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 Bank
- Safety
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
- Citibank
- 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 >
Disclaimer: The information contained in this article is for general informational purposes only and should not be construed as legal, tax, financial, or professional advice. The content is based on current facts, circumstances, and assumptions, and its accuracy may be affected by changes in laws, regulations, or market conditions. While we strive to ensure the accuracy and completeness of the content, Azure Group China and any associated Azure Group entities, member or employee, disclaim any liability for any loss or damage incurred by individuals or entities relying on the information provided herein, whether arising from negligence, errors, omissions, or any other cause. Readers are advised to consult with qualified professionals for advice specific to their situation before taking any action.
