- Bank first: the basic account is the prerequisite for tax deductions and social insurance payments
- Tax second: registration, tax-type determination, and the tripartite agreement must be completed together
- Social insurance last: enroll employees within 30 days of employment
Introduction: Why the Sequence Matters
After receiving a business license, many founders are unsure whether to visit the bank, the tax authority, or the social insurance office first. Some go to the tax bureau only to be told they need a basic bank account; others try to register for social insurance and discover there is no account to deduct from. The order is not arbitrary—it follows from account real-name rules, the tripartite tax-bank-enterprise agreement, and the transfer of social insurance collection to the tax authorities. Since the Law on Promoting the Private Economy took effect on May 20, 2025, business registration services have improved, but the basic compliance sequence remains unchanged. Understanding the logic saves far more time than rushing between offices.
Step One: The Basic Bank Account
Once the business license is issued, the company should open a basic deposit account as soon as possible. This account handles daily settlements and cash receipts and serves as the foundation for tax deductions, social insurance payments, and housing fund contributions. Documents typically include the original business license, the legal representative's ID, and the company's official seals; some banks also require proof of business premises or the articles of association. The account opening licensing requirement has been abolished in most regions and replaced by a filing system, but banks still conduct due diligence, with actual business address and authenticity of operations remaining key review points. Founders should book an appointment once the registered address is confirmed to avoid delays in signing contracts and receiving payments.
Keep the account active. Accounts with long periods of zero transactions and zero balance may be classified as dormant, which can disrupt tax deductions and social insurance payments. Regular reconciliation and sufficient balances before deduction dates are essential habits.
Step Two: Tax Registration and the Tripartite Agreement
With the basic account in place, the company should log into the electronic tax bureau to confirm registration information and have the competent tax authority determine applicable tax types, filing deadlines, and collection methods for VAT, corporate income tax, and surcharges. The critical action is signing the tripartite tax-bank-enterprise agreement, which links the basic account to the tax authority and the bank for automatic tax deductions. Without a basic account, the agreement cannot be signed; without the agreement, payments after filing require manual operations and risk late fees.
Companies should also apply for invoice types based on business needs. Small-scale taxpayers should note current thresholds such as the VAT exemption for monthly sales below 100,000 yuan, while general taxpayers must complete qualification registration and input tax management. Tax registration is not a one-time task but the foundation for all future filings and preferential treatments. Assign a responsible person or engage a professional firm to follow up.
Step Three: Social Insurance Registration and Employee Enrollment
Social insurance registration is typically handled when the company has actual employees. Under current rules, employers must register their employees for social insurance within 30 days of employment. A bank account must already be open, because social insurance premiums are now collected by the tax authorities and deducted from the basic account through the tripartite agreement. The company first completes unit registration with the social insurance agency, then enrolls employees, confirms contribution bases, and files and pays monthly.
Founders often overlook information consistency between social insurance and tax registrations. The company name, unified social credit code, and bank account details must match, or deductions may fail. For startups, completing social insurance registration before the first hire avoids retroactive payments and late fees. Compliance is also a precondition for subsidies such as stable employment and social insurance subsidies.
Conclusion: Sequence Saves Compliance Costs
Bank account opening, tax registration, and social insurance registration are interlinked: the basic account is the foundation for payments, tax registration for filings, and social insurance registration for employment. Following this order helps founders avoid resubmitting materials and correcting information. As one-stop business registration continues to improve, some steps can be processed in parallel, but the establishment of accounts and deduction relationships still follows a sequence. Get the order right, prepare the documents, and the first step of entrepreneurship will be steady.