NEW RULE ON CHINA CORPORATE BANK ACCOUNT – PART 2

BANK ACCOUNT

2021-02-05

Regarding to the stricter rule imposes on the corporate bank account in China. The corporate account holder or business owner have to pay attention to the bank verification calls and emails. As the bank will contact you by phone, email or on-site visits. Missing a phone call seems not a big deal. However, if you missed that call from bank. you may get into trouble and have your company bank account in China frozen up. 

What should you prepare for the call?

In order to keep your corporate bank account function properly. We would like to recommend the company account holder to be familiar with the company registration information. For example, the official company full name, company tax number, main business scope, what are the recent bank account transactions and information of the legal representative. Also, saving the bank contact number on your mobile phone book will help identifying the incoming calls. 

 

How to know if the bank freeze up your company account?

  1. Not able to log into your account via e-banking or mobile apps
  2. Unable to receive or transferring funds  
  3. Unable to transfer funds

What to do when the company bank account is frozen?

Undoubtedly, the company should always guarantee the bank account is operating legally, formally and truthfully; accordingly to the activities that the company reported to the bank during the setup of account. The company should not be settling payment or receiving payments on behalf of others using the corporate account. 

As soon as you found out the account is no longer activate, please reach out to your bank branch immediately. Provide all relevant business operation information as per requested to apply for unfreezing. Banks are likely to ask for recent invoices, business expenses, office lease contracts, latest audited report, company social insurance or any shipping documents including airway bills. These documents has to be able to proof the bank transactions are your company business related.  

 

What to do if I prefer to open a new company bank account?

In particular to the new regulation on company bank account opening. The bank officer will need to arrange a Customer Due Diligent (CDD) check on you. You need to provide information including the below: 

  • Lease contract or site certificate (including the ownership certificate)
  • Latest month utility bill or rental receipt
  • The original business license, official seal, financial seal and the private seal of the legal person.
  • The legal person needs to present the original ID card and company-related documents.
  • Legal person to visit the bank in person for the business interview.

Last but not the lease, once the bank accepted your application. The bank officer will  not only arrange an on-site inspect your office, but also checking the size of office, number of staff, business equipments, business licenses and company door signs to ensure everything is true and real.

For further information, please contact us. 

You may want to read:  OH MY GOD! MY BUSINESS BANK ACCOUNT IS CLOSED!

 

 

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