In this blog, Hongda will break down common reasons and practical steps to resolve them when your company bank account application was rejected.
If you’re a foreign entrepreneur looking forward to investing or currently running a business in China, opening a corporate bank account for your company is essential. At Hongda, we often hear from clients facing a frustrating issue: “My company bank account application was rejected. What should I do with it?”
In this blog, Hongda will break down common reasons for rejection and practical steps to resolve them.
1. Company Qualification Issues
Why this happens:
- Your business license hasn’t passed its annual inspection, has expired, or been revoked.
- Your company is listed as “abnormal” (e.g., due to an invalid registered address, overdue annual reports).
What to do:
(1) Renew or update your business license ASAP.
If your license is expired or needs an annual inspection, don’t panic—we’ve got your back. Hongda can handle license renewals, business registration updates, or even company deregistration if needed. We’ll keep your paperwork compliant and up-to-date.
(2) Get your company removed from the “abnormal” list.
For example, if your registered address is outdated or annual reports are missing, you’ll need to fix these with the local Administration for Market Regulation (AMR). The process can be tricky, especially if you’re juggling multiple agencies (like tax or commerce bureaus).
What can Hongda help you with?
If your company is marked as “abnormal,” Hongda can help you resolve it. Whether it’s updating your address, submitting overdue reports, or communicating with authorities, we’ll streamline the process so you can focus on your business.
2. Director/Shareholder Credit Issues
Why this happens:
- The legal representative (director) or shareholders have a poor credit history (e.g., overdue loans, credit card defaults).
- The director/shareholder is listed as a ‘court-ordered debt defaulter’ (“discredited person”) or has a criminal record.
What to do:
(1) Fix credit issues first.
Pay off overdue debts and submit a dispute to credit agencies if there are errors. Banks in China take credit history seriously, so cleaning the bad records is a must!
(2) Swap out directors/shareholders (if necessary).
Sometimes, replacing the legal representative or shareholders is the fastest fix. But this requires legally amending your company’s Articles of Association and filing changes with authorities.
What can Hongda help you with?
As we’ve covered in previous blogs, if your director/shareholder is linked to other inactive companies (e.g., ‘zombie’ businesses that weren’t properly closed), it can drag down your current company’s eligibility. Hongda can help update your director/shareholder structure, sever ties with defunct linked companies, and ensure your active business meets bank requirements.
3. Incomplete Documentation
Why this happens:
- Missing key paperwork like your company’s Articles of Association, shareholder resolutions, or Ultimate Beneficial Owner (UBO) declaration.
- Company chops (stamps) or director signatures don’t match what’s registered with the AMR.
What to do:
(1) Ask your bank for a checklist upfront.
Requirements vary by bank! Get their official list, cross-check every item, and fill gaps before submitting.
(2) Update your chops or signatures.
If your company stamp or director’s signature has changed since registration, re-carve the chop or file a signature update with the AMR. Sometimes banks can reject applications for tiny mismatches—like a smudged stamp or a signature that’s 90% similar but not identical. Double-check everything!
What can Hongda help you with?
- Document preparation: We’ll ensure all paperwork (e.g., shareholder resolutions, UBO forms) is complete and bank-ready.
- Chop/signature fixes: Hongda can assist with updating chops or AMR filings to avoid mismatches.
- Full compliance review: Let us audit your docs before you apply—save time and avoid rejection headaches!
4. Failing Bank Risk Control Checks
Why this happens:
- No proof of a real business address (e.g., missing property deed, lease agreement, or utility bills).
- Can’t explain why your registered address doesn’t match your actual operating location.
- The bank visits your address and finds it empty or unstaffed (a ‘shell’ address).
What to do:
(1) Rent a real office space and keep your lease agreement and payment records handy.
(2) Explain your business model clearly to the bank. For example: We’re an e-commerce business and don’t need a physical office’ or “Our team works remotely.”
(3) Prepare supporting documents like client contracts, shipping records, or invoices to prove real operations.
What can Hongda help you with?
If you’re a new company and want to avoid upfront office rental costs, Hongda’s registered address service is here to help. We provide bank-compliant addresses that pass government and bank inspections or shared office spaces for daily operations with official proof of address to satisfy regulatory requirements.
5. Investors from Sensitive Countries
Why this happens:
- Shareholders/UBOs are from internationally sanctioned countries (e.g., Russia, Iran, North Korea).
- Banks suspect the funds are linked to high-risk political/illegal activities.
What to do:
(1) Submit background checks for shareholders (e.g., clean criminal record certificates, sanctions screening reports).
(2) Prove fund legality with documents like overseas tax clearance certificates or asset sale agreements.
(3) Choose the banks who can use CIPS system for international settelements.
What can Hongda help you with?
If you’re a new company and want to avoid upfront office rental costs, Hongda’s registered address service is here to help. We provide bank-compliant addresses that pass government and bank inspections or shared office spaces for daily operations with official proof of address to satisfy regulatory requirements.
How Hongda Can Make This Easier
1. Pre-application bank coordination
Banks have wildly different risk control standards! We’ll match you with the right bank based on your business type and location. We can also liaise with bank managers to clarify requirements upfront.
2. Account compliance guidance
Opt for Hongda’s Monthly Banking & Cashier Service to avoid account freezes (e.g., from inactivity, rapid money transfers, or large transactions) and stay updated on regulatory changes.
3. Document safekeeping
Hongda constantly provides bookkeeping services to store your invoices, contracts, and transaction records securely and instantly retrieve documents for bank/government audits.
4. Sensitive-country shareholder support
We specialize in complex cases! From paperwork to bank negotiations, we’ll handle the hurdles so you don’t have to.
