Published · Denmark

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

A practical, plain-English guide for Danish founders on opening a corporate bank account in China: account types, document preparation, KYC, timelines, cross-border payments and common pitfalls. General information only, not legal or tax advice.

Opening a corporate bank account in China is one of those steps that looks simple on paper and then surprises almost every foreign founder. For a Danish company setting up a subsidiary, a representative office or a wholly foreign-owned enterprise (WFOE), the bank account is not just an administrative detail: it is the gate through which registered capital arrives, employees get paid, suppliers get settled and taxes get paid.

This article gives you a practical overview of what to expect, what to prepare and where the process usually slows down. It is general information only and is not legal, tax or financial advice. Chinese banking rules, local practice and bank policies change, and they can differ significantly between cities. Always confirm requirements directly with your bank and with qualified local advisers.

Why the bank account matters more than you think

In China, a company cannot simply open an account and start receiving money. The account is tied to the company's business licence, its registered capital arrangements and its tax registration. For foreign-invested enterprises, the flow of money in and out is also subject to foreign exchange (forex) administration rules.

Practically, you will usually need at least two accounts:

• Basic deposit account (基本存款账户) — the company's main account. It is used for day-to-day operations, cash withdrawals and salary payments. A company can generally have only one basic account.
• General deposit account (一般存款账户) — used for additional purposes such as receiving loans, specific project funds or separate operational needs.
• Foreign currency account — often opened alongside the RMB accounts for cross-border receipts and payments, including capital contributions from Denmark.
• Capital account (资本金账户) — a dedicated account for foreign capital contributions. Money here is converted and used under forex rules, often with supporting documents required for each payment.

Some banks also offer special accounts for payroll, tax payments or escrow. Your bank will advise which structure fits your business.

What you need before you approach a bank

The single biggest cause of delay is incomplete or inconsistent paperwork. Banks apply know-your-customer (KYC) and anti-money-laundering checks, and they will look closely at the ownership structure and the source of funds.

Prepare, at minimum:

• Business licence (original and copies) of the Chinese entity.
• Company charter/articles of association and any amendments.
• Legal representative's ID — passport for a foreign legal representative, or Chinese ID where applicable.
• Authorised signatory documents and the company seal set (company seal, legal representative seal, finance seal, contract seal). Banks often require the company seal on account-opening forms.
• Ownership structure chart going up to ultimate beneficial owners (UBOs), with supporting documents for the Danish parent and any intermediate holding companies.
• Proof of address for the Chinese entity — typically the lease agreement and property certificate for the registered office.
• Tax registration information and, where relevant, foreign exchange registration documents.
• Board resolutions authorising account opening and appointing signatories.
• Business background materials — contracts, invoices, a business plan or group introduction — to help the bank understand your activities and expected transaction flows.

Documents issued in Denmark usually need to be translated into Chinese. Banks may also ask for notarisation or legalisation, depending on the document and the bank's internal policy. Ask the bank for its exact checklist before you start collecting papers.

The account-opening process, step by step

1. Choose the bank and the branch

Foreign founders typically choose between large Chinese banks with broad branch networks and international banks with China operations. Large Chinese banks tend to have more branches and experience with foreign-invested companies; international banks may be easier to integrate with your Danish group's treasury, but they can have higher minimum balances or stricter onboarding. Compare fees, minimum balance requirements, online banking functionality and English-language support.

The branch matters. A branch near your registered office or in a district familiar with foreign investment can make the process smoother, because account opening is often handled locally.

2. Make an appointment and pre-screen

Do not simply walk in. Contact the branch's corporate banking team, explain your structure and ask for a document checklist. Many banks will pre-screen your shareholder structure and business model before the formal appointment. This is where ownership complexity, unusual jurisdictions or vague business descriptions can trigger extra questions.

3. Attend in person

In most cases, the legal representative or an authorised signatory must attend the branch in person with original documents and the company seals. The bank will verify identities, take signatures and may conduct a short interview about your business, customers, suppliers and expected transaction volumes.

4. Approval and activation

After submission, the bank performs internal checks. Timelines vary widely — from a couple of weeks to considerably longer if your structure is complex or documents need rework. Once approved, you receive account details and access to online banking. Expect to activate online banking separately, often with tokens or passwords issued at the branch.

5. Connect to tax and forex systems

After opening, the company typically needs to link the account to tax reporting and complete foreign exchange registration for capital contributions. Your accountant or corporate service provider usually handles this, but confirm who is responsible.

Cross-border money: what Danish founders should know

Moving money between Denmark and China is possible, but it is documentation-heavy. Capital contributions should be remitted into the capital account with the correct purpose code and supporting documents. Outbound payments for services, royalties or dividends require contracts, invoices and tax clearance where applicable. Banks may ask for supporting documents for individual transactions, especially larger or unusual ones.

Keep your Danish group's treasury team aligned with your China finance contact. Inconsistent descriptions of the same transaction — for example, different purpose codes on the remittance and the invoice — are a common reason for delays.

Common pitfalls to avoid

• Vague business descriptions. "Consulting" or "trading" alone may not satisfy KYC. Be specific about products, customers and flows.
• Missing UBO documents. If your Danish parent has layered ownership, prepare a clean chart and supporting certificates.
• Underestimating the seal requirement. Without the correct seals, forms cannot be completed.
• Assuming one bank fits all. Fees, minimum balances and service quality vary; compare before committing.
• Ignoring post-opening compliance. Annual reporting, tax filings and forex reconciliations continue after the account is live.

Practical tips for Danish founders

Start the bank conversation early — ideally while the entity registration is still in progress — so you can align documents. Appoint one person in your team as the bank liaison and keep a single, consistent set of company documents. Budget time for translation and notarisation. And build a relationship with your branch contact: in China, a known contact who understands your business can make routine banking much easier.

Finally, treat the bank account as part of your compliance setup, not a standalone task. Coordinate with your accountant, corporate secretary and, where needed, a local lawyer. Rules and bank practices evolve, so verify current requirements before you apply. This article is general information only and should not be relied on as legal, tax or financial advice.