Verification and Due Diligence of China’s Company
Verification and Due Diligence of China’s Company

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.

China Company Verification and Due Diligence: Business Scope

You may inquire about the business scope of Chinese companies registered with China’s company registration authority, and then assess whether the Chinese company transacts with you beyond its business scope.

China Company Verification and Due Diligence: Legal Representative

If you contract with a Chinese company, you’d better have its legal representative sign the contract. This is because he/she holds the core power of the company and will also be responsible for the company.

China Company Verification and Due Diligence: Registered Capital/ Paid-in Capital

A Chinese company with larger registered capital, especially paid-in capital, usually has larger scale and stronger ability to perform contracts. However, its registered capital or paid-in capital isn’t necessarily equal to its actual assets at a certain point of time.

China Company Verification and Due Diligence: Legitimacy, Existence and Other Status

You should avoid dealing with a company in suspension, revocation, liquidation or deregistration because it is incapable of performing contracts. Otherwise, you will be exposed to substantial losses and probably fail to claim damages from such a company.

How Chinese Courts Determine Reciprocity in Foreign Judgment Enforcement – Breakthrough for Collecting Judgments in China Series (III)

China published a landmark judicial policy on the enforcement of foreign judgments in 2022. This post addresses the newly-introduced criteria for determining reciprocity, which ensures efforts to substantially open the door to foreign judgments.

China Company Verification and Due Diligence: Legal Chinese Name of Company

You need to find the legal Chinese name of the Chinese company, otherwise you cannot be sure who is dealing with you and whom you should ask to execute your contract.