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Opening a Corporate Bank Account in China: A Practical Guide for Foreign Founders

A practical, plain-English overview of how foreign founders open a corporate bank account in mainland China: entity types, document preparation, the role of the basic deposit account, bank selection, timelines, common friction points, and ongoing compliance. General information only, not legal or tax advice.

For most foreign founders, the corporate bank account is the step where a China setup stops being paperwork and starts feeling real. You can have a business licence in hand and still be unable to pay staff, receive customer payments, or remit capital until the account is open. It is also the step where expectations most often collide with how Chinese banks actually operate.

This guide walks through what the account is, what banks will ask for, how long it realistically takes, and where foreign-invested enterprises (FIEs) commonly get stuck. It is general information for planning purposes, not legal or tax advice. Banking rules, foreign exchange controls and local practice vary by city and change over time, so confirm details with your bank and a qualified local adviser before you commit.

First, know which entity you are banking for

The account-opening process depends heavily on the legal entity behind it. The three structures foreign founders most often use are:

• Wholly foreign-owned enterprise (WFOE) — a limited liability company registered in China and owned by the foreign parent or founder. This is the most common vehicle for doing business locally, hiring staff and invoicing Chinese customers.
• Joint venture (JV) — a company shared with a Chinese partner. Account opening is similar to a WFOE but requires documentation for all shareholders, which can lengthen the process.
• Representative office (RO) — a non-profit liaison office. ROs can hold an account for permitted expenses but generally cannot earn revenue, so the account's purpose is narrower.

Each entity needs its own corporate account. A foreign parent company's overseas account cannot substitute for a mainland account when dealing with local payroll, tax payments or domestic customers.

The basic deposit account is the anchor

Chinese companies typically start with a basic deposit account (基本存款账户), opened at one bank and registered with the local branch of the People's Bank of China. This is the company's primary account: it is used for payroll, tax payments, cash withdrawals and day-to-day settlement. A company can only have one basic account, though it can open additional general accounts at other banks for specific purposes.

For an FIE, the basic account is usually opened after the business licence, seals and tax registration are in place. Some banks also require a foreign exchange capital account if the company will receive registered capital or foreign-currency funds from abroad, and a special account for purposes such as payroll or project funds. Expect the bank to ask what the company does and how money will flow; vague answers slow things down.

Documents to prepare before you approach a bank

Requirements differ by bank and city, but a typical FIE package includes:

• Business licence (original and copies), plus the company's unified social credit code.
• Articles of association and, where relevant, the foreign investment approval or filing record.
• Legal representative's ID or passport, and a power of attorney if someone else signs.
• Company seals — at minimum the official company seal, financial seal and legal representative's seal. Seal culture matters in China; banks will check them carefully.
• Registered address documents, such as the lease or property certificate.
• Shareholder documents for the foreign parent, often including incorporation certificates, board resolutions and translated, notarised or apostilled copies.
• Beneficial ownership information and, for some banks, evidence of the source of funds.

Two practical points save weeks. First, ask the bank for its exact checklist in writing before you assemble anything, and ask whether documents from your home jurisdiction need translation, notarisation or consular legalisation. Second, make sure the names on every document match exactly — a middle name, an abbreviation or a slightly different company name can trigger a redo.

Choosing a bank: big, small or international

China's banking market is dominated by large state-owned banks, alongside national joint-stock banks, city commercial banks and the local branches of international banks. Each has trade-offs:

• Large state-owned banks have broad networks and strong systems, but onboarding can be slower and relationship management more formal, especially for small new entities.
• Smaller city or joint-stock banks may be more flexible and responsive to a new FIE, but their international network and English-language support can be thinner.
• International banks are often easier for founders already banking with them abroad and can simplify cross-border treasury, but they may require a larger deposit or stronger business case, and not every branch serves small FIEs.

Ask about online banking in English, cross-border payment capability, minimum balance requirements, monthly fees and how relationship managers are assigned. A useful account is one your finance person can actually operate day to day, not just open.

The appointment itself

Most banks require the legal representative or an authorised signatory to attend in person, and some require the legal representative specifically. Bring originals of everything, plus the company seals. The bank will verify documents, run know-your-customer and anti-money-laundering checks, and may ask about the business model, expected transaction volumes and counterparties.

Timelines vary widely. A straightforward WFOE with complete documents at a responsive branch might open its basic account within a couple of weeks; a complex ownership structure, missing notarisation or a cautious bank can stretch this to a month or more. The account is usually activated after central bank registration, and online banking tokens or certificates may arrive separately.

Common friction points for foreign founders

• Address verification. Banks may visit or otherwise verify the registered office. A virtual or shared address that does not satisfy the bank can stall opening.
• Signatory mismatch. If the legal representative cannot attend, confirm the power of attorney format the bank accepts before the appointment.
• Foreign-language documents. Translations must often be done by an accepted agency; self-translations may be rejected.
• Capital account sequencing. Decide early whether you need a foreign exchange capital account and how registered capital will be injected, because the paperwork differs from a plain basic account.
• Expectations about credit. A new account does not come with an overdraft or credit line. Lending is a separate conversation, usually after a track record.

After the account is open

Opening the account is the beginning of a compliance relationship. Keep the bank informed of changes to directors, shareholders, address or signatories, and respond promptly to periodic reviews. Cross-border payments and foreign exchange transactions are subject to documentation requirements, so retain contracts, invoices and supporting records. Payroll and tax payments should flow through the basic account as the bank expects.

It also helps to have a local accountant or corporate services provider who has opened accounts before. They cannot guarantee an outcome, but they can spot document gaps and warn you about local branch preferences before you book the appointment.

In short: get the entity right, ask the bank for its checklist in writing, prepare seals and notarised documents carefully, and budget more time than you think. Do that, and the account becomes a routine step rather than a bottleneck. For anything specific to your structure or city, take advice from a qualified local professional.