Know More

No Roller Coaster

Free Business in China.

For most foreign-invested enterprises in China, the focus is on growth, tax compliance, and margins. But one small administrative detail is frequently overlooked — and the consequences can be severe.

The expiry date on the legal representative’s passport.

1. An Expired Passport = Frozen Bank Accounts (Yes, Really)

Currently, if a foreign legal representative’s passport expires, the company can still operate — for a while. The local market supervision bureau (AIC) does not immediately block business activities.

But here is the real risk:
If you do not update the passport information with your bank before the expiry date, the bank will freeze your corporate accounts.

Not "restrict." Freeze.Your cash flow stops instantly.

2. One Account Is Not Enough — Update All of Them

Many companies make the mistake of updating only their basic RMB account.

That is not sufficient.

If your company has multiple accounts — general RMB accounts, foreign currency accounts, loan accounts, or others — each bank must be updated separately.

Why? Because if any single bank holds expired legal representative information, it can trigger compliance restrictions that affect your entire banking relationship — including your basic account.

3. What You Need to Prepare for Each Bank

To update the passport information, typically bring the following documents to each bank where the company holds an account:

• 1. New passport (original + copy)

• 2. Old passport (copy)

• 3. Original business license

• 4. ID card of the person handling the process + power of attorney

• 5. Official company seals (company chop, legal representative’s personal chop, financial chop)

Important: Contact your bank manager at each bank in advance. Requirements vary slightly by bank, and some may request additional documents.

One expired document can shut down your entire China operation overnight.