How to Open an NRA Account for Overseas Branch? Everything You Need Is Here!

How to Open an NRA Account for Overseas Subsidiaries? This Guide Has Everything You Need!

As globalization deepens, more and more Chinese companies are expanding overseas, setting up branches or subsidiaries to tap into international markets. However, when conducting cross-border operations, companies often face challenges in fund management and settlement efficiency. Opening an NRA Non-Resident Account has become a popular and practical solution for many businesses to streamline overseas financial operations.

But what exactly is an NRA account? How does it help with overseas operations, and how can a company open one? This article breaks it down with real-world insights and the latest procedures.

1. What is an NRA Account?

An NRA account, or Non-Resident Account, is a RMB or foreign currency account opened by an overseas entity at a bank within mainland China. It is mainly used to manage funds related to onshore activities of offshore entities and is widely applicable to cross-border trade, investment, and financing.

For example, if a Chinese company sets up a branch in Singapore, and that branch opens a bank account in China, that account is classified as an NRA account. With this account, companies can manage cross-border funds more flexibly without directly dealing with foreign exchange controls.

2. Why Open an NRA Account? Key Benefits

Efficient Cross-Border Settlement

Avoid the hassle of frequent currency conversion, saving both time and costs.

Hedge Against Currency Fluctuations

Hold RMB or foreign currency assets to reduce risks caused by exchange rate volatility.

Improved Fund Management

Link the NRA account with your domestic main account to centralize and streamline fund management.

Access to Financing Options

Some banks allow NRA accounts to be used for pledge, loans, and other financing activities.

Policy Support

Chinese regulators like the State Administration of Foreign Exchange SAFE and the People's Bank of China PBOC continue to optimize cross-border financial policies, making NRA accounts a key tool for compliant international operations.

3. Who Should Open an NRA Account?

NRA accounts are particularly useful for

Chinese companies with overseas branches, such as those operating in Southeast Asia or Europe.

Businesses with frequent cross-border trade, like import/export firms or companies with long-term overseas clients.

Firms looking to benefit from RMB internationalization, especially to avoid USD exchange risks.

Companies needing cross-border investment or financing, where NRA accounts can improve capital efficiency.

4. Step-by-Step Guide to Opening an NRA Account

Opening an NRA account follows a standardized process. Here’s how to do it

Step 1 Prepare Required Documents

For a RMB NRA account, typical documents include

Overseas business registration certificate e.g., business license

Articles of Association

Identity proof of legal representative

Power of attorney if handled by an agent

Company information form

Account opening application

Any additional documents required by the bank

Note Requirements may vary slightly between banks, so always check with your chosen bank beforehand.

Step 2 Choose the Right Bank

Major banks in China support NRA accounts, including

Bank of China

Industrial and Commercial Bank of China ICBC

China Construction Bank CCB

China Merchants Bank CMB

Pick a bank with strong cross-border finance experience and services that match your needs.

Step 3 Submit Application and Complete KYC

Submit your documents to the bank and cooperate with their due diligence KYC. The bank will review your eligibility.

Step 4 Account Opening and Setup

Once approved, the bank will open your NRA account and help set up features like online banking, transfer permissions, etc.

Step 5 Ongoing Account Management

After opening the account, keep your information updated, submit annual reviews on time, and follow bank requirements for daily management.

5. Key Considerations When Managing an NRA Account

Compliance is Critical

Even though NRA accounts offer flexibility, always follow China’s foreign exchange regulations and ensure all fund usage is legal.

Stay on Top of Annual Reviews

Some banks require yearly checks. Missing deadlines could result in account suspension or closure.

Compare Bank Services

Fees, settlement speed, and system integration vary between banks. Choose the one that best suits your business.

Use Funds Wisely

While NRA accounts support multiple functions like settlement and financing, plan your usage based on real business needs to avoid idle funds or misuse.

6. New Opportunities for NRA Accounts in 2025

With the RMB becoming more widely accepted globally, the use of NRA accounts is gaining momentum.

In March 2025, China and Brazil officially launched a RMB-based settlement mechanism, and many Brazilian companies have begun using RMB for commodity trading. This creates a perfect opportunity for Chinese firms in Brazil to open NRA accounts - reducing exchange rate risks and speeding up transactions.

In June 2025, the People's Bank of China issued a notice further optimizing cross-border RMB policies, encouraging banks to offer more financial services for NRA accounts. These developments are creating a more favorable environment for NRA adoption.

7. Conclusion

For Chinese companies expanding globally, an NRA account is not just a financial tool - it’s a strategic asset that supports international operations. With it, you can manage overseas funds more efficiently, reduce currency risks, and improve overall financial flexibility.

However, opening an NRA account requires careful planning, a clear understanding of regulations, and the right banking partner. As long as you operate in compliance and use the account wisely, it can become a powerful enabler of your global growth strategy.

So, if your company is planning to go global or already has a presence overseas, consider setting up an NRA account - it might be exactly what you need to move forward confidently on the international stage.