Published by ChinaMNC · Japan

Opening and Operating a Corporate Bank Account in Mainland China: A Guide for Japanese Founders

A practical guide for Japanese founders on opening and running a corporate bank account for a mainland China company, covering entity choice, documents, KYC, RMB versus foreign-currency accounts, day-to-day operations, and how this differs from banking in Japan.

For a Japanese founder setting up a company in mainland China, the corporate bank account is often the step that feels most unfamiliar. In Japan, opening a business account is usually a straightforward administrative task. In China, the account is tightly linked to your business licence, your registered capital, your tax status and your ability to move money across the border. Understanding how the pieces fit together before you start saves considerable time.

This article is general information, not legal or tax advice. Rules, documentation requirements and bank practices vary by city, by bank branch and over time, so confirm current requirements with your bank and a qualified local adviser.

Start with the Entity, Because the Bank Will

Banks in China assess account applications based on the legal entity behind them. Your choice of structure shapes what you can open and how you operate it.

• Wholly foreign-owned enterprise (WFOE): The most common vehicle for Japanese founders who want to control a China-based business directly. A WFOE can open RMB and foreign-currency accounts and, once properly set up, handle both domestic and cross-border payments.
• Joint venture (JV): Common where a Chinese partner brings licences, distribution or local relationships. Account opening typically requires documents from both parties, and signing authority needs to be agreed carefully in the JV contract.
• Representative office (RO): A liaison office cannot conduct profit-making business. Its bank account is generally used for permitted expenses funded from abroad, not for commercial revenue.
• Branch of a foreign company: Possible in some sectors, but documentation and approval requirements are heavier.

Your business licence (营业执照) is the anchor document. The company name, registered address, legal representative and registered capital on the licence must match what you present to the bank. Any inconsistency, including a small difference in the English or Chinese name, can delay the application.

The Accounts You Will Likely Need

Chinese banks distinguish between account types, and foreign-invested companies often hold more than one.

Basic deposit account (基本存款账户)

This is the company's primary RMB account. It is used for payroll, tax payments, daily expenses and cash withdrawal. A company generally has one basic account, and it must be opened before certain other banking services. Opening it usually requires an in-person visit, and the bank may conduct an on-site check of your registered address.

General deposit accounts (一般存款账户)

Used for additional RMB banking needs such as loan proceeds, project funds or a second operating account. These are opened on top of the basic account.

Foreign-currency accounts

If you receive capital from Japan, invoice overseas clients or pay overseas suppliers, you will need a foreign-currency account, often a USD account. Capital contributions from the Japanese parent are typically remitted into a foreign-currency capital account and then converted or used according to foreign-exchange rules.

Special-purpose accounts

Certain activities, such as some regulated businesses or specific fund flows, may require dedicated accounts. Your bank and adviser can confirm whether these apply to you.

Documents to Prepare

Requirements differ by bank and branch, but a typical file for a newly registered WFOE includes:

• Business licence (original and copies)
• Company seal, financial seal, legal representative seal and, where used, contract seal — seal management matters in China and should be controlled carefully
• Articles of association
• Identification of the legal representative (passport for a Japanese national) and, if the legal representative does not attend, a signed power of attorney plus the authorised person's ID
• Proof of registered address, such as a lease or property document
• Information on shareholders and ultimate beneficial owners, including parent company documents
• Foreign-investment reporting confirmation, where applicable
• Tax registration information and, in some cases, a tax credit rating once the company has operated

Japanese parent company documents often need translation and, depending on the bank, notarisation or legalisation. Ask the branch for its exact checklist in writing before you travel or courier documents.

KYC, Beneficial Ownership and Face-to-Face Checks

Chinese banks apply customer due diligence and beneficial ownership rules similar in spirit to those in Japan, but the practical process can feel more document-heavy. Expect questions about your business model, expected transaction volumes, counterparties and the source of funds. The legal representative or an authorised signatory is usually expected to appear in person at least once.

Banks also weigh commercial logic. A newly established company with no trading history may be asked for contracts, invoices, a business plan or evidence of the parent company's operations. Presenting a clear, consistent explanation of what the China entity will do and who it will trade with helps the application move forward.

Operating the Account Day to Day

Once open, the account is not entirely hands-off. Practical points Japanese founders commonly encounter include:

• Online banking tokens and approvals: Corporate e-banking often uses USB tokens or mobile approvals, with maker-checker controls. Set up roles for preparer and approver deliberately.
• Seal discipline: Payments may require the financial seal or a payment password. Keep seals with designated staff and maintain a log.
• Foreign-exchange documentation: Cross-border payments and conversions require supporting documents such as contracts and invoices. Banks review these under foreign-exchange rules, so keep records organised.
• Tax linkage: The bank account is tied to your tax registration. Tax payments are made from the basic account, and changes in tax status may prompt the bank to update its records.
• Annual updates: Corporate information changes — a new legal representative, address or shareholder — must be reflected at the bank, usually with supporting documents.
• Fees and minimum balances: Account maintenance fees, transfer charges and balance requirements vary by bank and account type. Compare packages rather than assuming all banks are alike.

How This Differs from Banking in Japan

Japanese founders often notice several structural differences:

• Account opening is relationship-based and slower. In Japan, a resident founder can often open a business account with modest documentation. In China, expect a branch visit, address verification and a longer review, especially for a new foreign-invested company.
• The basic account is a gatekeeper. The concept of one designated basic account, opened before broader banking activity, has no direct equivalent in typical Japanese business banking.
• Seals carry legal weight. Japanese companies use registered seals (inkan), but in China the company seal, financial seal and legal representative seal play a central operational and contractual role, and their custody is a governance matter.
• Foreign exchange is documented at the transaction level. Cross-border flows are supported by contracts and invoices reviewed by the bank, rather than being handled largely through online remittance with lighter documentary checks.
• Digital banking is widely used but bank-specific. Corporate apps and portals differ significantly between banks, so choose a bank whose digital tools your finance team can operate comfortably.

Practical Suggestions Before You Apply

• Confirm the entity structure and registered capital plan first; the bank will ask about both.
• Ask two or three banks in your registered city for their document checklists and expected timelines, and compare fees and online banking features.
• Ensure all names, addresses and representative details match across the licence, articles and shareholder documents.
• Prepare a short written explanation of your business model and expected payment flows.
• Plan who will hold the seals and who will approve payments, and document those roles internally.
• Keep contracts, invoices and foreign-exchange supporting documents in an organised file from day one.

Used well, the corporate account becomes the operational backbone of your China entity — connecting capital, customers, suppliers and tax obligations. Treat the setup as a project that involves your bank, your corporate adviser and your finance team together, and confirm current requirements directly with the bank branch that will serve you.