Before doing business in China it is important to make sure you are dealing with a legitimately registered business, but how exactly can you do that?
Travelling across the world to visit Chinese factories is a hugely time consuming and expensive process, so asking suppliers to provide, and then checking documentation is a better option.
This method to verify China company credentials is both quick and affordable, and allows you to get a clearer idea of the company’s operations.
With this in mind we have prepared a list of 9 documents you can use to verify a China company.
When you make payments to Chinese suppliers, make sure that as a minimum precaution you only pay into business accounts. You might also want to request a bank account certificate, but be careful. In any case, you can also get this verified.
No matter the turnover, all business in China must be VAT registered if they make taxable transactions. Because of this, all Chinese suppliers should be able to show you a valid tax registration certificate. This is by no-means bulletproof, but may catch some of the lazier scammers out there. Verify it here!
Foreign trade registration and import / export licenses can be somewhat confusing in China. A company wishing to engage in foreign trade must be have foreign trade registration as an organisation, and must also obtain an import / export license for each transaction.
If you’re sourcing from a Chinese supplier or trading company, make sure that all of this documentation is correct. You can verify foreign trade status at low cost online.
Where relevant, request to see an ISO 9001 or ISO 14001 certificate from your Chinese supplier. Again, you should get this document verified if it’s shown to you by a Chinese company. You can even verify this certificate online by yourself.
It’s essential to have tests carried out on the products a supplier is manufacturing for you, ideally at several stages of the process to identify issues wherever they may arise. A supplier should be able to show you previous product testing reports and you can verify these, but a crucial step might be to have your own tests carried out independently.
It’s essential to get a Chinese supplier audited before making an order with them. Verification of documents should be seen as an initial screening before more extensive checks are made via an audit.
As with everything else, references can be faked, but that doesn’t mean you shouldn’t ask for them. Any legitimate supplier in China should be able to provide some references from previous clients. Always verify these with the client in question though, otherwise they’re worthless.
Do you agree that these documents are useful for screening Chinese suppliers? What else would you add?
China Checkup offers a wide range of convenient and affordable company verification and certificate verification services that greatly simplifies the process of verifying a Chinese company. Verify with confidence, use China Checkup verification services.
This article has been written to introduce our Chinese Company Ownership Charts - a popular element of our company verification reports.
Introduced as a feature in our "Pro" & "Full Scope" company verification reports since October 2017, these charts help clients to better comprehend a Chinese company's shareholding structure by providing a visualization of available ownership data.
Understanding whether you are dealing with a solely-owned business or a complex array of stakeholders can be vital information and is easily identified with our Chinese company ownership charts.
Since establishing the first China Free Trade Zone in Shanghai in 2013, Chinese authorities have moved swiftly to establish a further 10 zones, with even more planned.
Although the Shanghai Free Trade Zone is now fairly well known among foreign companies, awareness of the other zones is still relatively low.
This article gives an overview of the 11 China Free Trade Zones currently in operation and outlines where they are located.
Read this article to learn about the 7 key China supplier documents which you should request from your supplier to help protect your business.
Requesting, checking and verifying Chinese certificates can be a great way to build trust with your supplier, and if they are serious about doing business then they should be willing to provide them to you.
Chinese companies often display dozens of certificates in their showroom, or on their website, but many are of little relevance. In this article we highlight seven of the most important China supplier documents you should focus on.