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Company Verification Services in China

Last Updated: April 17, 2021

During our 13 years experience in China, we see more and more companies from different part of the world to do business with China and some of them unfortunately became victim of fraud partly thanks to the loose government monitor on Internet business.
It's expensive to do a full due diligence for SMEs while most of time a simple company verification service could avoid the fraud, for instance, by using a fake business license
company

In China, due to the terrible competition and the increase cost at the exchange rate of RMB, increased tax burden etc., hundreds of thousands of manufacturing businesses are facing the situation of fight for survive. In some industries, companies have their profit dropped to as low as 3-5%, while profit could reach as high as 80-200% if fraud, with that some companies chose to cheat for profit, they do real businesses with some of their previous clients, and started to cheat their new clients.

Also, factories don't have import & export licenses which is common in China that they are exporting through a trading company with import & export licenses, many factories in China are operating in this way, so they don't have to deal with export procedures and customer clearance, tax rebate, L/C etc, this also give some of the bad eggs opportunities to cheat their clients, to avoid this happening, you may know something about business license.

What is a business license in China

A business license is an official documents of a business entity in China like Corporate of incorporation in other countries, it's an essential documents to state a company's basic but important information such as company's name in Chinese, incorporation date, registration address, scope of business, registered capital, investor.

Here's a sample business license copy, it's basically the same template for companies across the country. [>>>]

To verify a company in China, one can't just verify if it's a real company or not through photocopy of a business license that a supplier provided. Some of the fraud companies didn't registered their companies. When a potential customer asked for a company business copy, they used business licenses from other companies, or even use photoshop copy to have a fake business license. Path To China could help on checking with local Administration of industrial & commerce to verify. As a simple third party verification solution, we make sure that we get the proper information from local authority.

Unfortunately, our recently cases showed, that they are using true business license to conduct fraud business, that means they established a company with official company business license. To establish a local company in China is a fairly easy process (while to establish a foreign invested company is not easy, check our services about foreign invested company registration: [>>>], it's just a couple of thousand RMB.

What about registered capital? Do you see a number of registered capital from the sample business license? Theoretically, registered capital is investor put investment to it's company's bank account to operate the business, the amount of required registered capital in most cities of China is high, such as RMB 500,000 (Approx.80,000) or RMB 1 Million (approx. USD 160,000) They are using virtual capital to register a company, what does that mean? It's actually a fake capital and wildly existing in China. The registered capital showed on their licenses were not injected the investor but through a broker once the company be successfully established, they just withdrawal the capital from the company's bank account, with that a company with RMB 500,000 capital might has nothing left on it's bank account.

OUR SERVICES (Company verification in China)

Website Verification (if applicable)
Company basic information verification with State Administration of industrial & commerce (SAIC)

- company's name in Chinese
- incorporation date
- registration address
- scope of business
- registered capital
- investor.

Mobile Number Verification
- To verify the city where it's mobile number be registered.

Telephone Number Verification
- To tell the city where it's land line be registered

Bank account information verification

Payment Verification

3rd party payment solution

- through Alipay (largest 3rd party payment provider in China, ) - the way that Alipay works easy is just like Paypal, while Alipay provides a better protection to buyer, once the payment be made by a buyer, the payment would be put into a

SERVICE FEE (Company information verification in China)

USD 250

 

OUR SERVICES (Verifying a Hong Kong company)

Verifying a Hong Kong Offshore Company:

It's sad that lots people are using Hong Kong company as a tool to conduct fraud business due the fact that it's easy to establish a Hong Kong company as well as maintaining a Hong Kong company. . Since most of newly established Hong Kong companies are operate offshore, once the payments be made, there's no way to find out where are they. Company with China mainland, it's legal for a Hong Kong company to register in a virtual address and with a registered capital which the amount of capital never has to be contribute.

(OUR SERVICES (Company verification in Hong Kong)

Website Verification (if applicable)

- company's name in English
- incorporation date
- registration address
- registered capital
- investor's name
- company director's name
- Articles of memorandum

SERVICE FEE (Company verification in Hong Kong)

USD 300

Contact Our Regional Partners in India (Mumbai, Delhi), Singapore, Malaysia (Kuala Lumpur), China (Beijing, Shenzhen, Guangzhou, Shanghai, Suzhou, Ningbo, Hangzhou or Hong Kong) for more details:

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