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How Do I Know If a Company Is Legit in China?: Verification for Free - CTD 101 Series

Wed, 05 Jan 2022
Contributors: Meng Yu 余萌
Editor: C. J. Observer

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You need to get a photocopy or a scanned copy of its business license and then check the company’s information in China’s National Enterprise Credit Information Publicity System.

This post was first published in CJO GLOBAL, which is committed to providing consulting services in China-related cross-border trade risk management and debt collection.

We can provide you with such service for free.

Every legally registered Chinese company will have a business license issued by the Chinese company registration authority, the administration for market regulation.

If the company cannot show its business license, it is definitely not a legit company.

Depending on the company size, the business license may be issued by a local administration of market regulation or by the State Administration of Market Regulation (SAMR).

The information on the business license includes the company’s legal name in Chinese, unified social credit number (just as the company’s ID number), registered capital, company type, legal representative, date of incorporation, expiration date, and business scope. On the bottom right corner, there is a red stamp of the company registration authority.

However, the business license only shows that this company once existed and cannot prove the current status of the company.

You also need to check the current status of the company in China’s National Enterprise Credit Information Publicity System at http://www.gsxt.gov.cn/index.html, a website of the SAMR.

For more information on how to use this system, you can read our article “How Do I Know If a Chinese Company Exists Legally? ”.

If you find the status of a Chinese company is existing on this website, it is legitimate.

Except for existing, all others are abnormal operating status. You should try to avoid doing business with companies in abnormal operating status.

For more information on Chinese company registration status, you can read our article “Which Status of a Chinese Company Is Legit?”.

 

 

 

The Cross-border Trade Dispute 101 Series (‘CTD 101 Series’) provides an introduction to China-related cross-border trade dispute, and covers the knowledge essential to cross-border trade dispute resolution and debt collection.

 

 

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Contributors: Meng Yu 余萌

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