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.

Some facts:

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.

Share and Enjoy:
  • Digg
  • Facebook
  • Twitter
  • del.icio.us
  • StumbleUpon
  • email
  • LinkedIn
  • Reddit
  • Technorati

Related posts

Comments

3 Responses to “Practical guide on how to verify chinese company”
  1. Justin says:

    How to check a legitimate Chinese company online?
    As a Chinese localization service provider, I may add several other critical points here as follows.
    Chinese companies have to submit VAT and other taxes, which usually amounts to 30% of their profit. In a country where people do not have a say about the administrative use of their taxes (Chinese gov doesn’t publish their budget in details except for a rough classification of funds, investments, ect, and the Chinese officials do not need to publish their personal or family income), not a few Chinese companies tend to use personal bank accounts rather than company ones to bypass possible revenues.
    Secondly, the financial fraud runs rampant on the Chinese internet. Accordingly, few Chinese companies choose to publish the company’s bank account on line.
    Then, how to check a legitimate company in this country? Almost all the native Chinese know that the National Industrial and Information Bureau provides the online verification service. Because each legal Chinese company must obtain a code (remember DUNS?) from the government’s Bureau (http://www.miibeian.gov.cn) and must display it on their site, you can visit the government site (http://www.miibeian.gov.cn /publish/query/indexFirst.action), enter the code, and have a check if the information popped out matches what the company’s website claims.
    For example, if you want to check “www.localtrans.cn,” please visit it, obtain the code “苏ICP备07019369号” (Be sure to include the Chinese characters), then go to http://www.miibeian.gov.cn /publish/query/indexFirst.action, enter the code in the right box, and you will find relevant info. Pity that we are a company but the system just displays it as an individual, which is the potential reality here: Perfunctory is the catch word for the gov.
    What happens if a phishing site that copies the code but uses different contents to cheat you? Well, this is not easy to answer. You can searching the company’s representative information on google first, and let it guide you to the right company.

    By combining these two methods, you are sure to have more precise inforatmion of the company you are looking for now.

  2. Miss says:

    We have been importing goods from china for years but recently got cheated by few new suppliers. We have visited the company and factory. Since they claim an ISO company issued by GZCC (Guangdong Zhongjian Certification Co., Ltd), we checked their certificate number and it was listed in the above mention organization. But even that didn’t not guaranty they are not fraud. After our visit to their company we made payment by TT against their B/L. We have our good but what they sent us are bad product that does not meet their specification as in contract. Now they have disappeared and we could not contacted them. If anyone have the same experience pls give me some advice or suggestion.

    Are those certificate issued GZCC or SGS has gone through some legal checking from local or country authorities?? or fakes company can easily apply certification in China??

    Pls give us some advice and thank you

  3. Rodrigo Balotin says:

    Dear buyers, we are a western company located in China assisting buyers from all over the world to purchase Chinese products. Our company offers a service to help buyers to verify if their suppliers are legitimate or a fraud. We are proud to say that we had assisted thousands of buyers to AVOID BEING SCAMMED. The requested and verified information are as follow:

    1. Company’s Basic Information

    - Company’s name;
    - Registered Address;
    - City;
    - State/Province;
    - Postal/Zip Code;
    - Country;
    - Telephone;
    - E-mail;
    - Website.

    2. Company’s Profile

    - Legal Form;
    - Registered Capital;
    - Legal Representative;
    - Business License Number;
    - Business License Issuing Authority;
    - Business License Issuing Date;
    - Business License Expiring Date;
    - Participation in Exhibition and Trading Shows.

    3. Company’s Structure

    - Number of Departments;
    - Person in charge of each Department.

    4. Licenses and Certificates

    - Quality Certificates;
    - Other Licenses and Certificates.

    5. Foreign Clients References: Contact information of some of the company’s clients and tracking number of products that they have shipped to other countries.

    6. Verification

    - Consult the Administration for Industry and Commerce of China to check if the company has a valid business license;
    - Consult the Law Court of China to check if the company has any pending payment after losing a case in the Law Court;
    - Consult the Chinese Customs to check if the company has import-export permit;
    - Online consult to verify if the telephone and postal code matches with the address where the company is legally registered;
    - Online consult to check if the company’s website is active for more than 1 year.

    7. Review: Verification of any positive or negative comments about the comment on the internet.

    We will be happy to work with you.

    Rodrigo Balotin
    General-director
    Brayechi Limited | Your Business Partner in China

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!