China banking solutions in 2024

Since 2003, Healy Consultants Group has been assisting its multi-national Clients with business account opening in China.

• Overview of banking industry in China

  

  • The main four banks for opening a business bank account in China are i) Bank of China; ii) Industrial and Commercial Bank of China; iii) Agricultural bank of China and iv) China Construction Bank. The four of them are owned by the Chinese Government;
  • Most foreigners experience that Chinese banks do not operate as efficiently and transparently as their global competitors. Quality of customer service is average at best. Most bank officers also do not speak fluent English;
  • The stability of China’s shadow banking sector is also an increasing concern for global businessmen and investors. As a result, China is ranked 82^nd in the world for the soundness of its banking sector by the 2017-2018 Global Competitiveness Index published by the World Economic Forum;
  • For our Clients who are uncomfortable in doing business with Chinese banks, Healy Consultants Group recommends to open an account without travel with global banks present in China, including: i) Citibank; ii) DBS bank; iii) OCBC Wing Hang and iv) HSBC;
  • All the above global banks offer internationally recognized sophisticated corporate banking facilities, checking and saving accounts, prepaid, debit and credit cards, fixed term deposit and asset management services.

• How we assist our multi-national Clients' in securing corporate bank account approval for their Chinese LLC?

  • Within 6 weeks, Healy Consultants Group will assist our Clients to secure China corporate bank account numbers by:
    • Supplying a detailed project plan, giving expected timelines to complete the engagement;
    • Preparing a quality business plan to be thereafter used to support China bank account opening applications;
    • Contacting multiple China banks, in their preferred province and city;
    • Preparing a detailed table of banking options for our Client to confirm their preferred one;
    • Aggressively and skilfully negotiating for a travel exemption for the directors, shareholders and bank signatories of the business;
    • Pre-filling the required corporate bank account opening forms, then assisting our Clients to sign and courier the same to the bank;
    • Negotiating with the bank’s compliance department to minimize the list of documents required during their KYC process;
    • Assisting our Client to legalize and translate a quality set of KYC documents required by the bank;
    • Following account opening, assisting our Client to activate online banking services and receive online tokens from the bank;
    • Transferring the initial account opening deposit on behalf of our Client (to be refunded by our Client).
  • Whenever needed, Healy Consultants Group will also assist our Clients to register their Chinese business. We can additionally supply professional passive resident directors and representatives, when such appointment is requested by the banks.

• Fees and timelines for Chinese resident companies

  • Within 6 weeks, Healy Consultants Group will assist our Client to open a corporate bank account without travelling for a local China company;
  • Our fees for the same amount to US$4,950 per account opened without travel, payable by instalments (click link);
  • Following account approval, the banks also require up to three more weeks to activate online banking services and courier the tokens.

• How we assist our multi-national Clients to secure a corporate bank account approval for their foreign LLC?

  Visit our web page on corporate bank account opening process (click link) to have a better insight regarding the same.

• China trade finance

  • The Chinese Renminbi (RMB) is now the second most used currency for trade finance. However, RMB clearing remains strictly regulated by the State and it is mostly done by the Industrial and Commercial Bank of China;
  • Consequently, account opening with ICBC remains the preferred choice of Healy Consultants Group’s Clients operating in import/export business;
  • Whenever needed, Healy Consultants Group will help our Clients to obtain corporate finance in the form of a loan, overdraft or simply in preferential credit terms.

• Foreign exchange controls

  • People’s Bank of China still imposes very strict currency exchange controls on local or foreign investors, although long term trends showing gradual liberalization in foreign exchange markets and currency transactions;
  • Non-resident shareholders cannot freely receive dividends from local Chinese companies;
  • Non-resident shareholders cannot freely repatriate sales proceeds of their stake in a resident Chinese company.

• Opening a Chinese corporate bank account without a China incorporated company

  Some of our multi-national Clients’ need a local multi-currency corporate bank account to pay the local suppliers and receive funds from local customers. Within 3 months our Firm will secure a corporate bank account approval for our Client’s foreign company. The Healy Consultants Group would provide this business account opening service for a fee of US$ 8,950, without our Client requiring traveling.

  • Healy Consultants Group’s banking services

    • Without using a local subsidiary, Healy Consultants Group has found a solution for our multinational Clients who are determined in opening a business bank account in China;
    • For example, i) a Hong Kong company; ii) a Delaware LLC or iii) a UK Limited company can all open a Chinese business bank account to serve all China mainland customers;
    • Following formal engagement, our Firm will email a detailed comparison table of China corporate banking options (click link to see a sample);
    • Depending on the bank chosen, the services provided with the account can include: i) quality e-banking; ii) corporate ATM, Mastercard, Visa and other credit cards; iii) multicurrency accounts; iv) Yuan cheque book; v) dedicated bank officer and vi) phone app banking.

  • Documents required from our Client

    • Before issuing account numbers, Chinese banks will require at least the following documents. Healy Consultants will assist our Clients to prepare, sign, translate and courier all of them:
      • Corporate bank account opening forms and FATCA / CRS forms, signed by all shareholders, directors, UBOs, and bank signatories;
      • i) A certificate of incorporation; ii) M&AA; iii) certificate of incumbency; iv) financial statements and v) proof of business from the foreign entity;
      • i) Passport copies; ii) proof of address; and iii) resumes of the directors, shareholders, bank signatories and UBOs.
    • The Chinese banks can additionally require directors and bank signatories to visit China for a KYC meeting. Healy Consultants Group will aggressively and skilfully negotiate for an exemption.

  • Opening a corporate bank account in China for a Hong Kong company

    • The most efficient structure to open a corporate bank account in China without a mainland entity is a Hong Kong company because:
      • Such companies can be registered with i) a single owner and director, living outside of Hong Kong and ii) no capital requirements;
      • Banks are familiar with Hong Kong entities, resulting in higher probability of approval and lesser KYC requirements for opening a bank account in Hong Kong;
      • Properly structured, Hong Kong entities are legally tax exempt. No Hong Kong corporate income tax or withholding taxes are payable;
      • Hong Kong banks have easy access to the Renminbi, resulting in better refinancing / borrowing options for multinationals needing to pay suppliers in such currency;
      • Unlike Mainland China, the Hong Kong Government does not implement foreign exchange or capital controls;
      • See also this page for more details on the advantages of doing business in China with a Hong Kong entity!
    • Within 3 months and without our Client requiring travelling, Healy Consultants Group will register a Hong Kong company and open a corporate bank account in China;
    • See this link to download a draft quotation for registration of a Hong Kong company and contact our Firm when you are ready to proceed.

  • Alternative foreign company setup options

    • If our Clients wish to build a legally tax exempt corporate structure to secure China corporate bank account numbers, we also recommend them the following options, which are great alternatives to a Hong Kong company setup:

      	Singapore	Marshall Islands	Hong Kong
      Type of entity	Non-resident	Non-resident	Non-resident
      Legal/Financial considerations
      Time to secure company numbers	1 week	1 week	1 week
      Time to secure corporate bank account numbers	4 weeks	4 weeks	4 weeks
      Legally tax-exempt solution?	Yes	Yes	Yes
      Financial statements required for the foreign company?	Yes	No	Yes
      Audit required for the foreign company?	No	No	Yes
      Our fees	US$11,490	US$9,430	US$13,105
      Sample engagement invoice	View invoice PDF	View invoice PDF	View invoice PDF

    • View also all Asian banking options for a foreign company (without travel).

  • Fees and timelines for overseas companies

    • Within 3 months, Healy Consultants Group will assist our Client to open a corporate bank account without travelling for a foreign company;
    • Because of the challenges to obtain bank account approval for a foreign company, our fee for the same amounts to US$8,950 per account opened without our Client travelling;
    • These fees can be also paid by instalments (click link);
    • Following account approval, the banks also require up to three more weeks to activate online banking services and courier the tokens.

• Conclusion

  Let us know if you require Healy Consultants Group’s guidance for your company’s Chinese bank account setup and other allied corporate services.