Before doing business with a company from China, making some investigations to make sure that this company exists legally can be really crucial. If you do business with Chinese companies that are canceled or revoked, you are likely to be scammed. We once had a client whose supplier delayed the delivery for nearly two years and he came to us for help. After investigating, we found that the company had been revoked by Chinese authorities, which means the company may never ship out products since it does not exist at all. In order to avoid property loss, now I am going to introduce the types of company registration status in China and how to find the status in 5 easy steps.
What are the types of Chinese company registration status
In China, company registration status is divided into eight types:
存续 Cunxu (Existing): The enterprise exists and continues to produce legally.
在业 Zaiye (In Operation): It has a similar meaning as ‘Existing’.
吊销 Diaoxiao (Revoked): The revocation of an enterprise’s business license is an administrative penalty on a Chinese enterprise.
注销 Zhuxiao (Cancelled): The business license is canceled by its owner and the company no longer exists.
迁出 Qianchu (Moving Out): The process of moving from one administrative region to another.
迁入 Qianru (Moving In): The process of moving from another administrative region into a new one.
停业 Tingye (Suspended): For some reason, an enterprise is in the status of stopping production, and it may resume production after an indefinite period of time.
清算 Qingsuan (Liquidating): Because of going bankrupt, being revoked, or canceled the company is in the process of closing down. During this period, the company needs to liquidate its assets and debts.
How to find the registration status of a Chinese company
You need to ask the company for its business license or Unified Social Credit Code (统一社会信用代码). If you receive a business license, you could look for Chinese characters “统一社会信用代码” and find its Unified Social Credit Code as is shown in the following picture.
Step 1: Visit the website of the China National Enterprise Credit Information Publicity System.
Go to http://www.gsxt.gov.cn/index.html, the landing page looks like the following picture.
Step 2: Enter the social credit code
Enter the aforementioned Unified Social Credit Code in the search box. In this example, the company’s Unified Social Credit Code is 914403006875822884. We can copy it to the search box and then click the red button (查询 or search).
Step 3: Fix the puzzle
After clicking the button, the system will ask you to solve a simple puzzle. In general, you just need to drag a puzzle piece to the right spot like the following picture. If you meet another verification process, please read another article on our website: What is enterprise credit information publicity system.
Step 4: Click the company name
After finishing the verification, you will see a page like the following picture. There will be only one result if you enter the correct unified social credit code. Then click the name of this company.
Step 5: Check the information
Then you will see the page like the following picture. On this page, look for the Chinese characters “登记状态“, which means registration status. It is on the lower right side of this page. In this example, this company is canceled (注销) which means it doesn’t exist anymore.
In China, only normally running (存续、在业 or existing/in operation) companies are allowed to do business. So before you do business with a Chinese company, you should make sure it is still in operation. You also need to search for other information about this company such as company structure & shareholders, intellectual property, related risks, customs registration information, business registration information, or its change records. If you want to know detailed information about a Chinese company, please contact us. We are always willing to help international buyers avoid scammers or frauds.