01
One account does not cover all transactions
The Chinese company designs accounts according to the purpose of the funds. Basic RMB account is used as the main calculation contour; general accounts - for individual banking and credit needs. Foreign exchange earnings from trade and services belong to the current account, and the participant’s contribution, foreign debt and other investment flows belong to the capital account.
- Basic RMB account
- Basic settlements and cash transactions of the company
- General RMB account
- Additional payments and financing in other banks
- Current FX account
- Trade, services and other ongoing international transactions
- Capital account
- Deposits, loans and other registered capital flows
02
Which banks are usually considered by foreign businesses?
No bank is universally the “easiest”. The choice depends on the city of registration, ownership structure, industry, payment countries, currencies, turnover and pre-existing group relationships. Below is a practical shortlist, not a promise of discovery.
Often a first choice for international payments, foreign exchange accounts, trade finance and groups with a network outside the PRC.
Large national network, RMB settlements, corporate banking and servicing of significant internal transactions.
Corporate accounts, online banking, international settlement, financing and a developed internal network.
Wide regional coverage; useful when activities, production or contractors are located outside the largest centers.
Corporate banking, settlements and international transactions; Product availability is checked for a specific branch.
Strong digital/cash-management profile and popularity among private businesses, especially in large commercial centers.
Practical for companies in Shanghai and individual FTZ scenarios; conditions depend on the branch and profile.
International groups, cross-border cash management and HSBC overseas relations; usually more selective KYC.
Cross-border payments, FX, trade and Straight2Bank; useful for international business with suitable turnover and geography.
Suitable for groups with an Asian profile, especially Singapore/Greater China, and a request for cash and liquidity management.
It is often reasonable to evaluate one large government bank and one international or commercial bank in parallel. The first gives a strong internal RMB circuit, the second gives the convenience of an international group and an English interface.
03
The procedure for opening an account in practice
The bank checks the business license, charter, legal representative, seals, beneficiaries, address and powers of users. The process may include an in-person or video interview, an office tour, and verification of actual activity.
- 01Shortlist and pre-check
City, industry, UBO, countries, currencies, turnover and desired products.
- 02Make an appointment
A specific branch is selected and the presence of a legal representative is confirmed.
- 03Corporate KYC
License, charter, structure, UBO, office, contracts and source of capital.
- 04Interview / site visit
Business model, customers, suppliers, payments and address reality.
- 05Opening and Settings
Basic/FX/capital accounts, stamps, users, maker/checker and limits.
- 06Activation
Tokens, online banking, test payment, currency document templates.
04
What do banks usually require from documents?
- Company in China
- Business license, articles of association, company chops and tax status information
- Legal representative
- Passport/ID, contacts, personal or video confirmation of intention to open an account
- Participants and UBO
- Corporate chart to individuals and registration documents along the chain
- Authority
- Board/shareholder resolution, signatory list, powers of attorney and user documents
- Address and substance
- Lease, right to use the premises, photo/inspection of the office, employees and contacts
- Business
- Business plan, website, licenses, contracts, invoices and description of suppliers/clients
- Money
- Source of capital, expected turnover, average payment, currencies and countries
- Tax transparency
- CRS/FATCA self-certification and tax residence information
The minimum official list of documents is not equal to the real KYC package. The bank has the right to request additional materials depending on the risk and the branch.
05
Current operations: trade and services
RMB is freely convertible for bona fide current transactions, but the bank verifies the authenticity and compliance of the documents. For goods, the contract, invoice, customs information and cash flow are compared; for services - contract, deliverables, invoice and tax documents.
- Export/import
- Contract, invoice, customs and logistics
- Services
- Subject, result, period, cost and tax status
- Royalty
- IP rights, registration and tax documents
- Reimbursement
- Foundation, primary documents and connection with business
06
Capital cannot be mixed with ordinary earnings
After registering a foreign investment, the bank completes the applicable currency registration, opens the required capital account and accepts the deposit according to the declared structure. The use of converted capital must be consistent with the actual business purpose and restrictions.
The payment purpose, sender, currency, participant and registration information must match. An error in the first capital transfer may delay enrollment and subsequent transactions.
07
Every cross-border payment has a basis
The bank acts as the main operational controller: checks the contract, invoice, tax, currency registration and the nature of the transaction. The package depends on the amount, purpose, bank and client profile.
- Before payment
- Determine current or capital account and tax consequences
- At the bank
- Submit reliable and approved documents
- After payment
- Store contract, confirmation of service, invoice and bank messages
- Constant flow
- Agree on the document template with the relationship manager in advance
08
Dividends and loans require separate preparation
For dividends, the participants' decision, profit after tax, financial and tax information and the applicability of the treaty rate are usually confirmed. External debt is registered and serviced within the current foreign debt model; A shareholder loan is not an informal substitute for capital.
Distributable profits, corporate decision, withholding tax and bank.
Limit, registration, agreement, interest, receipt and repayment.
Real service, benefit test, price, tax and confirmation of the result.
IP, right of use, arm’s length, tax and beneficial owner.
09
How corporate banking works in practice
After opening, the company usually receives several invoices and a set of hardware or software confirmation tools. The interface and processes of Chinese banks are often focused on local accounting, so roles and daily procedures are set up in advance.
- Stamps
- Company chop, finance chop and legal chop representative are used for banking forms and internal policies
- Online banking
- The administrator creates users; maker generates payment, checker confirms
- Tokens / UKey
- Issued to specific users, stored separately and not transferred to the accountant without control
- Chinese number
- May be required for OTP, user contact and bank notifications
- Local payments
- RMB payments usually go through quickly if the details and limits are correct
- Cross-border
- Often require supporting documents and manual review of the relationship/operations team
- Fapiao and taxes
- The bank does not replace the tax system; payments, accounting and fapiao must be reconciled
- Account review
- The bank updates KYC, requests documents and may limit atypical transactions
When one person holds the finance chop, UKey maker, UKey checker and access to the accounting department, the formal authority matrix stops working. These functions should be separated.
10
Corporate and bank control - one system
- Maker / checker
- Separate payment creation and confirmation
- Limits
- By user, amount, currency and transaction type
- Seals and tokens
- Store separately, keep a log of issues and returns
- Counterparties
- Verification of details and independent confirmation of their changes
- Monitoring
- Monthly reconciliation of bank, accounting and contract register
11
EMI and PSP complement but do not replace Chinese bank
An overseas EMI or PSP may benefit the international group for individual currencies and markets, but does not eliminate Chinese capital, tax and exchange control requirements. Funds of a Chinese company are transferred abroad only on permissible and documented grounds.
12
Bank pre-assessment package
- 01
Business license, charter, corporate chart and UBO information.
- 02
Business plan, website, office, team and licenses.
- 03
Contracts or draft contracts with clients and suppliers.
- 04
Forecast by currencies, countries, turnover and average payment.
- 05
Source of capital and financial documents of the group.
- 06
Matrix of signatures, seals, e-banking and payment limits.