What is a China business license?
Hi 🙂 Today’s post is about China business license certificates.
Guys who are serious about sourcing from China have usually seen at least a copy of a China business license certificate.
Who We Are?
China Verification is a service for finding and verifying China suppliers. We have verified hundreds of China companies.
China business licenses are one useful 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 business licenses.
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 make the best use of the China business licenses?
We are going to show you:
What Does a China Business License Look Like?
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.
Here is an example of what you can expect your supplier’s Business License to look like.
The appearance of a China business license is fairly consistent across most parts of the country.
At the top, it should clearly state “营业执照” in large gold characters. This means business licence.
Further down, below the title, the China business license includes:
Many companies actually receive two versions of this certificate, one in A3 size which is the official certificate, and one in A4 size which is an official copy! They contain the same information.
It is also increasingly common for newly issued business license certificates to include a QR code. The QR code is a link back to the computer database in which relevant information is being held.
What Information is in a China Business license Certificate?
Your potential supplier’s China business license contains quite a lot of information. Depending on how serious you are, you may find yourself looking at and trying to understand a China business license.
Of course, a China business license is always in Chinese. You must read Chinese. But, no worries! We have got you covered. That is why we ran down up above what information you can find in your potential supplier’s China business license.
From a business license in China, you can tell, for example, if the entity is really, legally incorporated. And actually, through the information in the business license, we can find further information, such as if this company still exists, is the company in any dispute or proceedings, or involved in other abnormal situations? All these could be done by searching in government database (which is free of charge in mainland China) or in some paid databases.
How to Get Your Potential China Supplier’s Business License
In Mainland China it is very common for businesses to proudly display their business license to demonstrate that they are legit.
If you have ever been to a Chinese restaurant, in Mainland China (of course!), you almost certainly saw the owner’s business license on the wall. When you are starting to negotiate with a Chinese company, do not be surprised if your new partner insists on sending you a copy of their license (even if you have not asked for it.)
Even if your new best friend does not volunteer their license, it is a smart move to request a copy of their business license. Simply the fact that they are sending you the document is kinda sorta an indication that they are not a complete scam. That said, you are still gonna need to read the thing.
If the Chinese entity cannot present a business license, then you are probably dealing with a fraud.
If the information the Chinese entity provides you does not match up with whatever is stated in the business license, then you are probably dealing with a fraud too.
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.
Just drop a message below. This offer definitely includes questions about any China Business LIcenses. You can count on us.