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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, the documents banks typically ask for, the role of the onshore legal representative, timing, common friction points, and how to prepare before you apply.

For many foreign founders, the corporate bank account is the step where a China project stops being paperwork and starts feeling real. It is also one of the most commonly underestimated steps. The application itself is not complicated, but the preparation is: Chinese banks apply strict know-your-customer (KYC) and anti-money-laundering rules, and they expect your company's structure, ownership and business purpose to be documented clearly and consistently.

This article is general information, not legal or tax advice. Rules, bank policies and documentary requirements change, differ between cities and differ between banks, so confirm the current requirements with your chosen bank and with your local adviser before you apply.

First, understand what you are opening

Foreign-invested enterprises (FIEs) in mainland China typically need two accounts, and sometimes three:

• Basic deposit account (基本存款账户). The company's main operating account. It is used for day-to-day payments, paying salaries and withdrawing cash. A company can generally have only one basic account, and it must be opened before other account types.
• General deposit account (一般存款账户). Additional accounts for specific purposes, such as receiving loan proceeds or handling a particular line of business. These can be opened after the basic account.
• Foreign currency account. If you expect to receive capital contributions or payments in USD, EUR or another currency, you will likely need a foreign currency account alongside the RMB account. Many banks handle both, but the documentation and approval process may differ.

If your entity is in a free trade zone or a special economic zone, some banks offer streamlined processes or additional account types. Ask specifically about this rather than assuming it applies to you.

The documents banks typically ask for

Requirements vary by bank and branch, but a typical file for a new FIE includes:

• The business licence (营业执照) with the unified social credit code
• The company's articles of association (公司章程), often the version filed with the market regulator
• Official company seal, financial seal, legal representative seal and, where applicable, the contract seal
• Identification of the legal representative: passport for a foreign national, and often a residence permit or entry records
• Identification of authorised signatories and the board resolution or power of attorney authorising them
• Proof of the registered address: lease agreement, property certificate, or a utility bill in the company's name
• Information on ultimate beneficial owners (UBOs), including passports and ownership percentages, traced through the corporate chain
• Foreign investment registration records and, where relevant, capital contribution documentation
• A description of expected business activity, counterparties and transaction volumes

Banks increasingly want the ownership chain documented to the final natural persons, even when the immediate shareholder is an offshore holding company. If your structure includes several layers in Hong Kong, Singapore or elsewhere, prepare an ownership chart and certified corporate documents in advance.

The legal representative is central to the process

In practice, the onshore legal representative (法定代表人) is the person the bank will want to see. Many banks require the legal representative to attend the account opening in person, present original ID, and sign the account opening documents at the branch. Some banks will accept a delegated signatory for parts of the process, but this is a policy decision, not a right, and it varies considerably.

If your legal representative is a foreign founder who is not resident in China, plan the trip around the account opening. Trying to complete it remotely, or through a nominee, is one of the most common sources of delay and, in some cases, outright refusal.

Also confirm who will hold the company seals. Chinese banks rely heavily on seal-based authorisation, and the way seals are controlled internally should match what you tell the bank.

How long it takes

There is no universal timeline. A straightforward application at a branch that is familiar with foreign-invested companies, with a complete file and an available legal representative, can move relatively quickly. Applications involving complex ownership structures, unusual business models, or missing documents routinely take longer because the branch must escalate the file for internal review.

The practical lesson: budget more time than you think you need, and do not schedule your first customer payment or payroll run against an assumed account opening date.

Why applications get held up

Most problems are predictable:

• Inconsistent information. The business scope on the licence, the description you give the bank and your actual expected transactions do not match.
• Unclear ownership. Offshore layers, trusts or nominee shareholders that cannot be traced to identifiable individuals.
• Thin substance. A registered address that looks like a mailbox, no local staff, and no clear explanation of how the business will operate in China.
• Unusual activity. Business models the branch does not see often, such as certain trading patterns or high-volume cross-border flows, may require additional explanation.
• Missing originals. Banks usually want to see original documents, not scans, at least at the branch.

Being ready to explain your business in plain language, with names of expected counterparties and realistic transaction volumes, helps more than any single document.

Practical preparation checklist

• Confirm the bank and branch handles foreign-invested companies; not every branch does.
• Ask for the branch's current document list in writing before you travel.
• Prepare a one-page ownership chart showing every layer up to the ultimate beneficial owners.
• Make sure the legal representative can attend in person with original ID.
• Line up certified translations of any documents not in Chinese, if the bank requires them.
• Have a clear, honest description of expected transactions, amounts and counterparties.
• Keep your company seals, licences and registration documents together and accessible.

A note on choosing a bank

Large state-owned banks, joint-stock banks and foreign bank branches in China all offer corporate accounts, but their appetite for foreign-invested clients, their English-language support and their digital banking experience differ. It is reasonable to ask other foreign founders in your city which branches have handled their type of company smoothly. A branch with relevant experience can save weeks.

Finally, treat the bank relationship as ongoing rather than transactional. Expect periodic KYC reviews, requests to update beneficiary information, and questions about unusual transactions. Responding promptly and consistently is part of keeping the account in good standing. For anything specific to your structure or tax position, consult a qualified professional in China.