Published · Iceland

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

A practical, plain-English guide for Icelandic founders on opening and operating a corporate bank account in mainland China, covering documentation, the on-site visit, foreign-exchange controls, digital banking and common pitfalls. General information only, not legal or tax advice.

So you have registered your Chinese entity — likely a wholly foreign-owned enterprise (WFOE) or a representative office — and now you need somewhere to put the money. Opening a corporate bank account in mainland China is one of the most consistently underestimated steps for foreign founders. It is doable, but it is slower, more document-heavy and more relationship-driven than opening a business account in Iceland. This guide walks you through what to expect, what to prepare and where Icelandic founders most often get stuck. It is general information only and is not legal, tax or financial advice; confirm the details with your bank, your accountant and your local registration authority.

Two accounts, not one: the basic structure

Most foreign-invested companies in China end up with at least two accounts at the same bank:

• Basic deposit account (基本存款账户): the company's primary account. It is used for salaries, cash withdrawals, tax payments and day-to-day operating expenses. A company can generally hold only one basic account, and it must be opened at a bank branch that has been approved to handle it.
• General deposit account (一般存款账户): used for additional purposes such as receiving loans, project funds or specific operational flows. You can hold more than one, though usually not at the same branch as your basic account.

If your business involves foreign currency — which, as an Icelandic founder bringing in capital or paying overseas suppliers, it almost certainly does — you will also need a foreign-currency account and, for cross-border capital flows, the bank will link these to your foreign-exchange registration. In practice banks often bundle this into a single onboarding process, but ask explicitly which accounts you are opening and what each is for.

Choosing a bank

Foreign founders typically choose between the large state-owned commercial banks (Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China) and the larger joint-stock banks or foreign bank branches. A few practical considerations:

• Foreign-exchange experience. If you will move capital in and profits out, a bank with a strong international desk and familiarity with foreign-invested enterprises saves time. Bank of China is often the default for cross-border work, but it is not the only option.
• English capability. Larger branches in major cities are more likely to have English-speaking staff; smaller branches in industrial parks often do not.
• Digital banking quality. Ask to see the corporate online banking and mobile app before you commit, and confirm whether the English interface is full or partial.
• Proximity to your registered address. The branch that handles your basic account may need to be in the same city as your registered office; some banks apply their own geographic rules.

It is normal — and sensible — to speak with two or three banks before choosing. Relationship managers change jobs frequently, so ask about the team, not just the individual.

Documents you will typically be asked for

Requirements vary by bank and city, and they change. Expect to provide, at minimum:

• Business licence (original and copies) and the company's official seal, financial seal, legal representative seal and, if applicable, contract seal.
• Articles of association and the approval or filing documents from the local market regulation authority (and, for some sectors, the commerce authority).
• Legal representative's ID or passport; if the legal representative is not personally present, a notarised power of attorney may be required.
• Passports and residence permits for authorised signatories, plus proof of address where requested.
• Beneficial ownership information, including the ownership chain up to the ultimate natural persons — expect questions about your Icelandic holding structure.
• Proof of the registered office (lease agreement, property certificate or a letter from the landlord).
• Board resolutions or shareholder resolutions authorising account opening and appointing signatories.
• Your company's tax registration information and, in some cases, a credit code certificate.

For Icelandic founders, two points come up repeatedly. First, documents issued in Iceland may need notarisation and consular legalisation, or an apostille where accepted — confirm the specific requirement with the bank before you fly. Second, the translation of corporate documents into Chinese is usually required, and some banks insist on a translation agency they recognise. Build several weeks into your plan for this paperwork alone.

The on-site visit and face-to-face requirement

China has tightened customer due diligence, and most banks now require the legal representative or an authorised signatory to appear in person at the branch for account opening. Bring originals of everything, including all company seals. Expect the meeting to take a couple of hours and to include an interview about your business model, expected transaction volumes, counterparties and source of funds. Answer consistently and keep it simple: vague answers about "consulting" or "trading" without detail slow the process down.

Some banks offer a preliminary remote review, but do not assume remote opening is possible. Plan a trip.

Foreign-exchange controls and moving money

China maintains capital controls, and the bank acts as the front-line checker. For a foreign-invested company this generally means:

• Capital contributions should be remitted into the registered capital account and match your foreign-exchange registration and the amount committed in your articles.
• Current-account transactions — paying suppliers, receiving customer payments — are generally more straightforward but still require supporting documents such as contracts and invoices.
• Profit repatriation requires audited financial statements, tax clearance and supporting documentation; the bank will check these carefully.

Keep clean records from day one. A mismatch between what you declared at onboarding and what actually flows through the account is the fastest way to trigger a review.

Digital banking and day-to-day operation

Once the account is live, you will receive tokens or USB keys for corporate online banking, and you will likely need to set up dual-authorisation controls. Test the system before you rely on it, and make sure at least two people in your team can operate it — a single signatory who is travelling creates avoidable delays. Also confirm the bank's cut-off times for RMB and foreign-currency payments; they are not the same.

Practical tips for Icelandic founders

• Start before you need it. Account opening can take from a couple of weeks to significantly longer, depending on the bank and your documentation. Do not wait until your first invoice is due.
• Use a local accountant or corporate services firm. They know which branch handles foreign-invested companies and what the current document list looks like in your city.
• Keep your registered address consistent. Discrepancies between the licence, lease and bank records cause rejections.
• Be patient and personable. Chinese banking is relationship-based; a respectful, well-prepared meeting goes a long way.
• Reconfirm requirements in writing before travelling, and keep a checklist signed off by your relationship manager.

None of this is unusual for China — it is simply a different operating rhythm from Iceland. Prepare the paperwork thoroughly, budget the time, and treat the bank as a long-term partner rather than a utility. For anything specific to your structure, seek professional advice in China and, if relevant, in Iceland.