Practical guide on how to verify chinese company
Thanks to ecommerce, companies in US are able to sell products/service to China, a country you have not yet visited, you don’t speak the language, you are not aware if the legal systems are similar, you don’t know and don’t have the resource to know if the counterpart Chinese companies are real.
So we face a question: How can I check Chinese company? How to check the legitimacy of your Chinese buyers/partners? Are they a real company.
China don’t have a organization like BBB(Better Business Bureau) in US, where you could check the legitimacy and background of a Chinese company.
Chinese administration of industry and commerce is the governing body that in charge of company registration. However, they don’t have a nationwide website or database system that open to public to inquiry the authentication of Chinese companies.
Sourcing China blog recently published an excellent article, sharing how to verify Chinese company without visiting their premise. Here are some tips on their blog:
1) Do they have company bank account
Only legally incorporated companies can have business bank account. If the Chinese company insist you to pay their personal account only, be cautious.
2) Visit local AIC websites
Even though the national AIC don’t have a nationwide system allow you to check the legitimacy of Chinese company. However, some(not a lot) local AIC do allow you to use their websites to check the legitimacy of Chinese company.
3) Websites and Email
If they don’t have websites, use public email account like 163, sohu, sina, it is negative.
4) Hongkong offshore company
Be cautions doing business with Hongkong company, but operates only in mainland China. They are shell company. Read this article to learn the risk.
The original articles can be read here.