How to do the company check China | For transaction insurance

Introduction

Company check china is to investigate and confirm the legality of Chinese companies.

In this way, when business activities changing, foreign investors can legally hold accountable.

Many foreign companies ignore this part when entering the Chinese market. However, it is really important.

For foreign businessmen, do you know the Chinese companies you come into contact with?

We all know that there will be many changes and situations in business activities. And companies need to adjust them in time.

During this process, the other party’s need to have good credit. Moreover, the company must check china at that time.

So, how to check a company? And what documents and licenses can guarantee the transaction?

Now, this article will give a detailed introduction.

What to check？

So, during company check China, what do foreign companies need to check and confirm？

Information for checking

For company check China, foreign businessmen need to check the information below:

1. Social Credit Code
2. Company name
3. Legal representative
4. Registered capital
5. Date of establishment, start operations and end operations.
6. Registering Bureau
7. Inspection date
8. Operating status: but in operation is not displayed on the business license.
9. Address the company
10. Business scope

Moreover, this information will be on the company’s business license.

At the same time, when checking the information, foreign businessmen should also pay attention to whether the following aspects are legal:

1. Information about shareholders and their ownership
2. Paid-in capital
3. Management information
4. History of registration changes
5. Penalties and instructions for compliance with the law

Documents needed to be check

Business license or its copies

The business license states that this company is legal in China.

Foreign businessmen can verify the information based on the inspection of the content mentioned above.

Business card or its copies

In addition, foreign businessmen can also keep a copy of the company’s business card or a business card. The business card has company information like its website, phone number, trademark, etc. Moreover, the information on the business card needs to be the same as the information on the business license.

Company seals

The company seal is a must for a legal company in China.

And the Seals have legal effect.

So, foreign businessmen can check whether the information on the seal is the same as the information on the business license. And that can ensure the legality of the company.

A copy of bank account and foreign account

Legal Chinese companies generally have copies of bank accounts and foreign accounts. Because the exchange of RMB is not completely free. Moreover, the Chinese bureau has strict regulations on exchange. Therefore, these copies confirm the actual payment steps of the Chinese company. This will ensure that you receive your payments, Instead of listening to explanations or other excuses to delay.

The Chinese Customs Registration Certificate and the Foreign Trade Business Registration

The Customs Registration Certificate and Foreign Trade Registration Certificate is for the import company. These can ensure your rights. With these certificates, even if there are problems in business activities, foreign businessmen also hold accountable to the trading company when necessary.

Company’s records of Chinese Entry-Exit Quarantine

Since the global epidemic is very serious now, Chinese companies can only operate normally after quarantining. Therefore, the company’s epidemic inspection records can also show the company’s legitimacy.

Contract

The business culture and differences in Chinese and foreign business cultures, when doing transactions with Chinese companies, you must sign a contract and confirm the information inside.

Specifically, when Chinese people do business, they usually like to determine certain things through conversation.

Correspondingly, when foreigners do business, they will state-specific matters in the contract.

Therefore, when foreign businessmen do business with Chinese companies, things that are confirmed in the conversation may not be implemented. In this situation, some companies may not implement things well. Moreover, it doesn’t have law protection if they are not stated in the contract.

Therefore, when there are changes in the transaction, foreign businessmen should write them in the contract in time. In this way, the law can guarantee the rights and interests of foreign businessmen.

Moreover, if there are problems with these matters, foreign businessmen have the right to hold Chinese companies accountable.

Additional check

In addition to the check content above, foreign companies can also access National Enterprise Credit Information Publicity System(China).

How to check

simple steps

1. It will check the company’s registration information at the local industrial and commercial bureau.
2. And to check the business license or a copy of the business license of the Chinese company.
3. Confirm its legal address and business address are the same one. Moreover, sometimes they are different.
4. Obtain detailed personal visit checks from the local bureau. And then, check the company’s check. By the way, you can get the check at the local bureau.
5. Check their quality certificates. Meanwhile, this quality should be legal and compliant. Such as ISO, CE, TUV, CSA, UL.

Some foreign businessmen may think that checking and confirming these documents will waste time. Moreover, doing so may miss some business opportunities.

Actually, regular companies are willing to provide these certificates. On the contrary, if it is an irregular company, they will be reluctant to provide these certificates.

By the way, foreign businessmen can check these documents and licenses themselves. However, it is a bit difficult for some foreign businessmen to check these documents. Then, you can find the corresponding company to check this information.

Now, let’s take a look at the types of company check China.

Types of the company check China

standard check

The standard check is to check whether the company exists. And what commercial activities the company has conducted.

Generally, Standard check takes 7-8 working days.

The following is the inspection content included in this inspection:

1. Company name
2. Names of directors or board members
3. The company’s registered capital
4. Name of company shareholders and percentage of shares
5. Legal business address
6. Actual business address
7. Location of company registration
8. Registered number
9. Date of registration
10. The company’s business scope

If the company has a subsidiary, you should also check the information above of the subsidiary.

Standard company check and financial credibility check

In addition to the standard checks mentioned above, this type also checks the company’s corporate checks and financial credit checks.

And it takes 10 working days.

The following is the specific content of this inspection:

1. The information of all standard check mentioned above.
2. Contact information (phone, email, website)
3. Business license details
4. Company registration number and tax number
5. Form of ownership
6. Company name change history
7. The company’s shareholders and percentage of shares. Moreover, it also checks the shareholder change history.
8. Information about directors and legal representatives
9. If the company has litigation records, it will check it.
10. Registered business activities
11. Actual business activities
12. And then, it will evaluate the company’s credit rating through independent experts.
13. Subsidiary information
14. The geographic location of major suppliers and the types of products purchased
15. The location of major suppliers and the types of products.
16. A description of the company office. It shows the location and condition of the premises.
17. it will indicate the position and qualifications of employees.
18. The company’s financial status in the past two years
19. The overall financial status of the company’s independent auditors.
20. Company bank account with bank logo
21. Total credit risk provided by independent experts.
22. The overall analysis and assessment of the industry. And then, it will provide the risk assessment that the company may face.
23. List of main competitors.

The in-depth analytical company check

In-depth analytical company check takes 4 weeks at most.

Moreover, it will check and confirm the following information about the company:

1. All information mentioned above.
2. Import and export license.
3. Registered trademarks and patents.
4. The delivery conditions of specific types of products.
5. And the development direction of the company’s business in the next few years.
6. Financial status in the past three years.
7. Bank account to check its activities.
8. In-depth analysis of management personnel evaluation.
9. An evaluation of technology usage in the industry.
10. Assess the risks that the company may face according to the type of activity and each product group
11. A list of the company’s main competitors.

After understanding the three types of company check China, let’s take a look at ways to do these company check China.

Who can do

A professional team

Foreign businessmen can look for consulting companies that provide the above services to do company check China.

Do on your own.

Foreign businessmen can inspect Chinese companies themselves. Moreover, the company’s legal information can be found on relevant websites. This is much faster than looking for consulting companies.

However, if a company is illegal, this process will take a lot of time.

In addition, there is a problem that this information is rarely written in English. Therefore, foreign businessmen need to understand Chinese by. Alternatively, foreign businessmen can also find someone who knows Chinese to check together.

Conclusion

When foreign businessmen do transactions with Chinese companies, they usually ignore the legality of Chinese companies.

In this case, if there are problems in the transaction, it will be difficult for foreign investors to guarantee their rights.

However, foreign businessmen can hold legal accountable to Chinese companies.

So，company check China is very important to do business in China.

There are three types of a company check.

They are:

1. standard check
2. The standard company check and financial credibility check
3. The in-depth analytical company check

Similarly, foreign businessmen can look for this information on the website. However, this information is rarely available in English, most of them are in Chinese.

If the foreign businessmen cannot solve the language problem, they can also find a consulting company to help them out. By the way, there are many online companies in China.

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