How Foreign Companies Open a Bank Account for Their China Entity

Opening a corporate bank account in China is often the step that surprises foreign companies the most. What looks like a two-day administrative task in most jurisdictions can take two weeks in China—and occasionally much longer if the paperwork is not in order. This guide explains the process, the documents required, and where things tend to go wrong.

Why It Takes Longer Than You Expect

A China corporate bank account is not processed online. The bank requires an in-person interview with the company’s legal representative and, in many cases, a physical site visit to the company’s registered office. Both are mandatory and neither can be delegated. If your legal representative lives overseas and cannot travel, you will need to plan around this requirement from the start.

The Basic Requirements

The standard document package for opening a basic RMB settlement account includes:

• Business license (营业执照) — original and copy
• Company chops (公章, 财务章, 法人章)
• Legal representative’s passport or Chinese ID — original and copy
• Tax registration certificate (now integrated into the business license)
• Completed bank account opening application form
• Proof of registered address — usually a lease contract or property certificate

If your company is a WFOE, the bank will also review your foreign investment filing documents and capital account setup—one more layer of paperwork compared to a domestic company.

Two Accounts, Two Purposes

Foreign-invested companies typically open two types of accounts:

• Basic RMB settlement account (基本存款账户): for daily operating expenses, receiving RMB revenue, paying salaries and suppliers. This is the account you will use most.
• Capital account (资本金账户): for receiving registered capital from the overseas parent. Funds deposited here are subject to capital verification and can only be converted to RMB and transferred to the settlement account for approved business purposes.

Some banks will also require you to open a separate tax payment sub-account, though this is increasingly handled within the main settlement account at larger banks.

Five Common Mistakes Foreign Companies Make

1. Choosing a bank branch that has never handled a foreign-invested company. Not all ICBC or Bank of China branches are equal. A branch that only serves domestic companies may take weeks to figure out the WFOE account process. Choose a branch with a dedicated international business department.

2. Handwritten signatures on the chop card instead of registered specimen signatures. The bank keeps a signature specimen card on file. If the signatures on your application documents do not match what is registered—or if the signatory is not the legal representative—the account opening stalls.

3. Incomplete or inconsistent registered address documentation. Banks check the lease contract and the address on the business license against each other. If there is a discrepancy—even a missing room number—the application is returned.

4. Underestimating the legal representative interview requirement. The legal representative must appear in person. This cannot be bypassed with a power of attorney. Plan the visit around this constraint.

5. Not opening the capital account at the same time as the settlement account. The two accounts are usually opened at the same bank. Separating them across banks adds months of coordination between two institutions and SAFE.

Talk to a China Business Lawyer

The bank account opening process in China is fundamentally a paperwork and compliance exercise. The problems that cause delays are almost always addressable in advance—consistent documentation, the right bank branch, and scheduling the legal representative’s visit correctly. If you are establishing a China entity and want the administrative steps to go smoothly, get in touch for guidance. I act for foreign companies on regulatory compliance, corporate structuring, and cross-border payments, with offices in Beijing and Shenzhen.

This article is general information, not legal advice. For advice on your situation, please get in touch.