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

A practical, step-by-step guide for foreign founders on opening a corporate bank account in mainland China, covering account types, documents, KYC, timelines, common pitfalls and practical tips. General information only, not legal or tax advice.

Opening a corporate bank account is one of those tasks that looks simple on paper and can become the slowest part of your China setup. For a foreign founder, the bank account is not just a place to park money: it is the gate to paying suppliers, receiving customer payments, paying staff, filing taxes and moving capital in and out of the country. This article walks through what actually happens, what banks ask for, and how to avoid the most common delays. It is general information only, not legal or tax advice.

First, understand the account types

Foreign founders in mainland China usually deal with three kinds of accounts, and confusing them causes a lot of wasted time.

• Basic deposit account (基本存款账户): The core operating account of a China-registered company. It is the only account from which you can withdraw cash and the account used for payroll and most day-to-day operations. A company can have only one basic account, and it must be opened at a bank branch with the relevant licence to handle it.
• General deposit account (一般存款账户): Additional accounts for specific purposes, such as receiving loans or handling a particular business line. You can have several, but they sit on top of the basic account.
• Foreign currency and special accounts: If you receive USD, EUR or other currencies, you will likely need a foreign currency account, and if you have cross-border capital flows you may need accounts tied to the foreign exchange regime, such as a capital account for foreign investment. Your bank will tell you which specific accounts apply to your situation.

For most newly registered foreign-invested companies, the first goal is a basic RMB account, often alongside a foreign currency account.

When can you open the account?

You cannot open a corporate account before the company legally exists. The usual sequence is: company name approval, business licence, company seals, tax registration and basic tax reporting setup, then the bank account. In practice, the bank will want to see the business licence and the official company seals, and it will check that the company is registered in the local market supervision system.

The timing matters because some steps depend on the bank account. For example, you generally need the basic account before you can complete certain tax and social insurance arrangements, and before you can pay staff properly. Build the bank step into your launch plan rather than treating it as an afterthought.

Documents banks typically request

Requirements vary by bank, branch and city, and they change. Treat this as a checklist to prepare, not a fixed legal list. A typical package includes:

• Business licence (original and copies, often with the official company seal).
• Company seals: the official company seal, the legal representative seal, the finance seal and the invoice seal, depending on the bank.
• Articles of association and, for foreign-invested companies, the foreign investment filing or approval documents where applicable.
• Identification of the legal representative: passport for a foreign legal representative, plus entry records if required.
• Identification and authorisation documents for anyone acting on the company's behalf, including a power of attorney if the legal representative is not present.
• Proof of registered address, such as the lease or the address registration documents.
• Information on shareholders and ultimate beneficial owners, including ownership percentages and identity documents.
• Business background materials: contracts, invoices, a business plan or a description of expected transactions.

Banks increasingly ask for the last item. They want to understand what your company does, who it trades with, and what kind of money will flow through the account.

The KYC and due diligence conversation

China's banks apply strict know-your-customer and anti-money-laundering checks. For a foreign founder, this is often the most demanding part of the process. Expect questions about:

• Who ultimately owns and controls the company, including any offshore holding structure.
• The source of the company's funds and the source of the initial capital.
• Expected counterparties, countries of trade, and the nature of goods or services.
• Whether the company has real operations in China, including staff, an office and local activity.

Answer consistently and in writing where possible. Inconsistencies between your company registration documents, your business description and your explanations to the bank create friction. If your ownership chain runs through Hong Kong, Singapore or another jurisdiction, bring clean documentation of that structure.

Face-to-face requirements

Most banks require the legal representative to appear in person at the branch at least once, and some require a short interview. If the legal representative cannot come to China, ask the bank early whether they accept a video verification or a local authorised signatory, because policies differ significantly between banks and branches. Do not assume remote opening is available.

How long it takes and what it costs

Timelines vary widely by city, bank and the completeness of your documents. A straightforward case with a local legal representative and clear ownership can move in a couple of weeks; complex ownership structures or missing documents can stretch to a month or more. Banks may charge account maintenance or service fees, and these differ, so compare the fee schedule rather than choosing on convenience alone. Ask about minimum balance requirements, transaction fees, and charges for cross-border payments before you sign.

Practical tips that save time

• Talk to more than one bank. International banks with China operations, local commercial banks and smaller city banks have different appetites for foreign-invested startups. A bank that is friendly to your industry can save weeks.
• Prepare a clean ownership chart. One page showing every entity and every ultimate beneficial owner, with percentages, prevents repeated back-and-forth.
• Keep your business description consistent. The activity described in your business licence should match what you tell the bank.
• Bring originals and copies, and all seals. Missing one seal can mean a second appointment.
• Ask about online banking early. Confirm what the digital platform allows, including cross-border payments, and what tokens or devices you need.
• Use a local adviser. An accountant or corporate services firm that has opened accounts in your city knows which branches are practical and what documents they currently require.

A realistic view

Opening a corporate bank account in China is a compliance exercise as much as an administrative one. The banks are not being difficult for its own sake; they operate under strict rules and are accountable for the accounts they open. Founders who arrive with complete documents, a clear explanation of their business and realistic expectations generally get through without drama. Those who treat it as a formality often find themselves making repeat visits.

Plan the account opening alongside your company registration and tax setup, not after them, and leave buffer time before you need to pay staff or suppliers. For anything specific to your structure, industry or city, consult a qualified local accountant or legal adviser. This article is general information only and is not legal or tax advice.