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

A practical guide for foreign founders on opening a corporate bank account in mainland China, covering account types, documents, bank selection, the onboarding process, common friction points and ongoing compliance considerations. General information only, not legal or tax advice.

Opening a corporate bank account is one of the first operational milestones for any foreign founder setting up in mainland China — and one of the most commonly underestimated. The company registration may go smoothly, the business licence may arrive, and then the process stalls at the bank. This guide explains what to expect, how to prepare, and where the friction usually comes from.

Important: This article is general information only. It is not legal, tax, accounting or financial advice, and banking requirements vary by bank, branch, city and the specific circumstances of your company. Always confirm current requirements directly with your chosen bank and with qualified local professionals.

Why the Bank Account Matters More Than You Think

In China, the corporate bank account is not just a place to receive money. It is tied to your company's ability to operate: paying salaries and social insurance, issuing invoices, settling taxes, receiving capital contributions from overseas, and handling foreign exchange. A company without a functioning account is, in practical terms, a company that cannot trade.

Foreign-invested enterprises (FIEs) typically need more than one account. Understanding the difference early saves weeks later.

The Main Account Types

Basic deposit account (基本存款账户)

This is the company's primary account. It is used for day-to-day transactions, cash withdrawals and salary payments. A company can generally hold only one basic account, and it must be opened before other account types. It is opened with a bank that has the appropriate licence, and the account is registered with the local branch of the People's Bank of China.

General deposit accounts (一般存款账户)

These are additional accounts used for specific purposes such as loan repayments, project funds or receiving funds from a particular counterparty. A company can hold several. They cannot be used for cash withdrawals in the same way as the basic account.

Foreign exchange and capital accounts

FIEs receiving foreign capital usually need a foreign currency account and a capital account (or a combined account depending on the bank and the foreign exchange registration). Inflows of registered capital and foreign debt are subject to foreign exchange rules, and the bank will typically ask for documentation showing the nature of the funds before crediting them.

Special-purpose accounts

These cover uses such as tax payments, social insurance, housing fund contributions or escrow arrangements. Some are opened at the bank's initiative as part of onboarding.

Choosing a Bank

Foreign founders usually choose between large state-owned banks, joint-stock commercial banks, and the China-based subsidiaries of international banks.

• Large state-owned banks have extensive branch networks and are comfortable with standard corporate setups, but onboarding can be process-heavy and English-language support varies by branch.
• Joint-stock commercial banks are often more responsive to smaller and newer companies, and some have dedicated teams for foreign-invested clients.
• International bank subsidiaries can offer smoother cross-border coordination and familiar service models, but eligibility criteria and minimum balance expectations may be higher, and they are not available in every city.

Practical factors matter as much as brand: the branch's willingness to handle a newly registered FIE, the relationship manager's English proficiency, the bank's experience with your industry, and how the branch handles cross-border payments. A short conversation with two or three banks before committing is time well spent.

Documents You Will Typically Be Asked For

Requirements differ, but a typical document set for a newly registered FIE includes:

• Business licence (original and copy)
• Company seal, legal representative seal, finance seal and, where applicable, contract seal
• Articles of association
• Legal representative's identity document and, for foreign representatives, passport
• Authorisation letter and the authorised person's ID if someone other than the legal representative handles the application
• Proof of registered address, such as a lease agreement
• Foreign investment information reporting confirmation, where applicable
• Shareholder and ultimate beneficial owner information, including identification documents
• Board resolution or shareholder resolution authorising account opening, if the bank requires it

Banks increasingly ask for documentation on the source of funds and the nature of expected transactions. Preparing a short, clear business description — what you sell, who your customers and suppliers are, expected transaction volumes and countries involved — reduces back-and-forth.

The Onboarding Process, Step by Step

1. Prepare the corporate seal set

Seals are central to Chinese corporate administration. Have the full set made and registered before approaching the bank, and keep them secure.

2. Pre-screen with the bank

Speak to a relationship manager and confirm that the branch can onboard a newly registered FIE in your industry, what documents it requires, and whether the legal representative must attend in person.

3. Submit the application and complete due diligence

The bank will conduct know-your-customer and anti-money-laundering checks, including on the company, its shareholders and its beneficial owners. Expect questions about your group structure and the purpose of the account.

4. Attend in person where required

Many banks require the legal representative to appear in person at least once, though some accept an authorised representative with a notarised or legalised power of attorney. Confirm this early — it can mean a trip to China.

5. Open the basic account, then additional accounts

After the basic account is approved and registered, you can open general, foreign exchange and special-purpose accounts as needed.

6. Activate online banking and set up controls

Online banking is essential for daily operations. Set up users, approval limits and dual-authorisation controls that match your internal governance. Test small transactions before relying on the account for payroll or supplier payments.

Common Friction Points

• Address verification. A registered address that looks unusual or is shared with many companies can trigger extra checks. Be ready to explain your lease and actual operations.
• Beneficial ownership. Complex offshore holding structures take longer to verify. Have ownership charts and identification documents ready.
• Legal representative presence. If the legal representative is overseas and cannot travel, confirm whether a power of attorney is accepted and what form it must take.
• Language and documentation. Some branches require Chinese-language documents or certified translations. Ask in advance.
• Timelines. Account opening can take anywhere from a few days to several weeks depending on the bank, the city and the completeness of your documents. Do not schedule payroll or customer receipts assuming immediate access.

After the Account Is Open

Opening the account is the start, not the end. Keep the bank informed of changes to directors, shareholders, the legal representative or the registered address, as these can affect account status. Maintain records that support the purpose of transactions, particularly for cross-border payments. Respond promptly to the bank's periodic reviews, which are routine for corporate clients.

Also coordinate with your bookkeeper or accountant on how the account integrates with tax filings, invoice issuance and foreign exchange reporting. The bank, your accountant and your corporate secretary should not operate in isolation.

A Final Word

Corporate banking in China is relationship-driven and process-oriented. Founders who prepare a complete document pack, choose a branch with relevant experience, and communicate clearly about their business tend to move through onboarding with fewer surprises. Budget more time than you think you need, confirm requirements directly with the bank, and take professional advice on your specific structure before you commit.

This article provides general information only and does not constitute legal, tax or financial advice. Requirements change and vary by bank and location; verify all details with your bank and qualified advisers.