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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: account types, documents, KYC, timelines, common pitfalls and day-to-day banking after you are set up. General information only, not legal or tax advice.

Opening a corporate bank account is one of those steps that looks simple on paper and turns out to be one of the more time-consuming parts of setting up in mainland China. For foreign founders, the bank account is not just a place to hold money. It is the gateway to paying staff, receiving customer payments, paying tax and social insurance, and satisfying the capital contribution requirements attached to your business licence.

This article walks through what foreign founders should expect: the main account types, the documents banks typically ask for, how the process actually runs, where applications tend to stall, and what day-to-day banking looks like once you are through. It is general information, not legal or tax advice. Rules and bank practices change, and they vary by city and by bank branch, so confirm specifics with your bank, your accountant and, where appropriate, a lawyer.

First, understand the account landscape

Chinese corporate banking uses a tiered system. Foreign founders usually encounter three types of accounts:

• The basic deposit account (基本存款账户), often called the "basic account". This is the primary account for a legal entity. It is where you can withdraw cash, and it is the account used for tax payments, payroll and social insurance. A company can have only one basic account, and it must be opened at a bank branch that has the authority to handle it.
• General deposit accounts (一般存款账户). You can open several of these for specific purposes, such as receiving payments from a particular platform or ring-fencing project funds. They cannot be used for cash withdrawals in the same way as the basic account.
• Special-purpose accounts (专用存款账户). These are earmarked for defined uses, such as capital verification or specific regulatory purposes.

There is also the question of currency. A domestic account handles RMB. If you need to receive foreign currency, you will typically need a foreign currency account (often called an "FX account") linked to the entity. Many banks can open RMB and foreign currency accounts together, but the documentation and approvals differ.

Most foreign-invested enterprises start with a basic RMB account and add a foreign currency account if they expect inbound capital, overseas payments or foreign-currency revenue.

What the bank will ask for

Banks in China apply strict know-your-customer (KYC) and anti-money-laundering checks. The exact list varies, but a typical application for a foreign-invested company includes:

• The business licence (营业执照), original and copy.
• The company seal, financial seal and legal representative seal, where the company uses them.
• Articles of association and, for foreign-invested entities, the approval or filing documents from the commerce authority, plus the foreign investment information report where applicable.
• Identification of the legal representative: passport for a foreign national, and sometimes a residence permit or entry record.
• Identification of authorised signatories and, importantly, the beneficial owner information. Banks will look through the ownership chain to identify individuals who ultimately own or control the company, often down to a 25% threshold or by control.
• Proof of registered address: lease agreement, property certificate or a utility bill in the company's name. Some banks conduct a site visit.
• Board resolution or shareholder resolution authorising the account opening and naming the signatories.
• Company chop and, in many cases, the signatures of authorised persons on bank forms.

Two practical points. First, translations: documents in English or other languages usually need to be translated into Chinese, and some banks require a translation agency stamp. Second, consistency: the names, addresses and shareholding percentages across your business licence, articles, shareholder documents and IDs should match. Mismatches are a common cause of delay.

How the process actually runs

The sequence usually looks like this:

1. Complete company registration first. You need the business licence before any bank will open an account.
2. Choose a bank and branch. Compare not only fees but also English-language support, online banking for foreigners, the branch's experience with foreign-invested companies, and how close it is to your office. A branch with a dedicated corporate desk is usually smoother than a small retail branch that handles corporate accounts occasionally.
3. Pre-screen with the bank. Ask for the document checklist in writing before you visit, and confirm whether the branch handles the type of entity you have registered.
4. Submit the application and complete KYC. Expect an interview, sometimes with the legal representative in person. The bank may ask about your business model, expected transaction volumes, counterparties and source of funds.
5. Site visit. Many banks send staff to your registered address to confirm the business operates there. Make sure signage, furniture and staff are present, and that someone who can answer questions is available.
6. Approval and activation. Once approved, the account is activated and you receive online banking credentials, a bank card and, in many cases, a U-key or token for corporate online banking.

Timelines vary widely. If documents are complete and the branch is experienced, opening a basic account can take anywhere from a few business days to several weeks. Foreign currency accounts and accounts involving complex ownership structures can take longer. Do not plan payroll or customer invoicing around an assumed date until the account is live.

Where applications stall

Most delays come from a handful of recurring issues:

• Beneficial ownership is unclear. If your company is held through a chain of offshore entities, prepare a clear ownership chart and supporting documents before you approach the bank.
• The registered address is a virtual or shared office. Some banks are cautious about addresses that do not look like operating premises. Ask in advance whether your address type is acceptable.
• The legal representative is abroad. Some banks require the legal representative to appear in person, at least for the initial application. If that is impossible, ask whether a notarised power of attorney is accepted, and confirm the notarisation and legalisation requirements.
• Business scope and expected transactions do not align. If your stated business scope does not obviously support the transactions you describe, expect questions. Be ready to explain your customers, suppliers and payment flows.
• Document inconsistencies. Different versions of shareholder names, translated addresses or capital amounts will trigger rework.

After the account is open

Day-to-day banking in China is increasingly digital, but foreign founders should plan for the practical details:

• Online banking. Corporate online banking usually requires a U-key or token and a password. Set up users and permissions carefully, and keep the token secure.
• Seals and signatures. Many transactions require the company seal or financial seal in addition to a signature. Establish an internal approval process early.
• Payroll and tax. The basic account is typically used for payroll and tax payments. Your accountant will usually need access to payment records and bank statements.
• Foreign exchange. Cross-border payments and FX conversion are subject to documentation requirements. Keep contracts, invoices and supporting materials for each transaction.
• Ongoing KYC. Banks periodically update customer information. Respond promptly to requests for updated documents to avoid account restrictions.

A few closing tips

Talk to your bank before you finalise your company registration, so you know what ownership and address structures they can work with. Prepare a clean, consistent document pack, including a beneficial ownership chart, and have Chinese translations ready. Expect the process to take longer than in your home market, and build that into your cash-flow planning. Finally, treat the bank as a partner in compliance rather than an obstacle: the questions about your business are there to satisfy regulators, and clear answers speed everything up.

This article is general information for foreign founders and is not legal, tax or financial advice. Requirements differ by city, bank and entity type, so confirm the current rules with your bank and professional advisers before you apply.