1. Obtain the Chinese legal company name
The Chinese legal name is the starting point for a reliable company check. English trading names are not necessarily registered, may be translated in several ways and may be shared by unrelated businesses.
Ask the supplier for a clear copy of its current business licence. The Chinese company name normally appears prominently on the licence. If the supplier will not provide its legal name or licence, ask why before sending money.
2. Check the Unified Social Credit Code
Mainland Chinese companies are generally identified by an 18-character Unified Social Credit Code, often abbreviated as USCC. Compare the code on the business licence with the code shown on contracts, invoices and other documents.
A valid-looking code is not enough by itself. It should resolve to the same Chinese legal entity and registration details that the supplier has presented.
3. Review current registration information
Confirm the registration status, establishment date, legal representative, registered capital, registered address and business scope. The purpose is to understand the entity behind the transaction and identify information that needs clarification.
For example, a recently established company is not automatically unreliable, but its short operating history may justify additional checks. A business scope that appears unrelated to the proposed transaction may also require an explanation.
4. Compare every transaction document
The legal name and USCC should be compared with the quotation, pro forma invoice, contract, payment request, email domain, marketplace profile and website. Pay particular attention when a different company appears on the invoice or beneficiary information.
There may be a legitimate explanation, such as a related trading company or authorised collection arrangement. The important point is to identify and document the relationship before payment, rather than discovering the difference later.
5. Look beyond registration
Registration confirms that an entity is recorded; it does not prove production capacity, product quality, solvency or future performance. Depending on the value and risk of the transaction, consider ownership information, annual filings, corporate changes, public litigation and enforcement information, adverse news, website history and document consistency.
Higher-value purchases may also justify a factory inspection, product-quality inspection, contract review or advice from an appropriately qualified professional.
A simple pre-payment checklist
- Chinese legal name obtained
- Business licence reviewed
- Unified Social Credit Code matched
- Registration status checked
- Quotation and contract entity compared
- Payment beneficiary explained and documented
- Material public risk indicators reviewed
- Transaction-specific inspections or advice considered