Can a Representative Office Open a Corporate Bank Account in China?

Yes, a Representative Office (RO) can open a corporate bank account in China — but with important limitations that distinguish it from a full WFOE bank account. An RO bank account is strictly an operational expense account, not a revenue account. It can receive funds from the foreign parent company for operating expenses (rent, salaries, office supplies, travel), but it cannot receive revenue from Chinese clients, cannot process customer payments, and cannot be used for working capital or investment activities. Understanding these restrictions is essential for any foreign company operating an RO in China.

This FAQ covers everything you need to know about RO bank accounts: which banks offer them, what documents you need, what restrictions apply, and how the account differs from a WFOE corporate account.

What Type of Account Can an RO Open?

Representative Offices in China are permitted to open a RMB Basic Deposit Account (人民币基本存款账户) — the same type of account used by any registered entity in China for day-to-day operational expenses. This account is used for:

• Receiving operational funding transfers from the foreign parent company
• Paying office rent and property management fees
• Paying employee salaries and social insurance contributions
• Paying utilities, telecommunications, and office supplies
• Paying professional service fees (legal, accounting, consulting)
• Paying taxes and government fees
• Reimbursing employee business travel expenses

The account cannot be used for:

• Receiving payments from Chinese customers or business partners
• Receiving investment income or dividends
• Holding foreign currency (most banks restrict RO accounts to RMB only)
• Making loans or providing credit to third parties
• Conducting any transaction related to revenue-generating activities

Documentation Requirements

To open an RO bank account, you will need to provide the following documents to the bank:

1. RO Business License (original and copy) — issued by the local AMR. This is the primary registration document.
2. Certificate of Approval for the RO — issued by the Ministry of Commerce or its provincial delegate.
3. Articles of Association of the foreign parent company — notarised and authenticated by the Chinese embassy/consulate in the parent company’s home country.
4. Bank account opening resolution — a board resolution from the foreign parent authorising the opening of an RO bank account in China (in Chinese or with a Chinese translation).
5. Power of Attorney — authorising the Chief Representative or another named individual to handle the bank account opening process, including the authorised person’s passport copy.
6. Chief Representative appointment letter — from the foreign parent appointing the Chief Representative.
7. Chief Representative’s passport (original and copy) — plus valid Chinese visa or residence permit.
8. Seal registration certificate — proving the RO’s official seal has been registered with the public security bureau.
9. Office lease agreement — proving the RO’s registered address (minimum 1-year term).
10. Tax registration certificate — issued by the local tax bureau.

Some banks also require the Chief Representative to be physically present for the account opening. HSBC, Standard Chartered, and Bank of China typically require in-person verification for the first account opening. Citibank has been known to accept video verification for existing corporate clients with a strong compliance track record.

Which Banks Are Best for RO Accounts?

How RO Account Opening Differs from a WFOE Account

The opening process for an RO account is paradoxically both simpler and more restricted than a WFOE account:

Simpler because:

• No capital account requirement — ROs have no registered capital to inject, so there is no need for a separate foreign currency capital account (the most complex part of WFOE bank setup).
• Simpler due diligence — banks understand that ROs have limited transaction volumes and simpler compliance profiles.
• Fewer regulatory filings — the RO account does not require SAFE registration (the State Administration of Foreign Exchange registration that WFOE capital accounts require).

More restricted because:

• Banks scrutinise incoming transactions more carefully — any transfer from a Chinese entity (not the foreign parent) triggers compliance red flags and potential account freezing.
• Monthly transaction caps are typically lower — most banks set soft limits of RMB 500,000–1,000,000 in monthly outflow for ROs, compared to no standard cap for WFOEs.
• Foreign currency access is severely limited — most banks will not open a foreign currency account for an RO. If you need to pay overseas vendors in USD or EUR, you must use the parent company’s home-country bank account instead.
• Bank relationship managers assigned to RO accounts often have less experience — ROs are a small segment of most banks’ corporate client portfolios, so the quality of service can be inconsistent.

How the Foreign Parent Funds the RO Account

The foreign parent company can fund the RO’s RMB basic account through regular bank transfers. The funds are classified as “operating expenses funding” and are not considered revenue or income. The remittance should be labelled clearly as “funding for representative office operating expenses” to avoid triggering compliance reviews.

There is no legally mandated minimum or maximum funding amount. However, the total annual funding should be reasonably consistent with the RO’s declared operating budget filed with the AMR in its annual report. A sudden 10× increase in funding without corresponding staff or office expansion may trigger a bank compliance inquiry.

Most RO bank accounts accept international wire transfers in the following currencies:

• USD (converted to RMB by the receiving bank at the daily exchange rate)
• EUR (converted to RMB)
• HKD (converted to RMB)
• GBP (converted to RMB)
• JPY (converted to RMB)

Banks typically charge a conversion fee of 0.1–0.3% of the transaction amount plus a handling fee of RMB 100–300 per incoming international wire.

Can the RO Have More Than One Bank Account?

Yes. An RO can open multiple RMB basic accounts at different banks. This is common for companies that want to:

• Maintain a primary operating account at an international bank (HSBC, Standard Chartered) for English-language online banking and daily operations
• Maintain a secondary account at a Chinese bank (Bank of China, ICBC) for local transactions that require Chinese-language banking infrastructure (tax payments, social insurance payments, utility bills)
• Have a backup account in case the primary account faces temporary compliance restrictions

ROs cannot, however, open foreign currency accounts or investment accounts without specific regulatory approval. Their banking footprint is strictly limited to RMB operating accounts.

Common RO Bank Account Problems and Solutions

Can You Upgrade the RO Account When You Convert to a WFOE?

When your RO converts to a WFOE — or more accurately, when you close the RO and establish a separate WFOE — the RO bank account cannot be converted or transferred. You must:

1. Close the RO’s RMB basic account (withdraw remaining balance to parent company)
2. Open new accounts for the WFOE: a RMB basic account and a foreign currency capital account
3. Register the WFOE’s capital account with SAFE for capital injection and profit repatriation

The RO account closure process takes 1–2 weeks. Plan for a 2-week overlap where both accounts are operational to ensure uninterrupted expense payments during the transition.

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