Corporate Bank Accounts in China

What is a Corporate Bank Account in China?

A corporate bank account is a bank account in the name of your China-registered company. It is used for business transactions: receiving payments from customers, paying suppliers, paying salaries, and handling taxes. It is separate from your personal bank account.

In China, there are two main types of corporate accounts:

• Basic account (基本户): The primary account for daily operations, cash withdrawals, and salary payments. A company can have only one basic account.
• General account (一般户): Additional accounts for specific purposes like receiving payments or managing funds. A company can have multiple general accounts.

Most foreign-invested companies start with a basic account.

When Do I Need It?

You need a corporate bank account as soon as your company is legally registered and you start doing business. Specifically:

• To receive payments from customers in China or abroad.
• To pay suppliers, employees, rent, and taxes.
• To inject registered capital (if required for your company type).
• To apply for necessary licenses or permits that require proof of a bank account.

Without a corporate account, your company cannot operate normally. Plan to open one soon after obtaining your business license.

What Documents Do I Prepare?

The exact requirements vary by bank and city, but generally you will need:

• Business license (original and copies).
• Company seal (official company chop), financial seal, and legal representative seal.
• Articles of association (company charter).
• Legal representative's ID (passport for foreigners) and, if applicable, their presence.
• Proof of address for the company (lease agreement or property certificate).
• Authorization letter if someone else handles the opening.
• UBO (Ultimate Beneficial Owner) information and supporting documents.
• Tax registration (now often integrated with the business license).

Banks may also ask for business contracts, invoices, or a business plan to comply with anti-money laundering rules. Prepare as much as possible in advance.

Can I Do It Remotely or Must I Travel?

In most cases, the legal representative or an authorized person must visit the bank branch in person to open a corporate account. China's banking regulations require face-to-face verification for account opening. Some banks may allow remote opening for existing customers or under specific conditions, but this is not standard.

If you are not in China, you may need to travel or appoint a trusted representative with a power of attorney. However, the bank may still require the legal representative to appear. Check with your chosen bank before making plans.

How Long Should I Budget?

The time to open a corporate bank account varies. It can take from a few days to several weeks. Factors include:

• Bank's internal review and compliance checks.
• Completeness of your documents.
• Whether the legal representative is present.
• City and branch workload.

Budget at least 1-2 weeks for the process, but be prepared for longer if additional verification is needed. It's wise to start the process as soon as your business license is issued.

What Does It Cost in Practice?

Costs vary by bank and account type. Typical categories include:

• Account opening fee: Some banks charge a one-time fee, others may waive it.
• Monthly or annual account management fee: A maintenance fee for the account.
• Transaction fees: For transfers, withdrawals, and other services.
• Minimum balance requirement: Some accounts require a minimum deposit to avoid fees.
• Additional services: Fees for online banking, checkbooks, etc.

Ask the bank for a full fee schedule before opening. Avoid assuming costs are the same as in your home country.

Common Mistakes and How to Avoid Them

• Not preparing enough documents: Bring all required documents and copies. Missing a seal or ID can delay the process.
• Assuming remote opening is possible: Confirm with the bank. Plan for in-person attendance if needed.
• Choosing the wrong bank: Consider services for foreigners, English support, and online banking capabilities. Some banks are more foreigner-friendly.
• Ignoring compliance requirements: Be transparent about your business and source of funds. Incomplete information can lead to rejection.
• Not understanding fees: Ask for a fee schedule and understand all charges to avoid surprises.
• Delaying opening: Open the account soon after registration to avoid disruption to your business.

Work with a professional advisor if you are unsure. They can help you navigate the process and avoid common pitfalls.