China Company Verification and Due Diligence: Which Is the Most Accurate English Name for A Chinese Company
The English name recorded in MOFCOM’s system of “Record-filing and Registration of Foreign Trade Operator” is the most accurate. The English names record-filed with Chinese banks are also relatively accurate.
Please refer to our previous post, “China Company Verification and Due Diligence: How to Verify the English Names of Chinese Companies” for why you need to obtain an accurate English name for a Chinese Company.
In addition, you also need to obtain the Chinese company’s legal name in Chinese. For more information, please refer to our previous post, “Find China Supplier’s Legal Name in Chinese to Avoid Scams”.
So how can you get the accurate English name of a Chinese company?
1. Check on the record-filing system of the Ministry of Commerce (MOFCOM)
Chinese companies engaged in imports and exports business usually record-file their English names with the MOFCOM.
Under Chinese laws, where a Chinese enterprise engages in the import and export of goods or technologies, it shall register with the MOFCOM as a foreign trade operator. Where it fails to make record-filing in accordance with law, China’s competent customs office will not handle the declaration and clearance procedures for its goods import and export.
For the record filing or registration, the MOFCOM will require it to provide the English name of the company.
Although the English name is not its legal name, it will become the standard English name used by the Chinese company to handle the procedures for import and export in China.
As a result, the English name registered by the MOFCOM is the most standard English name of the Chinese company.
However, you may also encounter Chinese companies that do not register their English names in the record-filings. In most cases, it is not a serious issue.
For example, if the Chinese company is not engaged in the import and export business, it will generally not make the record-filing or register an accurate English name. The lucky thing is, you will not usually encounter such company in international trade.
For another example, if the Chinese company is only occasionally engaged in import and export business, it will not make the record-filing or register either, but entrust another registered trading company to act as its agent for international trade. It is the kind of company that you’re very likely to run into. But you don’t have to worry. In case of fraud or breach of contract, you can claim compensation against such trading company as its agent.
2. Check from the Chinese company’s bank account
When Chinese companies use domestic bank accounts to make an international money transfer, they are required to provide their English names.
When a Chinese company does so, it shall open a foreign exchange account with the bank and record-file an English name with the bank. The Chinese company can then provide you with the English name as an account name for you to make the payment.
When the Chinese company opens an account for international trade, the bank will require it to provide the recorded information mentioned above relating to the “foreign trade operator”. At this time, banks often use the English name of the “foreign trade operator” as the name of their bank account.
In conclusion, if you get the bank account information of the Chinese company, you can get the exact recorded English name of the Chinese company.
For more information, please download 2022 CHINESE COMPANY VERIFICATION HANDBOOK for free.
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