Sometimes, we get complaints from our customers that they have been cheated by a Chinese company. However, after our investigation, it may be the case that the company does not exist in China and it is impossible to recover the loss. That is to say, it is important to check if your partner is real in China, since when something goes wrong in the future, you can know who exactly is to take the responsibility.
So, How to Check If A Company In China Is Real?
First of all, you need to make sure that the business license offered is real and really belongs to that company. You can cross-check the information with the help of the National Enterprise Credit Information Publicity System (or 国家企业信用信息公示系统).
Then you can input the name of the company in the blank and click the search (or 查询) button. If the company is real in China, you can get the basic information of the company including its business license. Otherwise, the company is not legally registered in China.
You need to check the information word by word to ensure the offered business license matches with the information shown online.
Import and Export Qualification
Some companies do not even have import and export qualifications, they are just middlemen and export in the name of other companies, which will make things very troublesome. So it is necessary to figure out whether the import and export qualification really belongs to this company. You can use the following system to check.
Click to link http://credit.customs.gov.cn/ccppwebserver/pages/ccpp/html/ccppindex.html to enter the homepage of Credit publicity platform of import and export business of customs of the people’s republic of china (or 中国海关企业进出口信用信息公示平台）
Input company’s name and captcha, then click the search (or 搜索) button, you can get the company’s import and export information, like the following picture shows.
In this case, you need to pay much attention to cross-check the information about Unified Social Credit Code (or 统一社会信用代码）and the Chinese name of the company (or 企业中文名称) to make sure that it is the same company.
Can I go to China and do an on-site inspection?
Some businessmen may choose to do an on-site inspection to check if the company is real or not. However, it is still not a foolproof method since some Chinese suppliers tend to use a factory that belongs to their friends or partners to disguise themselves. They just need to spend a few hundred yuan to change the official logos.
Example: it is the factory information of Zhengzhou Olive Electronic Technology Co., Ltd. online.
However, in fact, the factory turned out to be the company’s partner’s.
So, if you take an on-site inspection, don’t only check the name and logo. The things you need to do are as follows:
1. You need to cross-check the actual address of the factory with the registered address in its business license.
2. Ask for a stamp from the office and check out if the stamp belongs to the company.
3. Pay attention to the logo and characters of the staff’s items like paper, pencil, and so on, and compare them with those in the business license.
4. Also, if you are still not sure, ask your supplier to bring its ID card and business license, and go to a local Administration of Industry and Commerce to have all information checked by authorities. Don’t be too nice at the beginning of a trade.
What more should I check?
Answer: Bank Account Details.
Before you transfer money to your supplier, you need to make sure that the bank account is consistent with the company’s registration information so that you can know where your money is transferred to. Never pay to an off-shore bank account of a Chinese company or a personal bank account since it is highly risky.
By making sure a company is real, you can reduce your risk in doing business with a Chinese company. Since when something goes wrong in the future, you can ask the company to take responsibility, otherwise you might lose all your money.