Interview with an expert in the field of international taxation

Today, One World Migration spoke with its expert in the field of international taxation. The specialist shared important information about doing business in China, the specifics of opening a bank account there, talked about the documentation and payment details of this procedure and gave relevant advice.

-Is China a favorable country for doing business today and why? In which area is it more profitable to open a company?

-Provided that the business is related to conducting business in mainland China, is carried out in China and requires presence in China, the creation of a local legal entity is an objective necessity. There are 21 free economic zones (FEZ) in China. Located in different parts of the country, they were created to solve different tasks and are geographically connected to different regions. FEZs provide favorable conditions for foreign investors - it is possible to create a company with one hundred percent foreign capital (WFOE), simplified registration and procedures of licensing, of exports and imports.

In China, currency control is carried out at the state level. Therefore, if the task of a business is to create transit routes for cross–border trade with China, then the most optimal way would be to create a company in Hong Kong or Macau. Hong Kong and Macau are special administrative regions within China with broad autonomy in matters of currency and monetary regulation. The creation of a Hong Kong company makes it possible to offset the currency restrictions of mainland China.

-What are the difficulties and nuances when opening a bank account in China?

-A foreign investor creating a real business in China needs to be prepared for the fact that working with local banks requires the real presence of employees to contact and resolve issues in the bank.

-Is it possible to open a bank account remotely, or is it necessary to come in person?

-A bank account can be opened with a personal visit to the bank or remotely. When opening an account remotely, the interview takes place via messenger.

-Which documents will be required to open a bank account in China?

-In addition to corporate documents, the company must provide documentary evidence of commercial activity: contracts, invoices, waybills, so that the bank is aware of the movement of goods and funds with the use of the example of several transactions.

-How long does it take on average to review an application for opening an account with the Bank of China?

-The speed of the account opening procedure largely depends on how clearly and in detail the client presents his business to the bank. On average, it takes 1 - 2 months to open an account.

-What are the fees and charges for this procedure?

-Fees may vary depending on the bank. For opening a bank account, the bank charges a fixed commission, an average of 200 CNY; an international outgoing transfer costs an average of 0.1 - 0.2%.

-In which banks of the People's Republic of China is it available to open an account for foreigners in 2024?
-The creation of a local company frees from the "foreign" interface and expands banking opportunities. For foreign companies, including Hong Kong, it is possible to open an account with ZheJiang ChouZhou Commercial Bank Co., Ltd.