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: How to Verify the English Names of Chinese Companies

Although Chinese companies do not have legal names in English, they may file a standard name in English with the competent Chinese authority.

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.

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.

Verify a Chinese Company to Avoid Dealing with Dishonest Judgment Debtors

You should verify a Chinese company before entering into a contract to avoid dealing with a dishonest judgment debtor who has lost the capability to perform contracts.

How to Check Chinese Company Registration Certificate

The Certificate of Registration for Chinese companies is called Business License (营业执照, Ying Ye Zhi Zhao). The business license contains basic information that a Chinese company should disclose to the public.

How Do I Know if a Company Is Legit in China? – Verification for Free

You need to get a photocopy or a scanned copy of its business license and then check the company’s information in China’s National Enterprise Credit Information Publicity System.