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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, timelines, FX rules, common pitfalls and practical tips. General information only, not legal or tax advice.

For most foreign founders, the corporate bank account is the moment a China company stops being a stack of documents and starts being a business. You need it to receive registered capital, pay staff, pay rent and tax, and invoice customers. It is also, reliably, one of the more frustrating steps in the setup process — not because the rules are impossible, but because banks apply them with a lot of local discretion and a strong focus on compliance.

This article walks through what to expect, what to prepare, and where founders typically get stuck. It is general information, not legal or tax advice. Requirements vary by city, by bank and by branch, and they change. Always confirm current requirements with your bank and your local adviser.

First, understand what kind of account you actually need

Foreign-invested enterprises (FIEs) in mainland China generally deal with three account types:

• Basic deposit account (基本存款账户) — the company's primary RMB account. It is the only account from which you can withdraw cash, and it is normally required before you can pay salaries, sign up for social insurance, or set up tax withholding. A company can have only one basic account, and it must be opened at a bank branch with the appropriate licence.
• General deposit account (一般存款账户) — additional RMB accounts for loans, project funds or separated bookkeeping. You can have several, but they cannot handle cash withdrawals.
• Foreign currency account / capital account (外币账户 / 资本金账户) — used to receive foreign shareholder capital contributions and foreign-currency revenue. This is the account your overseas parent wires money into, and the one subject to the most scrutiny around foreign exchange (FX) rules.

Most founders need the basic RMB account and a capital account. Some banks package these together; others treat them as separate applications with separate compliance reviews.

The documents you will be asked for

Exact lists differ, but a typical package includes:

• Business licence (营业执照) — original and copies
• Company seal, legal representative seal, finance seal and, where used, contract seal
• Articles of association (公司章程) and, for FIEs, the foreign investment filing or approval documents
• Legal representative's ID (passport for foreign nationals) and, in many cities, proof of the legal rep's presence or a notarised power of attorney if someone else signs
• Beneficial ownership information — often going up several layers to ultimate natural persons, with supporting documents
• Registered address proof — lease agreement, property certificate, or a hosting/incubator agreement
• Board resolution or shareholder resolution authorising account opening and appointing signatories
• UBO (ultimate beneficial owner) declarations and, increasingly, source-of-funds explanations

Two practical notes. First, banks care a lot about beneficial ownership. If your group has a holding structure in Hong Kong, Singapore or the BVI, bring a clean ownership chart and be ready to explain each layer. Second, documents issued abroad often need notarisation and, depending on the bank, consular legalisation or an apostille. Build this into your timeline.

Choosing a bank

You generally have two families of options:

• Large domestic banks (for example, the major state-owned and joint-stock banks). Broad branch networks, strong RMB infrastructure, good for domestic payments and payroll. Service quality and English support vary widely by branch.
• Foreign-invested banks and some smaller domestic banks. Often more comfortable with cross-border structures and English-language service, but fewer branches and sometimes higher fees or minimum balances.

What matters more than the logo is the branch. Account opening is handled at branch level, and the relationship manager and compliance officer at that branch effectively decide how smooth the process is. Ask other founders in your city which branch they used. A branch that has opened accounts for FIEs before will be far easier to work with than one that has not.

Also ask upfront about: minimum balance requirements, monthly account fees, online banking fees, FX conversion spreads, and whether the bank offers English-language online banking and a dedicated FIE desk.

Realistic timelines

Assuming your company is registered and you have all documents in order, expect roughly one to four weeks from first contact to a functioning account, with the basic account usually faster than the capital account. Delays usually come from missing or inconsistent documents, beneficial ownership questions, address verification, or the legal representative being unavailable for an in-person check. Some cities and banks now allow remote or video verification for the legal representative, but this is not universal — plan for the possibility that the legal rep needs to appear in person.

The compliance conversation

Do not treat the account opening interview as a formality. Banks are required to conduct customer due diligence and will ask about your business model, expected transaction volumes, main counterparties, countries you trade with, and the source of your funds. Prepare concise, consistent answers. If your business involves high-risk jurisdictions, crypto, or unusual payment flows, expect deeper questions and possibly a longer review. Being transparent and specific is far better than being vague.

Once open, keep the account active. Dormant accounts attract scrutiny, and banks may freeze or restrict accounts that show patterns inconsistent with the declared business — for example, large round-number transfers with no apparent commercial purpose.

Foreign exchange and moving money

The capital account is where FX rules bite. Foreign shareholder capital contributions generally need to be registered with the local FX authority (often handled through the bank) and must match the registered capital and investment plan filed with the authorities. Converting capital-account funds to RMB is possible but purpose-bound — typically for permitted business expenses — and banks will ask for supporting contracts and invoices.

For day-to-day trade, current-account transactions (paying suppliers, receiving export proceeds) are generally more straightforward than capital-account transactions, but documentation requirements remain. Keep contracts, invoices and customs documents organised; you will be asked for them.

Common pitfalls

• Mismatched documents. Names, addresses and shareholding percentages must match across the business licence, articles, UBO chart and application forms. Small inconsistencies cause real delays.
• Using a virtual or shared address. Some banks are cautious about registered addresses that look like mass-registration or hosting arrangements. Confirm your branch accepts your address type before you apply.
• Assuming one bank fits all. Many founders end up with a domestic bank for RMB operations and a foreign bank for cross-border needs. That is normal.
• Underestimating English support. Online banking portals and forms are often Chinese-only. Plan for a colleague, translator or service provider to help with the first transactions.
• Leaving the legal rep out of the loop. If the legal representative is overseas and cannot sign or appear, arrange a properly notarised power of attorney early.

Practical checklist before you walk into the branch

• Company registered and business licence issued
• All seals cut and in hand
• UBO chart prepared, with supporting corporate documents for each layer
• Legal rep ID and, if relevant, notarised power of attorney
• Lease or address proof accepted by the bank
• Board/shareholder resolution for account opening and signatories
• A one-page summary of your business model, expected flows and main counterparties
• Contact details for your accountant or corporate services provider, who can often help resolve document issues quickly

A final word

Opening a corporate bank account in China is less about passing a single test and more about demonstrating that your business is real, documented and compliant. Founders who prepare a clean document set, choose an experienced branch and answer compliance questions directly tend to move through the process without drama. Budget more time than you think you need, keep your adviser close, and treat the bank as a long-term partner rather than a formality.

This article provides general information only and does not constitute legal, tax or financial advice. Requirements differ by city and bank and change frequently; consult a qualified professional and your chosen bank before acting.