While you set up a China Company Bank Account, you have the choice between multiple types of the China Company Bank Account. Some of the options that foreign businesses that are setting up a China Company Bank Account will have are: a Basic RMB Account, a Foreign Currency Account, a Capital Account, and a temporary account such as, a USD Payment Account.
The importance of setting up an account for a WFOE in China can be described as follows;
Legitimate Way to Carry Out Transactions in China
Tax Concerns Influence the Business Transaction Process
The importance of setting up an account for a WFOE in China cannot be denied. It is also necessary if you want to claim business-related tax deductions that your WFOE may be eligible for, such as tax returns, VAT return and social insurance allowance, all of which are offered by the Chinese government to foreign companies that are active in China. Going through the China Company Bank Account process is well worth the effort for businesses looking to do business legally, enjoy tax returns and grow their business.
Foreign entities that are looking to operate within China should consider their annual audits when starting a business in China. The IRS (Internal Revenue Service) in China will ask businesses operating within China for a report of their yearly earnings. This process is usually carried out during the period between the end of one fiscal year and the start of the next fiscal year.
Another reason why it is best to establish a China Company Bank Account is because it helps a business improve its corporate image.
Classification of China Company Bank Accounts
A primary settlement account is basically a bank settlement account in which a business can be open for daily transactions, such as transfer settlements and cash collection. Under the regulations of the RMB Bank Settlement Account, a primary settlement account, which is one of the most commonly used corporate bank accounts in China is considered to be the foundation of doing business in China. Under Chinese law, a permit of a bank account opening will be issued only after the primary settlement account has been opened by the enterprise. Business China is here to offer you professional account management services that takes care of establishing a China Company Bank Account.
It is important to note that only a single settlement account can be opened by a single company that’s operating within China. Opening multiple settlement accounts in a Chinese bank is only possible once you have opened a primary settlement account first. While opening, changing or cancelling any account type in China, the business owner is going to need the permit of bank account opening before carrying out these processes any further.
√ General Deposit Account
A General Deposit Account in China is a bank settlement account that is opened by a foreign company doing business in China that’s in need of a loan or to satisfy other settlement requirements. The General Deposit Account is not to be viewed as an essential account by a WFOE, RO or JV that’s operating within China. That being said, a General Deposit Account is issued only when there is an involvement of a loan, or to cater to a company’s settlement needs.
√ Special Deposit Account
The Special Deposit Account is a bank settlement account that is opened by a foreign company operating within China, and is in accordance with the Chinese laws, rules and regulations. The special deposit account is solely for special funds that are for specific usage. Opening up a special deposit account in China reflects the guiding ideology of a special management and special funds with professional supervision.
√ Foreign Exchange Deposit Account
A Foreign Exchange Deposit Account is divided into a current account, foreign exchange deposits and capital account foreign exchange deposits. With the Foreign Exchange Deposit Account, a company needs to provide an Approval Certificate of a Foreign Exchange Deposit Account Opening, which is to be provided by the Foreign Exchange Control Board (FECB), along with a business license.
Business China can help foreign companies that want to do business in China by helping them apply for a Foreign Exchange Deposit Account, making it easier for the company to receive remittances in China. Other benefits of a Foreign Exchange Deposit Account for a foreign company doing business in China is that it makes it easier for repatriation of domestic funds and for receiving deposits.
The Process to Set up a China Company Bank Account
- We recommend an established bank for account opening based on our client’s business needs.
- We help sort out and prepare relevant documents for the China Company Bank Account process.
- Business China will send one of our experienced associates to accompany our customers during the bank opening interview, and to handle subsequent file preparation with the authorization of the client.
- Business China prepares the corresponding English translation version of the corporate bank account for the customer after opening the bank account.
- Business China will keep clients informed on relevant bank notices and other important information. We will be with you every step of the way during the China Company Bank Account process.
China Company Bank Account Opening Checklist
Business China has gained years of experience in establishing a WFOE in China and in setting up an account for a WFOE in China. With our knowledge and expertise, our clients are able to make a more informed decision while they set up a China Company Bank Account. The following is a checklist for a China Company Bank Account;
- Reserved seal of authorization
- Original Identity Document of the Legal Representative
- Original Identity Document of the corporate account filing contacts
- Official Seal
- Notification of Business Operation
- Identity Information Sheet
- Enterprise Finance Chapter
- Company Stamp Carving Permit
- Company Business Certificate
- Chapter of Enterprise Legal Person
- Business Agent Authorization Letter
- Application for Opening a Corporate Bank Account
In order to open a bank account, a legal representative of the company is required to visit the front desk officer of a bank. Business China will be with you every step of the way, from putting together the right documents for opening the China Company Bank Account, to taking care of all other aspects of opening a corporate bank account in China. We will do everything it takes to ensure a quick and hassle-free experience while you set up a China Company Bank Account.
Which Bank Should I Choose?
Due to the unprecedented economic growth of the country, there are now many national and international banking institutions that are operating within China. But, it is best for WFOEs, ROs and JVs to choose from one of the four largest banks in China, such as:
ICBC - Industrial and Commercial Bank of China
BOC - Bank of China
ABC - Agricultural Bank of China
CCB – China Construction Bank