Published · Sinhala

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, covering account types, documentation, bank selection, remote vs. in-person opening, compliance checks and common pitfalls. General information only, not legal or tax advice.

For most foreign founders, the company registration certificate feels like the finish line. It isn’t. Until your mainland entity has a working corporate bank account, you cannot inject registered capital, pay staff, collect from customers, or settle tax. And in China, opening that account is often slower and more document-heavy than founders expect. This guide walks through what actually happens, what banks ask for, and where foreign-invested enterprises (FIEs) tend to get stuck. It is general information only — not legal, tax or financial advice — so confirm specifics with your bank, your accountant and local counsel.

Why the bank account matters more than you think

A Chinese corporate account is not just a place to hold cash. It is the plumbing for nearly everything: capital contributions from overseas shareholders, RMB and foreign-currency settlements, payroll, social insurance, VAT invoicing, and cross-border payments. Your business licence may allow you to operate, but counterparties, landlords and platforms will typically want to see a valid account before they transact.

Two features of the system shape your experience. First, China maintains capital-account controls: money moving across the border is treated differently from money moving domestically. Second, banks are subject to strict anti-money-laundering (AML) and know-your-customer (KYC) rules, which is why onboarding can feel intrusive.

The account types you will likely need

Basic deposit account (基本存款账户)

This is your primary RMB account. It is where you withdraw cash, pay salaries and handle day-to-day operations. An entity generally has one basic account, and it must be opened before you can open most other accounts. Expect the bank to issue an account-opening permit or registration record, and expect the process to take longer than a typical corporate onboarding in your home country.

General deposit account (一般存款账户)

Used for borrowing, receiving funds from specific sources or operating a second account for convenience. You can hold several. It cannot be used for cash withdrawals in the same way as the basic account.

Foreign-currency and capital accounts

If you are injecting registered capital or receiving overseas payments, you will need a foreign-currency account, and often a dedicated capital account (资本金账户). Converting foreign currency into RMB for domestic use is a regulated process, usually handled through the bank with supporting documents. Your accountant should map out the flow before you wire money.

Special-purpose accounts

These cover uses such as temporary project funds or escrow arrangements. Most early-stage founders will not need them immediately, but it helps to know they exist when a bank asks what kind of account you want.

Documents banks typically request

Requirements vary by bank, branch and city, and they can change. Treat the list below as a starting checklist rather than a fixed rulebook.

• Business licence (original and copies), plus the company seal and, where applicable, the financial seal and legal-representative seal.
• Articles of association and, for FIEs, approval or filing records from the market regulator or commerce authority.
• Legal representative’s ID or passport; if the legal representative cannot attend, a notarised or apostilled power of attorney naming the authorised signatory.
• Identification of beneficial owners — typically anyone holding 25% or more, plus the ultimate controller — and supporting ownership charts.
• Proof of address for the company (lease or property document) and, sometimes, for the legal representative.
• Board resolutions or shareholder resolutions authorising the account and the signatories.
• For capital accounts, the foreign investment filing records and documentation on the source of funds.

Overseas documents often need notarisation and, depending on the jurisdiction, apostille or consular legalisation, followed by a Chinese translation. This is one of the most common causes of delay: founders arrive with unsigned translations or documents that were legalised in the wrong format.

Choosing a bank

Broadly, you are choosing between a large state-owned bank, a joint-stock commercial bank, and a foreign bank with a mainland presence. Each has trade-offs.

• Large state-owned banks have wide branch networks and strong credibility with local counterparties, but onboarding can be rigid and branches may be less accustomed to foreign founders.
• Joint-stock banks often compete on service speed and digital tools; policies vary significantly branch by branch.
• Foreign banks can be easier to deal with in English and for cross-border treasury, but their mainland footprint is narrower and fees may be higher.

Practical advice: talk to two or three banks before committing, ask specifically whether the branch has experience opening accounts for FIEs in your industry, and confirm what they will require from your overseas shareholders. A relationship manager who has done this before is worth more than a marginally better fee schedule.

Can you open the account remotely?

Some banks now offer partial remote onboarding, particularly for certain account types and where the legal representative is already known to the bank. But in practice, the basic account usually requires an in-person visit by the legal representative or an authorised signatory, and sometimes both. Many banks also conduct a site visit to your registered address. Plan for at least one trip, and do not book tight travel around it — scheduling, document review and internal approval can stretch the timeline.

What happens during onboarding

Expect an interview-style process. Bank staff will ask about your business model, expected transaction volumes, main counterparties, countries you will send money to and receive money from, and the source of your funds. They will also verify beneficial ownership and screen names against sanctions and AML lists. Answer consistently and in detail; vague answers about “consulting” or “e-commerce” without a clear explanation of flows are a common reason for rejection or prolonged review.

After opening, the account may be subject to transaction monitoring, and the bank may ask for supporting documents for unusual payments. This is normal. Keeping contracts, invoices and customs documents organised will save you time later.

Common pitfalls for foreign founders

• Assuming the legal representative can be remote. In many cases they must appear in person, at least once.
• Underestimating document legalisation. Apostilles, notarisation and translations take time and must match local requirements.
• Choosing a branch purely on convenience. A branch unfamiliar with FIEs can turn a two-week process into two months.
• Not aligning the bank with your accountant. Capital-account flows, tax registration and invoicing need to be sequenced correctly.
• Ignoring the registered address. Banks may verify it, and a virtual or inconsistent address can trigger questions.

How long does it take?

Timelines vary widely by city, bank and the completeness of your documents. A straightforward case with a local legal representative and clean paperwork can move relatively quickly; cases involving overseas corporate shareholders, complex ownership structures or legalisation delays can take considerably longer. Build the account-opening step into your project plan rather than treating it as an afterthought.

Practical checklist before you start

• Confirm who the legal representative and authorised signatories will be, and whether they can travel.
• Gather and legalise overseas shareholder documents early.
• Prepare a one-page explanation of your business model and expected payment flows.
• Shortlist banks and ask each about FIE experience, fees and remote options.
• Coordinate with your accountant on capital injection and foreign-currency conversion.
• Keep all seals, licences and filings in one place — you will need them repeatedly.

Opening a corporate bank account in China is a compliance exercise as much as an administrative one. Founders who treat it that way — preparing documents thoroughly and choosing a bank that knows foreign-invested entities — tend to move through it with far less friction.

This article provides general information only and does not constitute legal, tax or financial advice. Requirements and bank practices change; consult qualified professionals and your chosen bank for guidance specific to your situation.