If you are planning to do business with a company in china, it is necessary to check the background of the respective company. You have always a big concern that whether “A Chinese Company is existing or not?’’ and this question is not absurd but is it is very crucial. Company verification services become important in this stage.
Reason of concern
Well, having concern about Chinese company is real is crucial concern and there are many reasons for that:-
- Some of the company claims that they are registered in Mainland China but the reality is that they have been registered with Hong Kong or anywhere else.
- Some Chinese companies doesn’t have the license for doing business
- Few of Chinese organization continue business in spite of their license has been cancelled.
- Few of Chinese companies disguise themselves as a manufacturer but they actually conduct middleman-trading agencies.
- Some Chinese companies have never had a business license at all
Safeguarding your organization
If you have partnered with registered and reputed company in china, then you are fortunate that, you will not face any problem. If anyhow issues comes because of suspicious company then it is very difficult to deal with them because working with unauthorized company can get lethal consequences for your business. Often a broker or third party agency claim to be a manufacturer or supplier but they are not. You can also counter with some of companies of china whose license is cancelled by the Government but they are doing business illegally. It means that if the company in which you are collaborating your business is having no license then there is no surety of legal compliances in near future.
However sometime there might be possibility that if things doesn’t sync in a right direction, that doesn’t mean that every company is fraud or scammer. The Financial crisis or legal issues can be the reason, but these types of companies definitely registered with the administration of union and state government of China.
That is why it is recommended to deal only with the licensed and government approved company in China.
How to Check a Chinese company is real or not?
There are plenty of ways to identify whether the Chinese company you are collaborating with exists or not.
Does the company has Website?
Today there is hardly any organization or industry in the world that doesn’t have the website. This is the most fundamental identification one can conduct to check website of the respective Chinese company. This is a smart move because in the past many clients have encountered with so many company that doesn’t have the website. Checking for the official website of the Chinese manufacturer slightly reduces your risk but it doesn’t mean that you just need check website only.
First of all you need to check English language search on the internet. Many of the manufacturers in China have an English domain to use for their website. But it is a noticeable thing that Chinese company is always registered and licensed under the Chinese name. If the company don’t have registered you can check it on Baidu or Google, whether the company exists or not. However, it can help you slightly.
Is the Chinese Company Registered?
Somehow if the company you are dealing is having the website that is not the only criteria to identify that the company is authenticated. You should inspect that the company is authorized and registered with the AIC( Administration of Industry and commerce) in china.
China’s 34 region has AIC and all state have different way of work and in the event, you should browse website and detect the details of registration for the Chinese company.
Each of China’s 34 provinces has its own AIC and they all work slightly differently. In any case, you need to find and visit the bureau’s website and search for registration records for the company using their Chinese name.
Sometime many if the Chinese business continue their business despite their license prohibited by respective authorities. It is necessary to check more and you can visit local AIC and ask them about the updated documentation.
Is the Company has the accurate license to do the business?
If the company appears to be correctly registered with the local AIC, the next step is to request a copy of their business license.
After confirming that company is registered, now check whether they have valid license or not. This is routine process to ask about license to make sure before doing business. If a company is real or authenticated, they will not hesitate to send all the documentation related to license and registration.
This is a very common request in business deals in China, so if the company you are dealing with puts up any resistance or creates hassle around the issue, be wary. A real company will be perfectly willing to send a copy of their business license.
You can get the help of Chinese company check verification as they are local verification entity and they know how to deal with these legalities.
Above mentioned points are helpful for any person to know that the company of china in which you are thinking of doing business is real or not. You can take the help of government of china or local AIC, they will definitely help you to identify the real company. Before doing business with any company in china, one need to be sure that, the company is fulfilling the criteria. Every businessman want to play safe and if you are planning to do business outside your country especially in china, it is important to cross check all the possibilities whether the company is approved and licensed or not. Working with registered company will build the sense of security and trust in the business. Plenty of dubious companies are doing their business in china, so by applying important step mentioned in this article will certainly help you to identify a real company exists in china.