Published · Sesotho

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, covering account types, documentation, the role of the basic deposit account, timelines, common pitfalls and practical tips for working with Chinese banks.

For many foreign founders, the corporate bank account is the step that turns a registered company into a working business. In China, the account is also where banking practice, foreign exchange rules and the local regulatory environment meet — so it pays to understand what the bank will ask for and why, before you walk into a branch.

This article is general information for planning purposes only. It is not legal, tax or financial advice, and requirements vary by bank, branch, city and your specific business. Always confirm current requirements with your bank and, where needed, with a qualified professional adviser.

Why the corporate account matters more than you might expect

In mainland China, a company's bank accounts are not simply commercial arrangements. They sit within a framework supervised by the People's Bank of China (PBOC) and, for foreign exchange matters, the State Administration of Foreign Exchange (SAFE). Banks act as the front line for verifying that your company is genuine, that its business scope matches its activity, and that money moving in and out is properly documented.

Practically, you will need a corporate account to pay staff, settle rent and suppliers, receive customer payments, pay taxes and social insurance, and handle registered capital contributions if your company has them. Without a working account, the company exists on paper but cannot operate.

The account types you will encounter

Chinese banks use a set of standard account categories. The terminology varies slightly in English translation, but the core concepts are consistent.

Basic deposit account (基本存款账户)

This is the company's primary account. A company may generally have only one basic deposit account, and it is the account through which cash withdrawals and day-to-day salary payments are typically handled. Opening it usually requires approval and registration through the PBOC's account management system, which the bank arranges on your behalf. Many founders find that this is the account they need first.

General deposit account (一般存款账户)

Used for additional banking needs such as borrowing, receiving funds from specific sources or maintaining separate operational pots. A company can have more than one. It cannot normally be used for cash withdrawals.

Special-purpose and temporary accounts

Special-purpose accounts (专用存款账户) are used for earmarked funds — for example, certain project or regulatory purposes. Temporary accounts (临时存款账户) cover defined, time-limited activities such as a temporary project or, in some cases, setting up a branch. Your bank will advise which category fits your situation.

Foreign currency and RMB accounts

Companies can hold RMB accounts and foreign currency accounts. Foreign currency accounts are subject to foreign exchange rules, and the bank will ask about the source and purpose of foreign currency receipts. If you expect cross-border payments, discuss this at the outset rather than after the account is open.

What the bank will typically ask for

Documentation requirements vary, but a typical corporate account opening file includes:

• Business licence (original and copies), showing the unified social credit code.
• Legal representative's ID — passport for a foreign legal representative, and presence at the branch in most cases.
• Company seal set — official company seal, financial seal, legal representative seal and, where used, contract seal. Chinese banking relies heavily on seals, so have them ready.
• Articles of association and, for foreign-invested enterprises, approval or filing documents where applicable.
• Registered address proof — lease agreement and related documents.
• Beneficial ownership information — shareholders, ultimate beneficial owners and their identification.
• Business substance evidence — contracts, invoices, a business plan or descriptions of expected transactions. Banks increasingly ask for this as part of anti-money-laundering and know-your-customer checks.
• Authorisation documents if someone other than the legal representative will handle the account.

Branches sometimes ask for additional items, such as a company chop authorization or a board resolution. Treat the list as a starting point and confirm it with the specific branch before your appointment.

The process, step by step

While details differ, the sequence usually looks like this:

• Choose the bank and branch. Consider proximity, English-language support, online banking quality, foreign exchange capability and whether the branch is used to foreign-invested companies. A branch near your registered office is often practical because some banks prefer accounts to be opened where the company is registered.
• Pre-screen with the bank. Ask for the account-opening checklist and explain your business model. Banks are more comfortable when they understand your expected transaction flows.
• Book an appointment. The legal representative usually needs to attend in person for identity verification.
• Submit documents and complete KYC. Expect questions about shareholders, business activity, expected turnover and counterparties.
• Basic account registration. The bank processes the PBOC registration for the basic deposit account.
• Receive account details and activate online banking. Set up tokens, passwords and user permissions, and test the account with a small transaction.

Timelines vary widely — from a couple of weeks to considerably longer — depending on the bank, the completeness of your documents, the complexity of your ownership structure and local practice. Build buffer time into your plans.

Common pitfalls and practical tips

• Name mismatches. The company name on the business licence, seals and bank records must align exactly. Small inconsistencies cause delays.
• Thin business substance. A newly registered company with no contracts or clear activity may face more questions. Prepare a simple, honest explanation of what the company will do and who it will trade with.
• Legal representative availability. If your legal representative is abroad, confirm early whether the branch will accept remote verification or requires in-person attendance; practice differs.
• Seals are critical. Keep the seal set secure and know which seal the bank requires for which document.
• Foreign exchange planning. If you will receive capital contributions or pay overseas suppliers, ask about the supporting documents the bank will need for each type of transaction.
• Bank charges and minimum balances. Ask about account maintenance fees, minimum balance requirements and online banking fees so there are no surprises.
• Keep records. Maintain clear contracts and invoices; they support both banking queries and future audits.

A note on expectations

Opening a corporate bank account in China is a compliance-driven process, not a formality. Banks are accountable for the accounts they open, so they will ask questions that may feel detailed. Founders who prepare a clear picture of their business, keep documentation consistent and communicate openly with the branch generally find the process smoother.

Finally, remember that rules and branch practices change. Use this guide to plan and ask the right questions, but rely on your bank and qualified advisers for the requirements that apply to your company.