With the fastest-growing economy, the largest population, and one of the largest markets in the world, China is an attractive market for many entrepreneurs and established businesses looking to expand.
As a business, if you would like to expand into China, a bank account is essential for the minimum share capital and future financial operations in the company.
The process of setting up a corporate bank account in China can be fairly burdensome, but with your Damalion expert by your side, the process will be much more smooth.
Outline below are what you should know to get started with banking in China.
Who can open a corporate bank account in China?
Individuals living or moving to China, and foreign investors in this country can open a bank account.
Foreigners can enter the Chinese market through a WFOE (Wholly-Foreign Owned Enterprise), a representative office, or a joint venture. A necessary condition in this sense is to open a corporate bank account for the minimum share capital and future financial operations in the firm, in the local currency (RMB) and if the direction of the business regards overseas relations, the entrepreneur can request other foreign currencies linked to the account.
China non-residents can also open a business bank account in China but the types of accounts available to non-residents will depend on the structure of the company, and whether or not it’s registered in China.
Can entrepreneurs open a corporate account in China with a foreign corporate entity?
Yes, entrepreneurs can open a corporate account in China with a foreign corporate entity.
Businesses that aren’t registered in China can open non-resident accounts (NRA). NRA accounts can be opened with Chinese Renminbi (RMB) or foreign currencies, limiting the foreign exchange risk exposure.
However, this usually restricts the entrepreneur from enjoying all the benefits of a China bank account as NRAs are guarded by more regulations than the typical corporate bank account.
Can entrepreneurs open a bank account in China from abroad?
Yes, foreign entrepreneurs can open bank accounts in China from their home countries, but under specific requirements. For example, some banks will require the beneficiary to travel to China for finalizing the final forms before the bank account is opened, while some banks will accept certified copies of all needed documentation, which can be presented by an intermediate.
A good alternative to this is to select a global banking corporation and open an account locally in your home country, which can then be transferred to a Chinese branch later on.
Can I open a business bank account online in China?
Yes, depending on the manner of the bank account you’re looking to open, there are some circumstances in which you can open a Chinese bank account online.
The process involved could take much longer and might be very difficult because you are usually obliged to attend a bank branch in person to present your documents.
So it’s recommended that you discuss with the staff of the bank of your choice to see your online banking options.
Process of opening a corporate bank account in China
The process of opening a China corporate account can take anywhere from two weeks to a month. But under specific conditions, you can open a bank account in China in a couple of days if all the formalities are approved.
As with the standard process of opening a bank account, various documents must be provided to the bank, besides the forms offered for submission by the financial entity.
Although they differ from bank to bank, in general, the following information is necessary when setting up a corporate bank account in China:
- Proof that your business is properly registered, e.g., the Certificate of Registration of the company
- Copy of the business license of your firm.
- Articles of Association with complete details about the owners, the board of managers, and director(s)
- Details about the legal representative of your company in China.
- List of director(s) names, in addition to a company chop (stamp), and
- Details of the company form and ownership
Depending on the type of account needed, you might need to provide evidence of the account’s objective or additional documentation. If you’re opening an account for a foreign-registered company or a joint venture, you might also have to provide proof of state approval of the business venture.
As the process of opening a bank account in China varies according to the specific circumstances, it’s always worth corroborating first with the bank before starting in order to avoid delay.
Choosing a bank for your business in China
China is home to a large number of local and international banks. And each bank offers varied services and incentives for clients. So when choosing a bank for your business, you have to put into consideration a lot of things, such as your needs for lines of credit, your business peculiarities and operations, and so on, before settling on one.
Once you’ve selected a bank you want to operate with, call and make an appointment. You should also check the documentation you need and take it with you, so you can open your account in one visit.
But irrespective of the bank you have chosen, a corporate bank account in China can include: e-banking, corporate ATM or debit card, single or multi-currency corporate accounts, a checkbook, assigned bank personnel, and a banking application for your phone.
Banking fees in China
Each bank account in China comes with terms, conditions, and requirements. Among these, are banking fees – for transfers, currencies, exchanges, and other services. To be better prepared, it’s crucial to read the terms and conditions carefully – especially the section on banking fees, before opening your business bank account in China.
Opening a bank account in China is not a difficult process, however, it is recommended to have by your side, a firm, e.g., Damalion, who can assist by handling the entire formalities involved, including the ones for establishing a business in China.
To open your bank account in China, contact your Damalion expert now.
