Published by ChinaMNC · Longyan

Opening a Bank Account for a Longyan Company

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

Opening a corporate bank account is one of the first operational bottlenecks foreign founders hit after registering a company in China. In Longyan, a prefecture-level city in western Fujian, the process follows national banking rules but is shaped by local practice. This guide explains what to prepare, how due diligence works, why the legal representative usually has to appear in person, how foreign exchange is handled, and the specific reasons applications tend to stall in Longyan.

Understand what you are actually opening

A Longyan company typically needs two accounts, and confusing them is a common early mistake.

• Basic deposit account (基本存款账户): The primary RMB account. It is required for payroll, tax payments, and cash withdrawals, and a company can hold only one basic account. It must be opened at a bank branch, and the People's Bank of China (PBOC) system records it.
• General deposit account (一般存款账户): Additional RMB accounts for specific purposes such as loan disbursement, project funds, or a second operating account. These can be opened once the basic account exists.
• Foreign currency account: Needed if you receive USD, EUR, or other foreign currency from overseas. This account is tied to your foreign exchange registration and requires separate documentation.

Most foreign-invested enterprises in Longyan start with the basic RMB account and a foreign currency account. Decide which banks to approach based on whether they have a dedicated international business desk and experience with foreign-invested entities.

Before you walk into a branch

Banks in Longyan, like elsewhere in China, will not open an account on the day you submit documents. Expect a preparation period of several days to a few weeks, depending on how complete your file is. Assemble the following:

• Business license (营业执照) original and copies, with the unified social credit code clearly legible.
• Company seal, financial seal, legal representative seal, and contract seal, if applicable.
• Articles of association (公司章程) as filed with the market supervision bureau.
• Legal representative's ID: passport for a foreign legal representative, and, where relevant, a valid visa or residence permit.
• Foreign investment information report or registration documents from the commerce authorities, if the company is foreign-invested.
• Proof of registered address in Longyan: lease agreement, property certificate, or a certificate from the local industrial park or incubator.
• Beneficial ownership information for shareholders holding 25% or more, and for anyone exercising control, including passports and address proof.
• Board resolution or shareholder resolution authorizing account opening and naming signatories.
• If an agent handles preliminary steps, a notarized or bank-specific power of attorney (授权书) and the agent's ID.

Ask the branch for its own checklist before you start. Requirements vary by bank and even by branch, and a document accepted at one branch may be rejected at another.

Due diligence: why banks ask so many questions

Chinese banks are subject to anti-money laundering (AML) and know-your-customer (KYC) obligations. For a foreign-invested company in Longyan, expect questions about:

• The source of the company's capital and the source of wealth of ultimate beneficial owners.
• The nature of the business, expected transaction volumes, counterparties, and countries involved.
• Whether the company will receive foreign currency and for what purpose.
• The relationship between the legal representative, shareholders, and any local agent.

Banks may request supporting evidence: contracts, invoices, business plans, parent company financials, or a description of the supply chain. This is normal, not a sign that something is wrong. Prepare a short, consistent business narrative in Chinese and English, and make sure it matches what is in your registration file. Inconsistencies between the business license, the articles, and what you tell the bank are a leading cause of delay.

Legal representative attendance

In practice, most Longyan branches require the legal representative to appear in person at least once to sign account-opening documents and be video-recorded as part of identity verification. This applies whether the legal representative is Chinese or foreign.

If the legal representative is a foreign founder based abroad, plan a trip. Some banks may accept a notarized and apostilled or consular-legalized power of attorney allowing an authorized signatory to act, but acceptance is not guaranteed and depends on the bank's internal policy. Confirm in writing with the specific branch before relying on a proxy. Do not assume that a Chinese nominee legal representative removes the need for the founder to be involved; the bank will still want to understand who controls the company.

Foreign exchange considerations

Foreign currency and cross-border RMB payments are where Longyan applications most often slow down. Key points:

• The company needs a foreign exchange registration, usually handled through the bank after account opening, linked to the foreign investment registration.
• Capital contributions from abroad must be remitted into the foreign currency capital account and then converted or used according to the registered scope of business.
• Banks will ask for the purpose of each inbound remittance and may require contracts or supporting documents before crediting or converting funds.
• Outbound payments for imports, services, or dividends require supporting documentation and, in some cases, tax clearance certificates.
• If your business involves cross-border e-commerce or service exports, confirm that the bank has the relevant product and experience; not every Longyan branch does.

Be precise about your expected foreign exchange activity at the application stage. A company that describes itself as purely domestic and then receives overseas remittances will trigger additional review.

Common reasons applications stall in Longyan

• Incomplete or inconsistent documents: Name mismatches, outdated passports, or articles that do not match the business license.
• Registered address problems: Banks may verify the address. A virtual or unclear address, or one that does not match the lease, can cause rejection.
• Legal representative unavailable or unfamiliar with the business: If the legal representative cannot explain the company's operations, the bank may escalate the file.
• Unclear beneficial ownership: Layered offshore holding structures without clear documentation slow KYC review.
• Vague business description: Broad scopes such as "consulting" or "trading" without specifics invite more questions.
• Foreign exchange mismatch: Expected overseas receipts that do not align with the registered business scope or the stated business plan.
• Branch capacity and experience: Smaller branches may have limited familiarity with foreign-invested entities and take longer, or refer the file upward.
• Sanctions and jurisdiction screening: Counterparties or shareholders in higher-risk jurisdictions trigger enhanced review.

Practical sequencing

A workable order is: complete company registration and foreign investment filing; confirm the registered address documentation; shortlist two or three banks with international desks; request their checklists in writing; prepare the KYC narrative and ownership chart; schedule the legal representative's visit; open the basic RMB account; then open the foreign currency account and complete foreign exchange registration. Keep copies of everything submitted, and maintain a single consistent set of facts across all institutions.

This article provides general information only and is not legal, tax, or financial advice. Banking requirements in China change and vary by branch. Confirm current requirements directly with your chosen bank and, where appropriate, with a qualified local professional.