China Business Bank Account Opening
Acadia Advisory Group is a preferred vendor of Bank of China, clients recommended by Acadia can enjoy a fast-track account opening program, which eliminates the physical meeting requirement with the bank. International companies can successfully open bank accounts in China without physically traveling to China.
Opening a WFOE Bank Account
Companies first need to register with the WFOE and get to choose from a host of different bank accounts although there are two mandatory ones. Here are the two mandatory bank account options:
The Basic RMB Account
This is the account you would use for daily transactions and any type of salary payments or standard withdrawals. It only takes around 5 days to get the opening permit and once you have it, you can even use it to perform online banking and transactions.
The Foreign Capital Account
If you need to inject foreign capital into your Chinese business, this is the type of account you use. The capital you transfer from a foreign country into this account will be converted to RMB so it can then be used for E-banking transactions in the future. Getting the certificates to open this type of bank account, typically takes around 10 working days.
Presenting the Correct Documents
There’s a variety of documents that must be presented to the WFOE so you can open a bank account for the type of entity that covers your type of business. However, these documents vary depending on your company type. Here is an example of the most common documents that are required to open a bank account as an entity.
- You need to provide tax registration certification, your business license, and an article of association so you can prove your company is legally doing business in China.
- The original passport of the legal representative.
- Company director and legal rep names, as the rep is usually the one who is physically there to present the docs or ID.
- Personal details or a copy of the passports of the two key top-level shareholders that is based on your full company layout and structure.
- Any names or info pertaining to authorized people that hold the main role for managing your E-banking system if this is not done by the legal rep.
- Presenting the Legal Rep Chops of the company as opposed to handwritten signatures that can be forged.
- Any info that pertains to the company’s overall structure and operations.
International Banks Vs Local Banks
You have the option in China to open either a local bank account at financial establishments like the Bank of China, or you could opt to open an account at international banks that operate in China such as Citibank, HSBC, and so forth. It’s common for foreign companies operating in China to open an international bank account, but if you did opt to open a local China bank account, you would get these major benefits in doing so:
- It’s a quicker and less painful process.
- The majority of Chinese companies have local bank accounts that ensure faster transactions when using RMB.
- Not all foreign banks are verified by