China Company Bank Account Opening for FIEs

Opening a corporate bank account is a critical step in starting business operations. Depending on the purpose, companies in China can open different types of bank accounts for various uses. Below are the most common types of bank accounts for foreign-invested enterprises (FIEs).

• Basic Account: A basic account has no special requirements regarding the company's business scope. Whether the enterprise is foreign-invested or domestic, as long as it is operating normally and meets the bank's basic account opening conditions, the company can apply for a basic account.
  
• General Account:  Similar to a basic account, the general account does not have restrictions on the business scope. However, the company must explain the necessity of opening the account to the bank and undergo an assessment to determine eligibility.
  
• Foreign Exchange Capital Account: Only foreign-invested enterprises (FIEs) are eligible to open a foreign exchange capital account. This account is used to receive the registered capital from foreign shareholders transferred from overseas. After registration with the foreign exchange authority, the funds can be transferred to the basic account for daily use.
  
• Foreign Currency Account: Enterprises involved in import/export business or cross-border trade can apply for a foreign currency account, which is used for storing, receiving, and paying foreign currencies.
  

For most foreign-invested enterprises, due to the latest company registration requirements regarding capital injection timelines, a basic account and a foreign exchange capital account are the two necessary accounts to open. Additionally, enterprises can choose other types of accounts based on their business needs.

Select an Ideal Bank 

Banks can be classified into three main categories based on their investment nature and shareholder background: State-owned Banks, Local Commercial Banks, and Foreign Banks. Each type of bank has its own advantages and characteristics.

State-owned Bank

Advantages:

• Comprehensive Services: Due to their strong capital strength, state-owned banks can provide a wide range of services, including personal banking, large-scale financing, loans, foreign exchange settlement, etc.
• Nationwide Coverage: State-owned banks have an extensive network of branches across the country, and some even have branches overseas.

Disadvantages:

• Limited Customization: The services and products of state-owned banks are generally less customized, which may not be ideal for smaller businesses or personal customers with varying needs.
• Less Flexibility: State-owned banks often have traditional service offerings, and the decision-making and approval processes can be more cumbersome, resulting in a less flexible customer service experience.

Representative Banks: Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Bank of China (BOC), Agricultural Bank of China (ABC), Bank of Communications (BoCom), etc.

Local Commercial Banks

Advantages:

• Local Market Understanding: Local banks have a better understanding of the economic environment and market demands in their respective regions, enabling them to provide more targeted and localized services.
• Close Client Relationships: Local banks tend to have smaller client bases, allowing them to establish long-term, stable relationships and offer more personalized services.
• Quick Response: With fewer layers in the decision-making process, local banks are able to respond to customer needs more quickly, making them particularly suitable for small and medium-sized businesses.

Disadvantages:

• Smaller Capital Strength: Compared to state-owned banks, local banks tend to have less capital and may be limited in providing large-scale financing or cross-region funds transfer services.
• Limited Network Coverage: Local banks are typically limited to certain cities or regions, so businesses that require services across multiple regions may find local banks' services restrictive.

Representative Banks: Bank of Beijing, Bank of Shanghai, Bank of Guangzhou, etc.

Foreign Banks

Advantages:

• International Services: Foreign banks are typically able to offer global financial services, including foreign exchange, international settlement, and cross-border financing, making them ideal for businesses engaged in international trade or with foreign investment.
• Efficient Cross-border Settlement: Foreign banks have strong capabilities in foreign exchange settlement and cross-border funds transfer, making them suitable for businesses with international transactions.
• Global Network: Foreign banks have global networks that can provide multinational corporations with worldwide fund management, investment, and financing services.

Disadvantages:

• Higher Service Fees: Foreign banks usually have higher service fees, especially for international settlement and foreign exchange services, which can be more expensive than domestic banks.
• Limited Service Coverage: Foreign banks in China typically focus on foreign exchange, cross-border settlement, and international business, and are less competitive in retail banking and small business financing.

Representative Banks: HSBC, Hang Seng Bank, Citibank, Standard Chartered Bank, etc.

Materials Required

To open a bank account, the following materials are required. Additionally, you may need to provide extra documents as requested by the bank.

• Business License;
• Legal Representative’s ID (valid passport, visa, or residence permit);
• Articles of Association;

Process to Open a Corporate Bank Account

Step 1: Bank Selection

For start-up foreign-invested enterprises, selecting a local bank is often a good option. Local banks have simpler account opening procedures and can offer closer client relationships in the region. For businesses with clear objectives, state-owned banks or foreign banks support a wider range of services but come with a more complex opening process.

Step 2: Submit Materials and On-Site Verification

After selecting the bank, the bank's relationship manager will provide a list of required documents and schedule a site verification of your business location. During this process, the company's legal representative must be present for face-to-face confirmation with the bank manager.

Step 3: Account Opening and Activation

The bank will review the submitted materials and conduct a Know Your Customer (KYC) procedure. Once approved, the legal representative or authorized representative can visit the bank to complete the account opening and activation.

Step 4: Account Use and Maintenance

After completing the above steps, your account will be ready for use. During this process, you will also need to maintain the account, including paying account maintenance fees to avoid any inconvenience.

Fast Appointment Scheduling

Get your bank account appointment scheduled in no time with our efficient and responsive team, ensuring minimal delays in the process.

Full-time Assistance

We can accompany you throughout the entire bank account opening process, helping you through the onsite inspection and bank visiting, or serving as your representative if possible.

Bilingual Support

We offer bilingual support in both Chinese and English, ensuring clear communication and seamless service throughout your account opening journey.