In foreign trade transaction, background check of business partner is a routine operation. European and American companies pay great priority to corporate credit especially. Some large and medium-sized enterprises in the West would normally complete preliminary investigation before making inquiries to their potential business partners. Background check is not an operation of distrust or disrespect, it is actually a responsible performance of both parties involved in the transaction.
To verify a Chinese company, one can conduct it from multiple perspectives.
1. Official website: Visit the company's official website to learn detailed information about the company, including company profile, product or service introduction, contact information, etc. Regular companies usually have a beautiful official website and provide detailed contact information, including company address, phone number, email, etc.
2. Registration Information: Understand the company's registration information, including company name, registered address, registered capital, legal representative, etc. This information can be found on the websites of local market supervision bureaus or industry and commerce bureaus.
3. Credit History: Check the company's credit history to see if there are any outstanding debts, illegal operations, etc. It can be queried through the national enterprise credit information disclosure system or third-party credit query platforms. (National Enterprise Credit Information Publicity System- https://www.gsxt.gov.cn/)
4. Qualification certification: Understand whether the company has relevant qualification certifications. For example, construction companies should have corresponding construction qualifications; Medical institutions should obtain medical licenses, etc. Qualification certification information can be queried through the website of relevant departments.
5. Social reputation: Check the company's social reputation and understand its reputation in society. Relevant information can be queried through platforms such as search engines, social media, and consumer forums. (google "company name + fraud Or scam" is one of the good ideas)
Verify a China company with the Chinese Company Verification Report
If you are a Chinese or a foreigner with a good understanding of Chinese, it is still feasible to conduct the above verification; But it can be quite difficult for foreigners who are unfamiliar with Chinese or Chinese culture to verify China company. One good news is that there are professional agencies which can provide Chinese company verification services and issue company verification reports. Through the China company verification report, you can check the Chinese company's credibility, thus minimize the Risks and Scam.
Verify China Company Service(Our firm) adapts rich and live official & government sources to verify a Chinese company, and prepares comprehensive verification report. Below are eight sections of our China Company Verification Report.
Part I Company Information
Part II Related Company
Part III Legal Representative Information
Part IV Company Risk
Part V Running Risk
Part VI Qualification And Certificate
Part VII Intellectual Property
Part VIII Important Historical Information