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November 11, 2015

Company verification process in China

Filed under: chinese economy — Tags: , — solaroutdoorlight @ 1:00 am

For small business owners contacting with chinese corporator, making china company cerification is a first step that should be taken in order to protect their businesses from fraudulent activity and to make sure basic due diligence is done. This process is sometimes not simple in one’s own country, let alone in China, where newly arrived business owners might find it very difficult to navigate through the administrative maze, language barrier, and/or peculiarities of the host country’s procedures. In this post, we will explain how the company registration process works in China and will also go through the steps of checking a company’s registration information in the public government database.

What is the ‘gongshangju’?

The government organization responsible for overseeing and administering company registrations is the Administration of Industry and Commerce or ‘gongshangju’ in Pinyin. You can either go to one of their offices  and request the information needed in person or you can go to their website and find a company by their registration number or company name. Different provinces have different online directories (some more consistent than others), but provinces with industrial hubs usually have a very reliable system.

How to check a company’s registration report?

1. First, you should know where the company is registered and select the regional database on the main AIC website you want to access. (Usually, this is in the company’s address. For a list of Chinese provinces, click here.) In this post, we are focusing on how the Shanghai AIC website works; however, these steps might be slightly different depending on which database you are trying to use.

2. Enter the full company name in Chinese (or registration number), and if you find the company you are looking for on the results page, select ‘more info’.

October 26, 2015

Easier to Make Chinese Company Check

Filed under: chinese economy — Tags: , — solaroutdoorlight @ 8:20 am

Credit checks of Chinese companies have been made significantly easier with an online National Chinese Company Credit Information database providing free information about Chinese domestic companies to the public.

China’s State Administration of Industry and Commerce has launched the National Company Credit Information System which is an online resource that provides free information about companies to the public. This followed the Provisional Rules on Enterprise Information Disclosure act which took effect on October 1 last year. The new disclosure act require all companies, foreign and domestic in the PRC to submit annual credit reports for public disclosure via the publicly available Enterprise Credit and Information Disclosure System which can be accessed online on a real-time basis. With the new online database, anyone can simply log in and access relevant financial, asset and legal liabilities information – greatly improving financial transparency among businesses in China.

– This is good news for anyone evaluating suppliers and potential business partners in China, says Per Linden, CEO of the consulting firm Scandic Sourcing. One year ago, credit disclosure companies stopped getting access to tax reports, which made it difficult to make credit checks of Chinese companies. To get accurate info, we had to ask the companies themselves to disclose their annual audit reports, which they may or may not do. Now, the publicly available Credit and Information Disclosure System circumvents all that, and I think this is a big step towards simplifying credit checks in China.

Screenshots from the search function of the new online resource for credit disclosure which Chinese companies (and any other company operating in China) are expected to submit their financial information to.

The information companies are required to provide includes corporate registration data, record filing, chattel equity pledge registration, mortgage registration, and notably administrative penalties levied by the Chinese Administration of Industry and Commerce. Look for the latter when evaluating a potential partner or supplier; it’s an important indicator of a company’s creditworthiness and integrity that used to be confidential. The companies themselves are responsible for the authenticity and legality of the information they disclose and spot checks on the disclosed information will be conducted; third parties may report any information they suspect is false.

Companies that fail to submit their reports in time will be recorded in the directory of companies with abnormal business operations and if the company fail to fulfill their disclosure obligations within three years, they will be recorded in the directory of companies with serious illegal conduct, and their legal representative or person-in-charge will be prohibited from becoming a legal representative or person-in-charge of any other company for three years.

More imformation about chinese company, pls visit Cnbizsearch:

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