I need to open an account for my HK company in Shanghai FTZ with internet banking account.

Questions Lists :

I have a HK company and I want to open FTZ offshore banking account in Shanghai FTZ. What do you suggest?

Can you tell me the following info then:

1. What docs are needed to open a company?
2. Need I to be physically present at any stage (including opening a bank account)
3. How long it will take?
4. How much it will cost (including opening a FTZ bank account)?
5. What are benefits of a FTZ company in terms of taxation, tax reports, foreign exchange operations comparing to Chinese mainland companies?
6. As I know there is no need for company capital, right?
7. Is that FTZ company as flexible as HK company?
8. Is it possible to open offshore bank account in FTZ?

Professional Replies from SMEsChina China business registration and consultants firm.

Dear Customer, thanks for leaving a message by our online FAQ platform, if you want to open a FTZ offshore company and obtain internet banking account owned HK company. Its very easy and simple.

According to your questions and misgivings, our suggestion as following :

Requirements documents for a HK company is you have to issue a notarized certificate of HK business registration from a HK local authorized lawyer, and for you, if as the legal representative and director, you have to apply for 2 sets of notarized and authorized documents for your oversea passport from China embassy. If you intend to hire a Chinese local resident to be the legal representative you should ask him ( her ) provide original ID and going to government office ( industrial and commercial bureau ) to check his ( her ) original ID. Here we suggest you reading this page Company Incorporation of Non Residents first.

Your decision, 2 key stages you need to confirm if you plan to come here.

1st stage is procedure of official business registration, you can come here physically present and bring original passport to government checking, or apply for 2 sets of notarized and authorized documents for your oversea passport, this documents issued by China embassy also can be accepted from here government.

2nd stage is as your question, opening a bank account for your China limited company, this stage you also can use notarized and authorized passport instead of being physically present.

So whether to plan visiting China in person or not, you can choose one of them and which one solution is the best depending on your decision.

This problem we briefly explain to you as following list.

Company registration around 11-14 workdays ( included name checking ), and open a local bank account around 7-8 workdays, if your business doing international trading also need to register import and export licenses need extra 8-9 workdays. So total procedure around 26-31 workdays after you have prepared all required documents. Learn more: How setting up a WFOE within 20 days.

This is a complex question, for costs of opening a Chinese bank account, you should confirm which bank you want to open, and what functions you want, generally speaking, once you submitting all required documents, information and legal files, approved business license to local bank, in terms of foreign enterprises management regulations, you have to apply for a basic RMB account and a capital account for your China limited company, without doubt you also can apply for internet banking from local banks, normally these functions need around 120 – 200 USD.

According to which industry you want to register, and what activities your China company does, as we know, the policies of FTZ are heartening for international trading businesses rather than services consulting businesses. So if your company is doing import and export businesses in the future that the FTZ is the most reasonable area for oversea clients. If you do consulting activities and services industries, there are not have any benefits and advantages.

All policies for taxation, tax reports, foreign exchange are not have any difference in mainland China, whether you choose registering own company in FTZ or not.

That is a misconception, most of company registration agents tell non Chinese residents that need not any capital for company registration. Our lawyers solemnly declare that China company incorporation must set up a registered capital when you submitting files and forms to government offices, Chinese government allows investors as the shareholders and can inject the investment capital within 30 years, according to enterprises laws that you must put the capital into Chinese company account even though this timeline be put off 30 years. So “no need for company capital” which is a wrong expression. As a local company, if do not inject the registered capital from shareholders, you will not have any amounts to assume salaries of staff, office rent, social insurance, advertising expense, and any other expenses. But do not worry about this problem because you can inject a little capital at the beginning, Chinese registered capital regulations that shareholders can put into capital any amounts any time, all capital payments depending on your decision. Learn more: Company Registered Capital

Sure, in the future, China FTZ areas will be more open and convenient because as the special areas that China is amending and learning more effective measures to adapt to the international environment, and there are many laws and regulations are reforming to help Chinese local registered enterprises face to all difficulties. The most flexible policy is FTZ registered companies can apply for a free trade account.

Of course, you have to establish your company first, and obtain a legal business license from FTZ government office, then you can open a offshore bank account from any FTZ banks. And you also can obtain a internet banking to operate daily transaction at your HK company.

If you have more further information and questions want to know, you may ask our consultants. We providing a serious of business laws and services for oversea clients and foreign enterprises.