The verification of a Chinese company
is useful for any foreign investor or company that wants to engage in business relationships with a firm incorporated in China. This helps protect the foreigner from doing business with an illegitimate company and become victim of fraud.
Most of the illegitimate companies in China that take advantage of business relationships can be found in the trade sector. Wholesale suppliers perform successful scams by using unbelievably low prices to attract customers. This is just one of the signs that you should pay attention to before engaging in any contractual agreements or other businesses with Chinese companies
Our lawyers in China
can help you with a thorough company verification
procedure, so that you can avoid scams and financial losses.
Essential elements for company verification in China
Foreign investors can pre-verify a company before doing business in China
. Although the information will be in Chinese, with the help of a translator or professional you can obtain the minimum amount of information about the company. The following information can be verified:
- contact information - if the address and telephone numbers are real;
- the registered corporate number or business license;
- the payment method;
- customer referrals.
Apart from these simple steps, you can request the services offered by our law firm in China
for company due diligence
Company verification services in China
In order to work successfully with your Chinese partners, you need to perform at least a basic verification. Our attorneys in China can provide you with various types of packages for company verification. The basic verification, as described above, will provide you with essential information about the company. This is useful for investors who want to do business on short term or need just a one-time verification. However, for more complex business relationships, we recommend a comprehensive company verification.
Our lawyers in China can check the following information about a company:
- business type, official company name and registration number;
- the registered address and phone numbers;
- the legal representative and the shareholders of the company;
- the paid-up capital and registered capital;
- financial records.
This comprehensive research will allow you to decide whether or not to engage in business activities with a Chinese company. By learning more than just the basics about a legal entity, you can avoid doing business with a company that is bankrupt or that has entered the liquidation phase