Opening a corporate bank account is one of the most commonly underestimated steps in setting up a Hangzhou company. Founders often assume that once the business licence (营业执照) is issued, the bank account follows within days. In practice, the account opening is a compliance exercise in its own right, and in Hangzhou — a city with a dense e-commerce, software and cross-border payments ecosystem — banks apply enhanced due diligence to new companies whose ownership, business model or transaction flows are not immediately obvious to a reviewer.
This article explains what Hangzhou banks typically ask for, how the process works, where foreign exchange (forex) fits in, and the specific reasons applications stall. It assumes you have already completed company registration or are close to it.
First, understand what kind of account you need
Chinese banks distinguish between several account types, and confusing them is a common early mistake:
- Basic deposit account (基本存款账户) — the company's primary account. There can be only one per legal entity. It is required for tax payments, social insurance, payroll and cash withdrawals, and it is usually the account you open first.
- General deposit account (一般存款账户) — additional accounts for specific purposes such as loan repayments or project funds. These come after the basic account.
- Foreign currency account — needed if you receive or pay in USD, EUR, HKD or other currencies. It is usually opened alongside or shortly after the RMB basic account, and it is linked to your foreign exchange registration.
- Special accounts — for example, capital account (资本金账户) for foreign investment funds, or accounts tied to specific regulated purposes.
Most foreign-founded Hangzhou companies need a basic RMB account plus a foreign currency account, and possibly a capital account if shareholder funds will be injected from abroad.
Preparation: documents and internal readiness
Core corporate documents
Expect to provide, at minimum:
- Business licence original and copy (with the official red seal, 公章).
- Articles of association (公司章程), including any amendments.
- Legal representative's ID — passport for a foreign legal representative, national ID for a Chinese one.
- Official company seals: company seal, legal representative seal, finance seal, and contract seal where applicable. Banks will check which seals are registered and how they are used.
- Shareholder and ultimate beneficial owner (UBO) information, including passports and ownership percentages. Banks are required to look through layers of offshore holding companies to identify the natural persons behind the entity.
- Registered address proof — lease agreement, property certificate, or the address documentation used at registration.
- Tax registration information and, where relevant, the foreign exchange registration certificate (外汇登记证) or the equivalent record in the current system.
Business substance documents
This is where Hangzhou applications most often diverge from founders' expectations. Banks want evidence that the company has a real business, not just a registration. Prepare:
- A short business plan or company profile in Chinese, describing products or services, target customers, suppliers and expected transaction flows.
- Contracts, purchase orders, platform store links (for e-commerce sellers), software product descriptions or client agreements, depending on your industry.
- Expected monthly transaction volumes, currencies, and the countries you will send money to or receive money from.
- For e-commerce and cross-border businesses: platform account details, logistics arrangements and payment channel descriptions.
A concise, accurate Chinese-language summary of your business model is more useful than a long English deck. Bank staff need to map your answers onto their internal risk questionnaire.
Legal representative attendance
In Hangzhou, as in most of China, the legal representative is generally expected to appear in person at the branch to sign account-opening documents and be photographed or video-recorded as part of identity verification. Some banks allow a proxy in limited circumstances, but this is discretionary and increasingly rare for newly registered companies with foreign ownership.
Practical points:
- Book the appointment through the bank's corporate business desk, not the retail counter. Confirm in advance which branch handles your registered address.
- Bring the original passport used at registration; details must match exactly.
- If the legal representative cannot travel, consider whether another person should hold that role from the start. Changing the legal representative later is possible but adds time and paperwork.
- Expect the meeting to take one to two hours, including form completion and an interview about your business.
Due diligence: what the bank is actually assessing
Chinese banks operate under anti-money laundering (AML) and counter-terrorist financing rules, plus know-your-customer (KYC) requirements set by the People's Bank of China and the banking regulator. For a new Hangzhou company, the reviewer is typically trying to answer four questions:
- Who really owns and controls the company? Offshore structures with nominee shareholders, trusts or multiple holding layers will trigger requests for ownership charts and supporting documents.
- Does the business make sense? A software company with no contracts and no staff may be asked for more evidence than an e-commerce seller with live store links.
- Do the expected flows match the business? A company describing itself as a design studio but expecting large inbound payments from unrelated jurisdictions will raise questions.
- Is the registered address genuine? Banks may verify the address, and some conduct on-site checks. Virtual or shared addresses are accepted in some cases but can slow the process.
Foreign exchange considerations
Opening the account is only half the task; making it usable for cross-border money movement is the other half. Key points for Hangzhou companies:
- Foreign-invested companies need foreign exchange registration, typically handled during or after registration through the bank or the relevant authority. The bank will link your foreign currency account to this registration.
- Capital account inflows (shareholder loans or capital contributions) must be documented and used for declared purposes. Banks may ask for the foreign exchange purpose code and supporting contracts before releasing funds.
- Current account transactions — paying overseas suppliers, receiving export proceeds — are generally more straightforward but still require contracts, invoices and, for trade, customs or logistics documentation.
- Cross-border e-commerce sellers should discuss payment channels early. Some businesses use licensed third-party payment institutions alongside a bank account; banks will want to understand the split.
- Expect questions on related-party transactions. Payments to an overseas parent or affiliate need a clear commercial rationale.
Why applications stall in Hangzhou
Based on how banks in the city handle new-company onboarding, the most frequent causes of delay are:
- Incomplete UBO disclosure. Ownership charts that stop at an offshore holding company, or documents that do not match the registration file, send the application back for correction.
- Vague business description. "Consulting" or "trading" without named products, counterparties or countries is difficult for a reviewer to approve.
- Legal representative unavailable. Scheduling conflicts or a representative who cannot attend in person can delay opening by weeks.
- Address issues. A registered address that cannot be verified, or that differs from the lease documentation, triggers additional checks.
- Mismatch between declared and expected flows. Business plans that do not align with the transaction volumes or jurisdictions discussed in the interview.
- Missing or inconsistent seals and signatures. Documents signed with the wrong seal, or forms where the legal representative's signature does not match the passport, are rejected.
- Industry-specific scrutiny. Fintech-adjacent activities, payment services, crypto-related business and certain cross-border data or software services attract closer review. Be prepared to explain licensing status and why the activity is permitted.
- Bank capacity and branch selection. Some branches are more experienced with foreign-owned companies than others. Choosing a branch that regularly handles inbound investment and cross-border business reduces friction.
Practical suggestions
- Prepare a Chinese-language business profile and ownership chart before you approach the bank.
- Confirm the legal representative's availability and passport details early.
- Keep registration documents, seals and lease papers in one folder, and bring originals plus copies.
- Be consistent: the business described to the bank should match your registration scope and your actual contracts.
- Ask the bank in advance which documents it requires for your specific account type, and whether it needs anything for forex registration.
- Do not open the account and then leave it dormant; banks monitor activity and may restrict accounts with no transactions or unexplained flows.
Disclaimer: This article provides general information for foreign founders and is not legal, tax, accounting or financial advice. Banking requirements, foreign exchange rules and regulatory practices change and vary by bank and branch. Consult a qualified professional and confirm current requirements directly with your chosen bank before relying on this information.