Bank Accounts for FIEs in China
A Foreign Invested Enterpr
ise (FIE) registered in China must open at least two bank accounts, i.e. one RMB Basic Account and one Capital Account.
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RMB Basic Account
A Foreign Invested Enterprise in China must open one and only one RMB basic account. The RMB basic account is generally used for daily business operations and tax payments in RMB. It is also the sole channel for the enterprise to withdraw RMB cash.
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Capital Account
A Foreign Invested Enterprise in China must also open a capital account to receive capital contributions from the foreign investors. The capital account can be opened in a foreign currency, for example in USD, or in RMB. However, a USD capital account can only receive foreign investors’ capital contributions made in USD. An RMB capital account can only receive foreign investors’ capital contributions made in RMB.
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Other Accounts
If the foreign invested enterprise in China will receive foreign currency payments from overseas, then additional foreign currency general settlement accounts can/should be opened.
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Online Banking Facilities
Online banking facilities can be applied for the RMB basic account or RMB general settlement accounts. Usually two security keys, for example USB dongle, one with operation rights and another with approval rights will be granted for online transactions.
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Foreign or Chinese Banks
A foreign invested enterprise can open bank accounts in China with a foreign bank with a local presence or a Chinese bank. Foreign investors may prefer to open bank accounts with a foreign bank in China. However, since foreign banks generally have operation restrictions in China, opening bank accounts with a Chinese bank may be a better choice.
KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
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