You’re setting up a company in China. You need a Legal Representative (法定代表人).
Most foreign founders think about trust, control, and signing authority.
But if you ignore two operational realities, your bank account will freeze – and your business will be affected.
Reality #1: The Legal Rep Must has a Chinese SIM Card
You cannot open a corporate bank account in China without a real-name authenticated (實(shí)名制) Chinese mobile phone number linked to the Legal Representative based on present bank's regulation.
Here is the kicker:
At present, you cannot delegate this. No proxy. No power of attorney. No remote setup.
The Legal Representative must walk into a China Mobile, China Unicom, or China Telecom store – physically, with their original passport – to buy a SIM card.
Reality #2: A Foreign Passport Is a Time Bomb
When a foreigner is the Legal Representative, their passport is their legal ID in China’s bank systems. The bank records:
1. Passport number
2. Expiry date
When the passport expires – and it will – the bank’s system flags the account. Transactions stop. Salary payments fail. Supplier payments bounce.
Fixing it is the real problem:
1. Some banks accept notarized copies + Hague Apostille of the passport.
2. Many local Chinese banks demand the original physical passport. Hand it over. No PDF. No scan. No email.
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Set up in 2009
Focus on Tax& Accoounting
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wcx@ruanyinchina.com
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