Published · Tetum

Opening a Corporate Bank Account in China

A practical guide for foreign founders on opening a corporate bank account in mainland China, covering account types, documentation, the application process, timelines, and common pitfalls.

For many foreign founders, opening a corporate bank account in mainland China feels like the final hurdle after company registration. It is also where timelines often slip. Banks treat account opening as a compliance exercise, not a customer service formality. Understanding what they need—and why—will save you weeks.

Why a Chinese Bank Account Is Essential

A mainland corporate account is required to pay staff, collect from customers in RMB, pay taxes, and fund social insurance. Without it, your wholly foreign-owned enterprise (WFOE) or joint venture cannot operate normally. You will also need a foreign currency account if you expect inbound capital or overseas payments; many banks offer both RMB and foreign currency accounts under one corporate relationship.

Types of Accounts You May Need

Basic Deposit Account (基本存款账户)

This is your primary operating account. It is the only account from which you can withdraw cash for payroll and petty expenses. A company can have only one basic account, and it must be opened before other accounts.

General Deposit Account (一般存款账户)

Used for specific purposes such as receiving loans or managing project funds. You can open multiple general accounts, but they cannot handle cash withdrawals.

Foreign Currency Account

Needed for cross-border transactions. Banks will ask about the source and purpose of foreign funds, so prepare contracts or investment documentation.

Special Purpose Accounts

For specific regulated uses such as capital verification or housing provident fund payments. These are less common for early-stage companies.

Documentation: Expect Detailed Checks

Banks apply know-your-customer (KYC) and anti-money-laundering rules strictly. Requirements vary by bank and branch, but typically include:

• Business license (original and copies).
• Articles of association and company chop (seal).
• Legal representative's ID or passport; if the legal representative cannot attend, a notarized power of attorney.
• Beneficial ownership information, including shareholders holding 25% or more, with supporting documents.
• Proof of registered address (lease agreement or property certificate).
• Board resolution authorizing account opening and signatories.
• For foreign currency accounts, contracts or invoices explaining expected transactions.

Some banks require the legal representative to appear in person. If your legal representative is overseas, confirm this early—it can determine which bank you choose.

Choosing a Bank

Four major state-owned banks (ICBC, Bank of China, China Construction Bank, Agricultural Bank of China) have broad networks and strong foreign currency capabilities. Joint-stock banks and city commercial banks may offer faster service and more flexibility for smaller companies. Foreign banks can be convenient for cross-border banking but often have higher minimum balances and fewer branches.

Ask about monthly account maintenance fees, minimum balance requirements, online banking limits, and English-language support. For a startup, a branch near your office is practical for stamping documents and resolving issues in person.

The Application Process Step by Step

1. Prepare and align documents

Ensure your business license, chops, and shareholder documents are consistent. Discrepancies between the legal representative's name on the license and the passport will cause delays.

2. Visit the branch

Bring originals and copies. Expect an interview about your business model, expected transaction volumes, counterparties, and source of funds. Answer consistently with your company documents.

3. Bank internal review

The branch submits your file to its compliance team. This can take several days to several weeks. Respond promptly to follow-up questions.

4. Account activation

Once approved, you receive account details and online banking tokens. The basic account is reported to the People's Bank of China; this is handled by the bank.

Timelines and Realistic Expectations

In straightforward cases, account opening can take one to three weeks after a complete application. Complex ownership structures, foreign legal representatives, or unusual business activities can extend this to a month or more. Do not schedule customer payments or payroll until the account is active.

Common Pitfalls

• Incomplete beneficial ownership documents. If your shareholder chain includes offshore entities, prepare certified documents showing ultimate owners.
• Registered address issues. Banks may verify the address; virtual offices are increasingly scrutinized.
• Legal representative absence. Confirm in-person requirements before choosing a bank.
• Inconsistent business purpose. Your described activities should match your business scope.
• Underestimating compliance questions. Prepare clear explanations for expected fund flows.

Ongoing Compliance

Account opening is not the end. Banks conduct periodic reviews and may ask for updated licenses, ownership information, or transaction explanations. Keep your records current and respond to bank queries promptly to avoid restrictions.

Practical Tips for Foreign Founders

• Start the bank selection process in parallel with company registration.
• Ask your registered agent or lawyer for introductions to bank relationship managers.
• Keep a digital and physical folder of all corporate documents.
• Consider opening a foreign currency account at the same time to avoid a second review.
• Budget for minimum balance requirements, which vary widely.

This article provides general information only and is not legal, tax, or financial advice. Requirements and practices vary by bank, branch, and region, and may change. Consult a qualified professional for advice specific to your situation.