A bank account for a WFOE in China
Foreign investors can set up WFOEs in China
, under certain conditions, among which, the requirement for opening a local bank account for depositing the minimum share capital of CNY 30,000. The Wholly Foreign-Owned Enterprise
is the proper business choice for international investors in China, allowing them full control and ownership. The bank account linked to the WFOE in China will be used for the company’s daily financial transactions. International investors are obliged to open a bank account in the local currency for depositing the minimum share capital. Then, if your business will run its operations and activities under other currencies, you can talk to the chosen financial institution and see the options and offers you have. Opening a bank account in China
is not a complicated process, however, it is recommended to have in mind the support of a company formation agent in China who can handle the entire formalities involved, including the ones for starting a business in China
. Let us help you establish your business in this country.
What you need to know when opening a corporate bank account in China
Foreign companies can open a bank account without the need for a local entity. In other words, such a company can open a bank account to serve China mainland customers and suppliers, without incorporating a Chinese WOFE (Wholly Owned Foreign Company), for example.
Various leading international and local banks in China can offer to foreign businesses the ability to secure a non-resident corporate bank account. Our Chinese attorneys can give you details on the corporate bank account opening in China so you can choose the proper bank for you. Depending on the bank you have chosen, a corporate bank account in China can include: e-banking, corporate ATM or debit card, Yuan checkbook, single or multi-currency corporate accounts, dedicated bank personnel and banking application for your phone.
Even though it may look as a difficult task or a time-consuming one, given the fact that shareholders, directors and bank signatories are residents overseas, our lawyers in China will successfully assist you during the process, making it easy for you.
Documents required for opening a corporate bank in China
The requirements for such a procedure may vary depending on the chosen bank. In general, some of the following authenticated documents are needed when opening the bank account:
• passport copies,
• proof of address of account signatories,
• certificate of incorporation,
• certificate of incumbency,
• memorandum and articles of association.
The concept of opening a corporate bank account in China which serves the needs of global businesses is a new one. Nevertheless, this is an attractive option for companies that look for local banking support in this emerging market.
How long does it take to open a bank account in China?
Your account details can be received in a couple of days, as soon as all the formalities and approvals are made. We remind that opening a bank account in China is a simple process that starts with the preparation of documents that must be submitted to the bank, filling and signing a set of documents, with complete support offered by one of our consultants. We can represent you with a power of attorney, so you don’t have to travel to China for opening a bank account.
Banks in China
The banking system in China is highly appreciated, and foreigners can choose to open bank accounts and work with the Bank of China
, China’s Merchant’s Bank, Agricultural Bank of China, the Bank of Communication in China or the Industrial and Commercial Bank of China, to give a few examples. You can also choose the well-known foreign banks with branches and subsidiaries in China. Do not hesitate to talk to our specialists for more details and support.
Provisions stipulated in the Commercial Bank Law in China
All commercial banks in China deal with many activities and businesses, under the laws’ provisions, such as:
• offer national and international payment services;
• can extend loans on short or long terms;
• deal with government bonds;
• deal with overseas transactions;
• offer safe deposit box facilities;
• accept money deposits from every individual in the country.
It is impetuous to know that a bank in China follows the rules and regulations related to honesty, parity, impartiality when performing businesses with the public or special clients like foreign investors, and will protect the rights and the safeties of the depositors. Our lawyer in China is able to offer you legal assistance if you want tax advice and planning for your company, or you need support on the matters.
Depositor’s protection stipulated in the Commercial Law Bank in China
Any bank in China follows the main principles related to the freedom of withdrawal, deposits and can refuse certain verification if asked by certain departments or institutions if it is not stipulated by a law in this matter.
A Chines bank handles the payments with full implications in acceptance, transfer or collection. The institution can make suitable cash entries usually followed by relevant provisions without having to detain bills and financial instruments. The appropriate endowments for the time limit of bill acceptance and entries in the accounting books need to be available to the public. On the other hand, it is good to know that the Chinese bank accounts or deposits cannot be subject to private investigations or money transfers unless is stipulated or outlined by the law on this matter.
Using the bank account in China
Banks in China offer a series of services for both natural persons and entrepreneurs in China. For instance, all the financial transactions can be made online, with the help of specific platforms provided by the chosen bank. The money deposits and withdraws can be made using the ATMs or at the local bank office. The mobile payments in China are highly used, so you might want to choose Alipay or WeChat for money transactions, considering that these applications are used by approximately 1 billion users each month in China, according to the latest statistics.
FAQ about bank accounts in China
1. Do I need to travel to China for opening a bank account?
No, there is no need for you to travel to China for opening a bank account. You can appoint us with a power of attorney and let us handle the process for you.
2. What documents do I need for opening a bank account in China?
If you are an entrepreneur in China and want to open a bank account, you should prepare a notarized copy of the business license, the Articles of Association and the Certificate of Registration issued by the Chinese Trade Register.
3. Who can open bank accounts in China?
Natural persons living or moving to China, alongside foreign investors in this country can choose a bank and open an account. The process is simple and there are no harsh formalities.
4. What bank should I choose in China?
You can direct your attention to the Bank of China or other domestic financial institutions, or you can choose the foreign ones, depending on your business
needs. No matter the bank you choose, we can provide help.
5. How fast can I open a bank account in China?
You can open a bank account in China in a couple of days if all the formalities are approved. Specific bank forms need to be completed.
Investments in China
China is one of the most powerful economies in the world and a strong business destination for international investors of any kind. Manufacturing, tourism, IT & telecommunication, automotive and engineering and prolific sectors in China, where most of the FDIs are directed. Here are some facts and numbers about the economy in China that you might find it interesting:
• the 2020 World Doing Business report ranks China 31st among 190 worldwide economies;
• a series of measures like tax and tariff cuts, streamline customs clearance and varied tax incentives have been adopted by the Chinese government to sustain the foreign investments;
• around USD 1,627,000 million was the total FDI stock for China in 2018;
• 871 was the registered number of greenfield investments in 2018 in China.