Starting a Business with China: Banks and Account Types
- Максим Миненко
- 7 мая
- 2 мин. чтения
Обновлено: 13 мая
Opening a corporate bank account is one of the key steps for any entrepreneur starting a business with China. Although there are no formal restrictions for companies with foreign founders, in practice, the process can be more complicated because of internal bank policies that guide decisions about opening accounts. In this article, we’ll look at what factors affect the chances of opening an account for a company with foreign ownership, and what types of accounts are available for such companies in China.
Starting a Business with China: Bank Requirements and Realities
Formally, Chinese banks do not have special rules for companies with foreign founders. There are no official requirements related to the company's place of registration, number of employees, turnover, or size of the registered capital. However, in practice, banks follow internal, unofficial guidelines when deciding whether to open an account.
One of these guidelines is to apply extra scrutiny to companies whose founders or directors are from so-called "high-risk" countries. For example, since 2022, fewer banks are willing to open accounts, make payments, or accept capital from companies where the founders are from CIS countries, due to the conflict between Russia and Ukraine.
Additionally, some banks limit the types of transactions they accept. They might only allow money transfers inside China or accept SWIFT payments only from specific foreign banks.
Tip: It's a good idea to open accounts at several banks that are willing to work with you. The list of available banks can vary based on your individual situation, so always check carefully.
Types of Bank Accounts
There are several types of accounts that a company with foreign founders can open in China:
1. Primary (Basic) Bank Account Every company can have only one primary account. To open it, you will need a business registration certificate from the local Administration for Market Regulation (AMR) and an official bank account opening license. This is the account you use to pay all taxes and employee salaries.
2. General Corporate Accounts Once you have your primary account, you can open additional regular accounts at other banks. There are no limits to the number of general accounts you can have.
3. Foreign Currency Account If you already have a primary account, you can also open a foreign currency account. This account is used for transactions in USD, EUR, and other foreign currencies.
4. Offshore Accounts Some Chinese companies also open offshore accounts, which are held in foreign banks located in third countries. These accounts are useful for companies doing business in countries where it is hard to send or receive international payments directly. Though for international operations Hong Kong or Singapore company may be more suitable then China company. Those jurisdictions we will cover in future posts.
Opening a bank account for a company with foreign founders in China can be complicated. Many factors can affect the process, including the founders’ country of origin, the bank’s internal policies, and the rules for international transactions.
Every year, fewer banks are open to working with companies with foreign ownership. That’s why it is crucial to choose the right bank carefully, prepare all necessary documents thoroughly, and seek professional advice when needed.
