RMB Corporate Settlement Account
RMB settlement accounts are current deposit accounts opened with banks by corporations, public institutions, individual businesses and other entities, which are approved by the national administrative department for industry and commerce and relevant governmental departments to facilitate their settlement operations. The RMB corporate settlement accounts can be mainly divided into four types: basic deposit account, general deposit account, temporary deposit account and special deposit account.
1. Basic Deposit Account
(1) Product Definition
The basic deposit account is one with which the depositor can conduct day-to-day transfer and settlement, as well as receipt and payment in cash including salaries and bonus.
The depositor of a corporate settlement account can only open a basic deposit account with a bank.
(2) Product Features
The basic deposit account can be used to handle receipt and payment in cash, with the least business restrictions.
(3) Target Customers
Business corporations and their internal independent accounting entity and financial departments managing budget funds and off-budget funds, administrative organs and public organizations, military and armed police organs above (inclusive) the county/regiment level, foreign institutions in China, social organizations, private enterprises and individual businesses implementing treasury budget management can all apply for basic deposit accounts with the Bank.
(4) Application Procedures
To open a RMB basic deposit account, a customer must provide one of the following documents to the Bank for verification:
● For a business corporation, the original “Business License for Corporation” must be provided;
● For a non-business corporation, the original “Business License” must be provided;
● For an individual business, the original business license for individual business must be provided;
● For a governmental organ or public institution, the approval or registration certificate issued by the central or relevant local personnel and organization commission or the department of civil affairs must be provided;
● For a military and armed police organ above (inclusive) the county/regiment level, the account-opening certification issued by the finance department of the military organ above the corps level or the finance department of the armed police corps must be provided;
● For a social organization, the registration certificate for social organization must be provided, and the approval or certification issued by the
administrative department of religious affairs must also be provided if a religious organization is concerned.
● For a non-local resident representative office, the approval issued by the local competent government department must be provided;
● For a foreign institution in China, the approval or certification issued by the competent Chinese authorities must be provided; for a representative office or office agency of foreign-funded enterprise, the registration certificate issued by the Chinese registration authorities must be provided;
● In addition, if the depositor is a taxpayer engaging in production and business activities, the tax registration certificate issued by taxation authorities must also be provided.
2. General Deposit Account
(1) Product Definition
The general deposit account is a bank settlement account opened by the depositor to meet its borrowing need or other settlement needs with a bank other than the bank of the basic deposit account. A non-independent accounting entity that is not located in the same area as its competent entity can open, subject to the approval from its competent entity, a general deposit account to serve their separate settlement needs.
(2) Product Features
The general deposit account can be used to handle redeposit and repayment of loans, the receipt and payment of other settlement funds, and payment and deposit in cash, but cannot be used to handle withdrawal of cash.
(3) Application Procedures
To open a general deposit account, in addition to the certifications required for opening the basic deposit account and the registration certificate for the opening of basic deposit account, a customer needs to present the following document as required:
The loan contract for borrowing money from bank; or
Relevant documents required for other settlement needs.
3. Temporary Deposit Account
(1) Product Definition
The temporary deposit account is a bank settlement account opened to meet the temporary needs of the depositor, which is in effect within a prescribed period.
(2) Product Features
The temporary deposit account is opened for receipt and payment of funds arising from the establishment of temporary institutions or other temporary business operations of customers, and cash withdrawal from the temporary deposit account is subject to national regulations on cash management. The valid period of temporary deposit account depends on the term specified in relevant documents submitted for account opening or the business needs of the depositor, but not exceeding 2 years at most.
(3) Application Procedures
To open a temporary deposit account for the purpose of establishing a temporary institution, conducting temporary business operations in other places, or meeting the requirements of registration and capital verification, the customer must present one of the following documents:
● For a temporary institution, the approval for its establishment issued by relevant competent authorities where it is located;
● For a non-local construction and installation entities, the originals of their or their parent entities’ business licenses, permits issued by local competent construction/installation authorities or construction and installation contracts, and registration certificates for opening of basic deposit accounts;
● For entities engaging in temporary operations in other places, the original business licenses and approvals issued by administrative departments for industry and commerce where temporary operations are engaged, and registration certificates for opening of basic deposit accounts;
● For funds deposited for registration and capital verification, notices on advance approval of enterprise names issued by the administrative departments for industry and commerce or approvals of other relevant authorities.
4. Special Deposit Account
(1) Product Definition
The special deposit account is a bank settlement account opened by the depositor for special management and use of the earmarked funds in accordance with relevant laws and administrative regulations and rules.
(2) Product Features
Special deposit accounts can be used for handling the receipt and payment of various embarked funds, and cash withdrawal from special deposit accounts shall be subject to the Measures for the Administration of RMB Bank Settlement Accounts and the national regulations on cash management.
(3) Application Procedures
To open a special deposit account, a customer must present to the Bank relevant documents and approvals issued by the competent authorities for the project initialization or relevant regulations and documents issued by the state, in addition to relevant documents required for opening a basic deposit account.
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