Trade relations with China are becoming more and more profitable every year. The authorities of the People’s Republic of China managed to build up an efficient economy in a situation when the relations with the USA are somewhat complicated and the state regulation is rather tough. Business with Chinese partners is a project that has great potential that is hard to underestimate. However, its efficient realization requires a suitable financial instrument to work with the yuan.
Companies that are planning to carry out their activities in the PRC find it easy to open an account with a local bank, and this is one of the most attractive options. At least it seems to be the easiest one at first sight. But will it be the best approach considering all circumstances and possible risks?
We think that an account in a Chinese bank is a wise choice, and it can really become the best one in many cases. However, we cannot say that a corporate account in any PRC financial institution is a universal alternative. The companies whose business is connected with China (payments in yuan) should be especially careful when they choose a bank.
Potential Issues
China is a developed country with powerful economic, financial, and political potential. However, all these qualities became the reason for strained relations with the USA. Washington will not directly order Beijing what countries it is supposed to choose as strategic partners. At the same time, America is not prepared to leave China’s friendship with some countries out of consideration.
A typical example is the December decree issued by US President Joe Biden that imposes secondary sanctions against the banks that cooperate with Russia. This threat appeared just 4 months ago, but has brought about major implications: the banks of many neutral countries that were cooperating with Russia started to refuse to serve Russian corporate customers.
On the whole, businesses that work with the PRC should think of alternative financial services that can be considered transparent de facto and de jure.
Such financial instruments do exist, and we are going to tell you about them:
- A corporate account with a UK payment system — EUR 2,999 and more.
- A company account with IBAN with a Singapore payment system — EUR 3,999 and more.
- An account in the global payment system — EUR 2,999 and more.
Each of these options may be considered independently – that is, you can open one account for a company that carries out its business activities in China. However, it is much better and safer to use two accounts: the one you currently have and a new one. Take both opportunities and prepare a spare corporate account in advance. It will help you to protect yourself from any problems with banking services without breaching any laws.
All three options will be excellent for businesses whose interests are directly related to China. They are based on a corporate account created in a payment system. It is little inferior to an account opened with a traditional bank, so it is bound to become an efficient working tool for the majority of companies.
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Corporate Account in the UK Payment System — EUR 2,999 and More
This is an option when you need an account in a jurisdiction that has a high reputation in the business and financial world. The UK payment system we are cooperating with complies with all the regulators’ requirements and offers a full range of services to legal entities.
Basic services available to corporate customers:
- Cross-border payments to individuals and/or legal entities
- Operations with cryptocurrencies (not all payment systems work with digital assets)
- Invoicing
- Internet acquiring
- Connection of POS terminals
- Several financing options
- A corporate account in different currencies
- A basic package of services connected with e-commerce (design and promotion of websites, Internet marketing, security systems for corporate websites).
Extended services:
- Currency conversion
- Additional transaction processing services (template-based/scheduled payments)
- Payment scheme import from a third-party database
- Accelerated transfers
- Corporate customer card.
Peculiarities of the UK payment system:
- It has a full-fledged license from the FCA (Financial Conduct Authority), the UK financial regulator
- It has offices in London and Riga
- Round-the-clock technical support
- A possibility of online registration.
Receiving a loan:
- amount — up to EUR 8 mln
- term — up to 10 years
- interest — from 5% to 8%
- liquid collateral amount — up to 70%
- loan goals — procurement for import/export, payment delay.
Internet acquiring terms:
- the customer receives a personal account
- the payment page is adjusted
- there are ready-made modules
- access to API
- support of 30 currencies
- translation into any language
- remote work (including verification and customer equipment connection)
- quick system connection (within no more than 7 days).
Invoicing terms:
- drawing up invoices remotely
- online payment acceptance
- fully remote connection (including customer equipment adjustment).
E-commerce terms:
- quick payments (including SEPA)
- payroll projects
- administrative and business account separation
- a personal manager
- payments via Open Banking API.
A Corporate Account with a Unique IBAN in a Singapore Payment System — EUR 3,999 and More
This is a classical corporate financial instrument that will be suitable for companies whose business is connected with the Southeast Asian region. This is a multi-currency account, so you will have no problems with conversion and exchange rate losses. Your company will receive a unique IBAN which will make it possible not only to conduct your business but also to launch a family office. An account in the Singapore payment system is suitable for any operations: those made inside the city-state, in the Asian region, and transcontinental ones.
Peculiarities of operation:
- financial licenses issued by Singapore, UK, and Hong Kong
- you can open an account for an offshore company (we strongly recommend checking it up with our experts as not all offshore entities are eligible)
- a multicurrency account (38 currencies, more than 300 currency pairs)
- simple transfers via SEPA and SWIFT payment systems
- the account in the payment system can be used for Forex transactions with the support of popular services
- Each account in the Singapore payment system receives a unique IBAN
- The majority of transactions are processed during the day.
Corporate customers who can take advantage of the Singapore payment system:
- Companies that engage in business activities in Singapore, in the Asian region, and in other countries
- Credit and financial organizations, payment service providers
- Family offices.
The payment system also gives a warm welcome to individuals in the HNWI or UHNWI categories.
Corporate Account in the Global Payment System — EUR 2,999 and More
This is a universal option for companies that carry out cross-border business activities. The payment system provides a full range of services to customers, and the account opening procedure is simplified. Compliance with KYC/AML requirements is mandatory, and it confirms the payment system’s responsible attitude to work and eliminates the risks related to disruptions due to claims and sanctions on the regulator’s part.
Peculiarities of operation:
- There are representative offices in Europe (Netherlands, UK), USA, Asia (Singapore, Hong Kong, Malaysia), and Australia
- The target businesses include digital services, the hi-tech sphere, cross-border trade, etc.
- Focus on small and medium-sized businesses
- Opening a corporate account does not usually require visiting a physical office and typically takes no more than 3 days
- Zero commission for opening and monthly maintenance;
- Profitable conditions for companies with limited capital
- Each corporate customer has a personal manager
- Extended security functions
- Several communication options with a technical support service.
Advantages of the corporate account with the global payment system:
- Payment details of a local bank
- Transactions in the customer’s national currency
- Quick payments (the speed of operation practically does not depend on the amount and destination)
- Multicurrency accounts
- A well-developed system of control, recording, and analysis of financial transactions
- A possibility of invoicing in 10 currencies
- Local transactions with a low/zero commission
- Acceptance of payments from 180 countries
- Native support of global payment systems (Visa, Mastercard, American Express, UnionPay, PayPal) and digital services (Apple Pay, Google Pay)
- Embedded means of integration with accounting software and popular e-commerce platforms.
The basic package of free services:
- Settlement account
- Multicurrency wallet
- Internal (local) transfers
- Direct debit
- Digital multicurrency cards
- Expenditure management service
- Payment service integration.
Additional services:
- Virtual debit cards
- Currency exchange
- Profitable cross-border transfers
- Extended corporate services (for instance, centralized limit management for connected cards).
How to Set up a Corporate Account in a Payment System
Our experts will tell you about all the nuances of the procedure. The requirements for potential customers, the package of documents, and special conditions depend on the payment system, the country of your residence, the type of business, the list of preferences, and a number of other factors. You will find a list of basic (universal) documents to be prepared. However, keep in mind that it may be different in your case.
Minimum package of documents to set up a corporate account in a payment system:
- Articles of Association
- Memorandum of Association
- Certificate of State Registration
- Certificate of Good Financial Standing
- Description of the company’s corporate structure
- Description of the business the company is engaged in
- Personal documents for the director, beneficiary, and all account signatories.
All the documents have to be translated into English with mandatory certification by a notary.
Which financial services will suit your business? Our experts should analyze your case to answer. General advice is of no use when you choose a financial institution and the jurisdiction where it is located. This is the reason why we offer you to book an individual session where you will be able to choose a payment system along with us.
