Published by ChinaMNC · Yangzhou

Opening a Bank Account for a Yangzhou Company: A Practical Guide for Foreign Founders

A practical guide for foreign founders on opening a corporate bank account for a Yangzhou company, covering document preparation, bank due diligence, legal representative attendance, foreign exchange registration, and the common reasons applications stall.

Opening a corporate bank account is one of the first operational bottlenecks foreign founders hit after incorporating in China. Yangzhou, a mid-sized city in Jiangsu with a strong manufacturing and trading base, is no exception. The rules are national, but the practical experience is local: which banks will accept a foreign-invested enterprise (FIE) with a foreign legal representative, how much documentation they want, and how long onboarding takes vary by branch and by the profile of your company.

This guide covers the preparation, due diligence, attendance and foreign exchange steps that matter for a Yangzhou-registered company. It is general information, not legal or tax advice, and bank policies change — always confirm current requirements with the specific branch you plan to use.

Understand what kind of account you are opening

Most Yangzhou companies need two things: a basic deposit account (基本存款账户) and, if they will receive or pay foreign currency, a foreign currency account plus foreign exchange registration. The basic account is the company's main RMB account and is required before you can open most other accounts, sign certain contracts, or process payroll and tax payments. It can only be opened at one bank.

Foreign currency accounts are usually opened at the same bank as the basic account, though some companies use a second bank for trade settlement. If your Yangzhou entity is foreign-invested, expect the bank to also look at your foreign exchange registration status and capital contribution records.

Prepare the document package before you approach a bank

Banks in Yangzhou generally follow a standard national checklist, but individual branches may ask for more. A typical package includes:

• Business licence (original and copy), showing the unified social credit code.
• Company seal, financial seal, legal representative seal and, where applicable, the contract seal. Seals are still central to Chinese banking practice.
• Articles of association and the approval or filing documents for the FIE.
• Legal representative's ID — passport for a foreign legal representative — plus entry stamps or visa pages if requested.
• Authorised signatory documents if someone other than the legal representative will operate the account, with a power of attorney.
• Proof of registered address: lease agreement, property certificate, or a letter from the landlord or park operator.
• Beneficial ownership information for shareholders holding above the bank's threshold, usually 25%, traced to natural persons.
• Business substance evidence: contracts, invoices, a business plan, or a description of expected transaction flows.

Yangzhou has several industrial parks and development zones. If your company is registered in one, the park's administrative office can sometimes help confirm your address and introduce you to banks that regularly work with foreign-invested tenants. That introduction is not a guarantee of approval, but it reduces friction.

The legal representative attendance question

Chinese banks are required to verify customer identity and the authority of the person opening the account. In practice, many Yangzhou branches expect the legal representative to attend in person at least once, even if an agent handles the paperwork. For a foreign legal representative based abroad, this is often the single biggest scheduling issue.

Options depend on the bank and branch:

• Attend in person during a China trip, bringing your passport and entry documentation. Book the appointment in advance and confirm which branch staff will conduct the verification.
• Remote video verification, which some banks now permit for account opening or for later updates. Availability varies; ask specifically whether the branch supports it for a foreign passport holder.
• Appoint a China-based legal representative or authorised signatory through a proper corporate change or power of attorney. This is a structural decision, not a workaround — take advice before changing your registered legal representative.

Do not assume a colleague can simply walk in with your passport. Identity verification rules are strict, and a mismatch between the signatory on the documents and the person at the counter is a common cause of delay.

Due diligence: what the bank is actually assessing

Yangzhou banks apply anti-money-laundering and know-your-customer rules. Expect questions about who ultimately owns the company, where the money comes from, what the company will do, and who it will trade with. A newly incorporated FIE with no trading history will face more scrutiny than an established business.

Be ready to explain:

• The ownership chain up to natural persons, including any holding companies in Hong Kong, Singapore or elsewhere.
• The source of the initial capital and expected capital injections.
• Your main customers and suppliers, and the countries involved.
• Expected monthly transaction volumes and typical transaction sizes.

Consistency matters. If your business licence says manufacturing but your described flows are unrelated trading or consulting, the bank may ask for more evidence or decline the application. Keep your business scope, contracts and explanations aligned.

Foreign exchange registration and capital accounts

A foreign-invested Yangzhou company normally needs to complete foreign exchange registration so it can open a capital account and receive registered capital. The bank handling the basic account often handles this too. You will need the FIE filing or approval documents, the articles of association, and information on the capital contribution schedule.

Once registered, the company can receive foreign currency capital, convert it according to the declared purpose, and make payments. Banks will ask what the converted funds are for and may require supporting documents for larger conversions. For trade in goods, you will also need to understand the foreign exchange settlement rules for current-account transactions. Because these rules are detailed and change, confirm the process with your bank and, where needed, a qualified adviser.

Why applications stall in Yangzhou

Most delays come from a handful of recurring issues:

• Address problems. A registered address that looks like a virtual office, or a lease that does not match the business licence, triggers extra checks.
• Legal representative unavailable. The bank cannot complete identity verification, so the file sits open.
• Thin substance. No contracts, no staff, no clear business plan — the bank has little to assess.
• Opaque ownership. Holding structures that are hard to trace to beneficial owners slow KYC review.
• Document mismatches. Names, addresses or seals that differ between the licence, articles and application forms.
• Unrealistic transaction descriptions. Expected volumes that do not fit the company's size or business scope.
• Branch policy differences. A branch that rarely handles foreign-invested companies may be slower or ask for more documents than one used to FIEs.

Practical sequencing for founders

Start early. Confirm your registered address and business scope before incorporation, decide who will be legal representative and who will be the authorised signatory, and gather ownership documents up front. Shortlist two or three banks — a large state-owned bank, a joint-stock bank and, if relevant, a bank with strong trade finance — and ask each branch directly whether they onboard foreign-invested companies with foreign legal representatives. Book the appointment, bring originals and copies, and keep your explanations of business purpose simple and consistent.

Disclaimer: This article provides general information for foreign founders and is not legal, tax or financial advice. Banking requirements and foreign exchange rules change; verify details with your chosen bank and a qualified professional before acting.