When you’re doing business with a company in China, one of your most basic concerns may be “is this Chinese company real or not?”.
In Mainland China all companies must be registered with the authorities and hold a valid business license. This is how we define whether or not a company is “real”.
If you check the business license of a Chinese company, you will see there is a field called “Incorporation Form”. Note that we’re talking about a Chinese term here (公司类型 – Gōngsī Lèixíng) – you could translate it into English in various ways, including “company category” or “business type”.
When you’re buying products from a Chinese company, a common issue is whether you’re dealing directly with a China trading company or with a factory.
This is because many such trading companies in China will be ‘unclear’ at best regarding the issue of who they actually are.