How to Do a Legit Check on Chinese Suppliers?
Question
I am preparing to purchase from China for the first time and want to conduct a company legitimacy verification of a stainless steel supplier in Foshan. The other party is very cooperative and willing to provide materials, but I don't know what materials are needed for the legality inspection. If I need less, I am afraid the investigation will not be thorough, and if I ask too much, I am afraid I will appear to distrust the other party. Can you give me a list?
Answers (1)Write Your Answer ↓
The cooperation of the other party is a good signal in itself. Companies that are willing to provide a full set of materials are usually much more reliable than those that refuse to issue a vague business license. When you ask for materials, just send the list below directly to the other party.
The first group is identity documents. For the scanned copy of the business license, pay attention to the clear version with the watermark of the issuing authority; at the same time, ask him to send you a separate text version of the unified social credit code, so that you can obtain the company's credit report at CheckChinaCompany.
The second group is financial authenticity documents. The latest sample VAT invoice is used to check the invoice title and tax number; the company's corporate account opening certificate or the bank statement of the latest month. Note that the account name on the bank account must be exactly the same as the full Chinese name of the business license. Among the suppliers we have contacted, many suppliers are stuck at this point. The business license is real, but the account you use to make money is a personal card or another company. This separation of account and entity must be stopped immediately.
The third group is supplemented by product category. The export of stainless steel products generally involves quality inspection reports, machinery may involve special equipment licenses, and chemical products must have hazardous chemicals business licenses. You need to ask the other party to provide corresponding licenses or testing documents based on the products you purchase. Simply giving a business license will not prove that it is qualified to make your products.
The fourth group is the business site certificate. Ask the other party to provide real-time photos or a small video of the factory floor, warehouse, and office, and make an appointment for a video call if possible. Then use the map to search the factory address he gave to see if it was a real factory.
After collecting all the documents, there are only three things you need to do: judge whether the stainless steel supplier is a company with good credit and strong risk resistance through the corporate credit report. Check whether the quality inspection report and relevant business license are authentic and valid. Check whether the payment account number is consistent with the business license.
If all materials can be provided and all verifications are true and effective, then the main legitimacy of this company will basically stand. If it is a very large order, it is recommended to entrust a third party to conduct an on-site verification.
People Also Ask
What are the obvious risk warning signs when working with China suppliers?
The other party's refusal to provide a business license and request that the payment be transferred to a private account are dangerous signals. If the quotation is far lower than the market conditions and you have been evading factory video verification, you should also be more vigilant. Regular suppliers are generally willing to cooperate with basic qualification verification.
Can I conduct the legitimacy inspection of China suppliers by myself?
Yes, you can complete the basic verification yourself, but China's public information network may have IP restrictions and is in Chinese, requiring tools to assist in reading. When the order amount is large, it is recommended to entrust a third-party due diligence agency, and the results will be more comprehensive.
How to check the authenticity of the business license of a China supplier?
You can get the supplier's 18-digit unified social credit code and go to the official website of the National Enterprise Credit Information Publicity System to verify the information. Check whether the company name, registered address, business scope and license are consistent. If no records can be found, it can basically be determined that this supplier is at high risk.