How to Legally and Efficiently Receive Payments from NRA Accounts A Complete Guide and Key Considerations

How Can Domestic Companies Legally and Efficiently Receive Payments from NRA Accounts? A Detailed Guide to the Full Process and Key Considerations

As global economic integration deepens, more and more Chinese companies are engaging in cross-border trade and investment that involve international financial transactions. Among these, the Non-Resident Account NRA has become a commonly used tool for handling international settlements and foreign currency payments. For domestic enterprises, understanding how to legally and efficiently receive payments from NRA accounts is a critical issue in practical operations.

This article provides a comprehensive analysis of the full process and key considerations for domestic companies receiving funds from NRA accounts, based on recent financial policies and real-world operational practices.

1. What Is an NRA Account?

An NRA account, or Non-Resident Account, refers to a RMB or foreign currency account opened by overseas entities or individuals at banks within China. According to regulations issued by the People's Bank of China, NRA accounts can be used for cross-border fund transfers related to goods trade, service trade, and capital projects.

In June 2025, the State Administration of Foreign Exchange released a notice titled Further Promoting theof Cross-Border Trade and Investment, which emphasized optimizing NRA account management procedures and improving the efficiency of cross-border capital flows. This policy indicates a supportive regulatory stance toward NRA usage and offers policy backing for compliant operations by domestic companies.

2. Common Scenarios for Domestic Companies Receiving NRA Payments

1. Export Revenue Collection Domestic companies receive payment through an NRA account after selling goods or providing services to overseas clients.

2. Intercompany Fund Transfers Multinational corporations may use NRA accounts for internal fund transfers between subsidiaries.

3. Repayment of Foreign Currency Loans Domestic companies repay principal or interest on loans obtained from overseas via NRA accounts.

4. Repatriation of Investment Income Profits such as dividends earned by overseas subsidiaries can be transferred back to the parent company in China through an NRA account.

3. Step-by-Step Guide to Receiving Funds from an NRA Account

1. Verify the Authenticity of the Transaction Background

According to foreign exchange regulations, all cross-border transactions must be based on genuine and legal business activities. Before receiving funds, companies should ensure that contracts, invoices, shipping documents, and other supporting materials are complete and verifiable.

For example, in July 2025, a Zhejiang-based import-export company had its NRA transaction rejected by the bank due to incomplete commercial documentation, delaying the arrival of funds. Therefore, it’s essential to prepare necessary documents from the outset of the transaction.

2. Open a Foreign Exchange or RMB Settlement Account

If the NRA account is denominated in USD or another foreign currency, the domestic company must hold a corresponding foreign exchange account. If the transaction is settled in RMB, the company needs a settlement account capable of receiving offshore RMB funds.

Most major banks now offer NRA account connectivity services. Enterprises should choose a bank that supports direct transfers from NRA accounts to their own accounts and confirm this capability in advance.

3. Submit Required Documents and Report Foreign Exchange Information

Once the NRA account initiates a payment, the domestic enterprise must assist the bank by submitting the following documents

Contracts or agreements

Commercial invoices

Transport documents e.g., bills of lading

Customs declarations for goods trade

Additionally, the company must complete foreign exchange reporting via the bank, including filling out the Foreign-related Income Declaration Form and other relevant forms, to ensure compliance with regulatory requirements.

4. Bank Review and Fund Arrival

Upon receiving the payment instruction from the NRA account, the bank will conduct a series of reviews in accordance with foreign exchange rules, including anti-money laundering checks and verification of the transaction background. Typically, RMB cross-border transfers arrive within one business day, while foreign currency transfers depend on the specific currency and clearing routes.

5. Conversion and Tax Handling

If the received amount is in foreign currency, the company may choose to convert it into RMB through the bank. It is important to monitor exchange rate fluctuations and manage conversion timing effectively.

Under the Enterprise Income Tax Law and related tax treaties, inbound payments may trigger obligations for value-added tax VAT and enterprise income tax. Companies should promptly declare and pay taxes to avoid penalties or late fees.

4. Common Issues and Key Considerations

1. Can NRA Accounts Directly Transfer to Domestic Corporate Accounts?

Yes, but only under conditions that ensure a legitimate transaction background, complete documentation, and compliance with foreign exchange regulations.

2. Is ODI Filing Required?

If the transaction involves significant capital inflows or long-term investment returns, companies should consider consulting the Ministry of Commerce on whether Overseas Direct Investment ODI filing is required to prevent future compliance risks.

3. Restrictions on Fund Usage

Funds in NRA accounts must be used strictly for designated purposes-such as paying for goods or repaying loans-and cannot be arbitrarily used for domestic equity investments or other non-compliant activities.

4. Exchange Rate Risk and Fund Security

Since most NRA accounts are denominated in foreign currencies, companies should actively manage exchange rate risk. Choosing reputable banks also helps safeguard the security of funds.

5. Anti-Money Laundering and Compliance Scrutiny

With increased regulatory oversight on cross-border capital flows, companies must strictly adhere to anti-money laundering AML laws and avoid suspicious transactions that could lead to investigations or inclusion in blacklists.

5. Recommendations for Enhancing Efficiency

1. Establish Standardized Procedures Develop an operation manual for cross-border receipts, standardizing document collection and submission to improve processing speed.

2. Strengthen Bank Collaboration Maintain open communication with banks to understand required documents and review timelines in advance, reducing delays.

3. Leverage Digital Tools Some banks offer online declaration and automated conversion functions. Utilize digital platforms to streamline workflows.

4. Provide Regular Training Conduct periodic training sessions for finance personnel to keep them updated on evolving regulations and enhance overall professionalism.

Conclusion

Domestic companies seeking to receive funds from NRA accounts must not only understand the relevant policies and procedures but also focus on compliance and operational details. Only by ensuring transaction authenticity, completeness of documentation, and proper reporting can enterprises achieve efficient fund receipt and management.

Looking ahead, as cross-border financial policies continue to liberalize, NRA accounts will play an increasingly important role across various industries, serving as a vital tool for Chinese enterprises expanding globally.