NRA and FTN Accounts in China: What They Are, Who They're For, and How to Open One in 2026
China remains one of the largest trading partners for companies worldwide. Many foreign companies registered in Hong Kong, the UAE, Singapore, European countries, and the CIS conduct active foreign economic activity with Chinese partners. However, there isn't always a need to register a legal entity in mainland China.
In such cases, one of the most sought-after solutions becomes opening a bank account for a foreign company at a Chinese bank. Today, the most common options are NRA (Non-Resident Account) and FTN (Free Trade Non-Resident Account). This article examines what NRA and FTN accounts are, how they differ, who they suit, and how the opening procedure typically works.
What Is an NRA Account?
NRA (Non-Resident Account) is a bank account opened by a Chinese bank for a foreign legal entity registered outside mainland China. Such an account allows a company to use a range of banking services without registering a subsidiary in the PRC.
This type of account is designed to serve the international activities of foreign companies and can be used for settlements with Chinese and foreign counterparties, receiving and sending payments, and using other banking services depending on the specific bank's policy.
What Is an FTN Account?
FTN (Free Trade Non-Resident Account) is an account for foreign companies opened under the Free Trade Account (FT Account) system operating in China's free trade zones (FTZ). Today, the FT system applies in a number of pilot zones, for example: Shanghai (Shanghai Pilot Free Trade Zone), Hainan (Hainan Free Trade Port), and Guangdong Province (Guangdong Pilot Free Trade Zone), among others.
As reforms progress, the list of pilot zones and banks authorized to work with FT accounts is gradually expanding. However, the possibility of opening an FTN account depends not only on the bank's location, but also on whether the specific bank participates in the FT Account program and offers such services to foreign companies.
Key Advantages
The main advantage is that there is no need to register a company in China. In addition, a foreign company gains the ability to use the infrastructure of a Chinese bank, carry out international settlements, work with various currencies, and build more convenient interaction with Chinese partners.
It's important to understand that the specific range of services depends on the chosen bank, the company's country of registration, the nature of the business, and the results of the compliance procedure.
NRA vs. FTN: What's the Difference?
Comparison of NRA and FTN Accounts
Comparison of NRA and FTN Accounts
Criterion
NRA (Non-Resident Account)
FTN (Free Trade Non-Resident Account)
Who can access it
Foreign legal entities
Foreign legal entities operating through banks in an FTZ
Where it's opened
At Chinese banks offering NRA
At Chinese banks operating in pilot free trade zones (FTZ)
Main purpose
Settlements between a foreign company and Chinese and foreign counterparties
International operations using the FTZ regime
Currency regime
General currency regulation regime
More flexible mechanisms within FTZ rules
Best suited for
Import, export, international trade
Companies with complex international structures or active operations through an FTZ
Choice of account
Depends on bank requirements and business model
Also determined by the bank and project specifics
Who Are NRA and FTN Accounts For?
Both types of accounts are in demand among:
Hong Kong companies
international traders
importers of Chinese products
exporters to China
manufacturing holdings
logistics companies
international groups of companies
While NRA is a universal solution for foreign companies, FTN is oriented toward taking advantage of free trade zone benefits. Depending on current regulations, FTN may allow more flexible options for certain international operations.
Although both NRA and FTN are designed for foreign companies, the choice between them depends on the nature of the planned operations. In practice, many Chinese banks offer both account types, though their use may differ.
For example:
NRA is often used for classic international settlements by a foreign company.
FTN may be more convenient for operations related to the offshore yuan market (CNH), as well as for certain cross-border currency operations.
It should be noted that the terms of service, available currencies, and procedures for conducting operations are determined by each bank's internal policy.
What Documents Are Typically Required?
Although the list of documents differs from bank to bank, the following are most often required:
corporate documents of the company
passports of directors and beneficiaries
a description of the company's activities
information about clients and suppliers
commercial contracts or other documents confirming genuine business activity
Additionally, the bank carries out KYC and AML procedures, analyzing the business structure, the origin of funds, and the expected nature of operations.
How Does the Account Opening Process Work?
The process usually consists of several stages: preliminary assessment, document preparation, internal compliance review, arranging a bank visit (if required), signing bank forms, activating online banking, and gaining access to the account.
Depending on the bank, additional documents or clarifications may be required.
Practical Recommendations
Before submitting documents, it's advisable to prepare in advance a description of the business, the group company structure, information about counterparties, and expected turnover. The more transparent a company's activities appear, the easier it is for the bank to conduct its review. It's also helpful to determine in advance which currencies will be used and whether settlements with Chinese suppliers will be conducted in yuan.
NRA and FTN are important tools for foreign companies working with China. These accounts make it possible to use the capabilities of the Chinese banking system without registering a legal entity in mainland China and can be an effective solution for international trade.
At the same time, bank requirements, the list of documents, and available functions may vary. Therefore, before choosing a bank, it's recommended to conduct a preliminary case analysis and select the most suitable banking solution based on the specifics of the company's business.
This article is of a general informational nature and does not replace individual consultation, as bank and regulatory requirements may change.
Frequently Asked Questions
Can an NRA or FTN account be opened without a company in China?
Yes. NRA and FTN accounts are specifically designed for foreign legal entities and do not require registering a company on PRC territory.
Can a Hong Kong company open an NRA account?
Yes, Hong Kong companies are one of the most common categories of clients opening NRA accounts.
Is the director's personal presence required?
Requirements vary by bank; however, both an in-person visit and remote opening with a designated attorney are available options.
What currencies can be used?
Generally, NRA and FTN accounts allow work with the Chinese yuan, US dollar, euro, Hong Kong dollar, and other freely convertible currencies. The available currency list is determined by the specific bank.
Conclusion
NRA and FTN are important tools for foreign companies working with China. Despite the similarity in names, these are different types of accounts, each with its own characteristics, applied depending on business goals.
This format makes it possible to carry out international settlements, interact with Chinese counterparties, and use the capabilities of the Chinese banking system while complying with compliance and currency regulation requirements. The choice of a specific bank and account type should be made based on the specifics of the business, the company structure, and the intended operations.
Need an NRA or FTN Account for Doing Business with China?
Choosing between NRA and FTN is just the beginning. Next comes preparing the right document package, passing the specific bank's compliance review, and accounting for the particulars of your ownership structure.
We can help with:
Selecting the right Chinese bank for your company's needs
Preparing corporate documents and a business activity description for KYC/AML
Arranging a bank visit or remote account opening
Determining the optimal account type — NRA or FTN
Setting up currency settlements, including offshore yuan (CNH) operations
Post-opening support: online banking activation, guidance on transactions
Since 2016, we have helped foreign companies open bank accounts in China. We operate officially under a TCSP license.