Published by ChinaMNC · Zhoushan

Opening a Bank Account for a Zhoushan Company

A practical guide for foreign founders on preparing for corporate bank account opening in Zhoushan, Zhejiang, covering due diligence, legal representative attendance, foreign exchange controls, and the common reasons applications stall.

For many foreign founders setting up in Zhejiang, the corporate bank account is the last mile of company formation—and the step where expectations most often meet reality. Zhoushan is no exception. The city is a port and marine-economy hub with a growing base of trading, logistics, seafood processing, and manufacturing companies, and local banks are used to working with cross-border businesses. But “used to it” does not mean “automatic.” Chinese banks apply strict know-your-customer (KYC) and anti-money-laundering (AML) checks, and the bank—not the market regulator—decides whether your company gets an account.

This article explains what to prepare, how due diligence works in practice, why the legal representative usually needs to be physically present, how foreign exchange rules affect the account structure, and the most common reasons applications stall in Zhoushan.

Understand the Two Accounts You Actually Need

Most foreign-invested companies in Zhoushan need at least two accounts:

• A basic RMB account (基本户) — the company's primary settlement account. Only one basic account can exist per legal entity. It is used for day-to-day operations, payroll, tax payments, and cash withdrawal.
• A foreign currency account (外币账户) — used to receive registered capital and foreign-currency payments and to handle cross-border transactions. This is usually opened alongside or after the basic account, and it is subject to foreign exchange (forex, 外汇) registration.

You may also be offered a general RMB account (一般户) for specific purposes. Practical advice: confirm with your bank whether they will open the basic and foreign-currency accounts together, and what sequence they require. Some branches prefer you to start with the basic account, register the forex position with the local foreign exchange authority, and then open the foreign-currency account.

Preparation Checklist Before You Visit a Bank

Banks in Zhoushan, like elsewhere in China, ask for a consistent document set. Prepare originals and copies, and make sure the information matches across every document—company name, address, legal representative, and business scope.

• Business license (营业执照) for the Zhoushan entity, with the most recent version.
• Company seal and legal representative seal, plus the finance seal if one has been carved.
• Articles of association (公司章程) and, for foreign-invested companies, the filed foreign investment information report.
• Legal representative's ID — passport for a foreign national, or Chinese ID for a local representative. Bring the original.
• Shareholder documents — passports or corporate registration certificates for foreign shareholders, often notarized and, where required, apostilled or consular-legalized, with Chinese translations.
• Proof of registered address — lease agreement and, where applicable, property ownership certificate. Banks may verify the address.
• Beneficial ownership information — a chart tracing ownership to natural persons holding 25% or more, and identification for each.
• Business substance documents — contracts, invoices, purchase orders, or a business plan describing expected flows and counterparties.
• Forex registration — the foreign exchange registration certificate or the bank's internal record confirming the company's forex status.

Due Diligence: What the Bank Is Actually Assessing

Chinese bank onboarding is not a formality. The relationship manager collects documents, but compliance teams assess substance. Expect questions such as: Who are the ultimate beneficial owners? What does the company actually do? Where will money come from and go to? Who are the main customers and suppliers? What is the expected monthly transaction volume?

For Zhoushan companies, the answers should align with the business scope and the city's economy. A trading company shipping seafood or marine equipment will be asked about counterparties, shipping documents, and payment terms. A logistics or ship-management company will be asked about contracts and operating locations. Vague answers—or a business plan that does not match the registered scope—invite delays.

Be ready for enhanced due diligence if a shareholder is based in a jurisdiction the bank regards as higher risk, if the ownership structure is layered through multiple offshore entities, or if expected transaction volumes are unusually large relative to registered capital and headcount.

Legal Representative Attendance

In practice, most banks in Zhoushan require the legal representative to attend the account opening in person, present original ID, and sign documents at the branch. Some banks may accept a authorized representative for parts of the process, but the legal representative's presence at account opening is the norm and the safest assumption for planning.

If your legal representative is a foreign founder based abroad, plan a trip. Remote video verification is not universally accepted, and branch-level practice varies. Ask your chosen bank branch directly, in writing, what it requires. Also note that the legal representative may need to sign the account-opening application, the settlement agreement, and forex-related documents; bring your company seals and a Chinese mobile number if possible, since many banking apps and verification steps rely on it.

Foreign Exchange: The Part Founders Underestimate

China maintains a registered-capital and cross-border cash-flow regime. To receive foreign capital, the company must complete foreign exchange registration, typically through the bank under the direct investment framework. The bank will check that the capital contribution matches the registered capital and the filed information. Once funds arrive, they are held in a capital account and converted or used according to declared purposes.

For day-to-day trade, the bank will assess the authenticity of transactions against contracts, invoices, and customs or shipping documents. Zhoushan's port economy means banks here see a lot of trade documentation, but they still review it. Founders should keep clear records and expect questions about related-party transactions. If you plan to pay overseas suppliers, repatriate profits, or service foreign loans, confirm the documentation requirements with your bank early—do not wait until the first payment.

Common Reasons Applications Stall in Zhoushan

• Address problems. The registered address is a virtual or shared address, or the bank cannot verify it. Some banks decline addresses they consider high-risk or unverifiable.
• Mismatch between business scope and expected flows. A company registered for “consulting” but expecting large trade receipts raises questions.
• Incomplete or inconsistent shareholder documents. Missing notarization, apostille, or translation, or names that differ across documents.
• Unclear beneficial ownership. Layered offshore structures without a clear natural-person owner slow compliance review.
• No business substance evidence. No contracts, invoices, or counterparties to demonstrate real activity.
• Legal representative unavailable. The founder is abroad and cannot attend, or the nominated representative cannot produce original ID.
• Forex registration not completed. The foreign-currency account cannot proceed until the direct investment registration is in order.
• Bank appetite. Some branches are cautious about certain industries, jurisdictions, or transaction profiles. If one bank declines, another may accept, but the underlying issue usually needs fixing first.

Practical Tips

Talk to two or three bank branches before committing, and ask specifically about foreign-invested company onboarding, forex services, and English-language support. Prepare a one-page business summary with ownership chart, expected flows, and key counterparties—compliance teams appreciate clarity. Keep your registered address, business scope, and actual operations aligned. And build in time: account opening can take days or weeks depending on due diligence.

Disclaimer: This article provides general information for foreign founders and is not legal, tax, or financial advice. Banking and foreign exchange requirements change and vary by branch. Confirm current requirements with your bank and a qualified professional before acting.