Before doing business with a company in mainland China, it is essential to learn more about them first through a China company check. When entering into any business arrangement, it is always a good idea to understand who you are working with, including their reputation and previous working history. Even if you are not located in China yourself, you can still easily conduct the right checks to gain peace of mind.
Many business owners travel to China to learn more about the companies they are considering doing business with. They may visit their offices, conduct meetings, explore their factories or workshops, and examine samples of their products. This is undoubtedly a valuable exercise, but there are 3 simple checks that should be made before you make the trip.
The first step in a China company check is to verify that the company that you are considering working with is a legally registered entity. This means checking the information that they have provided you with, against official records. All companies legitimately operating in mainland China must have a current business license.
Once you have established the company is registered, further analysis of the details of their registration will help you to better understand their operation. Key items to look out for include registered capital, business scope, business type, date of establishment, legal representative, shareholders and board of directors.
Verifying company information can ensure that the people in China whom you are planning on doing business with are legitimate, honest in their communication, and legally entitled to provide you with their products and services. You can also use this information to guide your own business decisions regarding this company.
China Checkup’s company verification service is the most convenient way to verify a Chinese company is legally registered.
Even the most basic China company check should include a quick search on Google for the company that you are planning on working with. These days nearly every business should have an internet presence, including both information that they have posted themselves, and also information that other people have posted about them.
You should be most interested in what other people say about the company. How do they rate their experience in doing business with them? Were they satisfied with their results? Are there any warnings about scams or fraudulent behaviour? Websites such as AlibabaScam.com list (unverified) reports of scams that usually originate from China.
Expert Tip: Try searching Baidu.com too, especially if you can read Chinese.
When doing business with a Chinese company, it is very common to encounter a huge array of certificates, licenses and test reports, examples include:
Making sure that these documents are genuine is a very important step in your China company check, and are definitely worth carrying out before you make any arrangements to visit the company in China. Sadly we encounter a large number of certificates that once verified are found to be faked. Companies that are willing to edit such documents are not the ones you can trust your company’s money with.
China Checkup’s Certificate Verification services allow you to conveniently verify Chinese certificates with confidence.
Apart from the ubiquitous sourcing b2b platform alibaba.com, do you know any of the other Alibaba ecommerce platforms?
This article gives an overview of the Alibaba ecommerce platforms, most of which are aimed squarely at China's domestic market - notably the country's largest online marketplace Taobao.
Conducting China market research can be very challenging for foreign companies, due to the shortage of reliable information available in the English language.
From researching many topics for our articles, we have however found some websites which we go back to time and again, and decided it would be a good idea to share these with our readers.
Although many factory's have their own laboratories, few of these are independently certified so requesting testing by external testing body is a wise move in many circumstances.
These testing bodies should be accredited and you can make sure of this by requesting a copy of their China laboratory accreditation certificate.