How to Verify Chinese Company

Not knowing how to VERIFY Chinese company is VERY RISKY. You may lose thousands of dollars or even your entire business. 

My team and I invested WEEKS of research to provide solutions to this process. NO MORE unreliable suppliers trying to cash out of your pockets. Enhance your business with quality inspection. You ultimately BOOST your business through high-quality products from LEGIT Chinese companies.

Keep reading to source products from verified companies!

10 Ways to Verify Chinese Suppliers

Are Chinese suppliers legitimate? Can they produce the items you’ve ordered? Listed below are some essential points to remember when assessing a Chinese company.

1. Check the Business License

When conducting due diligence on a Chinese supplier, the first step is to verify the business license.

Checking the company’s legitimacy through a business license helps you avoid scams. I have encountered multiple Chinese suppliers without a license. So save yourself from potential pitfalls and check a supplier’s business license. You need to focus on the “Business Scope.”

The simple way to check the registration number or business license is by hiring a legal representative to verify a local Chinese company.

Suggested reading: Chinese business license

2. Verify and Search Tax Registration Number

The Chinese government has introduced an 18-digit registration number. That number is for business information in official records.

Companies have adopted this change of having a registration number across Mainland China. The 18-digit code is known as the “Unified Social Credit Code” and went into effect at the end of 2017.

There are eighteen numbers in this list, which are significant. You can also search the registration number on the local bureau or from other Chinese enterprises.

The registration number of the Chinese business license date is necessary. Numbers are following as:

• The first number= is usually a nine representing the registrar authority (AIC).
• The second number= classification of the entity (like a corporation or sole proprietorship.)
• From the third through the eighth number = registering region (highest administrative division, etc.)
• From the ninth to seventeenth numbers = organization code (old tax identification number)
• The eighteenth number= check digit

3. Search and Check The Customs Records

You need to visit the Customs District of P.R. China’s website. You must enter the company name, website, or the Unified Social Credit Code.

Always check the Chinese supplier unified social credit code. It would help if you had a Chinese business license number, taxation records, and Customs certificates.

4. Check the Chinese company’s website

To verify a Chinese supplier, you have to check the website to discover that it is valid anymore.

A business license or registration number expires sometimes. One way to access a company’s record is by visiting the http://gsxt.gov.cn/index.html page. This is how we safeguard ourselves from transacting with an expired or unlicensed supplier.

Enter the company’s name or enter the registration number for company verification. You will find the Unified Social Credit Code in the upper right corner of your business license.

5. Check the Value Added Tax (VAT) Invoice

The government of China offers a rebate on many exports to spur manufacturing and China trade activities.

But to do this, a VAT invoice must be issued, and a registered capital company can only issue such an invoice.

It would help if you got an invoice with a VAT rate of 17% from your factory contact. It may be a commercial enterprise or a scammer if your offer rejects. 

6. Search Google for Warnings

You can use Google or Bing to check warnings and search the company page’s expiry date. Check for variations of “[company name] + scam,” “[company name] + review”.

Many retailers experienced bad service in a wholesale China company. Now have legal representatives in China.

Almost all B2B marketplaces provide company verification services to their users. You can use company verification to determine the actual factory of local industries.

Suggested reading: Find china manufacturers

7. Check the Products Catalogue

Generally, a Chinese company caters to a particular type of product. If the Chinese partners’ person catalog has a production capability. Then it’s a trading company.

As an example, a fabric factory would be a maker of fabrics. In trading company websites, different kinds of cloth are made.

Explore the business scope by registration number and check the Chinese business license.

Suggested reading: Product specification

8. Check the Factory Auditing Reports

Multinational official companies audit a Chinese enterprise before working with them. Conducting an audit is to avoid any bad experience.

More prominent brands can check, audit, and inspect a facility’s quality in depth. Ensure you see these audit reports before you begin working with the company.

The name and details you have in hand should match the name on the audit report.

Trading companies risk wiring money in case of no audit report after a Chinese company check.

9. Check the Certification

Many ISO 9001-certified business license companies are factories. Since this certification is unavailable to all businesses. Trading companies do not need it since they do not need it.

But, some trading companies gain this certification after China company registration. They all specialize in a single product category local industrial basic check.

To maintain strong relationships with their factories, together with outstanding customer service.

Although prices will be like those of factories, working with them will seem different.

10. Check Where Supplier Located in China

You don’t know it, but every product manufactured in China has a unique services area. As an example, you could look at Electronic products’ basic information.

Shenzhen, in Guangdong province, is the leading producer of electronic products. This city’s extensive network of electronic component registered websites is a result.

Furthermore, you need to check a factory’s location. Check on Google map-related information or Baidu maps. My team and I have been visiting factories of different suppliers we plan to have business with. We do this to confirm the existence of their physical equipment to produce the products we need.

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FAQ

Suggested reading: China suppliers

How does Leeline Sourcing help you to verify Chinese company

Chinese markets present many opportunities, but they can still be challenging to penetrate.

You can verify China’s manufacturers with the help of Leeline sourcing. Leeline is committed to providing you with complete satisfaction in the following ways.

Audit of the whole factory

To produce good quality products, Leeline ensures finding the best Chinese factories.

Representatives from Leeline are knowledgeable. Using a Leeline factory audit guarantees you.

You will be dealing with high-quality Chinese business registration details.

Performing due diligence

Leeline ensures that the company or supplier you are dealing with is trusted and reliable.

Whenever you sign contracts or make payments in China must search Leeline. They see it as your insurance plan against fraud and deception.

Obtain product samples

Leeline asks for product samples before ordering from a Chinese business. They determine if the product meets their standards.

Performing a product audit

Leeline constantly searches the address of factories to ensure the quality of the product.

Before moving to final production, they scrutinize your product.

Final Thoughts on Verifying Chinese Companies

In China, every company must obtain a business license from the government (AIC).

These licenses allow Chinese companies to operate and register in the country officially. You can verify the legitimacy of the company with the business license. 

However, verifying the license is only one step in the due diligence process. Verifying your supplier is possible through sourcing agents in China. 

It is recommended to work with a reliable sourcing agent like LeelineSourcing. These sourcing agents can provide you with complete protection for your shipment.