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If you happen to: 

• Get a locked bank account notice?
• Wonder: “Can a bank freeze my  account without warning?”

The truth is, yes, they can. No matter where you open your personal or corporate bank account (in Singapore, Hong Kong, Canada, the U.S).  Frozen accounts are more common than you think.

Here is a typical case from one of our clients.

Their seized bank account came as a shock. They weren’t sure why it happened or how to get their funds back.

So why would a bank freeze your account in the first place? And more importantly, how do you fix it quickly (and avoid it happening again)?

In this guide, you’ll learn:

• The 7 most common reasons behind a frozen bank account (The eighth reason is the most rare)
• What steps should you take immediately when your account is locked
• How to prevent your bank account from being seized in the future

Let’s start with a concrete understanding of what a frozen account is.

What is a frozen bank account?

A frozen bank account, or commonly known as a seized account, locked account, or limited account, is an account where your money is locked, and you can’t move it.

A person with a frozen account can not

• Make transfers;
• Withdraw cash (online or ATM);
• Pay bills (Even scheduled payments get stopped;

Account holders can still log in, check their balance, and monitor activity, but they cannot receive or send money via their banking apps.

What types of accounts can be frozen?

Any account can be locked, from business bank accounts, personal bank accounts, to joint accounts and checking accounts. Some funds (Social Security benefits, disability payments, retirement funds, unemployment compensation, veterans' benefits, and child support) are exempt from freezing.

Do banks announce why they freeze your accounts?

The majority of banks will not announce why they freeze your accounts. In some scenarios, they will send a generic notice (“Account frozen due to security protocols”)  to your accounts (Gmail, app notifications).

It is your responsibility to check your bank activities and understand why banks put your account on hold. 

1. What triggered the account freezing
2. What can you do to resolve the problems

In this guide, our banking experts will show you 7 common reasons why your account is locked and how to resolve.

The 7 most common reasons behind a frozen bank account (+ resolutions for each)

High-risk freezes

Examples of high-risk account freezes

The most common reason banks freeze accounts is suspicious activity that is high-risk.

This doesn’t always mean wrongdoing of the account holder. It is the automatic safeguard protocol of the banks against money laundering, terrorism financing, or fraud.

That is why even legitimate businesses can get flagged if their transactions look unusual.

Here are 5 common high-risk, suspicious activities you may do to activate account freezing:

1. Large or sudden deposits/withdrawals (especially cross-border).
2. Transfers to or from high-risk countries.(North Korea, Iran, and Myanmar.)
3. A sudden spike in transaction volume or frequency. (You typically earn 3,000 USD per month, but you earn 300,000 USD this April)
4. Frequent cash deposits (3 to 4 times higher than your normal transactions)
5. Buying high-risk assets (gold, diamond, land)
6. Transactions that don’t match your business’s normal profile. (Buying toxic chemicals, but your company specializes in fish product exportation)

In summary, if your account/business account performs differently from your normal day-to-day activities, it is more likely to be locked. Because your accounts show signs of being in an anti-money laundering scheme.

How to resolve high-risk freezes

Banks are legally obligated to report red flags. In the US, they file reports with FinCEN. In the UK, it’s the NCA. In Hong Kong, the JFIU. 

That’s why suspicious activity freezes are some of the hardest to resolve. 

In this situation, the account holder must prove the source and purpose of the funds with legitimate financial transactions and documents to prove the money is for legitimate business activities. 

You must go directly to the bank to speak with the banker and bring the relevant documents to resolve this issue. You can not do it via gmail, telephone calls. 

To avoid the high-risk freezes, you should:

• Monitor your transactions monthly so you spot unusual patterns before the bank does.
• Flag high-risk behaviors (like big cross-border transfers) and prepare documentation.
• Notify your bank in advance of large purchases, travel, or transactions outside your normal activity (You can notify your account manager).

Unusual transaction freezes

Examples of unusual transaction freezes

While similar to suspicious activity, this freeze is more about protecting you from fraud than assuming you’re doing something illegal.

Many freezes of this type are triggered by stolen cards or compromised account credentials. A freeze gives you and the bank time to verify if the activity was truly authorized.

That is why unusual transaction freezes are precautionary freezes to stop hackers from illegally stealing your money.

Examples of unusual transactions include:

1. Large purchases in distant locations you don’t usually shop or travel.
2. Multiple failed or repeated attempts at odd transactions.
3. Several small, rapid-fire payments.
4. Strange recurring subscriptions you didn’t set up.
5. Sudden high-value transfers to unfamiliar accounts.
6. Foreign currency spending when you’re not abroad.
7. How to resolve an unusual transaction freeze

How to resolve an unusual transaction freeze

If you find yourself in an unusual transaction freeze, you should do the 2 following four steps to protect your accounts.

• If you use a PayPal account connected to your bank account, you must update travel schedules in your PayPal account to help avoid problems with locked accounts.
• Use two-factor authentication and monitor alerts so you can confirm (or deny) suspicious charges instantly with your banker via phone calls or your banking apps.

Debt-related freezes

Examples of debt-related freezes

Another common reason for a frozen account is unpaid debts.  Creditors (like credit card companies, lenders, or even the government) can’t freeze your account directly. But with a court judgment, they can order your bank to do it. Once that happens, money can be taken from your account to cover:

• The debt you owe
• Court-approved fees

Examples of debts that can trigger a freeze include:

• Unpaid taxes to the tax authorities (IRAS, IRS, IRD)
• Student loans
• Car loans or personal loans
• Mortgages
• Divorce settlements

In these cases, both the creditor and your bank will notify you. You’ll usually get a court order first, then a notice from your bank once the freeze is in place.

How to resolve debt-related freeezes

Our banking advisor recommends you take 4 practical actions to resolve debt-related freezes

• Set up automatic reminders or autopay for bills and loan installments.
• Create a monthly budget that prioritizes debt payments over non-essential spending.
• Keep all letters, emails, and agreements from creditors in one place.
• Call your bank or creditor as soon as you know you might miss a payment.

Non-compliance freezes

Examples of non-compliance freezes

Every bank account comes with an agreement, and breaking those terms can get your account frozen.

This usually happens when customers:

• Provide inaccurate information (e.g., wrong address or false income details).
• Fail to submit required documents (like updated ID or proof of business activity).
• Don’t follow policies set out in the account agreement. (fall below standard account balance for more than 6 months,)

How to resolve non-compliance freeezes

These freezes are the easiest to resolve since the account holders just need to follow the requirements to lift the freeze.

• Keep your personal and business details updated (address, company ownership changes)
• Submit the requested documents on time
• Review your account agreement so you’re clear on what’s required.

Dormancy freezes

Examples of dormancy freezes

If your account sits unused for too long, it can raise red flags and trigger dormancy freezes. Because dormant accounts pose these 2 problems

1. Dormant accounts are prime targets for fraudsters since they’re less likely to be monitored, and they use dormant accounts to split large sums of money into smaller chunks to make them harder to trace)
2. Inactive accounts create maintenance costs for banks.

To reduce both risks, banks may freeze inactive accounts, and if inactivity continues, they may even close them.

For example, in the U.S., most states require banks to hand over dormant funds to the state’s unclaimed property office after 3–5 years of no activity. This process is called escheatment. Banks usually send notices before this happens.

How to resolve dormancy freezes

Based on our experience helping clients open accounts overseas in Singapore, Hong Kong, and the U.S, here are 3 simple actions you can take:

• Make small transactions regularly (deposit, transfer, or bill payment) every 2 weeks if there are no business activities
• Keep your contact details updated to avoid missing any inactivity alerts from the bank.
• Close or consolidate unused accounts instead of letting them sit idle and risk being frozen. (These dormant accounts also have you lose money due to the management account fee)

Businesses liquidation freezes

Businesses' liquidation freeze ensures no transactions interfere with the insolvency process and prevents new debts from piling up once liquidation begins.

Liquidation can happen in two ways:

• Voluntary liquidation initiated by the company’s directors or shareholders.
• A creditor’s petition where creditors formally demand repayment, and if ignored, the court can force the company into liquidation.

To proceed, creditors usually need to prove the company can’t pay its debts, and the outstanding debt must exceed a threshold set by local laws.

If you choose to close down your company, you must ensure you pay off all debts and taxes:

• Track your company’s solvency — know whether you can pay all debts before initiating closure.
• Settle taxes and creditor payments early to avoid forced liquidation.
• Plan your company closure properly so the account remains usable until final debts are cleared. (We recommend you seek support from professionals like Global Link Asia Consulting to help you close down your company)

Regulatory or legal investigation freezes

Examples of regulatory freezes

Sometimes, account freezes happen not because of your actions, but because of ongoing investigations.

Banks are legally obligated to cooperate with regulators, tax authorities, and law enforcement agencies. If your account is linked directly or indirectly to an investigation, it may be frozen until the matter is resolved.

This can happen in cases like:

• Ongoing tax audits or disputes.
• Investigations into money laundering or fraud.
• Regulatory compliance checks in highly regulated industries (e.g., finance, healthcare).
• Court orders related to lawsuits or judgments.

In August 2025, Singapore’s tax authority (IRAS) charged two men, aged 40 and 73, for their suspected involvement in a $181 million GST Missing Trader Fraud.

They allegedly set up four shell companies and created fictitious sales transactions between them at inflated prices. These sham sales were designed to fraudulently claim GST refunds from IRAS.

Companies unknowingly caught in the supply chain of such transactions have their bank accounts frozen to track the money flow.

How to resolve a regulatory or legal investigation freeze

From our experience working with international businesses, here are 3 simple but powerful actions you can take:

• Always run due diligence checks to ensure they’re legitimate and trustworthy.
• Maintain accurate invoices, contracts, and bank statements for at least 5 years to prove every transaction 
• Get legal advice fast if your company is pulled into a regulatory inquiry; early action can save you from bigger risks.

The 2 solutions to avoid a completely frozen bank account

After helping clients open corporate bank accounts in Singapore, Hong Kong, the US, and 10+ other countries, one lesson our experts always recommend to our clients: it’s always easier to prevent problems than fix them later.

Here are 2 simple and powerful next steps you can do to protect your finances, your company's finances, and cashflow

How can we help you avoid having your bank account frozen

You've known the 7 reasons and how to resolve each. Now it’s time to protect your business.

Take one action today. Just one.

• Maybe that’s setting up a reminder for your payment deadlines.
• Maybe it’s making a small transaction in your dormant account.
• Or maybe it’s calling your bank before a large transfer.
• Don’t wait until your account is frozen; prevention is always cheaper than a cure.

As a team with 10 years of experience helping hundreds of business owners open corporate bank accounts worldwide, we’ve seen how small steps can save companies from big disruptions.

Start today. Keep your accounts open, active, and stress-free.

If you need support to open a corporate bank account for your overseas company in Singapore, Hong Kong, the United States, the United Kingdom, Canada, and 10 other countries, we can help you

• Recommend the right bank and the right bank account for your needs
• Support you in opening a reliable, trusted digital bank account or traditional bank account
• Prepare necessary documents for account opening
• Schedule an appointment with a Singapore bank representative
• Monitor and assist in opening personal bank accounts (physical and digital)

FAQs about bank account freezing

• Country: Singapore
• Services: Company formation
• Rating Count: 127
• Rating Value: 4.9

More Singapore companies are changing hands through share transfers than ever before. Are you ready to handle it smoothly? 

To put this into perspective: Last year, you might’ve thought of “selling your business” as drafting a sales agreement and handing over company stamps.

This year, you’re facing questions like:

1.  “Can I transfer my shares to my spouse?”
2.  “Do I need approval from the Board?”
3. “What legal documents does ACRA require?”

Shares are not just a number on your share certificate; they show ownership with legal precision. You must handle the share transfer process correctly. 

That’s why, in this guide, you’ll learn how to:

• Understand the legal framework for share transfers in Singapore
• Learn the correct process and when you can transfer shares
• Avoid common legal pitfalls (Stamp duty, Pre-emptive rights) that can delay or invalidate the transfer

Let’s get into it.

What is a share transfer in Singapore?

When ownership changes hands in a Singapore company, it doesn’t happen with a handshake. It happens through a regulated process called share transfer

According to the section 'Transfer of shares' on ACRA, a share transfer is the act of transferring the legal ownership of shares from one person (the seller) to another (the buyer). In legal terms, the party selling shares is referred to as the Transferor (Seller), and the party receiving them is the Transferee (Buyer).

ACRA short guide on transfer of shares

You can think of the process of transferring shares this way: You hold shares in a company. You want to pass them to another shareholder, or maybe bring in a completely new investor. On paper, it looks simple. In practice, the law has rules you can’t ignore.

Under Singapore law, Share Capital, only fully-paid shares can be transferred. That means the shareholder must have contributed the full value of their shareholding.

For example, if you subscribed for 1,000 shares at SGD 1 each, you must have paid the full SGD 1,000 into the company before you can transfer those shares. If you’ve only paid SGD 500, the remaining “unpaid” shares are not transferable.

Every transfer must also respect the company’s constitution. That’s where restrictions, approvals, or preemption rights often come into play.

When do you transfer shares of your Singapore company?

Share transfers in Singapore don’t just happen at random. They usually come with a clear business reason

The most common scenarios include:

• A company raising capital from a new investor
• A shareholder exiting and selling shares to the remaining owners
• A shareholder gifting shares to a third party (like a family member)
• Corporate restructuring, mergers, or spin-offs

Here are some typical examples that lead to share transfers in a Singapore company from the clients we support with the share transfer process.  (The names of our client's companies have been changed to protect their privacy).

The company is raising capital from a new investor

A tech company, Collin Pte. Ltd. plans regional expansion and needs SGD2,000,000.  Instead of only issuing new shares, the company agrees that an angel investor will immediately acquire a 10% stake by purchasing shares from an existing shareholder to secure a board observer seat, while the company also issues an additional 5% new shares for working capital. 

The transaction has two approaches: 

1. Transfer of 10% from shareholder B to the investor, and 
2. Issuance of 5% new shares to the investor.

We help them initiate this process with our lawyers preparing a Share Purchase Agreement (SPA), calculating and paying stamp duty, and filing changes with ACRA via BizFile+ within the prescribed timeframe.

Shareholder exit with redistribution to remaining shareholders

Founder C of FoodCo Pte. Ltd. (Networking business connecting local products to potential resellers and wholesalers overseas)  decides to exit to pursue another venture. 

The remaining two shareholders, D and E, agree to buy C’s entire 15% shareholding at a pre-agreed price according to the “pre-emption/right of first refusal” in the Constitution and/or Shareholders’ Agreement. 

Global Link Asia Consulting helps these 3 founders perform an agreed valuation per the shareholders’ terms, executes an SPA among C–D–E, passes board resolutions to record the transfer, updates the Register of Members, and confirms post-deal voting and dividend rights.

Gifting shares to a third party

Shareholder F of EduTech Pte. Ltd. (A platform to sell online courses) wishes to gift 2% shares to a sibling studying in Singapore as a form of support to earn dividends each year.

Global Link Asia Consulting helps them complete all the steps involved in the share transfer. 

1. Create a shareholder agreement, 
2. Pay stamp duty to IRAS
3. Update the company’s share register

Group restructuring, mergers, or demergers

GroupHold Pte. Ltd. undertakes an internal restructuring in preparation for a Series A round: the operating company (OpCo) shares held by individuals are transferred to a new holding company (New HoldCo) to centralize ownership at the holding level. 

Our team supports businesses through these complex processes, from routine transfers to group restructurings, mergers, or demergers. This kind of restructuring requires coordination between multiple parties, including lawyers, accountants, finance controllers, and auditors, to review financial records and ensure compliance before new shares can be issued.

Tax and pre-emptive rights you must know before transferring shares

No matter why a share transfer takes place, shareholders in a Singapore company must follow the legal framework. Otherwise, the transaction is considered invalid. 

And beyond the paperwork, there are two big things every shareholder should pay attention to: taxes (Stamp duty) and pre-emptive rights.

Stamp duty for the transfer of shares

Whenever shares of a Singapore company are transferred, stamp duty applies. This is a tax imposed on the legal documents affecting the transfer of ownership. The current rate is 0.2% of the higher of:

1. The purchase price of the shares, or
2. The value of the shares transferred

The amount is rounded down to the nearest dollar, with a minimum duty of SGD 1.

But here’s where it gets tricky: the exact calculation depends on what type of company is involved, when it was incorporated, the value of its assets, and the class of shares being transferred.

For private companies (which make up most SMEs in Singapore), the value of the shares is usually based on either:

1. Net Asset Value (NAV): Calculated from the company’s latest statement of accounts, or
2. Allotment price of the shares: Typically used for newly incorporated companies (under 18 months old).

If the company issues different classes of shares (e.g., ordinary vs. preference shares), the NAV must be calculated separately for each class, reflecting the rights attached to those shares.

Pre-Emptive Rights

This is the legal safety net that protects existing shareholders. A pre-emptive right ensures that before a shareholder sells their stake to outsiders, current shareholders get the first opportunity to buy.

Why does this matter? It prevents shares from falling into the hands of competitors or investors who don’t align with the company’s vision.

Depending on the company’s constitution, there are three common types of pre-emptive rights:

1. Right of First Look : Existing shareholders can make the first offer. If the seller rejects, they can’t sell to outsiders on better terms.
2. Right of First Refusal: Existing shareholders can only accept or reject the seller’s terms.
3. Right of Last Refusal: Existing shareholders get to match the terms already negotiated with an external buyer.

 Suppose a shareholder wants to sell 15% of their shares. If the constitution includes a “Right of First Refusal,” the other shareholders must first be offered the chance to buy those shares at the same price before the seller can approach an outsider.

The correct process to transfer shares for Singapore companies

At Global Link Asia Consulting, our lawyers make sure your share transfer is done smoothly and fully compliant with Singapore law. 

You can count on our expertise. Here’s exactly how we help you handle it.

Required documents to prepare

6-step process to transfer shares of your Singapore company

How can we help you with share transfer for Singapore companies?

Share transfer sounds complex, but it does not have to be.  What looks like a simple “change of ownership” actually breaks down into a few critical steps:

1. Confirm the intent and agreement between the transferor and the transferee.
2. Prepare and execute resolutions, notices, and legal forms.
3. Pay the required stamp duty on time.
4. Update company records and reissue share certificates.

It’s a lot to manage. But the good news? If your company already has clear ownership records and a competent secretary, you’re ahead of most businesses.

If you are still unsure where to start, or don’t want to risk non-compliance?

That’s where we help. Our team guides you step by step, prepares the documents, deals with IRAS, and ensures the transfer is smooth and fully compliant with Singapore law.

If you with to run your company in Singapore sustainably, our experts can help you from A-Z

• Register a company in Singapore;
• Open a corporate bank account in Singapore with a 99% success rate;
• Choose the right company types for tax optimization in Singapore;
• Apply for Singapore business licenses;
• Get an affordable, professional registered office address for your business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

FAQs about share transfer in Singapore

• Country: Hong Kong
• Rating Count: 29
• Rating Value: 5

You know that moment when you realise expanding into Hong Kong could open new possibilities for business growth, but the registration process looks like a maze? It can make you wonder if you’ll miss a step, break a rule, or waste months fixing paperwork errors. 

That was the feeling of a marketing agency (Our client) looking to incorporate a legal entity in Hong Kong. Instead of stressing, it’s far more effective to understand exactly how the process works. This guide will show you exactly how to do that.

By the end, you’ll know how to register a private limited company in Hong Kong in 2025 without the guesswork and start operating faster.

What is a private limited company in Hong Kong?

According to the Types of companies under the new Companies Ordinance (CO), Hong Kong Companies Registry, there are 5 types of companies that can be formed under the new CO. A private limited company is one of them. 

Explaination from Companies Registry in Hong Kong

A private limited company (PLC), also called a private company limited by shares, is a business entity in Hong Kong that exists as a separate legal entity from its shareholders and directors.

This structure limits each shareholder’s liability to the amount they’ve invested in the company. For example, if you hold HKD 10,000 in shares, you can only lose that amount,  even if the company owes millions. Your personal assets (like your home or savings) stay protected.

On the other hand, other business structures (like sole proprietorships) don’t offer this protection. The owner is personally liable for all business debts and obligations.

Is a private limited company different from other business structures?

 A private limited company is much different from other business structures. Our table below will highlight all the differences between these entity structures.

What can you do with a PLC in Hong Kong?

A private limited company in Hong Kong is one of the most versatile business structures. With a PLC, you can:

Why do you need to open a Hong Kong private limited company?

Choosing the right structure is more than just a legal formality. It shapes how you operate, manage risk, and grow. 

Hong Kong private limited company offers advantages that can:

1. Protect your assets: Limited liability shields your personal wealth if the business runs into debt or legal issues.
2. Save on taxes: Hong Kong’s low tax rates and territorial system mean potentially lower obligations and offshore exemptions.
3. Support global growth: 100% foreign ownership and the Hong Kong brand help sign agreements more easily
4. Boost credibility: Operating under a recognised and trusted structure improves trust with clients, partners, and investors.
5. Stay flexible: Engage in a wide range of activities without major structural changes.

That is why, this business structure is popular for foreigners and Hong Kong citizens to choose.

Requirements to register a private limited company

Before you incorporate your company in Hong Kong, you’ll need to meet a few core requirements.
They’re simple, but each one plays a crucial role in ensuring compliance from day one.

Complete process to register your private limited company in Hong Kong

Now you know the 4 initial requirements to set up a company in Hong Kong, here is our proven process to help you open a private limited company in Hong Kong right at the start.

What to do after opening your Private limited company in Hong Kong with success

Step 1: File your annual return on time

Once your company is incorporated, you must file an Annual Return with the Companies Registry every year.

Why it’s complicated, and you must pay attention to it.

1. The deadline is strict—42 days from your company’s incorporation anniversary.
2. Missing it triggers hefty late penalties and can harm your public record.

If your director/shareholder changes mid-year, your Annual Return must reflect it exactly, or it will be rejected.

We track your deadlines in advance, pre-prepare your Annual Return with the correct updates, and file on time—so you never miss compliance or pay late fines.

Step 2: Prepare and File audited finanical statements

Every Hong Kong private limited company must prepare audited accounts each financial year—even if there’s no business activity.

• Audits must be done by a Hong Kong Certified Public Accountant (CPA).
• Incorrect or incomplete records can cause audit delays or rejections.
• Even dormant companies need proper financial statements to stay compliant.

Our network of English- and Chinese-speaking HK CPAs prepares your accounts with zero guesswork, liaises directly with auditors, and ensures your financials pass IRD and CR scrutiny.

Step 3: File your Profits Tax Return (PTR)

Your company must file a Profits Tax Return with the Inland Revenue Department (IRD) annually.

• The PTR includes all income, expenses, and tax positions—even if you plan to apply for offshore tax exemption.
• Mistakes can lead to audits, penalties, or loss of exemption status.
• Offshore claims require strong evidence and precise documentation.

We structure your bookkeeping so your PTR is always backed by compliant documentation, handle offshore exemption applications, and negotiate with IRD on your behalf.

Step 4: Open a business bank account

After incorporation, you need a Hong Kong or international corporate bank account to operate effectively.

• Banks apply strict KYC (Know Your Customer) rules and require detailed business plans, proof of operations, and in-person interviews.
• Rejections are common for startups, offshore founders, or companies with limited HK presence.
• Some banks reject applications if your incorporation documents have even minor inconsistencies.

We have long-standing relationships with multiple HK and offshore banks, know each bank’s exact approval criteria, and can pre-qualify you before you apply—saving you time, avoiding rejections, and increasing approval chances.

A major mistake you must avoid at all time when running your Hong Kong companies

One of our clients had previously worked with us for U.S. company setup, tax, and compliance. Later, they wanted to open a Hong Kong company.

During our consultation, we explained the statutory requirement for annual audits. However, they decided to take advice from another service provider, who told them an audit was not necessary.

Trusting that advice, the client skipped the audit, and forget to submit a profit tax return, only to receive a summons from the Hong Kong Inland Revenue Department asking why no audit had been conducted 2 years later.

In a state of panic, they came back to us. With our professionalism and expertise, we reassured them, managed the penalty process, resolved the compliance issue, and got their company back on track.
We don’t just provide services; we ensure you fully understand your compliance obligations and protect you from risks others may overlook. When you choose GLAC, you choose a partner who will help your business grow every step of the way.

A case of our client for not submitting a Profit Tax return and not doing audited financial statements

How can we help you register your private limited company in Hong Kong

Our role goes beyond simply filing paperwork. When you work with us, you get:

1. Strategic guidance: From choosing the right share structure to setting up bank accounts, we advise on decisions that affect your company long-term.
2. Compliance confidence:  Every step meets Hong Kong’s latest Companies Ordinance and IRD requirements, so you avoid costly mistakes.
3. Long-term growth: We advise on tax, digital transformation and legal issues to help you boost growth and build a long-term business overseas

Global Link Asia Consulting will be your Hong Kong business partner, the one that helps you simplify complexity, reduce risk, and position your company for success from day one.

• Open a company in Hong Kong legally, fast with our one-stop support
• Get a reliable, experienced company secretary with our corporate secretarial service
• Support in opening your business bank accounts;
• Get an affordable, professional registered office address for your business;
• Support to open, authenticate, and manage Stripe and PayPal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

Whether you’re a solopreneur, startup, or scaling business, we’ll make sure your Hong Kong setup is fully compliant, optimized, and affordable.

FAQs about declaring company dormancy

• Country: The U.S
• Services: Company formation
• Rating Count: 127
• Rating Value: 5

If you are a business owner who is…

1. Worried about staying compliant with U.S. laws and running your operations transparently;
2. Unsure about the correct process to form an LLC in the USA;
3. Curious about how to prepare accurate documents right from the start;
4. Struggling with how to manage operating costs and run your business when selling in the U.S.;
5. Unclear on how to handle taxes properly to avoid costly penalties from the IRS and state tax authorities.

You’re not alone. Many clients turn to Global Link Asia Consulting for our expertise in answering exactly these questions.

Keep reading to discover why an LLC in the U.S. is the top choice for global business owners, and how you can start your own business expansion journey right from the start, with our expert’s insights.

Can foreigners set up an LLC in the U.S.?

One common misconception we often hear at Global Link Asia Consulting is whether foreigners are allowed to form an LLC in the United States.

The answer is a definite 100% yes.  Foreign owners are permitted to own companies in the U.S., except for an S-Corporation (which requires shareholders to be 100% U.S. citizens or residents).

So, what exactly is an LLC, and why do so many American and foreign business owners choose this structure when setting up their U.S. entity?

What is an LLC?

An LLC is one of the 9 main types of business entities in the United States that you can choose from.

Specifically, an LLC (short for Limited Liability Company) is a popular business structure that combines the flexibility of a sole proprietorship with the legal protection of a corporation.

When you own an LLC, your assets are legally separated from the company’s liabilities. This means you can reduce your risk if the company faces legal or financial issues.

Who is a US LLC best suited for?

An LLC is an excellent choice for:

• Freelancers and independent contractors
• Consultants and solo professionals
• Small startups seeking a flexible launch structure
• Foreign entrepreneurs looking to enter the U.S. market (e.g., selling on Amazon, Etsy, Walmart, etc.)

They chose to open an LLC in the US because this kind of company type offers numerous benefits that are too good to ignore for foreigners.

Benefits of forming an LLC in the US

Beyond the practical advantage of protecting your assets and investment, an LLC also offers several outstanding benefits compared to other business structures, including operational efficiency, suitability for low-capital startups, high credibility, and ease of registration.

Should you choose an LLC or a C-Corp as an international business owner?

In addition to the LLC structure, the C-Corp is also a top choice for many business owners — both U.S. citizens and foreign nationals.

To help you clearly understand the differences between the two, Global Link Asia Consulting has prepared a comparison table of the most important factors:

Which state should you chooose to open an LLC in the USS

The U.S. has 50 states, and each state has its own government with separate business laws.

That’s why choosing the right state is one of the most important decisions business owners must make from the very start.

To make a clear decision, it’s essential to understand the difference between a Foreign LLC and a Domestic LLC.

Foreign LLC or Domestic LLC?

An LLC in the U.S. is governed at the state level, not the federal level.

Each state has its own rules for registering, maintaining, and taxing an LLC.

• If you set up and operate your business in the same state, your company is called a Domestic LLC.
• If you set up your company in one state but operate your business in another state, your company is considered a Foreign LLC.

For example, 

• If you operate in North Carolina and set up your LLC in North Carolina, it’s a Domestic LLC.
• If you live in Florida but set up your LLC in North Carolina, it is considered a Foreign LLC in Florida.

Choosing the right state is critical because where you live and where your LLC earns revenue can directly affect how much tax you pay and how you calculate it. Each state has its own tax rules — including income tax, franchise tax, and sales tax — and these can differ widely.

For example, an LLC formed in Florida may have to pay franchise tax and sales tax in Florida. If your business sells products or services in another state, you may also be required to register there and pay sales tax according to that state’s rules.

This means that your state choice isn’t just about registration costs; it can have a long-term impact on your tax obligations and compliance requirements.

What should foreign business owners running an online busiiness choose

Most online businesses operate across the entire U.S. or globally, without being tied to one specific state.

Generally, foreign business owners choose a Foreign LLC because:

Their business operates in multiple states

They sell online to customers across the U.S., or to several key states

This is why many foreign business owners — even U.S. citizens — choose to form their LLC in business-friendly states such as:

1. Delaware
2. Wyoming
3. Nevada

These states offer:

1. Attractive tax incentives
2. Strong owner privacy protection
3. Simple, streamlined business maintenance

These states are perfect for

1. Foreign entrepreneurs living abroad
2. Online businesses that don’t require a physical U.S. office for employees but need to have a storage space for fulfillment services.

Standard 6-Step process for forming an LLC in the U.S.

At first glance, the business registration process may seem simple — choose a name, register legally, apply for a tax ID, open a bank account, set up payment gateways, and maintain annual compliance.

However, many business owners get stuck at different stages and can’t fully or smoothly complete their company setup. That is the typical state our clients come from,  they try do do it by themselves or by a corporate service provider who promises at a cheap price but fail to deliver.

Each step requires preparing proper documents, understanding U.S. laws, and navigating U.S. systems — something many international entrepreneurs find challenging when doing it themselves.

Global Link Asia Consulting helps business owners simplify this entire process. We partner with you from A to Z, offering strategic advice for the most suitable growth path. (No hidden fees. No misleading information. Just professionalism, dedication, and a genuine desire for your company to grow sustainably).

3 common mistakes bussiness owners make when registering an LLC in the US

With over 10 years of experience advising and helping hundreds of business owners resolve complicated issues, Global Link Asia Consulting has seen many cases where companies face serious consequences  such as frozen bank accounts, license suspension, penalties for unpaid sales tax, and even lawsuits from landlords or warehouse providers.

Below are some of the most common mistakes businesses make when registering a U.S. LLC, based on our experience supporting hundreds of American company owners.

Forgetting to pay Franchise Tax

Global Link Asia Consulting provides timely reminders and complete annual compliance services so you never miss a deadline.

Many business owners believe that if they have no revenue, they don’t have to pay this tax. However, in many states, Franchise Tax is a legal requirement regardless of revenue.

For example, in California, the law requires all companies to pay a minimum $800 Franchise Tax each year, even if their revenue is zero.

If you fail to pay:

• Your business will be suspended.
• You may face a $250/year penalty plus interest, not including reinstatement fees.
• You could lose your legal standing, have your bank accounts frozen, and be unable to sign contracts.

One of our clients who registered an LLC in California had to pay $2,200 to reinstate the company’s status, after which we took over the tax and accounting management to ensure it never happens again.

Using an unreliable address for the company

In an attempt to save costs, many owners use a residential address, a friend’s address, or a random address found online. This is a high-risk decision that can seriously affect your rights as a business owner.

Possible risks include:

• Your personal information becomes public in the state’s online database.
• You are vulnerable to spam, identity theft, or fraud.
• You may miss important legal or government notices because they were sent to an address you don’t actively monitor.
• If you move and forget to update your business address, your company may be fined, lose its legal standing, and have its bank and payment accounts frozen.

Global Link Asia Consulting provides a real, legal U.S. business address that meets state requirements, allowing you to communicate with U.S. authorities and banks when needed.

Operating without a proper operating agreement

Some businesses with only one or two members think this document isn’t necessary. However, the Operating Agreement is a key legal document that separates your personal assets from your business assets.

Without it, you risk:

• Internal disputes becoming difficult to resolve (especially with multiple members).
• Increased chance of “piercing the corporate veil”, where a court may treat your LLC as a sole proprietorship or partnership — eliminating your limited liability protection.

How can we help you build an evergreen business in the US as a foreigner?

Opening an LLC in the U.S. isn’t complicated—once you clearly understand the process.

However, setting up your company the right way so it operates efficiently and sustainably is a strategy worth investing in.

You don’t need to do everything at once. Start by answering these key questions:

1. Are you running an online business or planning to open a physical store?
2. Where are your current customers located?
3. Do you plan to expand into the U.S. or global markets in the next 6–12 months? What preparations have you made?
4. How will you pay suppliers and receive payments from customers?

Once you’ve answered these questions, Global Link Asia Consulting can help turn your U.S. LLC setup into a stepping stone for global business expansion.

• Register a company in the U.S in your chosen state;
• Open a corporate bank account in the U.S with a 99% success rate;
• Choose the right company types for tax optimization in the U.S;
• Apply for US business licenses;
• Get an affordable, professional registered office address for business;
• Support to register DUNS Number for SaaS Businesses in Delaware 
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

FAQs about opening a SaaS company in Delaware