Published by ChinaMNC · French

Opening and Operating a Corporate Bank Account in China: A Practical Guide for French Founders

A practical guide for French-speaking founders on opening and operating a corporate bank account in China, covering WFOE, joint venture and representative office structures, required documents, banking procedures, tax considerations and common operational issues.

For most French founders setting up a company in China, the corporate bank account is where paperwork meets reality. You can incorporate a WFOE, a joint venture or a representative office, but until the company has a working RMB account and a foreign-currency capital account, it cannot easily pay staff, receive client funds or move money across borders. This guide explains what the process looks like in practice and how to keep the account running smoothly once it is open.

Why the bank account matters more than it seems

In China, the corporate account is not just a place to hold cash. It is tied to the company's registration, its tax status and its ability to operate day to day. Chinese banks typically require the company to have completed its business licence and, depending on the bank and the city, its tax registration and foreign-exchange registration before opening certain accounts. The account also determines how you pay social insurance, reimburse staff and settle invoices with local suppliers.

For foreign-invested enterprises, there are usually two core accounts: a basic RMB account (基本存款账户) used for everyday payments, and a foreign-currency capital account (外汇资本金账户) used to receive registered capital from abroad. Some companies also need a general RMB account for specific purposes or a foreign-currency settlement account for export earnings. The exact mix depends on the business model.

Choosing a bank

There is no single best bank. The choice usually comes down to three practical factors: whether the branch has experience with foreign-invested companies, whether it offers English or French-speaking relationship managers, and how well its online banking works for cross-border payments.

• Large state-owned banks (for example Bank of China, ICBC, China Construction Bank) tend to have broad branch networks and deep experience with foreign exchange. They are often a sensible default for companies expecting inbound capital or international trade.
• Joint-stock and smaller commercial banks may offer faster service and more flexible digital tools, but their international desk capacity can vary by branch.
• Foreign banks with a China presence can be useful if your group already banks with them internationally, though their local branch coverage is narrower.

It is worth visiting two or three branches before deciding. Ask specifically whether the branch handles accounts for wholly foreign-owned enterprises, what their minimum deposit requirements are, and how long account opening typically takes.

Documents you will typically need

Requirements differ by bank and city, and they change. Treat this list as a starting point, not a fixed checklist, and confirm with your chosen branch before you travel or courier documents.

• Business licence (original and copy)
• Company seal, financial seal and legal representative seal, where applicable
• Articles of association and, for joint ventures, the joint venture contract
• Legal representative's identity document; if the legal representative is foreign, their passport
• Authorisation letter and the authorised signatory's ID if someone other than the legal representative will open the account
• Proof of registered address, such as a lease or property document
• Tax registration information and, for foreign-invested enterprises, foreign-exchange registration documents
• Beneficial ownership information, which banks are required to collect

In many cities, the legal representative or an authorised representative must appear in person at the branch at least once. Some banks now allow video verification for parts of the process, but this is not universal. If your legal representative is based in France, plan for either a trip or a carefully prepared power of attorney, and confirm in advance that the bank will accept it.

The opening process step by step

1. Complete company registration first

The bank will ask for the business licence and the company's unified social credit code. For a WFOE or joint venture, the foreign-exchange registration of the capital account usually follows the business registration and is handled through the bank or the local branch of the State Administration of Foreign Exchange (SAFE) system.

2. Pre-screen with the branch

Send the branch your company documents in advance and ask them to confirm the document list and any minimum deposit. This avoids the common experience of arriving at the branch only to be told a document is missing.

3. Attend the branch and sign

Expect to sign account agreements, tax withholding declarations and foreign-exchange compliance forms. The bank will verify seals and identities and may take copies of everything.

4. Activate online banking

Most banks issue a token or USB key for corporate online banking. Set up the maker-checker permissions early, and test a small domestic payment before relying on the account for payroll.

5. Register the capital account and remit funds

If you are injecting registered capital, the foreign-currency capital account must be registered and the remittance must match the registered capital amount and purpose. Banks in China apply strict authenticity checks on inbound foreign exchange, so keep the supporting documents consistent with your incorporation file.

Operating the account day to day

Once open, the account needs active management. Payroll, social insurance and tax payments usually run on fixed monthly cycles, and late payments can create penalties and administrative friction.

• Payroll and social insurance: salaries are typically paid from the basic RMB account, and social insurance contributions are made through the local tax or social insurance system. Confirm the bank's cut-off times for these payments.
• Tax payments: corporate income tax, VAT and withholding tax on cross-border payments are usually paid electronically. Cross-border service fees and royalties may require withholding tax clearance before the bank will process the remittance.
• Cross-border payments: each outbound payment needs a documented purpose, such as an invoice, contract or tax clearance. Banks review these under foreign-exchange rules, so build a routine of preparing supporting documents before initiating the transfer.
• Reconciliation: monthly bank reconciliations are essential, especially where several signatories and online banking users are involved.

Common friction points for French founders

Three issues come up repeatedly. First, name mismatches: the company name on the business licence, the bank account and the invoice must align, and translated names can cause delays. Second, signatory changes: when a director or legal representative changes, the bank must be updated promptly, and the paperwork can take time. Third, foreign-exchange documentation: banks are cautious about payments that look like capital flight or undocumented service fees, so clear contracts and invoices matter.

It also helps to keep a local accountant or corporate services provider involved. They can prepare the tax and foreign-exchange documents the bank will ask for and act as a bridge when language or process differences slow things down.

A note on representative offices

Representative offices have a narrower banking profile. They generally cannot earn revenue directly and are funded by remittances from the parent company to cover approved expenses. The account opening process is similar, but the bank will expect the representative office's registration certificate and a clear explanation of the funding source.

Practical takeaways

• Confirm the document list with your specific branch before visiting; requirements vary by city and bank.
• Plan for the legal representative's presence or a properly executed power of attorney.
• Keep company names, seals and signatures consistent across all documents.
• Prepare supporting documents for every cross-border payment before initiating it.
• Set up online banking permissions and monthly reconciliation from day one.

This article provides general information for founders and is not legal, tax or financial advice. Banking requirements in China change and vary by bank and locality; consult a qualified professional and your chosen bank before acting.