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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 — from choosing a bank and preparing documents to surviving compliance checks and avoiding common delays. General information only, not legal or tax advice.

Opening a corporate bank account in mainland China is one of those tasks that looks simple on paper and can consume weeks in practice. For a foreign founder, the bank account is the gateway to paying staff, receiving customer payments, settling tax and social insurance, and moving money in and out of the country. It is also the point where the realities of China's banking compliance regime become very concrete: banks are cautious, documentation requirements are strict, and the person who signs the forms usually needs to be physically present.

This article walks through what to expect, how to prepare, and where foreign-invested enterprises (FIEs) most often get stuck. It is general information, not legal or tax advice — requirements vary by bank, branch and city, and they change. Confirm everything with your bank and, where appropriate, your lawyer or accountant before you act.

First, understand what kind of account you need

Chinese corporate banking is built around a distinction that surprises many newcomers: the basic deposit account versus general and special-purpose accounts.

• Basic deposit account (基本存款账户): the company's primary account. There can only be one per legal entity, it is where the company's main cash management happens, and it is typically required before you can set up other accounts, arrange payroll, or withdraw cash. It is opened at a bank branch and is registered with the local branch of the People's Bank of China (PBOC).
• General account (一般存款账户): used for additional banking needs — borrowing, secondary operations, or a separate account at another bank. You need a basic account first.
• Special-purpose account (专用存款账户): earmarked for specific uses such as certain capital projects or regulated funds.
• Foreign currency account (外币账户): for USD, EUR, HKD and other currencies. Many FIEs maintain both RMB and foreign currency accounts, often at a bank with strong cross-border capability.

For most foreign founders, the practical sequence is: obtain the business licence, then open the basic RMB account, then add a foreign currency account and any general accounts as needed.

Which bank should you choose?

There is no single best answer. The main categories are the large state-owned banks (such as Bank of China, ICBC, China Construction Bank and Agricultural Bank of China), the joint-stock commercial banks, and the China-based subsidiaries of international banks. Each has trade-offs.

State-owned banks have extensive branch networks and deep experience with cross-border transactions, but onboarding can be slow and service levels vary by branch. Joint-stock banks are often more flexible and faster to respond, though their international footprint is smaller. International bank subsidiaries may be easier for a foreign parent to work with and can offer familiar online banking, but they typically have fewer branches and may set higher minimum balances or fees.

Practical selection criteria include: whether the branch has handled FIE onboarding before, the quality of English-language support (if you need it), FX and cross-border payment capability, online banking usability, fee schedules, and how close the branch is to your office or accountant. It is entirely normal to visit two or three branches before committing.

Documents you will typically be asked for

Exact lists differ, but for a newly established FIE the core package usually includes:

• Business licence (original and copies, often with the official seal)
• Articles of association and, where relevant, the approval or filing documents for the foreign investment
• Legal representative's identification (passport for a foreign national) and, in many cases, their physical presence
• Company seal, financial seal, legal representative seal and, if used, contract seal
• Beneficial ownership information and a completed beneficial ownership declaration
• Information on the foreign parent company and its shareholders
• Proof of registered address (lease agreement, property certificate, or similar)
• Board resolution or shareholder resolution authorising account opening and appointing signatories
• Tax registration information and, depending on the bank, social credit code details

Many banks now also require a Know Your Customer (KYC) file that goes beyond the basics — source of funds, business model, expected transaction volumes and counterparties. Prepare a short, clear business description in Chinese and English. Vague answers slow everything down.

The account-opening process, step by step

1. Confirm the legal entity is fully registered. The business licence must be issued, and the company's seals cut. Some banks also want to see the company's tax registration and, for FIEs, evidence of foreign exchange registration where applicable.
2. Shortlist branches and make an appointment. Walk-ins are sometimes accepted, but an appointment with the corporate banking desk saves time. Ask in advance for the document checklist in writing.
3. Submit the application and KYC materials. The relationship manager will review the file, sometimes with a compliance officer. Expect follow-up questions about the parent company and the people behind it.
4. Attend in person. The legal representative (or an authorised signatory with a properly notarised power of attorney) usually must appear at the branch for identity verification and, in some cases, a short interview. Increasingly this is photographed or recorded.
5. Wait for approval and PBOC registration. The basic account is registered with the local PBOC branch. Timelines vary; a few days is possible, but two to four weeks is common, and longer if documents need correction.
6. Activate online banking and set up tokens. You will receive USB keys or mobile tokens. Test them before you need to make a payment.
7. Fund the account and confirm inbound remittance details. For foreign currency, make sure the bank gives you the correct SWIFT details and any required remittance instructions for your parent company.

Common reasons applications stall

• Unclear beneficial ownership. Layered offshore holding structures invite questions. Bring an ownership chart and be ready to explain each layer.
• Mismatch between documents. Names, addresses and shareholding percentages must align across the licence, articles and KYC forms.
• Legal representative unavailable. If the legal representative cannot attend, arrange a notarised and, where required, apostilled or consularised power of attorney well in advance.
• Registered address concerns. Banks may verify the address, sometimes with a site visit. Virtual or shared addresses can complicate matters.
• Thin business rationale. A generic description such as "consulting" without detail may trigger extra scrutiny.
• Language gaps. Having a Chinese-speaking colleague or your accountant join the meeting helps avoid misunderstandings.

Practical tips before you start

Build the bank relationship early — ideally while the company registration is still in progress, so the branch can pre-review your file. Keep a digital and physical folder with every corporate document, seal and translation. Ask for the fee schedule and minimum balance requirements in writing; these vary widely. Set up online banking with dual approval if your bank supports it, and keep the tokens and passwords with designated, trustworthy staff. Finally, remember that banking rules and branch practices evolve, so reconfirm requirements at the moment you apply rather than relying on older guides.

Opening a corporate bank account in China rewards preparation more than improvisation. Founders who treat it as a compliance exercise — with clean documents, a clear business story and the right people present — tend to move through it far more smoothly than those who assume it works like opening an account at home.

This article is general information for foreign founders and does not constitute legal, tax or financial advice. Consult your bank, lawyer or accountant for guidance specific to your situation.