Foreign startup incubator staff solve bank problems
Qualified entrepreneurs in Songjiang’s foreign startup incubator Kudosbay can now open a bank account in China thanks to negotiations with banks by the Party working committee of Songjiang Economic Development Zone.
“Opening a bank account in China had remained a tough issue for some foreign entrepreneurs,” said Lin Qian, general manager of Shanghai Kudosbay Information Technology Co. “Songjiang Economic Development Zone authorities solved the problem and boosted the confidence of tens of thousands of foreign entrepreneurs who intend to start their business in Songjiang.”
An international trade services company registered in 2015, Kudosbay has served a total of 70,000 foreign business people and 599 foreign startups from 157 countries and regions. The number of consulting or negotiation cases it handled has surpassed 1.3 million.
Foreign entrepreneurs who failed to get a bank account in China might lose their entrepreneurial enthusiasm and leave China.
Zone officials surveyed various banks and learned that they refused to grant accounts to Level 1 foreigners, or foreigners hailing from UN-sanctioned countries. They may grant accounts to Level 2 and 3 foreigners, or foreigners from high or medium money-laundering risk countries. Most banks, however, felt reluctant to do so.
“The banks’ reluctance shows they knew little about our company. What we are going to do is let the banks see Kudosbay’s real strength and potentiality, and then support it,” said a director of the zone’s financial management department.
Authorities prepared detailed documents on Kudosday for the banks. Finally, some banks agreed to grant accounts to Level 2 and 3 foreign entrepreneurs in Kudosbay.
Olha Vernyk, a Ukrainian entrepreneur, succeeded in opening a bank account for his company in China with the assistance of counselors from Kudosday and the district’s economic development zone.
Shakib Ahmed Mohammed Al-Ghashm, another foreign entrepreneur from the incubator, said: “I came from Yemen. Through help from the economic development zone and Kudosbay, I managed to open a bank account in China, and this boosted my confidence in starting a business in Songjiang.”
“Amidst the winds of change in the international situation, Kudosbay also publishes its weekly list of Level 2 and 3 account limit countries,” said Lin.