Features of opening a corporate account in China in 2023
Opening a corporate account in China in 2023 is becoming increasingly tricky as banks actively fight money laundering, fraud, and other illegal activities. But some relaxations that make the process easier. For example, the pandemic has encouraged some institutions to allow the remote opening of a China 2023 bank account. Applicants can be vetted using video chat.
What's important to know about a corporate account in China
Foreign businesses often need to open two accounts to operate in China:
- A basic RMB account is the primary account where payments from Chinese companies will be received, and the business will pay salaries, rent, etc.
- Capital account in RMB is designed for capital infusion from shareholders. It is unnecessary if the company is registered in a free trade zone (e.g., Shanghai) and has a primary account with the main currency being yuan.
Another point concerns the physical presence when registering an account with ICBC, Bank of China or another bank in China. Because of the covid, China's borders have closed, making it difficult to comply with this requirement. Some banks have implemented alternative procedures. For example, for verification, an employee can visit their company and take a photo with the company logo and a business license. In addition, any legal representative of the organization should show up at the bank in person.
Online banking
When choosing a financial institution, pay attention to online banking. Some institutions allow you to select the English language, while others do not. In the second case, you may encounter difficulties entering information in Chinese. Therefore, be sure to have a staff member who knows the language.
Transfers for goods and services from foreign suppliers usually have to be made in person at bank branches, because you must provide paper information (contracts and invoices). However, the situation has improved recently, with a growing number of international online transfers.
Documents
What papers are needed to become a bank client depends on the financial institution and the company's structure. Often it is necessary to submit such documents:
- Permission to conduct business.
- A certificate that confirms the tax office registration.
- Articles of Incorporation.
- A list of directors stamped by the company.
- Copies of passports of directors, major shareholders, officers, and other official representatives of the organization.
- Details of the business structure.
To register an account with the Bank of China or another bank institution, additional information may be required and must be provided. For example, a foreign company must take state approval to do business in China.
How to choose a bank
It is better to open a bank account in China in 2023 in major banks:
- Bank of China;
- ICBC (Industrial and Commercial Bank of China);
- China Construction Bank (China Construction Bank);
- Agricultural Bank of China.
Small institutions are not the best option: if a company is located in a small town, it can only receive payments from a few large banks in China.
To open a bank account in China in 2023, you can choose an international institution that operates in the local market (Banco Santander, HSBC, Société Générale, or BNP Paribas). But if you are trading online, first find out if you can link your account to Alipay (not everyone is allowed to do it).
How to open an account fast
Contact IT-OFFSHORE experts to open a corporate account in China.