Published · Ndau

Opening a Corporate Bank Account in China: A Practical Guide for Foreign Founders

A practical, plain-English guide for foreign founders on how to open a corporate bank account in mainland China, covering account types, documents, timelines, common obstacles and practical tips. General information only, not legal or tax advice.

For most foreign founders, opening a corporate bank account in mainland China feels like the last mile of company setup — and often the most frustrating one. The business licence is in hand, the chop is carved, and yet the money can't move until the bank is satisfied. This guide walks through what actually happens, what the bank will ask for, and how to avoid the most common delays. It is general information only, not legal or tax advice; banking rules and local practice vary by city and change over time, so confirm details with your bank and advisers.

Why the account matters more than you think

In China, a company cannot really operate without a basic deposit account (基本存款账户, jiben cunkuan zhanghu). It is the account tied to your business licence, used for paying salaries, taxes, social insurance and day-to-day expenses. You also need it before you can open most other accounts, including foreign-currency accounts and special-purpose accounts.

Foreign-invested enterprises (FIEs) typically need at least two things: a RMB basic account for domestic operations and a foreign-currency capital account for inbound investment and cross-border payments. Some companies also open a foreign-currency settlement account. The capital account is where registered capital arrives, and using it correctly matters for later profit repatriation and foreign-exchange compliance.

Who can open an account, and where

The company itself is the account holder — not the founder personally. The legal representative (法定代表人) is normally the person the bank wants to see, or at least verify. If the legal representative is a foreigner who is not in China, some banks will accept a notarised power of attorney appointing a local representative, but this is exactly the kind of detail that varies by branch. Ask before you book flights.

You are not limited to one bank. Large state-owned banks, joint-stock banks and foreign banks with mainland branches all offer corporate accounts. Foreign banks can be convenient for cross-border treasury, but their local branch networks and service levels differ. Domestic banks are usually more comfortable with local payment rails and tax withholding. Many founders end up with a domestic bank for operations and consider a foreign bank only if group treasury requires it.

The documents you will be asked for

Expect a long list. The exact set depends on the bank and the city, but a typical corporate account application includes:

• Business licence (original and copies), plus the company's official seal, financial seal and legal representative's seal.
• Articles of association and, for FIEs, the foreign investment information report or filing receipt.
• Legal representative's ID — passport for a foreigner, ID card for a Chinese national — and sometimes proof of address.
• Beneficial ownership information, including shareholders holding 25% or more, with supporting documents.
• Registered address proof: lease agreement, property certificate or a letter from the landlord. Banks increasingly verify the address in person.
• Board resolution or shareholder resolution authorising the account opening and appointing signatories.
• Company chop and signatures on the bank's own forms, often completed at the branch.

Translations may be required for foreign-language documents. Some banks ask for them to be stamped by a translation company; others accept your own translation. Again, ask first.

The process, step by step

1. Choose the bank and branch

Pick a branch near your registered office — many banks require the account to be opened at a branch with jurisdiction over your address. Ask specifically whether the branch handles foreign-invested companies and cross-border capital accounts. A branch that rarely sees FIEs will slow you down.

2. Pre-approval and document review

Most banks now run a pre-check, sometimes online, before you visit. Submit scans of the licence, articles, shareholder structure and ID documents. This is where gaps surface. Beneficial ownership is a common sticking point: if your company is held through an offshore structure, be ready to explain the chain up to the ultimate individual owners.

3. The in-person visit

The legal representative or authorised signatory usually attends in person with the seals and originals. Expect the bank to verify documents, take signatures and possibly conduct a short interview about your business — what you do, who your customers and suppliers are, and where your money will come from. This is normal anti-money-laundering and know-your-customer (KYC) procedure, not suspicion.

4. Account approval and activation

After the visit, the bank submits the application for approval. Timelines vary widely: some accounts activate within a week or two, others take longer, especially where the registered address or shareholder structure needs extra checks. Once active, you receive account details and usually a corporate online banking token.

5. Capital account and foreign exchange registration

If you have foreign investment, the capital account is opened alongside or after the basic account. Inbound capital must be registered with the foreign exchange system, and the bank will guide you on how to use the funds within the permitted scope. Keep good records of every inbound remittance — you will need them later.

Common reasons applications stall

• Address problems. A virtual or shared address, or a landlord who cannot produce documents, can stall KYC. Banks may send someone to inspect the premises.
• Unclear beneficial ownership. Multi-layer offshore holding structures need a clear ownership chart and supporting documents.
• Legal representative abroad. Notarised and apostilled powers of attorney take time to arrange.
• Missing seals or originals. Turn up without the company chop and you will be sent away.
• Business scope mismatch. If your stated activities don't match the transactions you describe, expect questions.

Practical tips

Start the bank conversation before the business licence is issued if you can — relationship managers can tell you what the branch will require. Keep a single, well-organised document pack with certified translations, and update it whenever your shareholder structure changes. Be straightforward in the KYC interview: describe your real business and expected transaction flows, because vague answers invite more scrutiny. Finally, build a relationship with a named contact at the branch; corporate banking in China is still a people business, and a responsive manager makes routine matters much easier.

Opening a corporate account in China is rarely quick, but it is usually manageable with preparation. Treat it as a compliance exercise rather than a formality, and confirm each step with your bank and professional advisers before you act.