One of a legal requirements when registering a company in China is opening a bank account. China’s local banks and foreign banks vary a lot from each other in many aspects. As a foreign business, you will need to decide which bank should you choose.
Foreign banks are more experienced and rigorous in the due diligence system.
- International settlement network
Foreign banks have advantages over local banks in the international settlement network.
- A limited type of account to open
Foreign banks, especially small and medium-sized foreign banks, are relatively limited in the types of accounts they can open in China. Some of these banks have no access to Cash business.
- Higher cost
Opening an account in foreign banks need to pay higher bank charges. Most foreign banks also require for a minimum deposit in the bank account in order to waive your monthly bank service fees.
Some recommendations of Foreign Banks:
- Hongkong and Shanghai Banking Corporation (HSBC)
- Standard Chartered Bank
- JP Morgan
Estimated time for opening a bank account in Foreign Banks: 2-6 months
Chinese Local Bank
- The convenience of opening an account
Compared to Foreign banks, it is much easier to open a bank account with local bank.
- More types of accounts to open
Local banks have comprehensive types of accounts and have access to Cash business.
- Domestic settlement network
Local banks have absolute advantages in the Chinese domestic settlement network. The speed of capital transfer is generally faster than that of foreign banks.
- Lower cost
Local banks generally charge much cheaper fees to open an account and will not require for minimum deposit in the bank account.
Some recommendations of Local Banks:
- Industrial and Commercial Bank of China (ICBC)
- Agricultural Bank of China (ABC）
- Bank of China (BOC)
- China Construction Bank (CCB)
- China Merchants Bank (CMB)
Estimated time for opening a bank account in a local Chinese Bank: 2-4 weeks
Starting a business in China is challenging and requires local experience to establish operations properly and successfully. Azure Group’s expert team has extensive hands-on experience in assisting businesses setup locally in China. Get in touch >