The Expat Catch-22: Bank and Phone Setup

Have you seen those hilarious social media videos about the challenges of renting in Japan, France, China, and other countries? While they’re entertaining to watch, the reality can be less amusing.

One common hurdle is the administrative catch-22: you often need a bank account and phone number to rent an apartment, but obtaining either usually requires the other.

A Pro Tip: Before moving abroad, consider opening an account with an international bank in your home country. This won’t eliminate the need for a local account, but it can provide easier access to your funds.

Pre-Move Research: Before relocating, thoroughly research the specific requirements and steps involved in setting up a bank account and phone number in your chosen destination.

As an example, here are the steps for opening a bank account and phone number in China while staying in a hotel:

Tip: Consider bringing a native Chinese speaker to assist you with these steps. While some locations may offer language support, a local can provide valuable guidance.

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Step One – Setting up a phone number:

Required Documents

• Valid Passport: Your passport is essential for proving your identity and is required for real-name verification.

• Valid Chinese Visa: Ensure your tourist, work, or student visa is valid and clearly visible in your passport.

• Residence Permit (if applicable): If you’re a long-term resident, a residence permit may be necessary.

Steps for Setting Up a Phone Number

1. Choose a Carrier: Select a carrier (China Mobile, China Telecom, or China Unicom) that aligns with your needs.

2. Visit a Retail Store: Bring your passport and visa to the carrier’s retail store. In larger cities, you may find stores that offer English services.

3. Select a Plan: Choose a plan that suits your call and data usage. The staff will assist you in selecting the right option.

4. Submit Documents: Provide your passport and visa for real-name authentication. The staff will photocopy them and link them to your mobile number.

5. Pay and Activate: Pay the fees for your chosen plan. Your mobile number will then be activated, and you can start using it.

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Step Two: Renting an Apartment in China

Finding and Securing a Property

• Timing: Given the rapid turnover of properties in China, searching 3 weeks in advance is typically sufficient.

• Lease Terms: Most leases are for 6 or 12 months, but shorter-term leases (e.g., 1 month) might be available at a premium.

• Agent Fees: Expect to pay an agent commission, usually up to 1 month’s rent. This fee is often negotiable.

• Verification: Always visit the property in person before signing a contract or transferring funds. Photos can be misleading.

• Reporting Discrepancies: If the listing information doesn’t match the actual property, report it to the platform.

• Avoid Prepayment: Don’t transfer money before arriving in China. Ask a friend or colleague to accompany you for the initial viewing and to verify ownership.

• Ownership Verification: Obtain copies of the property’s ownership certificates and the landlord’s ID. These are crucial for police registration.

Contractual Considerations

• Written Agreement: Always have a written contract or agreement before transferring funds.

• Receipt: Request a receipt for all payments to protect yourself against disputes.

• Residential Use: Ensure the property is zoned for residential use.

• Office Space: If renting an office, verify that it’s zoned for commercial use.

• Daytime Viewings: Inspect properties during daylight hours to assess factors like noise and construction.

Financial Aspects

• Deposit: A deposit of 2 months’ rent is common, but higher amounts might be required for offices, serviced apartments, or high-end properties.

• Down Payment: A down payment (usually 20% of the initial rent) is often required to secure the property.

• Rent Payments: Monthly rent is typical, but bi-monthly or tri-monthly payments might be negotiable.

• Shared Apartments: Avoid shared apartments from local agencies unless you know the landlord personally.

Moving In and Beyond

• Key Change: Change the locks after moving. This is usally about 100RMB

• Furniture Inventory: If renting an unfurnished property, clarify the landlord’s obligations in the contract.

• Utility Checks: Note the initial readings of water, gas, and electricity meters.

• Mobile Signal: Verify mobile phone reception, especially in basement apartments.

Finally – Police Registration for Foreigners in China

Mandatory Registration: All foreigners, whether visiting or residing in China, must register with the local police within 48 hours of arrival.

Hotel Registration: If staying in a hotel, the staff will typically handle this process during check-in.

Self-Registration: For those renting apartments or living in shared accommodations, you’ll need to visit the nearest police station to apply for a temporary residence permit.

Required Documents: For registration, you’ll need to provide:

• Original passport and visa

• Copies of your passport and visa

• A copy of the property ownership certificate

• A copy of the landlord’s ID or passport

• Original lease contract

• A copy of your lease contract

Registration Process: Submit these documents at the police station. After a brief review, you’ll be asked to sign and date a form. Your passport will be returned, and you’ll receive a copy of your temporary residence permit.

Renewal: If your registration expires due to travel, visa extension, or a change of address, you must renew your temporary residence permit at the local police station.

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Step Three: Setting up a Chinese bank account.

Requirements: Most Chinese banks require the following documents:

• A completed application form with your personal information

• A valid passport and visa

• Proof of address in China

• A Chinese phone number

• A valid work permit, business license, or other documentation supporting your employment or student status

Opening a Bank Account in China Choosing a Bank:

• Consider factors: Evaluate bank reputation, digital banking features, and the ease of account opening.

• Options: Select from major Chinese banks, international bank subsidiaries, or alternative banking options.

Selecting an Account Type:

• Purpose: Choose an account type that aligns with your financial needs.

Preparing Required Documents:

• Typical documents: Gather your passport, valid visa or residence permit, proof of address, and work contract.

• Checklist: Some banks offer a preliminary document checklist.

Visiting a Branch:

• In-person visit: Foreigners usually need to open accounts in person for identity verification.

• Appointments: Schedule an appointment in advance, especially if dealing with a branch less familiar with foreigners.

Completing Application Forms:

• Paperwork: Fill out the necessary forms, which may be in Chinese.

• Language assistance: Some banks provide English forms or support for non-Chinese speakers.

• Accuracy: Ensure the information you provide is accurate and complete.

Setting Up Banking Tools:

• Banking tools: Receive a bank card and instructions for online banking, mobile banking apps, and other services.

• Initial deposits: You might need to make initial deposits.

Verifying and Activating Account:

• Additional steps: Some banks may require further verification or activation procedures, particularly for online and mobile banking.