Opening a USD Account for Your Business? Understand Requirements Process in One Article!

Want to Open a Corporate USD Account? Discover the Requirements and Process!

In the context of global economic integration, an increasing number of Chinese companies are engaging in international trade and establishing partnerships with overseas clients and suppliers. With the growth of cross-border business activities, the demand for corporate USD accounts has surged. What exactly is a corporate USD account? Why should a company open one? What documents and procedures are required to open such an account? This article will reveal everything you need to know.

What Is a Corporate USD Account?

A corporate USD account is a foreign currency account denominated in U.S. dollars that a company opens at a bank. It is primarily used for receiving and making USD payments. Such an account helps companies mitigate exchange rate risks, streamline cross-border settlements, and enhance their professional image in international transactions.

Why Do Companies Need a USD Account?

In recent years, as the RMB exchange rate has become more volatile, more companies have opted to hold U.S. dollar assets to hedge against currency risks. With the rapid development of industries such as cross-border e-commerce, overseas investment, and service outsourcing, the frequency of settlements with overseas clients has increased significantly. Having a USD account has become an essential tool for efficient business operations.

For example, in August 2025, data released by China’s Ministry of Commerce showed that the total value of goods imports and exports in the first half of the year increased by 6.1% year-on-year, with private enterprises seeing an impressive growth of 10.2%. This indicates that more and more small and medium-sized enterprises are actively expanding overseas, and establishing a USD account is a crucial part of supporting their global operations.

Basic Requirements for Opening a Corporate USD Account

While specific requirements may vary slightly from bank to bank, the general conditions for opening a corporate USD account include

1. Legally Registered Business Entity

The company must hold a valid business license, an organization code certificate if not integrated with the three certificates, a tax registration certificate, or a unified social credit code business license.

2. Basic RMB Account

The company must already have a basic RMB account at the same or a different bank, with a good transaction history.

3. Foreign Exchange Registration Certificate

The company must be registered in the enterprise directory for foreign exchange receipts and payments under goods or service trade with the State Administration of Foreign Exchange SAFE.

4. Identification and Authorization Documents

This includes the legal representative’s ID, the handler’s ID, and an authorization letter.

5. Proof of Business Scope

Such as the record filing form for import and export rights or the customs registration certificate.

Step-by-Step Guide to Opening a USD Account

The process of opening a corporate USD account typically involves the following steps

Step 1 Prepare Required Documents

Gather all necessary documents in advance, ensuring that the information is complete, accurate, and up to date. It is recommended to consult with a bank relationship manager to confirm the full list of required materials.

Step 2 Submit Application

Go to a bank branch to submit the account opening application form and supporting documents. Some banks offer online appointment services, which can help reduce waiting time.

Step 3 Bank Review

The bank will conduct a review of the company’s qualifications, credit status, and business operations. The review usually takes 1 to 3 business days, depending on the bank’s efficiency.

Step 4 Sign Agreements

Once the review is approved, the company must sign agreements with the bank, such as the foreign currency account management agreement and the foreign exchange transaction agreement.

Step 5 Account Activation

After the agreements are signed, the bank will open the USD account and provide the account details. The company can then use the account for USD settlements, payments, and receipts.

Important Considerations

Although the process of opening a USD account is relatively straightforward, companies should keep the following points in mind

1. Compliance with Foreign Exchange Regulations

When making USD payments or receiving funds, companies must strictly follow the regulations set by SAFE, including accurate declaration of transaction backgrounds to avoid violations.

2. Account Usage Frequency

Some banks charge management fees for foreign currency accounts with no transaction activity over a long period. Companies should manage account usage based on actual business needs.

3. Exchange Rate Risk Management

While holding a USD account can reduce certain exchange rate risks, companies should still monitor exchange rate trends and choose the optimal timing for currency conversion.

Real-World Example

Take the case of a Shenzhen-based cross-border e-commerce company that decided to expand into the North American market in early 2025. To improve settlement efficiency and minimize currency loss, the company opened a corporate USD account with China Merchants Bank. With all required documents prepared, the entire process was completed in just two working days. The account not only facilitated smooth payment integration with overseas platforms but also reduced the exchange losses caused by frequent currency conversions.

Conclusion

For companies engaged in cross-border business, opening a USD account has become a fundamental and necessary financial arrangement. By using a USD account effectively, companies can improve fund management efficiency and gain a competitive edge in international trade. As long as the required documents are prepared and the procedures and compliance requirements are understood, opening a corporate USD account is not a difficult task.