How to Verify a Chinese Company

China is the world's largest exporter and trading nation. It has been the world's largest exporter of goods since 2009.

As more and more companies manufacture products in China, it is not surprising to manufacture goods in China.

Additionally, Chinese manufacturing and suppliers, even sometimes Chinese suppliers, suffer from factory scams.

Although many skilled manufacturers are located in China, be careful when doing sourcing business with Chinese companies.

Dealing with unprofessional Chinese companies resulted in substandard imports.

It's a brilliant idea to do your research before putting your money down the mill. In this article, you will learn how to verify a Chinese company to avoid scams.

Are Chinese suppliers legal? Can they produce what you ordered? Listed below are some key points to keep in mind when evaluating Chinese companies.

When conducting due diligence on Chinese suppliers, the first step is to verify business licenses.

Checking the legitimacy of your company with a business license can help you avoid scams. If you look at a supplier's business license, you need to focus on the "line of business".

An easy way to check the registration number or business license is to hire a legal representative to verify the local Chinese company.

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

Companies have adopted this variation of having a registration number in mainland China. The 18-digit code, known as the "Unified Social Credit Code," came into effect at the end of 2017.

There are eighteen numbers on this list, and those numbers are important. You can also look up the registration number at the local bureau or other Chinese businesses.

A registration number with the date of the Chinese business license is required. The numbers are as follows:

The first digit = is usually nine for Registration Authority (AIC).

Second digit = Classification of Entity (eg Corporation or Sole Proprietorship.)

From the third to the eighth number = registered area (highest administrative division, etc.)

Ninth to seventeenth digits = organization code (old tax number)

Eighteenth digit = check digit

You need to visit the website of the Customs of the People's Republic of China. You must enter a company name, website or unique social credit code.

Always check the China Supplier Uniform Social Credit Code. It will help if you have a Chinese business license number, tax records and customs certificates.

To verify a Chinese supplier, you must check the website to find that it is no longer active.

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

The Chinese government offers tax rebates on many exports to stimulate manufacturing and Chinese trade activity.

But to do this, special value-added tax invoices must be issued, and registered capital companies can only issue such invoices.

It will help if you get an invoice with 17% VAT from your factory contact. If your offer is turned down, it could be a commercial enterprise or a scammer.

You can use Google or Bing to check for warnings and search the company page for expiration dates. Check for variations of "[company name] + scam", "[company name] + reviews".

Many retailers have experienced poor service at a Chinese wholesale company. Now has a legal representative in China.

Almost all B2B marketplaces offer company verification services for their users. You can use company verification to determine the actual plant of the local industry.

Usually, a Chinese company caters to a specific type of product. If the personal directory of the Chinese partner has production capacity. Then there are trading companies.

For example, a fabric mill is a fabric manufacturer. On the trading company website, different kinds of fabrics are made.

Check the business scope through the registration number, and check the Chinese business license.

Multinational official companies audit Chinese companies before working with them. The review is done to avoid any bad experience.

More well-known brands can deeply inspect, audit and check the quality of the facilities. Make sure you see these audit reports before you start working with the company.

Your name and details on hand should match the name on the audit report.

If there is no audit report after the Chinese company checks, the trading company may remit the money.

Many ISO 9001-certified companies with business licenses are factories. Since this certification is not available for all businesses. Trading companies don't need it because they don't need it.

However, some trading companies get this certification after their Chinese company registration. They all focus on local industrial base inspections of a single product category.

Strong relationships with their factories, and great customer service.

While the prices will be like factory prices, working with them seems to make a difference.

You don't know, every product made in China has a unique service area. For example, you can view basic information about electronic products.

Shenzhen, Guangdong province is a major producer of electronic products. The city's extensive network of electronic component registration sites is a result.

Also, you need to check the location of the plant. Check Google Maps for related information or Baidu Maps.

The above introduces the method of verifying Chinese companies. If you are still not at ease and want to find an agent purchasing company to help you verify Chinese suppliers or purchase products, please contact us.

RND is a professional Chinese product sourcing agent. Founded by Riona and Nick in 2007, located in Yiwu, China, the world's largest international wholesale market. Every year, thousands of buyers come to Yiwu Market to purchase. 6 years ago, we started working with Amazon and Shopify sellers, involving product sourcing, development, bundling, packaging, manufacturing, supplier management, FBA shipping, etc. With our help, more and more of their products become Amazon's top choice and best sellers.