Setting up a company in China’s appealing market may be subject to varied requirements, depending much on the business entity chosen for further activities. A business bank account is a mandatory request at the company formation in China for providing the minimum share capital and for further financial operations. Because this can be time-consuming especially for foreigners who do not understand the language, and who are unfamiliar with the requirements but want to work rapidly on the Chinese market, it is best to ask for complete support and guidance from our team of specialists in company incorporation in China.
| Quick Facts | |
|---|---|
| Who can open a bank account in China? | Both residents and non-residents in China, whether natural persons or entities |
|
Formalities to open a bank account |
– work and residence permit for natural persons, – company documents for legal entities |
|
Required documents |
– Articles of Association and Certificate of Incorporation for companies, – a valid passport and proof of domicile in case of natural persons |
| Types of bank accounts |
– saving accounts, – deposit accounts, – debit and credit accounts |
| Debit or credit card issued with a bank account |
Yes |
| Cash deposit to open a bank account in China |
Some banks might require cash deposit |
| Fees to open a bank account |
Specific banks require fees for opening an account. |
| Banking services offered (YES/NO) |
Yes |
| Possibility to open a bank account online (YES/NO) |
Yes |
| Possibility to pay online the utility bills (YES/NO) | Yes |
| Overseas money transfers accepted (YES/NO) |
Yes |
| Formalities for student bank account |
– valid passport, – bank forms, – admission letter from the university |
| Loans option available (YES/NO) |
Yes |
| Offshore bank accounts |
Yes, specific conditions apply for foreign companies in China. |
| We provide support for opening a bank account in China (YES/NO) | Yes |
Table of Contents
Who can open a bank account in China in 2023?
Foreigners can enter the Chinese market through a WFOE (Wholly-Foreign Owned Enterprise), representative offices or joint ventures, three important business entities which are easy to incorporate. A mandatory condition in this sense is to open a corporate bank account in the local currency (RMB) and if the direction of the business regards overseas connections, the entrepreneur can request other foreign currencies linked to the bank account. The State of Administration of Foreign Exchange in China controls the foreign currency activities in this country. If you want to register a company in China, please bear in mind that our consultants can supervise the entire procedure.
International investors or foreign citizens who want to open a bank account in China in 2023 are suggested to get in touch with our specialists for help and guidance. Here is an infographic that explains how you can open a bank account in China in simple steps:
Necessary documents for opening a bank account in China in 2023
Depending on the chosen business entity in China, several documents must be provided to the bank, besides the forms offered for submission by the financial entity. The following information is necessary when setting up a bank account in China in 2023:
- the Certificate of Registration of your company in China;
- a copy of the business license of your firm in China;
- the Articles of Association with complete information about the owners, the board of managers;
- details about the legal representative of your company in China.
For a smooth process of opening a bank account in China in 2023, you can talk to one of our company incorporation agents in China. Also, if you want to run your business in China from abroad and you need to open a bank account, it is suggested to provide the financial institution with all the documents through your legal representative. We remind you that our team of advisors can act on behalf of your company in China.
Do you want to benefit from the services offered by our accountants in China? Our company will be at your disposal with information about the formalities and procedures involved. Normally, you will need payroll services and bookkeeping, but you can also opt for risk assessment and evaluation. We also deal with different types of audits. But to get a clear idea about the services offered by our certified accountants, we recommend contacting us by phone or online.
Why do I need a bank account in China?
If you would like to set up a company in China, a bank account is necessary for the minimum share capital and for future financial operations in the firm. A bank account in China can be easily set up, but for complete guidance in this sense, you may address to our Chinese company formation agents.
Can I open a bank account in China from overseas?
Yes, foreign entrepreneurs can open bank accounts in China from their home countries, but under particular rules. For instance, they need to travel to China for completing the final forms before the bank account is opened.
If you have decided on WFOE in China, our specialists can offer you the necessary support in terms of formalities. Thus, it will be necessary to prepare the documents, as well as to open a bank account. Also, it is necessary to register for the payment of taxes, not before obtaining a business license. Our local agents can explain what all the formalities entail and how you can start doing business as quickly as possible, once they are completed.
Information about bank fees in China
Each bank account in China comes with a contract in which there are several provisions mentioned. Among these, we mention the fees for transfers, currencies, exchanges and other services. It is best to verify any bank contract before an agreement is made for a future collaboration. The video below explains how you can open a bank account in China:
A bank account for a WFOE in China
Foreign investors can set up WFOEs in China, under certain conditions, among which, is the requirement for opening a local bank account for depositing the minimum share capital of CNY 30,000. The Wholly Foreign-Owned Enterprise is the proper business choice for international investors in China, allowing them full control and ownership. The bank account linked to the WFOE in China will be used for the company’s daily financial transactions. International investors are obliged to open a bank account in the local currency for depositing the minimum share capital. Then, if your business will run its operations and activities under other currencies, you can talk to the chosen financial institution and see the options and offers you have. Opening a bank account in China is not a complicated process, however, it is recommended to have in mind the support of a company formation agent in China who can handle the entire formalities involved, including the ones for starting a business in China. Let us help you establish your business in this country.
What you need to know when opening a corporate bank account in China
Foreign companies can open a bank account without the need for a local entity. In other words, such a company can open a bank account to serve China mainland customers and suppliers, without incorporating a Chinese WOFE (Wholly Owned Foreign Company), for example.
Various leading international and local banks in China can offer to foreign businesses the ability to secure a non-resident corporate bank account. Our Chinese attorneys can give you details on the corporate bank account opening in China so you can choose the proper bank for you. Depending on the bank you have chosen, a corporate bank account in China can include: e-banking, corporate ATM or debit card, Yuan checkbook, single or multi-currency corporate accounts, dedicated bank personnel and banking application for your phone.
Even though it may look as a difficult task or a time-consuming one, given the fact that shareholders, directors and bank signatories are residents overseas, our lawyers in China will successfully assist you during the process, making it easy for you.
Documents required for opening a corporate bank in China
The requirements for such a procedure may vary depending on the chosen bank. In general, some of the following authenticated documents are needed when opening the bank account:
- passport copies,
- proof of address of account signatories,
- certificate of incorporation,
- certificate of incumbency,
- memorandum and articles of association.
The concept of opening a corporate bank account in China which serves the needs of global businesses is a new one. Nevertheless, this is an attractive option for companies that look for local banking support in this emerging market.
Even though there are many banks that provide the possibility of opening a bank account online, in China you need to be present at the bank office for varied procedures.
How long does it take to open a bank account in China?
Your account details can be received in a couple of days, as soon as all the formalities and approvals are made. We remind you that opening a bank account in China is a simple process that starts with the preparation of documents that must be submitted to the bank, filling and signing a set of documents, with complete support offered by one of our consultants. We can represent you with a power of attorney, so you don’t have to travel to China for opening a bank account.
Some banks in China solicit a minimum deposit of CNY 10-20, however, fees might be bigger, so you might want to be prepared for the procedure of opening a bank account.
Banks in China
The banking system in China is highly appreciated, and foreigners can choose to open bank accounts and work with the Bank of China, China’s Merchant’s Bank, the Agricultural Bank of China, the Bank of Communication in China, or the Industrial and Commercial Bank of China, to give a few examples. You can also choose well-known foreign banks with branches and subsidiaries in China. Do not hesitate to talk to our specialists for more details and support.
While some banks are offering excellent conditions and services, others can be stricter when it comes to foreign citizens living in this country. It is good to note that most banks in China are owned by national and local governments.
Provisions stipulated in the Commercial Bank Law in China
All commercial banks in China deal with many activities and businesses, under the laws’ provisions, such as:
- offer national and international payment services;
- can extend loans on short or long terms;
- deal with government bonds;
- deal with overseas transactions;
- offer safe deposit box facilities;
- accept money deposits from every individual in the country.
It is impetuous to know that a bank in China follows the rules and regulations related to honesty, parity, and impartiality when performing business with the public or special clients like foreign investors, and will protect the rights and the safeties of the depositors. Our lawyer in China is able to offer you legal assistance if you want tax advice and planning for your company, or need support on the matters.
Depositor’s protection stipulated in the Commercial Law Bank in China
Any bank in China follows the main principles related to the freedom of withdrawal, and deposits and can refuse certain verification if asked by certain departments or institutions if it is not stipulated by the law in this matter.
A Chines bank handles the payments with full implications in acceptance, transfer, or collection. The institution can make suitable cash entries usually followed by relevant provisions without having to detain bills and financial instruments. The appropriate endowments for the time limit of bill acceptance and entries in the accounting books need to be available to the public. On the other hand, it is good to know that Chinese bank accounts or deposits cannot be subject to private investigations or money transfers unless is stipulated or outlined by the law on this matter.
Using a bank account in China
Banks in China offer a series of services for both natural persons and entrepreneurs in China. For instance, all the financial transactions can be made online, with the help of specific platforms provided by the chosen bank. The money deposits and withdraws can be made using the ATMs or at the local bank office. The mobile payments in China are highly used, so you might want to choose Alipay or WeChat for money transactions, considering that these applications are used by approximately 1 billion users each month in China, according to the latest statistics.
FAQ about bank accounts in China
1. Do I need to travel to China for opening a bank account?
No, there is no need for you to travel to China for opening a bank account. You can appoint us with a power of attorney and let us handle the process for you.
2. What documents do I need for opening a bank account in China?
Suppose you are an entrepreneur in China and want to open a bank account. In that case, you should prepare a notarized copy of the business license, the Articles of Association, and the Certificate of Registration issued by the Chinese Trade Register.
3. Who can open bank accounts in China?
Natural persons living or moving to China, alongside foreign investors in this country can choose a bank and open an account. The process is simple and there are no harsh formalities.
4. What bank should I choose in China?
You can direct your attention to the Bank of China or other domestic financial institutions, or you can choose the foreign ones, depending on your business needs. No matter the bank you choose, we can provide help.
5. How fast can I open a bank account in China?
You can open a bank account in China in a couple of days if all the formalities are approved. Specific bank forms need to be completed.
Investments in China
China is one of the most powerful economies in the world and a strong business destination for international investors of any kind. Manufacturing, tourism, IT & telecommunication, automotive and engineering and prolific sectors in China, where most of the FDIs are directed. Here are some facts and numbers about the economy in China that you might find it interesting:
- the 2020 World Doing Business report ranks China 31st among 190 worldwide economies;
- a series of measures like tax and tariff cuts, streamline customs clearance and varied tax incentives have been adopted by the Chinese government to sustain the foreign investments;
- around USD 1,627,000 million was the total FDI stock for China in 2018;
- 871 was the registered number of greenfield investments in 2018 in China.
We kindly invite you to get in touch with our team of company formation consultants in China if you are interested in opening a business bank account. Also, natural persons can ask for our help in this sense.