large single amounts, stable counterparties, and the ability to provide complete customs declaration documents.

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02.Third-party payment platforms: flexible but high fees

This is a popular option that has emerged in recent years, represented by Payoneer, PingPong, WorldFirst, LianLian Pay, etc., which mainly solves the problem of small and medium-sized sellers"You can collect dollars without a company account."The pain points.

Core strengths:

• Low threshold for opening an account: Personal identity can apply, no need to register the company, the whole online operation, the fastest day under the account.
• Multi-currency collections: Supports multiple currencies such as USD, EUR, GBP, etc., and can generate virtual bank accounts (e.g., U.S. Citibank account, European Deutsche Bank account), which is convenient for showing "localized" image to overseas customers.
• Withdrawal is easy: Support withdrawals to mainland personal bank cards, although each person has a limit of 50,000 U.S. dollars per year foreign exchange quota, but for most small and medium-sized sellers enough to use.

Pit Avoidance Guide and Pain Points:

• Rate "assassins": It may seem convenient, but it is costly. There are usually three parts to the cost:
  • The combined cost is upwards of 3%! For the foreign trade industry, where profit margins are already slim, this is a huge expense.
  1. Entry Fee: 1% or so.
  2. Withdrawal fees: 1%-1.5%.
  3. Sink losses: The exchange rate quotes are usually 1%-2% worse than the bank's CBC rate.
• Funds sinking risk: Funds are deposited in third-party platforms rather than bank accounts. Although the platform is regulated, the safety of the funds is doubtful once the platform has operational problems.

Good for the crowd:

• Cross-border e-commerce sellers (Amazon, Shopee, TikTok sellers), SOHO individual entrepreneurs, groups with small single amounts, frequent transactions, and inability to provide customs declarations.

If you haveBeijing Shanghai Guangzhou Shenzhen Hangzhou foreign trade company registration, import and export rights for the record, import and export tax rebates, Hong Kong company registration, bank account opening, annual review, audit tax returns, ODI filingetc. needs, welcome to sweep the code to add our online customer service (micro letter: jxhqcy890 / cell phone: 16625410105), to arrange for the manager to answer questions, provide professional advice and full one-on-one service!

03.Hong Kong company account: the golden channel for foreign traders

It is recognized as the "king of cost-effective" and "standard for professional players" in the foreign trade circle. By registering a Hong Kong company and opening a local bank account in Hong Kong (e.g. HSBC, Standard Chartered, BOC Hong Kong) to receive payments.

Core strengths:

• Financial Freeport: There is no foreign exchange control in Hong Kong, and funds are free to come in and go out without being restricted by the mainland's US$50,000 personal settlement limit.
• The tax rate is extremely low: Hong Kong adopts territorial taxation, profits not generated in Hong Kong can apply for offshore exemption, profits tax is as low as 8.25%, and there is no value-added tax and business tax.
• High international credibility: Hong Kong bank accounts (especially HSBC and Standard Chartered) are internationally reputable and highly recognized by European and American clients, which helps to enhance bargaining power.
• Low overall cost: While there are costs associated with incorporating a company, low bank transfer fees and no high withdrawal fees from third-party platforms make it the least expensive in the long run.

Pit Avoidance Guide and Pain Points:

• Difficulty in opening an account: Influenced by the global anti-money laundering regulation, the threshold of Hong Kong bank account opening has been raised, and it is usually necessary to provide proof of trade background such as domestic company business license, purchase and sales contract, bill of lading, etc., and even need to be interviewed.
• Tax Compliance: Hong Kong companies must do the audit, not like the mainland individual as arbitrary "zero declaration", or will face high fines.
• Maintenance costs: An annual fee for the annual audit of the secretarial firm and an accountant's audit is payable each year.

Good for the crowd:

• Professional foreign trade companies with high annual turnover (e.g., more than $500,000), pursuing low tax rates, needing to make frequent large capital transactions with overseas customers, and wishing to build an international brand image.

If you haveBeijing Shanghai Guangzhou Shenzhen Hangzhou foreign trade company registration, import and export rights for the record, import and export tax rebates, Hong Kong company registration, bank account opening, annual review, audit tax returns, ODI filingetc. needs, welcome to sweep the code to add our online customer service (micro letter: jxhqcy890 / cell phone: 16625410105), to arrange for the manager to answer questions, provide professional advice and full one-on-one service!

04 Side-by-Side Comparison: A Chart to See How to Choose

Step 1: Look at the "identity"

• If you are an individual/SOHO: No company qualifications, preferredThird-party payment platforms. Although the rates are high, it's the only legitimate way to collect money when you're starting out.
• If you have a mainland company: Not a lot of business and don't want the hassle, you can continue to use theContinental Public Accounts, but have to put up with the cumbersome process of settling foreign currencies.
• If you plan to do it for a long time and make it big: As soon as business exceeds $300,000-$500,000/year, please immediatelyenrollmentHong Kong company. The savings in fees and taxes are more than enough to cover the company's maintenance costs and make a world of difference in capital turnover.

Step 2: Look at the "profits"

• If your product margins are below 10%.Third-party platform 3% rateswill eat up most of your profits. At this point, it's important to consider the possibility of passingHong Kong companies reduce intermediate costs.

Step 3: Look at the "client"

• If your customers are mainly large B2B customers in Europe and the United States, they are more likely to pay for goods to theHSBC, Standard Chartered Hong KongThis type of well-known bank account rather than an unfamiliar third-party platform account.

There is no perfect way to collect money, only the strategy that works best for you at this stage of your development.Starting with platforms, developing with Hong Kong households, and growing with offshore structures. Only through the capital flow of the two veins, your foreign trade business can be unimpeded in the global market.

👉 Welcome to sweep the code to add our online customer service (WeChat: jxhqcy890 / cell phone: 16625410105), to arrange for the manager to answer questions, to provide professional advice and the whole process of one-on-one service!