One of the most confusing parts of setting up a company in China is the bank account structure. A Chinese company does not simply open “a bank account” — it opens several, each with a distinct legal purpose and set of rules. Understanding the difference between a basic deposit account, a general account, a capital account, and a foreign currency account is essential to managing cash, receiving capital, and repatriating profits legally.
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Why Chinese Companies Have Multiple Accounts
China’s banking and foreign exchange system separates a company’s money into different functional accounts. This is not optional bureaucracy — it is how the State Administration of Foreign Exchange (SAFE) and the People’s Bank of China track capital flows, prevent money laundering, and enforce capital controls. Each account type has a defined purpose, and using the wrong account for a transaction can trigger compliance problems or blocked payments.
For a foreign-invested enterprise such as a WFOE, the account structure typically includes a domestic RMB account for day-to-day operations, a capital account for receiving registered capital injections, and one or more foreign currency accounts for cross-border receipts and payments. Understanding each one is the foundation of sound treasury management in China.
The Basic Deposit Account
The basic deposit account is the company’s primary settlement account. Every company in China must designate exactly one basic account, and it is the only account from which the company may withdraw cash and pay salaries. It is also the account used for ordinary RMB receipts and payments such as paying suppliers and collecting from customers.
The basic account is tied to the company’s business license and is typically the first account opened after registration. Because a company can have only one basic account, the choice of bank and branch matters — it affects daily cash handling, payroll, and the convenience of nearby branch services.
The General Deposit Account
A general deposit account is a supplementary RMB account opened at a bank other than the one holding the basic account. Companies use general accounts to borrow funds, make payments, and receive certain deposits, but they cannot withdraw cash from a general account.
General accounts give a company flexibility to bank with multiple institutions — for example, to access a better lending relationship or more convenient locations. A company may open more than one general account across different banks.
Special and Temporary Accounts
Beyond the basic and general accounts, Chinese companies may open special deposit accounts for specific earmarked purposes such as construction funds, social insurance, or housing fund contributions. These accounts hold money dedicated to a defined use and are subject to stricter oversight.
Temporary deposit accounts exist for limited purposes, such as receiving capital during a company’s establishment phase before the basic account is opened, or for project-specific funds. They are generally closed once their purpose is fulfilled.
The Capital Account
The capital account is where a foreign-invested enterprise receives its registered capital. When a foreign shareholder injects capital into a WFOE, the funds arrive in the capital account and are then converted or transferred into the operating account for business use.
Capital account transactions are heavily supervised under SAFE rules. Funds may only be used for the purposes declared in the company’s business scope, and withdrawals are subject to documentation and bank review. Proper handling of the capital account is essential both for compliance and for a clean path to eventual profit repatriation.
Foreign Currency Accounts
Companies that trade internationally or receive payments in foreign currency may open foreign currency accounts. These accounts hold balances in currencies such as USD or EUR and facilitate cross-border receipts, payments, and conversion at prevailing exchange rates.
Foreign currency accounts come in current and capital variants, mirroring the domestic RMB structure. A current-account foreign currency account handles trade-related receipts and payments, while a capital-account foreign currency account handles investment-related flows. Correctly classifying each transaction is a core part of SAFE compliance.
Opening Accounts in Guangzhou and Shenzhen
Foreign-invested enterprises in Guangzhou, Shenzhen, Foshan, and Dongguan benefit from deep banking infrastructure and staff experienced with foreign companies. Guangzhou serves as a regional financial hub, while Shenzhen’s banks are accustomed to technology, trading, and manufacturing clients with active cross-border operations.
Banks in these cities routinely handle the full account suite for WFOEs — from the basic account and capital account through to foreign currency accounts. Choosing a bank with strong international services and a branch near your office in Guangzhou or Shenzhen simplifies document handling and day-to-day banking.
Frequently Asked Questions
How many basic deposit accounts can a company have in China?
Only one. The basic account is the company’s designated primary settlement account and the only one from which cash can be withdrawn.
Can I use my capital account for everyday expenses?
No. Capital account funds are restricted to the declared business purposes and are subject to SAFE documentation requirements before they can be moved into the operating account.
Do I need separate accounts for RMB and foreign currency?
Yes, if you handle foreign currency. RMB and foreign currency are held in separate account structures, each with current and capital account variants.
Disclaimer: This article is provided for general informational purposes only and does not constitute banking, tax, or legal advice. Bank account rules and foreign exchange regulations in China are subject to change and vary by bank and locality. You should consult a qualified professional and coordinate directly with your bank before opening or operating corporate bank accounts in China.
