Opening a Corporate Bank Account in China: Requirements & Tips

Chi­na is one of the world’s largest and fastest-grow­ing economies, attract­ing many for­eign investors and entre­pre­neurs who want to tap into its huge mar­ket poten­tial. How­ev­er, doing busi­ness in Chi­na also comes with many chal­lenges and com­plex­i­ties, espe­cial­ly when it comes to the bank­ing sys­tem. If you are plan­ning to set up or expand your busi­ness in Chi­na, you will need to open a cor­po­rate bank account to man­age your finances and trans­ac­tions. But how do you open a cor­po­rate bank account in Chi­na? What are the types of accounts avail­able? What are the doc­u­ments and pro­ce­dures required? And what are some tips to make the process eas­i­er and smoother? In this arti­cle, we will answer these ques­tions and pro­vide you with some use­ful infor­ma­tion and guid­ance on open­ing a cor­po­rate bank account in China.

Types of Corporate Bank Accounts in China

There are two main types of cor­po­rate bank accounts in Chi­na: basic accounts and gen­er­al accounts. Each type has dif­fer­ent fea­tures and func­tions, depend­ing on your busi­ness needs and activities.

Basic Accounts

A basic account is a manda­to­ry account for any com­pa­ny reg­is­tered in Chi­na. It is used for dai­ly oper­a­tions, such as pay­ing salaries, tax­es, social secu­ri­ty con­tri­bu­tions, util­i­ties, rent, and oth­er expens­es. A basic account can also receive pay­ments from cus­tomers, but only in the local cur­ren­cy (RMB). A basic account can only be opened at one bank, and it must be reg­is­tered with the State Admin­is­tra­tion of For­eign Exchange (SAFE) with­in 30 days of open­ing. A basic account can­not hold for­eign cur­ren­cies or con­duct cross-bor­der transactions.

General Accounts

A gen­er­al account is an option­al account for any com­pa­ny reg­is­tered in Chi­na. It is used for non-oper­a­tional pur­pos­es, such as receiv­ing or mak­ing pay­ments in for­eign cur­ren­cies, trans­fer­ring funds between dif­fer­ent accounts, invest­ing sur­plus funds, or con­duct­ing cross-bor­der trans­ac­tions. A gen­er­al account can be opened at mul­ti­ple banks, and it does not need to be reg­is­tered with SAFE. How­ev­er, a gen­er­al account is sub­ject to more strin­gent reg­u­la­tions and con­trols by the banks and the author­i­ties, such as pro­vid­ing sup­port­ing doc­u­ments for each trans­ac­tion, com­ply­ing with for­eign exchange quo­tas and lim­its, and report­ing trans­ac­tion details to SAFE.

Documents and Procedures for Opening a Corporate Bank Account in China

The doc­u­ments and pro­ce­dures for open­ing a cor­po­rate bank account in Chi­na vary from bank to bank and accord­ing to the com­pa­ny struc­ture. How­ev­er, you can expect to fol­low these gen­er­al steps:

1. Choose a bank. There are many banks in Chi­na, both domes­tic and for­eign, that offer cor­po­rate bank­ing ser­vices. You should choose a bank that suits your busi­ness needs, pref­er­ences, and bud­get. Some fac­tors to con­sid­er include the bank’s rep­u­ta­tion, net­work, fees, ser­vices, online bank­ing sys­tem, cus­tomer sup­port, and lan­guage capabilities.
2. Pre­pare the required doc­u­ments. You will need to pro­vide proof that your busi­ness is prop­er­ly reg­is­tered and autho­rized in Chi­na, such as a valid Busi­ness License, Enter­prise Code Cer­tifi­cate, Tax Reg­is­tra­tion Cer­tifi­cates, Arti­cles of Asso­ci­a­tion, List of Direc­tors’ Names, Com­pa­ny Chop (Stamp), Proof of Iden­ti­fi­ca­tion for Legal Rep­re­sen­ta­tives of the Com­pa­ny (such as pass­port or ID card), Proof of Address for the Com­pa­ny (such as util­i­ty bill or lease agree­ment), Bank Account Appli­ca­tion Form, Bank Account Agree­ment Form, Bank Account Autho­riza­tion Let­ter, etc. You may also need to pro­vide addi­tion­al doc­u­ments depend­ing on the type of account you want to open and the bank’s spe­cif­ic requirements.
3. Sub­mit the doc­u­ments and make a per­son­al appear­ance. You will need to sub­mit all the required doc­u­ments to the bank branch where you want to open your account. You will also need to appoint a legal rep­re­sen­ta­tive or direc­tor of your com­pa­ny to make a per­son­al appear­ance at the bank branch to ver­i­fy their iden­ti­ty and sign the rel­e­vant forms. The bank may also con­duct a site vis­it to your com­pa­ny’s premis­es to check its authen­tic­i­ty and legitimacy.
4. Wait for the approval and acti­va­tion. The bank will review your doc­u­ments and con­duct due dili­gence checks on your com­pa­ny. This process may take from a few days to sev­er­al weeks, depend­ing on the bank’s poli­cies and work­load. Once your account is approved and acti­vat­ed, you will receive a con­fir­ma­tion let­ter from the bank, along with your account num­ber, online bank­ing cre­den­tials, deb­it card, and oth­er account details.

Tips for Opening a Corporate Bank Account in China

Open­ing a cor­po­rate bank account in Chi­na can be a daunt­ing and time-con­sum­ing task, espe­cial­ly for for­eign com­pa­nies that are not famil­iar with the local reg­u­la­tions and prac­tices. Here are some tips to help you make the process eas­i­er and smoother:

• Do your research. Before you start the process, you should do some research on the dif­fer­ent types of accounts, banks, and require­ments in Chi­na. You should also con­sult with a local agency or expert who can advise you on the best options and solu­tions for your business.
• Pre­pare your doc­u­ments. You should pre­pare all the required doc­u­ments in advance and make sure they are com­plete, accu­rate, and up-to-date. You should also make copies of your doc­u­ments and keep them in a safe place. You may need to pro­vide them again in the future for ver­i­fi­ca­tion or report­ing purposes.
• Be patient and flex­i­ble. You should be pre­pared for delays and chal­lenges dur­ing the process, as the bank­ing sys­tem in Chi­na is noto­ri­ous­ly com­plex and bureau­crat­ic. You should also be flex­i­ble and adapt­able to the chang­ing reg­u­la­tions and require­ments, as they may vary from time to time and from place to place.
• Fol­low the rules. You should fol­low the rules and reg­u­la­tions of the bank and the author­i­ties when open­ing and using your account. You should also keep track of your trans­ac­tions and report them to the rel­e­vant agen­cies when required. You should avoid any ille­gal or sus­pi­cious activ­i­ties that may jeop­ar­dize your account or your business.

Frequently Asked Questions

Sources:

1. CBBC | How to Open a Cor­po­rate Bank Account in China
2. Wise | How to Open a Busi­ness Bank Account in China
3. DBS | Busi­ness Account
4. Hawks­ford | How to Open a Bank Account in China