With China’s continuous deepening of high-standard opening-up, more and more foreigners are choosing to do business and start ventures in China, and fund management is the core prerequisite for smoothly carrying out business operations. Many foreign travelers who come to China to do business for the first time often encounter confusion in account opening, foreign exchange settlement, tax declaration and other links, worrying about complex processes and unfamiliar policies. This article compiles a minimalist tutorial, abandoning redundant expressions, focusing on core steps and key points, helping foreign travelers quickly grasp the core knowledge of fund management for doing business in China, carry out business efficiently and in compliance, and easily deal with various fund-related issues.
Opening up is a basic state policy of China. China has always adhered to deepening reform and opening up, continuously optimized the foreign investment environment, shortened the negative list for foreign investment, and introduced a series of convenient policies to provide comprehensive support for foreigners coming to China to do business. The fund management process is also constantly simplified. As long as you follow the relevant norms, you can smoothly complete various fund operations.
I. Account Opening: Lay the Foundation for Fund Management (Minimalist Process)
Account opening for doing business in China is divided into personal business account opening and enterprise account opening. You can choose according to your own business model. The core is to prepare complete materials and choose a suitable bank. The process is simple and efficient, without cumbersome approval.
Personal Business Account Opening (suitable for individual operation and short-term cooperation): Priority is given to Chinese-funded banks (Bank of China, Industrial and Commercial Bank of China, etc.) or branches of foreign-funded banks in China. These banks all provide multilingual services and can assist in the whole process. Three types of core materials need to be prepared: valid passport and visa (tourist visa cannot be used for business account opening; it is recommended to apply for a business visa or entrepreneurial visa), temporary accommodation registration certificate for foreigners, and business-related documents (such as cooperation agreement, preliminary industrial and commercial registration materials, etc.). The handling process only needs 3 steps: go to the store and inform the bank staff of “opening an account for doing business in China”, submit the materials and fill in the application form, and after the staff review and approve, open the account on the spot and receive the bank card and online banking certificate. The whole process takes 1-2 hours without additional fees.
Enterprise Account Opening (suitable for company registration and long-term operation): If you have completed the registration of a Wholly Foreign-Owned Enterprise (WFOE), Sino-foreign joint venture or other types of enterprises, you need to open a basic deposit account and a foreign exchange account. Core materials include: original and copy of business license, original and copy of legal representative’s passport, articles of association, copy of tax registration certificate. If you entrust others to handle it, you need to provide an additional notarized power of attorney. The process is divided into 4 steps: choose a bank and make an appointment for account opening time, submit the above materials, the bank reviews and reports to the regulatory authorities (1-2 working days), and after approval, receive the account opening license (now an electronic license) and complete the account activation. All subsequent enterprise fund transactions must be carried out through this account, and private accounts cannot be used instead.
Key Reminder: After opening an account, you can activate mobile banking to facilitate online inquiry and transfer. All account opening materials need to be prepared in original and translated versions (the translated version needs to be stamped with the seal of a translation agency). The bank will verify the authenticity of the materials to ensure compliance.
II. Foreign Exchange Settlement: Open Up the Channel for Cross-Border Fund Circulation (Compliant and Minimalist)
Doing business in China will inevitably involve cross-border fund transactions (such as overseas remittance, RMB exchange, profit remittance, etc.). Foreign exchange settlement must follow the principle of “real transaction and compliant declaration”. There is no need to worry about complex processes. Mastering the core points can smoothly complete the operation. The State Administration of Foreign Exchange implements convertible management for foreign exchange receipts and payments under current accounts, greatly simplifying the handling process.
Core Operation 1: Overseas Fund Inflow. Overseas funds (foreign currency) can be directly remitted into the domestic account. When remitting, you need to note the real purpose such as “business funds” and “investment funds” at the bank, without prior approval. After remittance, you can exchange foreign currency for RMB at the bank according to business needs. Within the annual quota, you can handle it with your valid ID card. If it exceeds the annual quota, you can provide relevant transaction certificates (such as cooperation agreement, invoice, etc.). The exchange rate is calculated according to the bank’s real-time exchange rate of the day, without additional handling fees (some banks charge a small exchange service fee).
Core Operation 2: RMB Remittance Overseas. If you need to remit RMB earned from domestic business overseas (such as profits, goods payment, etc.), you need to prepare 2 types of materials: valid ID card of the individual (enterprises need to provide business license and tax payment certificate), and fund purpose certificate (such as profit distribution resolution, trade contract, etc.). Handling process: submit materials to the opening bank, fill in the remittance application form, indicate the remittance amount, purpose and overseas payee account information. After the bank reviews and confirms, the remittance will be completed on the same day or the next day. There is no upper limit on the remittance amount. The key is to verify the authenticity of the fund purpose to avoid illegal fund transfer.
Core Operation 3: Daily Small-Scale Settlement. For small-scale foreign exchange receipts and payments (such as sporadic purchases, short-term cooperation funds), you can directly handle them through personal or enterprise foreign exchange accounts without submitting additional materials. The bank will automatically complete the international balance of payments statistics declaration, simplifying the operation process. Individual foreign trade operators engaged in import and export of goods can manage their trade foreign exchange receipts and payments in accordance with institutional foreign exchange receipts and payments after completing the filing with the commerce department, which is more convenient.
Key Reminder: It is prohibited to use foreign exchange settlement to evade supervision, such as split remittance and false transactions, otherwise it will affect the use of the account. Unused overseas remitted foreign exchange by foreigners can be remitted back in the original way with valid ID cards without additional materials.
III. Tax Declaration: Compliant Tax Payment to Avoid Risks (Minimalist Declaration)
Doing business in China requires paying taxes in accordance with the law. The core of tax declaration is to “clarify tax types, declare on time, and prepare complete materials”. For foreigners doing business, the tax authorities have simplified the declaration process and provided multilingual declaration channels, so you can complete the declaration smoothly without professional tax knowledge.
First, clarify the core tax types: individuals engaged in business mainly pay personal income tax, and enterprises engaged in business mainly pay Value-Added Tax (VAT) and Corporate Income Tax (CIT). The personal income tax rate is calculated by levels according to business income. The standard corporate income tax rate is 25%. Qualified small and low-profit enterprises can enjoy a preferential tax rate of 5%-10%, and enterprises engaged in encouraged industries located in western regions can be taxed at a reduced rate of 15%. For VAT, small-scale taxpayers apply a 3% collection rate (temporarily reduced to 1% by the end of 2025), and the tax rate for general taxpayers varies by industry (such as 6% for modern services and 13% for goods sales).
Declaration Process (applicable to both individuals and enterprises): 1. Complete tax registration: Individuals need to complete tax registration at the local tax bureau within 30 days after obtaining business income, and enterprises need to complete tax registration at the local tax bureau within 30 days after receiving the business license, submit relevant identity certificates and business certificates, and obtain the tax registration certificate (electronic certificate); 2. Confirm the declaration cycle: Personal business income is declared quarterly, and enterprise VAT and corporate income tax are also declared quarterly. The annual final settlement and payment shall be completed after the end of the year (enterprises need to complete it before May 31 of the next year); 3. Submit declaration materials: Declaration can be made through the electronic tax bureau (supporting English interface) or the offline window of the tax bureau. Core materials include: declaration application form, income certificate (invoice, bank statement, etc.), and tax payment certificate (if prepaid); 4. Pay taxes: After the declaration is approved, taxes can be paid through bank transfer or mobile banking. Failure to declare on time will result in fines and affect the account credit.
Key Reminder: Even if there is no operating income or tax payment in the current period, you still need to make a “zero declaration” on time and cannot miss it. Foreigners can enjoy some tax incentives, such as preferential policies in tax treaties. You can consult the tax bureau or professional institutions in advance for reasonable tax savings. When handling tax registration, materials that can be queried through information sharing (such as accommodation registration and business license) do not need to be inspected in paper form, simplifying the process.
Summary: The core of fund management for doing business in China is “compliance and simplicity”. Prepare complete materials for account opening, clarify the real purpose for foreign exchange settlement, and declare taxes on time and in compliance, so that you can carry out business smoothly. With the continuous optimization of China’s immigration management, foreign exchange management, tax management and other policies, fund operations for foreigners doing business in China will become more convenient. If you encounter specific problems, you can consult the opening bank, local tax bureau or foreign-related service institutions for one-on-one assistance.
暂无评论内容