Published · North Korea

Opening a Corporate Bank Account in China: A Practical Guide for North Korean Founders

A practical, plain-English overview for North Korean founders setting up a company in China: how corporate bank accounts work, what banks typically ask for, how to prepare documents and people, common delays, and how to stay compliant. General information only, not legal or tax advice.

Setting up a company in China is one thing; getting a corporate bank account open and usable is often the harder, slower part. For founders coming from the DPRK, the process is not just administrative. It involves identity, documentation, sanctions and compliance screening, and a banking sector that is cautious by design. This guide explains how the system generally works, what banks tend to ask for, and how to prepare so that your application is not rejected on technicalities. It is general information only and is not legal, tax or immigration advice. Rules and bank practices change, and they can differ by city, by bank branch and by the type of business you run.

Why the bank account is a separate battle

In China, a company is legally born when it receives its business licence from the market regulation authority (the 营业护照, or business licence). The bank account is a separate relationship with a commercial bank. Banks are not obliged to open an account for every company. They must apply anti-money-laundering (AML) rules, know-your-customer (KYC) checks and, depending on the parties involved, sanctions and export-control screening. A bank can decline an application or close an account later if it is not comfortable with the customer profile. That is why preparation matters more than shopping around for the “friendliest” branch.

The accounts you will likely need

Most foreign-invested or foreign-managed companies end up with at least two accounts:

• Basic deposit account (基本存款账户) — the company’s main operating account. It is used for salaries, taxes, daily payments and cash withdrawal within limits. A company can generally have only one basic account, and it must be opened at a bank branch with the right licence.
• General deposit account (一般存款账户) — used for specific purposes such as loan repayments or project funds. You can have more than one.
• Foreign currency account — needed if you receive capital contributions, pay overseas suppliers or invoice in currencies other than RMB. Capital contribution accounts are often handled separately from ordinary foreign currency accounts.

If you expect to receive foreign investment capital, the bank will usually want to see the capital account structure and the foreign exchange registration, which is typically handled through the bank under the current foreign exchange framework. The exact steps depend on your structure and on local practice.

Who the bank will look at

Banks assess the company and the people behind it. Expect scrutiny of:

• The legal representative — the person named on the business licence. Banks usually require this person to appear in person, at least once, for identity verification and sometimes for a short interview.
• Ultimate beneficial owners (UBOs) — anyone who ultimately owns or controls a meaningful share of the company. Banks typically ask for ownership charts and identity documents going up the chain.
• Authorised signatories — who can instruct payments. Expect signature cards, ID checks and sometimes video verification.
• The business itself — what you sell, who your customers and suppliers are, expected turnover and payment flows, and whether your activity matches the scope on your business licence.

Because your founders and shareholders are connected to the DPRK, expect enhanced due diligence. Banks may ask additional questions about the source of funds, the nature of the business and any links to sanctioned persons or entities. Answer honestly and consistently. Inconsistent answers across documents are one of the most common reasons applications stall.

Documents to prepare before you visit a branch

Requirements vary by bank and city, but a typical corporate account opening pack includes:

• Original business licence (and copies, often stamped with the company seal).
• Company seal, financial seal and legal representative’s personal seal, where applicable.
• Articles of association and, for foreign-invested companies, approval or filing documents.
• Identity documents for the legal representative, directors, UBOs and authorised signatories — usually passports for foreign nationals, with valid visas or residence permits where required.
• Proof of registered address — lease contract, property certificate or a utility bill, depending on the bank.
• Ownership structure chart showing shareholders up to the ultimate natural persons.
• Board resolution or shareholder resolution authorising the account opening and naming signatories.
• Business background materials: contracts, invoices, website, company profile, a short description of expected transaction flows.

Bring more than you think you need. Banks often ask for one extra document at the counter, and a missing paper can mean a return visit weeks later.

The practical sequence

1. Choose the bank and the branch, not just the brand

Large state-owned banks, joint-stock banks and some city commercial banks all open corporate accounts. The branch matters as much as the bank: international business capability, English-speaking staff and experience with foreign-invested companies vary widely. Ask other founders in your city which branches actually handle foreign-invested account openings.

2. Book an appointment and confirm the document list

Call the branch before you go. Ask specifically for the corporate account opening desk and request the current document checklist in writing. Confirm whether the legal representative must attend in person and whether any video verification is accepted.

3. Attend the interview prepared

Expect questions about your business model, customers, suppliers, expected monthly inflows and outflows, and the source of your initial capital. Have a simple, consistent story that matches your documents. If you use an interpreter, make sure they understand the business, not just the language.

4. Complete KYC and wait for approval

Account opening is not instant. Banks conduct internal reviews and may escalate cases involving foreign ownership or sensitive jurisdictions. Timelines vary; some accounts open in days, others take weeks or longer, and some applications are declined. Do not sign leases or commit to large payments assuming the account will be live by a certain date.

5. Activate online banking and test small

Once open, set up online banking, tokens and payment limits. Make a small test payment before you rely on the account for payroll or supplier payments. Keep your contact details and authorised signatories up to date; banks may freeze or restrict accounts when information is stale.

Common reasons applications fail or stall

• Inconsistent information between the business licence, ownership chart and interview answers.
• Unclear source of funds or unexplained expected transaction flows.
• Missing or expired identity documents, or a legal representative who cannot attend.
• Registered address that cannot be verified or does not match the lease.
• Business scope that does not match the activity described.
• Sanctions or AML screening flags that the bank cannot resolve, which may lead to refusal.

Staying compliant after opening

An account is a relationship, not a one-time event. Keep records of contracts, invoices and customs documents. Respond promptly to bank requests for updated information. Avoid structuring payments to bypass limits, and do not use personal accounts for company business. If your ownership or signatories change, tell the bank early. Banks increasingly monitor transaction patterns and can restrict accounts that behave inconsistently with the declared profile.

Bottom line for DPRK founders

Expect more documentation, more questions and more time than founders from most other jurisdictions. The best strategy is transparency and preparation: a clean ownership structure, consistent documents, a legal representative who can attend in person, and a clear explanation of how money will move through the account. Work with a qualified local lawyer or corporate services firm for your specific situation, and treat this article as a starting map rather than a substitute for professional advice.