Solutions Found For Russian Corporate Bank Account Opening in China
Russian businesses affected by US banking sanctions may open bank accounts in Shanghai
Solutions have been found for the problems created by US sanctions upon Russian businesses wishing to establish bank accounts in China. The US measures, while specifically aimed at targeted individuals and businesses in Russia, have had a knock-on effect and made it difficult for Russian non-sanctioned businesses to open bank accounts in China as well – Chinese banks being very conservative when it comes to handling Russian clients.
However, after months of looking for solutions, Dezan Shira & Associates have found and tested a workable solution. There are specific documentation requirements to open such accounts, and the Russian business must be registered in Shanghai. This means that Russian businesses intending to operate elsewhere in China may need to change their Chinese domicile to Shanghai – an administrative procedure that can be carried out – or register in Shanghai and then establish branches of that China parent in other areas of the country. Branch office establishment in other locations in China is permissible and is not expensive.
There are numerous structures to establish a business presence in China, suitable entities are dependent upon the intended scope of business of the Russian investor.
Dezan Shira & Associates maintains 13 offices in mainland China and Hong Kong and has a 30-year track record of assisting foreign investors into the country. For further assistance with establishing Russian businesses and opening Russian bank accounts in China, please contact Maria Kotova at russia@dezshira.com
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About Us
During these uncertain times, we must stress that our firm does not approve of the Ukraine conflict. We do not entertain business with sanctioned Russian companies or individuals. However, we are well aware of the new emerging supply chains, can advise on strategic analysis and new logistics corridors, and may assist in non-sanctioned areas. We can help, for example, Russian companies develop operations throughout Asia, including banking advisory services, and trade compliance issues, and have done since 1992.
We also provide financial and sanctions compliance services to foreign companies wishing to access Russia. Additionally, we offer market research and advisory services to foreign exporters interested in accessing Russia as the economy looks to replace Western-sourced products. For assistance, please email russia@dezshira.com or visit www.dezshira.com
