Verifying Chinese companies and suppliers can be a long and daunting process if this is your first time dealing with this issue.
The recommended strategy is to hire the services of a professional Chinese company verification firm that knows the lay of the land and the whereabouts of all the major points of contention.
Confirming the background details of potential suppliers, trading companies, manufacturers, and vendors in China to test their reliability before hiring their services is essential. Performing background checks on potential business contacts to verify their identities and company information before you sign any contracts or make any payments might be the most important thing you need to do to check if they are genuine.
Increasing numbers of foreign companies are looking to outsource from Chinese businesses, so the issue of verifying these companies is now more important than ever. We can check any company in China with our verification process to see if these suppliers are officially registered businesses. Doing your due diligence is much easier when you have reliable advisors fighting your corner.
The details we collate about these Chinese companies and their registrations are then used to gauge the authenticity of said companies. There are three key steps we follow to obtain these registration details. But before that, you should always beware of potential scammers that try to fake being a real company to fool uneducated buyers-corroborating business license details and official registrations can easily clear out the fraudsters.
Identifying the Chinese Business License and Name of Suppliers
As people in China speak Chinese, this is the official language used for business license registration. If you see an English name used for a Chinese company, in 99% of cases it will not be the official name you see in the registration-these companies have simply chosen that name for themselves, and you must be wary. By using the Chinese name in Chinese characters you are carrying out the right type of Chinese supplier verification.
Obtaining the supplier's Chinese name should not be that difficult. A copy of their business license is the avenue to take, as you will find their Chinese name there. If you have no current relationship with the supplier in question, their official name in Chinese should be on their website.
By reading the business license, you can find out if you are dealing with a trading company that imports products from China or if they are a factory. Some companies pretend to be factories when in effect they are third-party trading companies and vice versa.
Always check the "Business Scope" part of the license when verifying a supplier. It is the easiest way to get the job done because suppliers cannot counterfeit this part. Words such as "manufacture" or "produce" should be in the scope of a factory-you will not find those words on the business license of a trading company.
Locating the Relevant AIC on the Registration of the Supplier
Now you have the official Chinese name of the supplier, you can use that information to find the local government administration office that holds the records and files of the supplier. The officially registered location should always be included in the Chinese company name-whether it references the domestic, provincial, city, or township level. AIC stands for the Administration for Industry and Commerce, and it is this bureau in each area that handles registrations. You can find the relevant AIC and its website by searching online using the official name of the supplier.
The supplier will only be registered at the correct AIC for that location, so it is very important to find the correct website to source the registration details. Registration records of companies outside the scope of a given local AIC are not held there-make sure you identify the right bureau before proceeding.
Obtaining Registration Records of the Supplier
Now you have located the relevant AIC using the official Chinese name of your supplier, you need to search for the official registration records of the company. Even those with a strong command of Chinese can encounter difficulties at this step-it can be tricky to obtain the details and even to find the search function on the AIC website.
Because of the poorly designed nature of many of these websites, even when you search with the supplier's official Chinese company name, you might not get a result. And if you use any browser other than Internet Explorer, it may not function correctly. These are well-known friction points in the process.
If you do manage to perform a successful search using the Chinese company name, you will be given the official registration records you have been looking for. You can then use those registration details to confirm the information the supplier gave you and corroborate their business license-establishing a verified connection with the company.
China company verification is a foundational step for any foreign business engaging Chinese suppliers, partners, or vendors. The process is manageable with the right local expertise, and Acadia Advisory is well-positioned to carry out verification checks on your behalf-giving you the confidence to proceed with your business relationships in China.
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