Features of opening a corporate account in China in 2023
Opening a corporate account in China in 2023 is becoming increasingly difficult as banks actively fight money laundering, fraud, and other illegal activities. But there are some relaxations that make the process easier. For example, the pandemic has encouraged some institutions to allow 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 2 accounts to operate in China:
- A basic RMB account - the main account where payments from Chinese companies will be received and the business itself will pay salaries, rent, etc.
- Capital account in RMB - designed for capital infusion from shareholders. It is not necessary if the company is registered in a free trade zone (e.g. Shanghai) and has a basic 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 a business, take a photo with the company logo and a business license. In addition, it is advisable for any legal representative of the organization to show up at the bank in person.
Online banking
When choosing a financial institution, pay attention to online banking. Some institutions allow you to choose the English language, others do not. In the second case, you may encounter difficulties when 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 have to provide paper information (contracts, 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 structure of the company. Often it is necessary to submit such documents:
- Permission to conduct business.
- A certificate that confirms registration with the tax office.
- Articles of Incorporation.
- A list of directors, stamped by the company.
- Copies of passports of directors, major shareholders, officers, other official representatives of the organization.
- Details of the business structure.
To register an account with the Bank of China or other 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 bank account in China 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, they can only receive payments from a few large banks in China.
To open a bank account in China 2023, you can choose an international institution that operates in the local market (Banco Santander, HSBC, Société Générale, BNP Paribas). But if you are trading online, first find out if you can link your account to Alipay (not everyone is allowed).
How to open an account fast
To open a corporate account in China, contact IT-OFFSHORE experts.