Bank accounts and transferring salary abroad
Opening a Bank Account for a Foreigner in China
Foreigners are required to fulfil a number of conditions to open a bank account.
Opening a Corporate Bank Account for a WFOE in China
Requirements, documents and procedures for WFOE bank account opening
Opening a Bank Account for a Foreigner in China
Foreigners are required to fulfil a number of conditions to open an account at the most important banks in China, e.g. Industrial and Commercial Bank of China (ICBC) o China Construction Bank (CCB), which mainly relate to proof of identity, residence permits, proof of income, and any other supporting documents that may be required.
Proof of Identity
Foreigners must provide an original passport within the validity period to serve as the main identification document. The passport is an important document for confirming one’s identity and eligibility for international travel, and banks will rely on the information in the passport for identity verification.
Residence Permit
If a foreigner resides in China for more than a certain period of time (usually more than six months), he/she is required to provide proof of a valid residence permit, such as a work visa or residence permit. These documents are used to confirm the foreigner’s legal residence status in China.
Proof of Income
Although not all banks strictly require proof of income, some banks may require foreigners to provide proof of legal source of income, such as salary slips, tax statements, bank streams, etc. These documents are used to prove the foreigner’s economic status in China and the legality of the source of funds.
Proof of Address
Some banks may require proof of residential address, such as rental contract, utility bill, etc. to ensure smooth communication between the bank and the foreigner.
Proof of employment
If the foreigner is working in China, some banks may require proof of employment or proof of employer to confirm his/her occupational status and job stability.
Account Opening Process
According to personal needs and convenience, choose a suitable bank to open an account.
Prepare all necessary proof of identity, residence permit, proof of income and other supporting documents as required by the bank.
Submit the documents in person at the bank counter or designated account opening branch.
Fill in the account opening application form and sign the relevant agreement under the guidance of the bank staff.
The bank will audit the submitted materials and open the corresponding bank account for the foreigner after passing the audit.
The specific requirements and procedures for foreigners to open accounts may vary from bank to bank, so it is recommended to consult the specific regulations and requirements of the chosen bank.
Opening a Corporate Bank Account for a WFOE in China
Foreign-invested companies (WFOEs) established in China are required to fulfil a number of conditions to open a corporate bank account at the major Chinese banks. A WFOE typically needs more than one account to operate: a basic RMB account (基本户) for day-to-day operations (only one per company, registered with the PBoC), a foreign-currency capital account (外汇资本金账户) to receive the registered capital injected by the foreign parent, and, where the WFOE earns foreign-currency revenue, a foreign-currency settlement account (外汇结算账户).
Corporate Registration Documents
- Business license: The WFOE must provide the original business license (营业执照) issued by SAMR, typically together with several certified copies, as the primary proof of the company’s legal existence and business scope.
- Articles of Association: The Chinese-language Articles of Association, as filed with SAMR, must be submitted to confirm the company’s governance structure, registered capital, and shareholding.
- Tax registration / unified social credit code: Proof of tax registration (now generally embedded in the unified social credit code) is required to confirm the company’s tax status.
- Foreign-investment information record: The foreign-investment information filing receipt from SAMR/MOFCOM must be provided, confirming the company’s status as a foreign-invested enterprise.
Legal Representative’s Identity and Presence
- Valid passport: The legal representative must provide an original, valid passport as the main identification document, which the bank uses for identity verification purposes.
- In-person KYC interview: Almost all Chinese banks require the legal representative to be physically present at the branch for a Know-Your-Customer interview, typically lasting 30–60 minutes, covering the company’s business plan, source of capital, expected transaction profile, and cross-border payment needs. Power of attorney arrangements allowing the legal representative to sign remotely are generally not accepted. Where the legal representative cannot travel to China, appointing a China-resident legal representative, or opening with a foreign bank offering video-KYC options, are the two common workarounds.
- Director/shareholder resolutions: A resolution appointing the legal representative and specifically authorising the opening of the bank account is usually required.
Registered Capital and Foreign Exchange Documentation
- Beneficial-ownership declaration: Under PBoC anti-money-laundering rules, the bank will require a declaration identifying the ultimate beneficial owner(s) of the WFOE.
- Source-of-funds documentation: For the foreign-currency capital account, the bank will request documentation on the source of the capital being injected (e.g. confirmation that funds originate from the parent company’s operating account, together with wire confirmations), in order to clear conversions from foreign currency into RMB. Conversions above roughly USD 50,000 equivalent are subject to closer SAFE review.
- Group documentation (foreign banks): Where the account is opened with a foreign bank in China, additional documents such as a group structure chart, the ultimate parent’s corporate documents, and in some cases the parent’s audited financials, may be requested.
Account Opening Process
- Choose a bank: Select a bank suited to the WFOE’s transaction profile — a Big Four Chinese bank (e.g. BOC, ICBC) for mostly domestic operations, or a foreign bank (HSBC, Standard Chartered, Citi) for WFOEs with frequent cross-border payments (service fees, royalties, dividends), which tend to process SAFE-related documentation faster.
- Prepare materials: Assemble all originals of the corporate registration documents, legal representative’s identification, chop register, lease agreement, and any other supporting documents required by the chosen bank. Missing originals are the most common cause of delay.
- Submit the application: File the account opening application with the bank branch once the business license has been issued (the application cannot be filed beforehand).
- Attend the KYC interview: The legal representative attends the compliance interview in person, and signs the account opening forms and related agreements under the guidance of the bank staff.
- Review and account activation: The bank’s compliance team reviews the submitted materials; once approved, the basic RMB account is activated and registered with the PBoC, followed by the foreign-currency capital account (linked to SAFE registration) and, if needed, the settlement account.
Notes
- The specific requirements, document checklists, and timelines for WFOE bank account opening vary by bank and by city, and have tightened in recent years due to stricter KYC and anti-money-laundering checks.
- In practice, the process takes around 4 to 8 weeks from the date the business license is issued, so it is recommended to plan the legal representative’s availability and document preparation well in advance, and to confirm the specific regulations and requirements of the chosen bank before opening an account.
Transferring salary abroad
Transferring money from China to another country as a foreigner who works and receives a salary in China involves a few steps and requires specific documentation due to the country’s strict currency controls. You can transfer money through Chinese banks like ICBC, Bank of China, China Construction Bank, or any other major bank where you have an account.
General Requirements and Documents:
1. Proof of Income:
Employment Contract in order to show the source of your income.
Salary Slips in order to verify your earnings.
Tax Payment Receipts to prove that you have paid taxes on your income.
2. Identification:
Passport: Your valid passport with your Chinese visa.
Work Permit: Your valid work permit in China.
Bank Account Details: Details of the Chinese bank account where your salary is deposited.
3. Transfer Application Form:
Fill out the bank’s application form for international transfers. This will include details of the recipient bank and account overseas.
4. Bank Statements:
Recent bank statements to show the flow of your salary into your account.
5. Recipient Details:
Recipient’s Bank Account Information, including the SWIFT/BIC code and IBAN (if applicable) of the recipient’s bank.
Recipient’s Full Name and Address.
Procedures:
1. Visit Your Bank:
Go to the branch of your bank with the required documents. It is often necessary to make these transfers in person, especially the first time.
2. Complete the Application:
Fill out the international transfer form with all necessary details. Bank staff will guide you through the process if needed.
3. Submit Documents:
Provide all the required documents to the bank staff for verification.
4. Currency Exchange:
Your Chinese RMB will need to be converted into the currency of the destination country. The bank will handle the currency exchange, and you should be aware of the exchange rate and any associated fees.
5. Pay Transfer Fees:
There are typically fees for international transfers, which can vary by bank. Ensure you understand the fee structure.
6. Wait for Transfer Completion:
The transfer may take a few days to complete. The bank should provide you with a reference number or receipt for tracking purposes.
Tips:
Be aware of any limitations on the amount you can transfer and how often you can make transfers.
Some banks offer services specifically for expatriates and may have dedicated staff to help with international transfers.
Ensure you are in compliance with both Chinese tax laws and the tax laws of your home country regarding foreign income and transfers.
