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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: entity type, documents, due diligence, timelines, remote options, common pitfalls and ongoing compliance. General information only, not legal or tax advice.

Opening a corporate bank account is one of the first operational milestones for any foreign founder setting up in mainland China — and one of the most frequently underestimated. The account is what allows you to receive registered capital, pay staff and suppliers, settle taxes and move money across borders. But Chinese banks treat account opening as a compliance exercise first and a customer-service exercise second. Understanding what they check, and why, will save you weeks.

This article is general information for foreign founders. It is not legal, tax or financial advice, and banking requirements vary by bank, branch, city and the nature of your business. Confirm current requirements directly with your chosen bank and with qualified local advisers.

First, understand what kind of account you need

Foreign-invested enterprises (FIEs) in China typically need more than one account, and the sequence matters.

The capital account (foreign exchange account)

This is the account used to receive registered capital from overseas shareholders and to handle foreign-currency transactions connected to your investment. It is opened with your basic deposit account at the same bank, usually at the branch where the basic account is held. In most setups, the capital contribution must land in this account before it can be converted and used for permitted purposes, and conversion is handled by the bank against supporting documents.

The basic deposit account (基本存款账户)

The basic account is your company's primary RMB account. It is the only account from which you can withdraw cash, and it is the anchor for payroll, tax payments and opening other accounts. Banks will only open it after your business licence is issued and the company's legal existence is confirmed in the national credit information system.

General and special-purpose accounts

Once the basic account exists, you can open general accounts at other banks for day-to-day operations, and special-purpose accounts for specific uses such as payroll, tax reserves or project funds. Many founders start with one bank and add accounts later once volumes justify it.

Prerequisites before any bank will talk to you

• Registered entity. A business licence showing your company's unified social credit code. Banks will verify the company and its legal representative against public registries.
• Company seal set. At minimum the official company seal, the financial seal and the legal representative's personal seal, depending on what the bank requires.
• Legal representative present, or a properly authorised proxy. Many banks require the legal representative to appear in person at least once, especially for the basic account. If your legal representative is overseas, ask the bank in advance whether a notarised and apostilled (or consularised) power of attorney is accepted.
• Registered address documentation. A lease or property certificate for your registered office, plus utility or property-management documents in some branches.
• Beneficial ownership information. Banks must identify ultimate beneficial owners holding a defined threshold of equity or control. Expect to disclose shareholder chains up to natural persons, including for offshore holding companies.
• Business substance evidence. Contracts, invoices, a business plan, website, or correspondence with counterparties — anything that shows the company has a real commercial purpose.

The onboarding process, step by step

1. Choose the bank and the branch

Large state-owned banks have broad networks and strong foreign-exchange capabilities; joint-stock and city commercial banks are often more flexible on service and speed. The branch matters as much as the brand: a branch with experience serving foreign-invested companies in your industry will ask better questions and move faster. Ask your accountant or corporate services provider which branches they routinely work with.

2. Pre-screen with the bank

Before submitting documents, ask for a preliminary review. Explain your business model, expected transaction flows, counterparties and countries, and the source of your funding. Banks assess whether your profile fits their risk appetite; surprises at this stage are far cheaper than surprises later.

3. Submit the application and complete due diligence

You will complete account-opening forms, beneficial ownership declarations, tax residency declarations (including CRS-related self-certification) and sanctions and anti-money-laundering questionnaires. Expect questions about why you chose China, who your customers are, and how funds will move.

4. In-person verification

The legal representative or authorised signatory typically signs at the branch, with identity documents checked on site. Some banks now offer video verification for certain steps, but availability is limited and varies by branch.

5. Approval and activation

The bank submits the account for internal approval and registers it with the central bank's account management system. Once activated, you receive account details, online banking tokens and, often, a corporate card. Online banking setup may require a separate visit and separate authorisation for the operators.

6. Capital contribution and foreign-exchange registration

After the capital account is live, the overseas shareholder remits the registered capital. The bank handles the foreign-exchange registration and subsequent conversion against supporting documents. Keep remittance purpose wording consistent with your capital account and your filed investment information.

How long does it take?

Timelines vary widely. A straightforward company with a present legal representative, clean ownership structure and a cooperative branch may complete the basic account in one to three weeks from first contact. Complex ownership chains, overseas legal representatives, regulated industries or unusual transaction flows can push this to one to three months. Build the account opening into your project plan as a gating item, not an afterthought.

Can you open an account remotely?

Generally, no — at least not fully. Chinese banks place strong emphasis on in-person identity verification for the legal representative or authorised signatory. Some banks permit partial remote onboarding for existing clients or under specific programmes, and a few offer remote verification for certain account types, but you should plan on at least one physical visit. If your legal representative cannot travel, discuss power-of-attorney arrangements with the bank early and confirm exactly which documents must be notarised and legalised.

Common reasons applications stall

• Opaque ownership. Layered offshore holding structures without clear beneficial ownership documentation.
• Thin business substance. No contracts, no staff, no office evidence — the bank cannot see a real business.
• Mismatched documents. Names, addresses or shareholding percentages that differ between the business licence, shareholder registers and bank forms.
• Unclear fund flows. Transaction patterns that do not match the stated business model.
• Legal representative unavailability. No confirmed plan for in-person verification or a valid proxy.
• Language gaps. Forms completed in English or with inconsistent translations. Bring a Chinese-speaking colleague or adviser.

After the account is open: keep it healthy

Bank relationships in China are ongoing, not one-off. Keep your registered information current — changes in legal representative, address, shareholders or business scope should be reflected with the bank promptly. Respond to periodic reviews and update requests. Maintain clear documentation for cross-border payments: contracts, invoices, customs documents and tax records. Avoid using personal accounts for company funds. If your transaction profile changes materially, tell your bank before the payments arrive, not after they are held.

Practical takeaways

• Sequence your accounts: basic deposit account first, then capital account and operational accounts.
• Prepare beneficial ownership and business substance evidence before you approach a bank.
• Confirm the legal representative's presence or proxy arrangements at the outset.
• Choose a branch with relevant FIE experience, not just a familiar logo.
• Budget weeks, not days, and treat account opening as a project milestone.
• Work with a local accountant or corporate services firm who knows the branch you are targeting.

None of this is unusual once you know the sequence. The founders who open accounts smoothly are rarely the ones with the simplest structures — they are the ones who asked the bank's compliance questions before the bank had to ask them.