Published by ChinaMNC · Longjing

Opening a Corporate Bank Account in China: A Practical Guide for Founders Setting Up in Longjing, Jilin

A practical, compliance-focused guide for founders opening a corporate bank account (basic RMB account) in China, with specific notes for setting up a company in Longjing, Jilin. Covers account types, documentation, the role of the local branch, in-person requirements, timelines, common pitfalls, and ongoing compliance.

Why the Corporate Bank Account Matters for a New Company in Longjing

For a founder establishing a business in Longjing, a county-level city in Yanbian Korean Autonomous Prefecture, Jilin Province, the corporate bank account is more than a place to hold money. In China, the basic RMB account (基本存款账户, jiben cunkuan zhanghu) is the anchor of a company's financial identity. It is the account through which the company pays salaries, taxes, social insurance, and dividends, and it is typically required before a business can operate normally.

Foreign-invested enterprises (FIEs), wholly foreign-owned enterprises (WFOEs), and domestic startups all face a similar process: complete the company registration, obtain the business license, then apply to a bank for the basic account. The exact documentation and acceptance practices vary by bank and by locality. This guide focuses on the practical steps and the questions founders should ask when banking in Longjing.

Know the Account Types Before You Apply

Chinese banks distinguish between several account categories, and founders should understand which one they need first.

• Basic deposit account (基本存款账户): The primary account. A company can have only one. It supports cash withdrawals and is used for tax, payroll, and general settlement. This is usually the first account a new company opens.
• General deposit account (一般存款账户): A secondary account for borrowing, repayments, or additional settlement needs. It cannot handle cash withdrawals in the same way as the basic account.
• Special deposit account (专用存款账户): Earmarked for specific purposes such as construction funds or certain regulated payments.
• Temporary deposit account (临时存款账户): For temporary activities such as a short-term project or a temporary office.

In practice, most new founders in Longjing will start with the basic RMB account and add a foreign currency account if they expect cross-border capital flows. Whether a foreign currency account is available at a particular branch depends on the bank's local capabilities, so confirm this early.

The Registration Sequence: Account Opening Comes After the License

The bank account is not the first step. Founders should expect to complete the following sequence, though the order and timing can vary:

• Establish the company entity and obtain the business license (营业执照).
• Obtain the company seal set, which typically includes the official company seal, legal representative seal, finance seal, and contract seal, depending on the entity type and local practice.
• Complete tax registration and, where applicable, foreign exchange registration for FIEs.
• Apply for the basic deposit account at a chosen bank branch.

Because Longjing is a smaller city, the number of bank branches with experience handling foreign-invested entities may be limited. Founders should confirm with the branch whether it regularly processes FIE account openings and whether it can handle cross-border documentation.

Documents Typically Requested

Requirements differ by bank, but a new company should generally prepare the following. Treat this as a checklist to verify with your chosen branch rather than a definitive list.

• Business license original and copies.
• Company seals, including the official seal and, where required, the finance seal and legal representative seal.
• Legal representative's identity document (passport for foreign nationals, ID card for Chinese nationals).
• Articles of association and, for FIEs, incorporation documents such as the foreign investment information report or approval-related filings, depending on the entity structure.
• Beneficial ownership information, including identification of ultimate beneficial owners and, where relevant, corporate shareholder documents.
• Proof of registered address, such as a lease agreement or property certificate.
• Authorization letter if a person other than the legal representative handles the application.

Banks are required to conduct customer due diligence under China's anti-money laundering rules. Expect detailed questions about the company's business model, expected transaction volumes, counterparties, and source of funds. Founders should be prepared to explain their business clearly and consistently.

The In-Person Requirement and the Role of the Local Branch

Chinese banks generally require the legal representative to appear in person at the branch at least once for identity verification and, in many cases, to sign account-opening documents. Some banks may permit remote or video-based verification in limited circumstances, but this is not universal. Founders should plan for an in-person visit rather than assume a remote option exists.

In Longjing, the practical experience can differ from larger cities. Local branches may have less familiarity with foreign founders, so expect more back-and-forth on documentation. Building a relationship with a specific account manager at the branch is often more useful than applying online. Ask the branch directly about its process for FIEs, its expected review timeline, and whether it requires additional documents beyond the standard set.

Timelines and What Affects Them

There is no single guaranteed timeline. Account opening can take days or weeks depending on the bank, the completeness of documentation, the complexity of the ownership structure, and the bank's internal compliance review. Founders should not schedule critical payments or payroll until the basic account is active and tested.

Factors that commonly slow the process include incomplete beneficial ownership documentation, inconsistency between the business license and the lease agreement, unclear explanations of the business model, and missing seals or authorization letters. Preparing a clean, consistent document set reduces friction.

Practical Tips for Founders in Longjing

• Confirm local capability early. Ask whether the branch handles FIE accounts and foreign currency transactions before you invest time in an application.
• Keep your story consistent. The business description on the license, in the articles, and in your conversation with the bank should align.
• Prepare beneficial ownership documents thoroughly. Layered corporate shareholders require more explanation, not less.
• Budget for an in-person visit. The legal representative should plan travel to Longjing or to a nearby branch if the local branch cannot process the application.
• Ask about online banking setup. Once the account is open, confirm how to activate online banking, what tokens or devices are required, and who holds the credentials.
• Clarify fees and minimum balances. Account maintenance fees and minimum balance requirements vary by bank and account type.

Ongoing Compliance After the Account Is Open

Opening the account is not the end of the compliance work. Companies must keep bank records updated when the legal representative, registered address, or ownership changes. Annual reporting obligations, tax filings, and foreign exchange requirements for FIEs continue after account opening. Banks may also request periodic updates to customer due diligence information. Founders should assign clear internal responsibility for banking compliance and keep documentation organized.

Disclaimer

This article is provided for general informational purposes only and does not constitute legal, tax, accounting, banking, or investment advice. Banking requirements, documentation, and procedures in China vary by bank, branch, entity type, and local practice, and are subject to change. Nothing in this article guarantees that any particular account will be opened or that any specific timeline will be met. Founders should consult their chosen bank branch, a qualified local accountant or lawyer, and relevant Chinese regulations before making decisions. The author and publisher accept no liability for actions taken based on this content.