Published · Andorra

Opening a Corporate Bank Account in China: A Practical Guide for Andorran Founders

A practical guide for founders from Andorra on opening a corporate bank account in China, covering bank options, documentation, the role of RMB accounts, onboarding realities, timelines, fees, and cross-border considerations.

Opening a corporate bank account in China is often one of the last steps in a company formation process, yet it is the one that most frequently surprises foreign founders. For Andorran entrepreneurs setting up a wholly foreign-owned enterprise (WFOE), a joint venture, or a representative office, the bank account is not simply a place to hold cash. It is the operational backbone for paying staff, receiving customer payments, settling taxes, and moving capital in and out of the country.

This article provides general practical information for founders based in Andorra who are planning to establish a business presence in China. It is not legal, tax, accounting, or financial advice. Banking rules in China are administered by the People's Bank of China (PBOC), the State Administration of Foreign Exchange (SAFE), and individual commercial banks, and practices can vary by city, bank branch, and the nature of your business. Always confirm requirements with your bank and your professional advisers before acting.

Why the Bank Account Matters More Than You Might Expect

In many European jurisdictions, a company can operate for a period with a basic account and add services later. In China, the corporate account is closely tied to the company's legal existence and to foreign exchange controls. Your Chinese entity will typically need at least two accounts: a basic deposit account (基本存款账户) and, for foreign-invested companies, a foreign currency capital account and often a RMB settlement account.

The basic deposit account is the primary account for everyday RMB operations. It is where the company can withdraw cash, pay salaries, and handle domestic settlements. A foreign-invested enterprise generally may hold only one basic deposit account. The capital account is used to receive registered capital and foreign shareholder loans; funds arriving there must be converted and used in line with the company's approved business scope and SAFE rules. Getting the account structure right at the outset saves considerable time later.

Which Banks Should Andorran Founders Consider?

China's banking sector includes large state-owned banks, joint-stock commercial banks, city commercial banks, and foreign-invested banks. Each has different strengths for a foreign founder.

• Large state-owned banks (for example, Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China) have extensive branch networks and strong foreign exchange capabilities. Bank of China is often a natural first stop for cross-border business, though onboarding can be rigorous.
• Joint-stock banks such as China Merchants Bank, Ping An Bank, and Industrial Bank are often described as more service-oriented and digitally advanced, with English-language apps in some cases. They may be more receptive to smaller foreign-invested companies, depending on the branch.
• City commercial banks can be flexible and relationship-driven, particularly in cities where they are headquartered. Their international network may be more limited.
• Foreign-invested banks with a presence in China can be useful if you already bank with them internationally, but their branch coverage in mainland China is generally narrower and eligibility criteria may differ.

For an Andorran founder, the practical question is not only which bank is largest, but which branch understands foreign-invested entities and has an English-speaking corporate relationship manager. A smaller bank branch with an experienced officer can be more efficient than a large branch where your company is one of hundreds of files.

Documents You Will Typically Need

Requirements differ by bank and city, but most corporate account applications for a foreign-invested enterprise include the following. Prepare originals and copies, and expect the bank to verify them.

• Business licence (营业执照) of the Chinese entity, with the unified social credit code.
• Articles of association and, where applicable, the foreign investment approval or filing records.
• Legal representative's identification: passport for a foreign legal representative, and sometimes a residence permit or entry visa.
• Company seal, financial seal, and legal representative's seal, as required by the bank. Seal management is a distinctive feature of Chinese corporate practice.
• Proof of registered address, such as a lease agreement and property ownership certificate.
• Beneficial ownership information and shareholder documents, including the Andorran parent company's certificate of incorporation, articles, and register of directors or shareholders, often notarised and legalised or apostilled where required.
• Board resolution or shareholder resolution authorising the account opening and appointing authorised signatories.
• Tax registration information and, in some cases, social insurance registration.
• Business contracts, invoices, or a business plan explaining expected transaction flows, particularly for capital account opening.

Because Andorra is not an EU member but participates in the Hague Apostille Convention, documents issued in Andorra may need an apostille rather than consular legalisation. Banks and local authorities may still request Chinese translations, and some may ask for notarisation in China. Confirm the exact chain with the bank before you begin.

The Onboarding Process in Practice

Account opening usually requires an in-person visit by the legal representative or an authorised signatory, although some banks now allow video verification for parts of the process. The typical sequence is: choose the bank and branch; submit preliminary documents for a compliance pre-check; complete know-your-customer (KYC) and anti-money-laundering (AML) review; sign account agreements; and activate the account after the bank's internal approval.

Banks will ask about the source of funds, the nature of your business, expected transaction volumes, and your main counterparties. For a newly formed WFOE with no trading history, this can be the most demanding part. A clear, consistent explanation of your business model, supported by contracts or a credible business plan, helps. Vague answers or documents that conflict with the business licence can prolong the process.

The legal representative may also be required to attend in person for the basic deposit account. If your legal representative is based in Andorra, plan a trip that allows for bank visits and any follow-up requests. Some founders appoint a China-based legal representative or authorised signatory to reduce travel, but this has governance implications and should be decided with legal advice.

Timelines, Fees, and Practical Realities

Timelines vary widely. A straightforward basic account at a cooperative branch may be opened within a few business days once documents are complete, while capital accounts and more complex structures can take several weeks. Delays usually come from incomplete documentation, beneficial ownership questions, or the bank's internal risk review rather than from published processing times.

Fees also vary. Many banks charge account maintenance or management fees, and there are charges for transfers, foreign exchange conversion, and documentary services. Some banks waive fees for a promotional period or for companies meeting certain criteria. Ask for a written fee schedule rather than relying on verbal explanations.

Digital banking is now central to corporate account use in China. Most banks provide online banking and mobile apps for balance enquiries, domestic payments, payroll, and foreign exchange applications. English-language interfaces exist but are not universal, so confirm what is available before you commit. Also confirm the bank's requirements for using the company seal and for dual authorisation on payments.

Cross-Border Considerations for Andorran Founders

Moving money between Andorra and China involves both Chinese foreign exchange rules and the policies of your Andorran bank. Capital contributions should be remitted to the capital account with the correct purpose code and supporting documentation, and converted to RMB only for approved purposes. Dividends, service fees, and royalties require tax clearance and supporting contracts. Your Andorran bank may apply its own compliance checks on China-related transfers, so keep documentation consistent on both sides.

Currency choice matters. Invoicing in RMB can simplify collection from Chinese customers, while foreign currency accounts may be useful for international suppliers. Discuss the structure with your accountant, as the treatment of foreign exchange gains and losses and the timing of conversion can affect your books.

A Final Word

For founders from Andorra, the most reliable approach is to treat the bank account as a project with its own timeline. Choose a bank branch with experience in foreign-invested companies, prepare apostilled and translated documents early, and be ready to explain your business clearly. Rules and bank practices change, and individual branches interpret them differently. This article is general information only; consult qualified legal, tax, and banking professionals in China and Andorra before making decisions for your company.