Incorp China

How To Open a Bank Account in China

Planning to operate a wholly foreign-owned enterprise business in China, whether it be a small business, a global company, or even a Fortune 500 company, can be fairly effortful. It is essential to take all the precautions needed to for your business to be successfully established. Once you acquire a business license, there are more steps to be taken further, such as, opening a bank account in China, to assist your business affairs. Although this step is necessary and can sound simple, opening an account in China can be challenging, especially recently, as the regulations became more stringent.

As of April 2020, the People’s Bank of China (PBOC) have made it obligatory to follow high level of analysis during the Know Your Customer (KYC) process. Because of this, the PBOC have ordered that all banks not only to oversee business activities, including financial transactions, but also to induct a few other conditions such as investigating your other bank accounts in addition to dormant accounts, seek capital transitions, examine times of transactions as well as suspicious or abnormal activities, restrict pay outs and limit online banking transactions.

In order to open a bank account in China, one must acquire a few essential documents including:

• Ownership certificate (lease contract or site certificate) 
• Proof of utility or rent transfer voucher for the past month (must resonate with lease contract)
• Original copy of company business license (official seal, financial seal, private seal of legal person) 
• Original copy of ID card and company associated documents of the legal person

As the process of opening a bank in China can be lengthy and challenging, China banks advise that a legal representative is present in China through the process. Due to the travel bans, banks in China have made an exception in video applications, if all is well the bank will then approve of the proposed bank account. Aside from all of these processes, the person representing the company applying for the account will have to visit the bank with additional documents. The bank will then call and confirm the opening of the account. 

Additionally, various Chinese commercial banks are trying their best to aid new clients with alternate solutions such as organizing a virtual interview (with notarized documents from the Chinese Consulate or Embassy) to make the process more manageable. 

The challenges involved in setting up a WOFE can be interminable and demanding, feel free to reach out to us for a consultation!

+1 561 729 6508 | info@incorpchina.com