How to Verify a Chinese Company is Legal or Not

about china Option, Know, and Recources

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With the rapid development of China's economy, more and more foreign investors have begun to start their business trade in China. However, how to choose a cooperative company is a very important issue. The first step in choosing an ensemble company is to verify the legitimacy of a Chinese company. How to verify the legality of Chinese companies? Here I give you the following advice: 

The first question to ask is "Where is the company located?" Many suppliers use the Hong Kong company name and provide an address in the mainland (usually in Shenzhen). According to the company name, I can often guess the location of the company, but this is not easy for most foreigners.

If the company is in Hong Kong, the importer can find a lot of tips in the Background checks of the Hong Kong companies. If the company is in China, the corresponding article is the 6 tips for a background checks of Chinese suppliers. But I realized that I didn't cover all the sources of information in this article.

Chinese Business Licence: Introduction

Usually, It has no problem for Chinese suppliers to send a copy of their business license to potential customers. This is not a secret document. It is in Chinese but shows interesting data. For example:

When the company was set up (does it match what they told you?)
Registered addresses (is it the same as they show in their signature? If not, is there any explanations?)
Invested capital (if this is 100,000 RMB, you know that you are not dealing directly with a manufacturer.)

Is it a trading company or manufacturer in China?

I hope that finding the nature of a supplier is as simple as that. However, one area shown on the business license is the nature of business (trading, manufacturing…). This may be an easy way to spot and disqualify an intermediary. But beware - many manufacturers are also involved in Sourcing New Supplierstrading.

Is there a Chinese Company Registration Search Website?

Unfortunately, you can't find a database containing all Chinese registered businesses. But you can go to the AIC (Administration of Industry and Commerce) website and search in Chinese. If you are lucky, you can find some information about your target.

Chinese company WHOIS domain lookups

Are they useful? This is another way to "can’t hurt not not fool-proof”. I have never used it, I do not think it is reliable.

Using Error Level Analysis to Spot Photoshopped Documents from Scammers

This is really suitable for geeks! As I wrote before, many of the certificates provided by Chinese suppliers are fake, so detecting "photoshopping" can only be a good thing.

There is another method for verifying a Chinese company’s legitimacy - Ask for help from a company that specializes in providing Chinese Company Verification Service. ChinacoCheck.com, for example. Verify a Chinese Company now!
 


 



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ChinaCoCheck.com is committed to reducing the risk of companies trading with Chinese enterprises. As a developing country, China has a large market in various fields. More and more overseas enterprises are willing to conduct cross-border trade with China to gain profits. How can we be sure that the Chinese companies we're working with are trustworthy? Our detailed enterprise credit investigation reports will tell you whether the Chinese company is a trustworthy business partner or not...

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