How to Smoothly Open a US Bank Account for Domestic Companies A Practical Guide

How to Successfully Open a U.S. Bank Account A Comprehensive Guide for Chinese Companies

In the context of global economic integration, an increasing number of Chinese companies are choosing to expand into international markets, especially by collaborating with U.S. businesses. Whether engaging in cross-border trade, investment and mergers, or establishing overseas subsidiaries, having a compliant and stable U.S. bank account has become essential for many enterprises.

However, due to differences between China and the United States in financial regulations, legal systems, and cultural practices, Chinese companies often encounter numerous challenges when opening U.S. bank accounts. Recently, as Sino-U.S. economic and trade relations have gradually improved, several Chinese companies have announced plans to expand their operations in the U.S. For example, in July 2025, a well-known home appliance manufacturer announced it would establish a new RD center in the U.S. and planned to open a USD settlement account to improve capital efficiency. This trend indicates that more companies will face the challenge of how to successfully open a U.S. bank account.

This article provides a detailed guide on opening a U.S. bank account for Chinese companies, covering four key areas preparation before applying, the account opening process, common issues and solutions, and important considerations.

I. Preparation Before Applying Completeness of Documents is Key

U.S. banks conduct rigorous checks on client identity and background, especially under Anti-Money Laundering AML and Know Your Customer KYC policies. Before submitting an application, companies must prepare the following core documents

1. Company Registration Documents

Including business license, articles of association, and company registration certificate. These should be translated into English, stamped with the company seal, or certified by a professional translation agency.

2. Identification of Legal Representative

Copy of the legal representative’s passport, personal resume, and relevant authorization documents such as board resolutions.

3. Shareholder Structure Description

Clearly identify the Ultimate Beneficial Owner UBO. If there is a multi-layered ownership structure, provide complete documentation of the equity chain.

4. Business Plan or Cooperation Agreement

Banks typically require companies to explain the purpose of opening an account, such as for import/export settlements or project investments. A clear and reasonable commercial purpose increases the likelihood of approval.

5. Documents Related to U.S. Entity if applicable

If the company has already established a subsidiary or branch in the U.S., additional documents such as the local company's certificate of incorporation and Employer Identification Number EIN are required.

It is advisable to communicate with the target bank in advance, as different banks may have varying requirements for non-resident entities. For example, large institutions like Citibank or JPMorgan Chase may prefer clients with stable transaction histories.

II. Account Opening Process Combine Online and Offline Approaches Flexibly

Most U.S. banks now allow remote account opening applications, although some steps still require in-person presence. The general process includes

1. Select a Suitable Bank

Choose based on business needs. For dollar settlement, banks like Citibank or Bank of America may be ideal. For SME-focused services, consider Wells Fargo or Silicon Valley Bank.

2. Schedule an Appointment

Many banks offer online booking, or you can contact their branches in China for assistance. Some banks also support video conferencing for interviews.

3. Submit Application Materials

Scan and upload the prepared documents to the bank’s system, and mail original or notarized copies.

4. Complete Identity Verification and In-Person Signing

U.S. banks usually require the company’s legal representative to visit a branch in person for identification verification and document signing. If this is not possible, an authorized representative can proceed with a notarized power of attorney.

5. Wait for Approval and Activate the Account

The review period typically takes 2-6 weeks, during which the bank may request additional information. Once approved, the company will receive account details and online banking credentials.

III. Common Issues Why Applications Are Rejected and How to Respond

Despite thorough preparation, some companies still face rejection. Based on recent media reports and industry feedback, here are common problems and strategies to address them

1. Incomplete or Improperly Translated Documents

Engage professional agencies for translation and notarization to avoid rejections due to language or formatting errors.

2. Lack of Clear Business Purpose

Banks pay close attention to fund flows and transaction backgrounds. If the use of the account is unclear, suspicion may arise. Include contracts or letters of intent with U.S. partners to support your application.

3. Unclear Beneficiary Information

U.S. banks place high importance on UBO background checks. If the ownership structure is complex, clarify and prepare supporting documentation in advance.

4. Failure to Cooperate with KYC Procedures

Banks may contact applicants via phone or email to verify operational details. Assign a dedicated contact person to ensure timely responses.

IV. Important Considerations Compliance and Long-Term Management

Successfully opening the account is just the beginning. Ongoing compliance and effective management are equally critical

1. Comply with U.S. Tax Regulations

Having a U.S. bank account does not automatically mean the company owes U.S. income tax, but it must comply with reporting obligations under the Foreign Account Tax Compliance Act FATCA.

2. Update Company Information Regularly

Notify the bank promptly if there are any changes, such as a change in legal representative or business scope, to avoid disruptions to account usage.

3. Maintain Active Account Usage

Accounts with no transactions for long periods may be frozen or closed. Maintain a minimum balance or perform small transactions regularly to keep the account active.

4. Utilize FX Risk Management Tools

Use services like forward exchange contracts or currency hedging tools offered by banks to reduce the impact of exchange rate fluctuations on profits.

Conclusion

While opening a U.S. bank account presents certain challenges for Chinese companies, thorough preparation, strict compliance with procedures, and proactive communication with the bank can lead to successful outcomes. As commercial exchanges between China and the U.S. continue to grow, mastering this capability will become a crucial step in advancing corporate globalization.