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

A practical, plain-English guide for foreign founders on opening a corporate bank account in mainland China: account types, documents, bank selection, the onboarding process, common delays, and ongoing compliance.

For most foreign founders setting up in mainland China, the corporate bank account is the step that turns a legal entity into a working business. Until the account is open, you cannot easily collect revenue, pay staff, settle tax, or move capital in and out. It is also the step where plans most often slip, because banks apply their own onboarding checks on top of the registration requirements. This guide explains what to expect and how to prepare. It is general information, not legal or tax advice, and requirements vary by bank, city, and your specific situation.

Why the bank account is a milestone, not a formality

A Chinese company is legally formed once it receives its business licence from the market regulation authority. But the bank account is what makes it operational. Salaries, supplier payments, rent, tax payments, and cross-border transfers all run through it. For a foreign-invested enterprise (FIE), the account also matters for moving registered capital into China and for converting and repatriating funds later.

Banks in China are cautious about new corporate customers, particularly foreign-linked ones. They are subject to anti-money-laundering (AML) and know-your-customer (KYC) rules and to China's foreign exchange (forex) regulations. Expect the bank to ask detailed questions about your business, your owners, and your expected transaction flows. A well-prepared founder treats this as a normal part of onboarding, not an obstacle.

The main account types you will encounter

Most foreign founders need more than one account, or at least need to understand the difference between them.

• Basic deposit account (基本存款账户): The company's primary account. A company can generally have only one basic account, opened at the bank where it chooses to bank. It is used for everyday expenses, salaries, and cash withdrawals.
• General deposit account (一般存款账户): Additional accounts for specific purposes, such as borrowing or project funds. These can be opened at the same or another bank.
• Special deposit account (专用存款账户): Used for ring-fenced purposes, such as certain capital or project funds.
• Foreign currency account: Needed if you receive or pay in currencies other than RMB. Banks handle foreign currency and cross-border RMB separately from domestic RMB accounts.
• Capital account (资本金账户): Used to receive registered capital and foreign investment. This is a regulated account tied to your FIE structure and forex rules.

Ask your bank early which combination fits your business model. A trading company, a services firm, and a manufacturing operation will have different needs.

Choosing a bank

There is no single best bank. The right choice depends on your location, your investors, your transaction profile, and how much English-language support you need.

• Large state-owned banks have wide branch networks and strong capabilities in cross-border business, but onboarding can be slow and relationship-driven.
• Joint-stock and city commercial banks are often more flexible and faster to respond, though services vary by branch.
• Foreign banks with a China presence can be convenient if your group already banks with them internationally, but branch coverage is limited.

Practical factors matter more than brand: Does the branch near your office handle FIEs regularly? Can your relationship manager communicate in English? How does the bank handle cross-border payments and forex conversion? What are the fees? Ask other founders in your city which branches have actually opened accounts for foreign-owned companies recently.

Documents and preparation

Exact document lists differ by bank and city, but a typical package includes:

• Business licence (original and copies)
• Company charter (articles of association)
• Legal representative's ID or passport
• Passports or ID documents for directors, shareholders, and authorised signatories
• Proof of registered address (lease or property documents)
• Company seals (official seal, financial seal, legal representative seal, and possibly a contract seal)
• Beneficial ownership information and ownership structure chart
• Board resolutions or authorisations for account opening and signatories
• Information on expected transaction volumes, counterparties, and business purpose

If a shareholder is an overseas company, expect requests for its registration documents, often translated into Chinese. Some banks ask for documents to be notarised, apostilled, or legalised, and some require in-person attendance by the legal representative or authorised signatory. Confirm the current list with the specific branch before you travel or courier documents.

How the process usually runs

1. Shortlist and pre-screen. Contact two or three branches, explain your ownership structure, and ask whether they onboard FIEs with your profile.
2. Submit documents and KYC information. The bank reviews your licence, ownership chain, and business rationale.
3. Account opening meeting. Often the legal representative or an authorised signatory must appear in person. Bring originals.
4. Bank approval and central bank filing. The basic account is registered with the local branch of the People's Bank of China. This can take days to a few weeks.
5. Activation. You receive account details, set up online banking, and order payment tools. Some banks issue a separate foreign currency account and capital account as needed.

Timelines are not standardised. A straightforward domestic-owned company may open quickly; a foreign-invested company with layered offshore ownership can take considerably longer. Plan your cash flow so that you are not dependent on the account opening within a tight deadline.

Common reasons accounts are delayed

• Complex or unclear ownership. Nominee structures, multiple offshore layers, or missing beneficial ownership detail trigger extra checks.
• Weak business rationale. Banks want to understand what the company will actually do and where money will come from and go.
• Address issues. A virtual or unclear registered address can cause problems; some banks verify the premises.
• Missing or inconsistent documents. Names, addresses, and shareholding must match across the licence, charter, and shareholder documents.
• Signatory availability. If the required person cannot attend, the process stalls.

After the account is open

Opening the account is the start of the relationship, not the end. Keep the bank informed of changes to directors, shareholders, signatories, and business scope. Maintain records that support your transactions. For cross-border payments, understand that forex transactions are subject to documentation and may require supporting contracts or invoices. Some banks also expect periodic KYC updates.

Work with a local accountant or corporate services provider who has opened accounts for foreign founders in your city, and confirm requirements directly with the bank branch. Rules and bank practices change, and the details that apply to your company depend on your structure and location.

This article provides general information only and does not constitute legal, tax, or financial advice. Consult qualified professionals about your specific circumstances.