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China Veriffication is a service for finding and verifying China suppliers. We have verified hundreds of Chinese companies.

The 5 great sources of information about your China business partner is a great source for verifying China suppliers.

Depending on how deep you want to go with your verification process, you may find yourself trying to read Chinese characters.

At China Verification, we are both serious and passionate about helping our clients. That is why we prepared this post to help hardworking entrepreneurs - just like you.

We are going to show you 5 sources of information about your Chinese business partner

1. The China Company

China Company is one of the useful sources of information about your Chinese business partner. Things you need to consider in checking your business partner’s company;

The type of China Corporation

Under China’s 2013 Company Law, there are two primary types of corporations. These are the Limited Liability Company and the Company Limited by Shares (the “Big 2”).
The vast majority of corporate entities in China are one or another of the Big 2

2. The China Business License

All legitimate China companies must have a China business license certificate. A China business license is a certificate of company’s identity issued by local AIC (Administration of Industrial and Commerce). The AIC is, basically, the corporate registration and management authority in China.

The China business license includes:

Your potential supplier’s China business license contains quite a lot of information.

From a business license in China, we can tell if the entity is legally incorporated. And actually, through the information in the business license, we can find further information, such as if this company still exist, is the company in any dispute or proceedings, or involved in other abnormal situations？

3. The China (Administration for Industry and Commerce) AIC Database

In China there is a State Administration for Industry and Commerce (国家工商行政管理总局 aka SAIC). SAIC is a central government body responsible for the supervision of business administration in China. Technically this is a national organization with local departments in every administrative region in China (generally each province and major city).

In China’s system of government, the AIC database performs a variety of roles relating to industry and commerce in each locale , which may include: 

4. The China AIC Record

AIC records have important information about practically all China companies. 

With so many government and administrative bodies in China, the AIC is super relevant for small- and medium-sized China companies. Why? Because the AIC record is the closest thing to a centralized, single point of truth about a China company. In particular, the AIC offices maintain official records for each company as it registers.

The AIC records are based on each company’s official registration records. (You may also have heard about “China’s National Enterprise Credit Information Publicity System” - this is where the company’s records are indexed. It is through this website that company registration records are available online.) Therefore, you definitely want to check out the AIC record if you want to know about a particular China company!

For more about the China AIC Record check out our post on Six Facts You Can Get From Your China Supplier’s AIC Record

5. The China Tax Registration Certificate

In. China, Anyone who produces or sells goods is obligated by law to pay tax to their local tax authority so they need to have this document.

China companies are required to apply for this certificate within 30 days after receiving their Business License. The China tax registration certificate is typically used in the following situations:

There is no exact expiry date on the certificate

Note that use of the China tax registration certificate has recently decreased following the introduction of a new 18-digit Chinese business registration number.

If the Chinese entity cannot present a tax registration certificate, then you should really start asking yourself some serious questions about your ‘supplier’.

If the information the Chinese entity already gave you does not match up with the tax registration certificate, then again you should really start asking yourself some serious questions about your ‘supplier’.

What’s Next?

Guys I hope you found today's post to be of assistance.

Like you know, we are serious and passionate about assisting hardworking entrepreneurs. If you think you want our help - drop a message, and we can set up a call to discuss. 

Who Are We?

China Verification is a service for finding and verifying China suppliers. We have verified hundreds of Chinese companies.

Depending on how deep you go with your verification process, you may find yourself looking at and even trying to read Chinese!

Today's shows you six key facts you can get from China supplier’s AIC Record.

1. The Registered Capital and Actual Paid-up Capital

Registered Capital!

Registered capital is an important part of establishing a company in China. Whether it's domestically owned or a Wholly Foreign Owned Entity (WFOE), every China company must disclose its registered capital.

Generally speaking, registered capital of a company shows the strength or capacity of a company to a certain extent. It’s used as a reference for other companies to choose their partners or for banks to evaluate loan applications.

Company Law of PRC states that registered capital is the fund that all shareholders contribute to the company. This fund can, however, be increased after the company is established. Even more importantly the company’s registered capital can also be decreased!

IF the management of your China partner has decided to take the cash out of the business, that is probably something you want to know - right? Good news is that if they do that they are supposed file a change of registered capital with local AIC.

2. The Company’s Operating Period

A China companies’ operating period "营业期限" (yíngyè qíxiàn) usually includes by two dates .

Sometimes only the date of incorporation is specified because the operating period is open-ended. More on that later.

In most cases though, the operating period includes two dates (date of incorporation and expiry date) . This is shown in the screenshot below with separation via the character "至":

A China company's operating period may be open-ended, meaning no specific expiry date is specified. More typically , a China company will be registered for a specific period, which you can find on their AIC record.

You might want to know if the operating period is about to end, right?

It is not uncommon for the company to be liquidated just before the operating period ends.

In theory, the company could even be dissolved by the authorities if the operating period has lapsed.

3. The Shareholders

China companies are goves by a patchwork of laws and regulations that includes rules for shareholders.

In theory, all China companies must reveal the details of their owners, ie the shareholders. Of course, in practice there are ways to hide the identity of the shareholders. But, in most cases, if you look at the AIC Record you will be able to see who owns the company you are dealing with

The AIC report is the first place to look for info about who actually owns your China partner. 

4. The Business Scope

The intended scope of a business in China must be defined in advance of the business' foundation. It is an enumeration of the trading and commercial activities in which a business is authorized to operate.

It is imperative that the company operations for foreign businesses must be reflected correctly and accurately in the business scope.

The legal risk of disingenuously operating in an unregistered domain, not keeping the company's commercial performance within the range of activities set out in its registered business scope can also be damaging to a company's ability to issue official invoices to its clients.

5. The Annual Returns

All companies registered in Mainland China are required to lodge an annual return to the State Administration of Taxation (SAT) to report their business finances and actualities.

You can obtain a Chinese annual return from the AIC record.

(Note that each company remains responsible for the validity and legality of the information it provides on its Chinese annual return, and not the AIC system.)

The first point relating to the annual

The annual return contains a wide range of data, as set out below.

* Basic Information

6. The Business status

Doing business with a China company and making some investigations will help you make sure that this company really exists. That way you can be more confident that they will really deliver

If you do business with companies in China that turns out to be canceled or revoked, that is a red flag.

In order to avoid that kind of thing, it pays to verify the company’s status.

In China, company registration status is divided into eight types:

In China, only running (存续、在业 or existing/in operation) companies are permitted to run a business. So, doing business with a Chinese company, you should make sure it is still in operation.

What’s Next?

Guys I hope you found today's post to be of assistance.

Like you know, we are serious and passionate about assisting hardworking entrepreneurs. If you think you want our help - drop a message, and we can set up a call to discuss.

Who Are We?

China Verification is a service for finding and verifying China suppliers. We have verified hundreds of China companies.

Both our Pro report and our Exec report are a powerful source for verifying China suppliers.

If you are in a rush, you may go with Pro Report. Depending on how deep you want to go with your verification process, you may find yourself looking at the Exec Report.

In this post, we are going to show you:

Remember at China Verification, we are both serious and passionate about helping our clients.

What is the Pro Report?

The China Verification Pro Report is a fast, easy, and affordable way to verify your China supplier. Your China Verification report includes information about company history, financial stability, and more.

Lots of American Entrepreneurs, just like you, use the China Verification Pro Report when they are first getting into E-Commerce and looking to grow their business.

Want to get to know your China Supplier? In our Pro Report, you will get the below details.

The Pro Report comes with all essential information on your supplier.

Company Registration Information

Registration Details

Company Directors

Company Shareholders

Pro Report vs. Exec Report: The Winner

Getting real information about Chinese suppliers has never been easier.

Of course, it Has Also Never Been More Important ...

If you are just starting out in the Amazon game, and do not have any shareholders or a board of directors, then the Pro Report is probably a good fit.

If your business has already started to see some positive cash flow and has a risk policy, then the Exec Report might be your best best

What’s Next?

Are you ready? Let’s do it!

What is China-Verification.com?

China Verification is a service for finding and verifying China suppliers. We have verified hundreds of Chinese companies.

At China Verification, we are both serious and passionate about helping our clients. That is why we prepared these posts to help hardworking entrepreneurs - just like you? - to find a great supplier to take your e-commerce business to the next level.

We are going to help you learn pro tips and tricks for verifying your supplier. Today, we will review the alternatives to Alibaba for building your long list of potential suppliers by checking the below source.
https://www.junglescout.com/features/supplier-database/

Are you ready to start building your long list of suppliers?

Build your Long List of Suppliers

Successful entrepreneurs know that finding the right supplier can make – or break - their business.

Heck, it is not just e-commerce entrepreneurs. According to research by Price Waterhouse Coopers, the Big Boys of American businesses, such as Fortune 500s, are struggling to manage their foreign suppliers.

So how do you find the right supplier? The first step is to

A lot of American e-commerce big timers use either Alibaba.com or Globalsources.com.

Alibaba and GlobalSources offer comprehensive directories of China suppliers. 

What is Alibaba.com and Globalsources.com?

Alibaba.com

Globalsources.com

What is Jungle Scout’s Supplier Database?

Jungle Scout’s Supplier Database is a first-of-its-kind tool for Amazon sourcing. It can help you find the real, legitimate suppliers used by the world’s retail big boys 

Steps in using the Jungle Scout Supplier Database;

Advantages of using Jungle Scout’s Supplier Database.

Supplier database is extremely easy to use and does of all the following;

Using Jungle Scout, you will get all the great features as follows;

What’s Next?

Guys I really hope you found today’s post to be an assistance. 

Like you know, we are serious and passionate about assisting hardworking entrepreneurs. If you have any questions, we are here to help.

Just drop a message below. 

First, the three simplest documents are:

Are you ready? Let’s do it!

What is China-Verification.com??

China Verification is a service for finding and verifying China suppliers. We have verified hundreds of China companies.

At China Verification, we are both serious and passionate about helping our clients. That is why we prepared this post to help hardworking entrepreneurs - just like you? - to find the best resources for verifying a company?

We will help you learn pro tips and tricks for verifying your supplier or potential supplier. Today we are going to review the three simplest and fastest documents for doing precisely that.

Document 1: China Tax Registration Certificate

China Tax Registration Certificates are one helpful source of information about China suppliers.

Below is a sample of a China Tax registration certificate. So long as your potential supplier is legit, they will be able to provide this doc. 

At the top of the certificate is China’s national emblem and the text "税务登记证," which means "tax registration certificate."

In the China Tax registration certificate, you can find the details below;

Btw, in China, there are two separate tax systems responsible: the state tax bureau system and the local tax bureau system. They usually operate separately, and companies only need to choose one for their tax registration certificate. If a company’s tax collection scope involves both systems, the stamp of authorities in both systems will be shown on this certificate.

Document 2: China Business License

A China business license is a certificate of a company's identity issued by a local AIC (Administration of Industrial and Commerce). The AIC is, basically, the corporate registration and management authority in China.

Below is a sample of a China Business License. 

So long as you read Chinese, you will see that your potential supplier’s China Business License includes the following details:

As you can see, your potential supplier’s China business license contains quite a lot of information.
If you are serious, you may find yourself looking at and trying to understand a China business license. 

Document 3: China Bank Account Certificate

 China Bank Account Certificates are another source of information about China suppliers. Depending on how deep you want to go with your verification process, you may find yourself looking at and trying to understand a China Bank Account Certificate.

Below you will see a  sample, which gives you a good idea of what to expect.

The China Bank Account Certificate is always in Chinese. Still, it contains quite a lot of information.

Every China company is required to obtain this certificate when they first sign-up for a basic corporate bank account.

The China bank account certificate is one more piece of documentation that helps you verify if Chinese company is who they say they are.

How to Verify One of These Documents?

There you go, guys. We have introduced the three simplest documents to verify the identity of your potential supplier.

Your potential supplier, or even your broker, should be able to quickly provide copies of these documents.

Still, even after getting the docs, you may still want some help verifying the content (after all, it is going to be in Chinese!) Don’t worry, we are here to help.

China Verification offers translation of supplier documents as part of our consulting service. Just drop us an email with a copy of the documents, and we will get it done.

What’s Next?

Guys I really hope you fount today's post to be an assistance.
Like you know, we are serious and passionate about assisting hardworking entrepreneurs. If you think you want our help - just drop a message, and we can set up a call to discuss.

Who We Are?

China Verification is a service for finding and verifying China suppliers. We have verified hundreds of China companies  

Chinese companies are required to make an annual return to the tax authorities to report their business performance and financials, alongside other key details.

At China Verification we are both serious and passionate about helping our clients. That is why we prepared this post to help hardworking entrepreneurs - just like you? 

We are going to show you: 

• What is a Chinese Annual Return?
• Information Available from a Chinese Annual Return
• How Can I Get Information from a Chinese Annual Return?

What is a Chinese Annual Return?

The Chinese annual return reports financial details, business performance, investment information, and shareholder information to the State Administration of Taxation (SAT).

Many components need to be validated to ensure that the company with which you are contemplating doing business is legitimate. A valid Chinese annual return provides you with important pieces of that inquiry.

It is a required filing for all companies registered in Mainland China, and must be submitted by a registered Chinese tax accountant professional who was responsible for reviewing and auditing the company’s financial information. 

The Mainland Chinese fiscal year runs from January 1st to December 31st. Chinese companies have until June 30th following the close of the previous year to file their tax submissions. Failure to submit the return by this date results in an “abnormal business operations” designation which remains in effect until the company resolves the discrepancies.

What Information Available from a Chinese Annual Return?

You can obtain a Chinese annual return and its registration records from China’s National Enterprise Credit Information Publicity System, administered through the Administration for Industry and Commerce (AIC). Note that each company remains responsible for the validity and legality of the information it provides on its Chinese annual return, and not the AIC system.

BASIC INFORMATION

WEBSITES

FINANCIAL STATUS

It’s important to note that while all companies in Mainland China are required to submit their financial details to the government in a Chinese annual return, they are not required to make that information public. Some studies suggest that the vast majority – more than 99% -- choose not to disclose this information. If a company does choose to make its information public, it would include the following information:

INVESTMENTS

If the company holds investments in another company it also must provide that information, including:

SHAREHOLDERS

Chinese annual returns must provide details about each shareholder, including:

SHAREHOLDER CHANGES

Companies must provide any changes to their shareholder structure, and include the following information:

EXTERNAL GUARANTEES

This part of the Chinese annual return provides details of commitments received from or made to other business entities, including:

• Number
• Creditor name, including type and amount of debt own
• Debtor name
• Debt repayment deadline
• Guarantee period and form

SOCIAL SECURITY

Companies also must disclose details of its social security commitments, including the number of employees for which it has paid benefits along with the amounts. Often companies do not disclose this information to the public.

AMENDMENT RECORDS

Companies also must include details on any changes to the Chinese annual return, including:

• Number
• Amended item, including the original and edited amendment  
• Date amended

VERIFICATION

With all official Chinese business documents, it’s important to verify their legitimacy - a process that is complex and challenging.

How Can I Get Information from a Chinese Annual Return?

Information from a Chinese annual return is available by accessing the company's registration records on China's National Enterprise Credit Information Publicity System which is run by the Administration for Industry and Commerce (AIC).

Depending on the company, records are usually available on the system for each annual return going back to 2013.

What's Next?

Guys I really hope you found today’s post to be an assistance . 

Like you know, we are serious and passionate about assisting hardworking entrepreneurs. If you have any questions about the Chinese Annual Return, we are here to help.

Just drop a message below.

Who We Are?

China Verification is a service for finding and verifying China suppliers. We have verified hundreds of China companies  

China’s AIC Records are a powerful source of information for finding and verifying China suppliers. 

Depending on how deep you want to go with your verification process, you may find yourself looking at and trying to read a China AIC record. 

At China Verification we are both serious and passionate about helping our clients. That is why we prepared this post to help hardworking entrepreneurs - just like you?

We are going to show you: 

• What Does a China AIC record do?
• What Information is in a China AIC record?
• How to get a copy of a China AIC record from your potential supplier?

What does a China Company’s  AIC Record  do?

AIC records important information about practically all China companies. 

With so many government and administrative bodies in China, the AIC is super relevant for small- and medium-sized China companies. Why? Because the AIC record is the closest thing to a centralized, single point of truth about a China company. In particular, the AIC offices maintain official records for each company as it registers

The AIC records are based on each company’s   official registration records. (You may also have heard about “China’s National Enterprise Credit Information Publicity System” - this is where the company’s records are indexed. )

In many cases AIC records contain not just the info created at registration but also additional information sources such as annual returns and even events that have happened to the company after it was first created (fines levied, licenses awarded, etcetera.)

Simply put, a China company’s AICs record is an official answer to your questions about “who is this guy / girl” when dealing with a potential supplier in Mainland China.

What Information is in a China AIC Record?

The above talked about the sources of information that go into a China company’s AIC record. What specific information can you find in the record as a result? 

For sure you can confirm the details of the China Company’s business license this way. Here are some other examples of the information you can find in a China company’s AIC record

• Registration number. This is the official registration number of the company.
• Official company name. This is the registered name of the company according to the official records.
• Type of enterprise. This is the form in which the company is incorporated for example a limited liability company or a wholly foreign owned enterprise.
• Legal representative. According to Chinese law this is the only person who is entitled to sign legally binding documents for the company and is responsible for any action of the company.
• Registered address. This could be useful if you are investigating a suspected counterfeiter and are considering a raid action.
• Registered capital. This is the declared investment in the company. There is a minimum that has to be paid depending on the scope of business according to the local AIC under which the business falls. The registered capital has to be paid within a certain time limit. 
• Date of establishment. This is the date the business license was issued.
• Operating period.
• License expiry date. This is the date the business license will expire. The business license can be extended upon approval from the AIC. 
• Business scope. Under Chinese law a company is only allowed to operate within the scope of its business as registered with the AIC. By checking what the company does and what it is allowed to do under the business license, you can find out if the company operates in accordance with Chinese law. 
• Registration bureau. This is the AIC under which the company is registered. The AIC mentioned here is the AIC that has all the official registration records of the company in hardcopy. 
• Check and approval date.
• Registration status. This indicates the current registration status of the company. 
• Shareholder information.

How to get a copy of a China AIC Record from your Potential Supplier?

If the company is in the AIC database you must compare the information.

In order to compare the information that you have found online, you can ask your potential Chinese supplier to send you their business license. Every Chinese company has a hard copy of their business license and reviewing the license is a common practice in China. 

A Chinese company that is serious about doing business with you and has nothing to hide, will provide all the documents. Compare whether the business license is the same as the registered information on the AIC website or if there are differences between them.

Also look for differences between the officially registered basic information and information of the company you can see on its Chinese or English website or information that the Chinese company has provided via E-mail. If there are any differences (for example, the name of the person claiming to be the legal representative or the business scope is different from the AIC database), it could be an indicator that something is wrong.

What’s Next?

Guys I really hope you found today’s post to be an assistance . 

Like you know, we are serious and passionate about assisting hardworking entrepreneurs. If you have any questions about finding the right supplier in China, we are here to help.

If you are interested in this topic you are more than likely going to be interested in our Expert Guide. Check it out here.