Sunday, January 6, 2019
Monday, October 8, 2018
How to acquire the financial statement of a Chinese company
All companies that are registered in China are required to file an annual report and a financial statement to the Administration of Industry and Commerce. The data in the financial statement is not disclosed to the public but accessible to a certified Chinese lawyer that can acquire the information for a fee.
The financial statement includes an income statement and a balance sheet. Under normal circumstances, it is possible for a lawyer to review financial statements from the previous 2 to 3 years.
The income statement and balance sheet is valuable information for anybody that wants to conduct a performance assessment or financial health check of a Chinese company.
Here is an example of how the income statement filed to AIC is structured
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| The income statement of an undisclosed Chinese company |
Here is an example of how the income statement filed to AIC is structured And here an example of the balance sheet.
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| The balance sheet of an undisclosed Chinese company |
Please contact me if you any questions and comments to financial statements
Monday, October 1, 2018
Come to China and sign the contract scam
The invitation to China to sign a lucrative sales contract is a fraud scheme that has been going on for many years and a ripoff that companies sadly enough still fall victim for.
The whole idea of the scam is to convince a foreign company to pay administration fees and gifts in order to land a very attractive sales contract with a Chinese buyer.
At first glance, it can be difficult to assess the risk of selling to a first-time customer from China. It should be imperative to screen the credibility of the Chinese buyer by requesting a business license copy for verification, check the foreign trade rights and conduct a litigation check. (read how to conduct your own free business license verification, foreign trade right check, and litigation check). Companies that are selling commodities such as meat or crops to a Chinese company should, in particular, do a comprehensive background check of the buyer and make sure that the buyer is capable of financing the final payment in a situation where commodity prices drop during the shipment to China.
If the due diligence does not raise any flags but the invitation to China to sign the contract or a request to pay a contract notary fee lands in your inbox then it is very likely a scam and you should walk away immediately.
There are two versions of the build-up to the scam but pattern and outcome are the same.
Version 1
A Chinese company sends out unsolicited emails to mostly small and medium-size companies to inquire about product/service and the price. After having received a quotation, the Chinese company will express interesting in placing a substantial order and very often without any attempt to negotiate the price. The Chinese company will then send a purchase agreement that confirms the order size, products/services and payment terms (normally from 30% up to 50% prepayment). Everything looks great until the foreign company is invited to China to sign the purchase contract face to face with nobody else than the CEO. The Chinese company asks for a passport number, name, travel dates etc to issue a formal invitation letter as documentation for visa application.
In the second version the Chinese company contacts a foreign company and asks them to host a travel or business event for 100 to 300 people. The Chinese company asks for a quotation that covers expenses for accommodation, meal, travel and other services. The offer is accepted with no hesitations and the Chinese company replies with an agreement that must be signed in China.
How the ripoff works
The foreign company does not want to miss the fantastic deal and sends somebody to China to sign the contract. In China, the foreign company representative meets the CEO and other high-level management and is asked to pay for dinner expenses and buy a gift to the CEO who takes the final decision on the deal (often an expensive gift made of gold). The foreign company representative is also asked to pay a fee for notarization of the purchase contract and other "mandatory" administration fees to for example China Customs. The set-up is a fraud. After having returned home from China, the foreign company NEVER receives a prepayment or hears from the Chinese company again.
Companies that rejects the invitation to China will still be met with the demand of paying a notary public fee. The expense can be a fixed fee of anything from 1000USD up to 10,000USD or a fee that is 0.3% of the contract value. Some companies will try to deduct the fee by lowering the sales price but the Chinese company will insist on the fee and suggest that the fee is split 50/50 to give the impression of flexibility and fairness. When that is said, it is important to emphasize that notarizing a purchase contract in China is complete nonsense and not required by law at all.
Example of a fake receipt for a notary public fee. A formal receipt or Chinese "fapiao" from a notarization office would normally carry much more details such as a tax identification code and would not be handwritten.Who are the companies behind the scam?
Companies behind the "come to China and sign a contract scam" have a relatively short lifetime of 1 to 2 years. Companies that were active in this fraud scheme 2 to 4 years ago are now dissolved, inactive or had the business license revoked. However, new companies with exactly the same intentions are registered again and again.
Here is a list of companies that are currently active in 2017/2018.
| Company Name (EN) | Shaanxi FengQin Trade Co., Ltd |
| Company Name (CN) | 陕西风沁商贸公司 |
| Business license | 91610133MA6URX8E8L |
| Establishment Date | 29th of March 2018 |
| Legal Representative | Yang Li Jun (杨立军) |
| Address | Address No.369 North of Taihua Road Weiyang District Xian City China . Pc .710016 |
| Office Phone | 86-29-68568356 |
| Mobile Phone | 86-17039092007 86-18229097364 |
| Emails | sxfqsm@yeah.net |
| Contact person | Betsy, Betty or Helen |
| Website | http://www.sxfqsm.com |
| Company Name (EN) | Yunnan Zhouyun Import & Export Co., Ltd |
| Company Name (CN) | 云南周韵进出口贸易有限公司 |
| Business license | 91530100MA6KCWYC37 |
| Establishment Date | 7th of March 2017 |
| Legal Representative | 郑国芹 |
| Address | 云南省昆明经济技术开发区云大西路39号新兴产业孵化区A幢7楼7319号" |
| Office Phone | 86-871-63852259 |
| Mobile Phone | 86-18313890965, 86-15198853509, 86-15687892921 |
| Emails | chinaynzy13@188.com, chenhzgs2@vip.163.com, ynkmwqw11@vip.163.com |
| Contact person | Zhu Yonfu, Haidong Chen, Yu Mo, Zhu Changshun |
| Website | N/A |
| Company Name (EN) | Henan Changxu Import & Export Trading Co., Ltd |
| Company Name (CN) | 河南长旭进出口贸易有限公司 |
| Business license | 91410100MA44ETBC14 |
| Establishment Date | 27th of September 2017 |
| Legal Representative | 黄哲锋 |
| Address | 22 Dongfeng Road Jinshui District Zhengzhou City China. |
| Status | Abnormal Business Operation |
| Office Phone | 86-371-56051299 or 86-371-56051299 |
| Mobile Phone | |
| Emails | Info@chinahncx.com |
| Contact person | |
| Website | www.chinahecxjck.com (not working) |
| Company Name (EN) | Xi'an Yaoke Import & Export Trading Co., Ltd |
| Company Name (CN) | 西安耀科进出口贸易有限公司 |
| Business license | 91610132351711250L |
| Establishment Date | 19th of August 2015 |
| Legal Representative | 许朝光 |
| Address | NO.25, Dianzi ZhengJie Dong Sanxiang, Xi'an, China |
| Status | Abnormal |
| Office Phone | 0086-29-63625416, 0086-29-63625418 |
| Mobile Phone | 0086-18292677278, 0086-15929907719 |
| Emails | |
| Contact person | Honglin Fan Xu Chao Guang (许朝光) |
| Website |
| Company Name (EN) | Shaanxi Suofu Trade Co., Ltd |
| Company Name (CN) | 陕西索富贸易 |
| Business license | 91610104MA6TX56C4R |
| Establishment Date | 11th of November 2015 |
| Legal Representative | Hu Zong Ying (胡宗营) |
| Address | ROOM 20733-7 FLOOR,2 UNIT NO.1 LONGHU MOCO INTERNATIONAL, NO.20# XINGHUO ROAD, LIANHU DISTRICT,XI'AN |
| Status | In operation, abnormal business operation |
| Office Phone | 86-022-60771556 |
| Mobile Phone | |
| Emails | sales@sfmetal.cn |
| Contact person | Jack Wang |
| Website |
| Company Name (EN) | Yunnan Gaosai Import and Export Trading Co., Ltd |
| Company Name (CN) | 云南高赛进出口贸易有限公司 |
| Business license | 91530103MA6K4UBP40 |
| Establishment Date | 11th of March 2016 |
| Legal Representative | Yi Zhong (易钟) |
| Address | No.17,Jinshi Residential Quarter, Panlong District, Kunming City, China |
| Status | Business license revoked |
| Office Phone | 0086-0871-65127808 |
| Mobile Phone | 0086-18687527169 |
| Emails | ynkmww4@163.com, liuyifang17@vip.163.com, liuyifang11@vip.163.com |
| Contact person | Ming Yu, Liu Yifang |
| Website | http://www.ynkmpgs.com |
| Company Name (EN) | Shaanxi Tengyu Imp & Exp. Co., Ltd. |
| Company Name (CN) | 陕西腾宇进出口有限公司 |
| Business license | 91610112MA6TXKRG18 |
| Establishment Date | 24th of February 2016 |
| Legal Representative | Zheng Bao Guo (郑保国) |
| Address | 陕西省西安市未央区明光路龙府北郡腾龙阁19幢2单元501 |
| Status | Business license revoked |
| Office Phone | |
| Mobile Phone | 0086-13571997872 |
| Emails | |
| Contact person | Meng Xiang Li |
| Website |
| Company Name (EN) | Xi`An Blessing Wide Trading Co., Ltd |
| Company Name (CN) | 西安福阔商贸有限公司 |
| Business license | 91610131MA6U18MN0F |
| Establishment Date | 13th of January 2017 |
| Legal Representative | An YIng Chun (安迎春) |
| Address | Jinqiao International Plaza, Building 1, Room 31009, NO.50 Keji Rd,Gaoxin District,Xi´an,Shaanxi,China |
| Status | Business license revoked |
| Office Phone | 86-29-63336915 |
| Mobile Phone | 0086-13571997872 |
| Emails | fktradingg@163.com,cmtradingb@163.com, zgtradingf@188.com |
| Contact person | Frank, Luo Ming (罗鸣) Yin Ren Ling (殷任灵) |
| Website |
| Company Name (EN) | Xi`An Bei Ao Trading Co., Ltd. |
| Company Name (CN) | 西安北奥商贸有限公司 |
| Business license | 91610131MA6TYGTR9J |
| Establishment Date | 28th of July 2016 |
| Legal Representative | Zhu Xiao Li 朱小莉 |
| Address | Shaanxi, Xi´an Gaoxin District, Tangyan Nan Road, 3rd Block, No 1, 18th Floor |
| Status | Abnormal operation |
| Office Phone | - |
| Mobile Phone | - |
| Emails | - |
| Contact person | Mu Huan Huan ( 穆欢欢) |
| Website | - |
| Company Name (EN) | Shaanxi Guangda Electrical Equipment Engineering Co., Ltd. |
| Company Name (CN) | 陕西广达电力设备工程有限公司 |
| Business license | 91610133MA6U61238R |
| Establishment Date | 27th of June |
| Legal Representative | Li Ping Zhang (李平章) |
| Address | No.2 Fu Rong South Road, Qu Jiang New District, Xi´an City |
| Status | Active |
| Office Phone | 0086-29-88453511 |
| Mobile Phone | 0086-15829629823, 0086-13619296713 |
| Emails | shaanxiguangda@yeah.net, sun.jinfa@shaanxiguangda.com, sxgdelectric@vip.163.com, shaanxiguangda@126.com info@shaanxiguangda.com, sxguangda01@163.com" |
| Contact person | Mr. Zhang Liang, Mr Sun Jinfa, Liu Jia Mei ( 刘加美) |
| Website | www.shaanxiguangda.com |
| Company Name (EN) | Xi’an Qing Xian Lv Trading Co., Ltd (related to Nuolang, see this report) |
| Company Name (CN) | - |
| Business license | - |
| Establishment Date | - |
| Legal Representative | - |
| Address | NO. 216 TAI BAI SOUTH ROAD, YAN TA DISTRICT, XI’AN |
| Status | - |
| Office Phone | 0086-29-62329368, 0086-29-61857812 |
| Mobile Phone | - |
| Emails | officeqxl@163.com, officexaqxl@163.com, officesxqxl@163.com officecezyqxl@163.com, officexfqxl@163.com, officezjqxl@163.com |
| Contact person | Judy, Betty |
| Website | http://www.qingxuanlv.com/ |
| Company Name (EN) | Xi'an Nuolang Trading Co., Ltd (read a comprehensive investigation) |
| Company Name (CN) | 西安诺朗贸易有限公司 |
| Business license | 91610133MA6UQ9X955 |
| Establishment Date | 22nd of January 2018 |
| Legal Representative | Yang Shao Rong (杨少荣) |
| Address | No. 10 Rong Xin Road, Gao Xin District, Xi’an City |
| Status | Active |
| Office Phone | +86-2963035040,+86-2963035041,+86-2963035043, +86-2963641393 |
| Mobile Phone | - |
| Emails | officesxnl@163.com, officexanl@163.com, officennl@163.com, officenll@163.com, officexfnl@163.com, officezynl@163.com, officerynl@163.com, officejnl@163.com |
| Contact person | Judy, Betty, Wang Hai Ping (王海平) |
| Website | www.nuolangshangmao.com |
Wednesday, September 26, 2018
How to conduct a litigation check on a Chinese company
A background investigation of a Chinese company should always include a litigation check that examines compliance with local regulations and involvement in legal disputes. I will here introduce the two most important sources that are completely free to use and fundamental for conducting a comprehensive litigation check on a Chinese company.
The first litigation check source - NECIPS
The National Enterprise Credit Information Publicity System (NECIPS) holds registration data on all legal entities in China (read more about NECIPS here) but also discloses information on legal compliance.
How visitors can search for legal compliance records in the NECIPS databank is exemplified by a case study of Tianjin Sayca Wood Co., Ltd (天津赛克木业有限公司) that I have been investigating before.
The screenshot from the NECIPs databank shows that the operation status (highlighted in blue) for Tianjin Sayca Wood Co., Ltd is active but there is one remark about abnormal business operation (highlighted in red).
In the bottom of the screenshot there are shortcuts to four different categories of legal compliance information:
- Administrative licensing information (Remarks on licensing/registration that do not comply with requirements. )
- Information on Administrative penalties (penalties by government authorities and regulatory bodies)
- Abnormal business operations
- Blacklisted and dishonest operation with law violation record.
There are no remarks to Tianjin Sayca Wood Co., Ltd under administrative licensing (category 1) and the company has no blacklisting records (category 4) but there is one record under administrative penalties (category 2)
The record tells that on 9th of October 2015, Tianjin Sayca Wood Co., Ltd was fined CNY 220,000 by the Environmental Bureau in Tianjin due to air pollutants that exceeded the limit. The information shows that Sayca Wood has paid the fine.
Under abnormal business operation (category 3) there are 4 records issued by the Tianjin Market and Quality Supervision Administration:
The first record shows that Tianjin Market and Quality Supervision Administration has been unable to contact the company in December 2017. The other 3 records are addressing negligence to submit required information in the annual report to Tianjin Market and Quality Supervision Administration.
The 4 records that belong to abnormal business operation are not serious violations but they do indicate possible operation irregularities and being on the watchlist for abnormal business operation can have an impact on credibility and confine business activities.
China's Enforcement Information Website is hosted by The People's Supreme Court and it is a public platform where visitors can search for lawsuit cases that involve individuals and companies. Below is a screenshot of the front page of the Enforcement Information Website:
On the screenshot there four numbered inquiry categories that combined provides a comprehensive litigation search on a Chinese company. The numbered four categories are:
- Information on blacklisted dishonest companies that have failed to comply with court orders.
- Information on companies who are subject to enforcement by a judgment
- Information on termination or closure of enforcement case
- Information on court rulings from China Judgements Online
To illustrate how the different inquiries work in practice, I will use Tianjin Sayca Wood Co., Ltd again. The first inquiry is on companies that are blacklisted as dishonest because they have failed to comply with court orders. Here is a screenshot of the search page:
Now remember that Tianjin Sayca Wood Co., Ltd was not blacklisted in the NECIPS database but an inquiry on dishonest blacklisted companies displays 6 records that label Sayca Wood as a dishonest blacklisted enterprise.
Clicking on the first record shows information about the court ruling, file number, location, jurisdiction, and a case summary. The record shows that Tianjin Sayca Wood failed to comply with a court ruling that ordered the company to pay back a loan of CNY 15,000,000.
The second inquiry category is about information on companies who are subject to enforcement by a judgment. This inquiry turns out 10 records of which 9 of the cases are opened in Tianjin and 1 case opened in Heilongjiang.
Clicking on the first case gives information about the court, date and file number which are important references to dig further into the substance of the case.
Search for information on court rulings
An inquiry about closure of enforcement cases is fruitless so next step is to search for court rulings in the databank China Judgements Online. On this platform, visitors can search for court rulings that covers criminal cases, civil cases, compensation cases and so on. Here is a screenshot of the search page:
An inquiry for records linked to Tianjin Sayca Wood generates 180 results which suggest that the company lawyers must be very busy.
A click on a court ruling record gives access to a full report that can be downloaded. China Judgements Online is a great source to cross-reference and gain more details on findings from inquiries on dishonest companies and companies who are subject to enforcement by judgement. China Judgements Online is also a useful instrument to discover litigation information that is not found from other inquiries on the Enforcement Information Website.
Final note
NECIPS and the Enforcement Information Website with no doubt the best sources for valuable litigation insights on a Chinese company. Conducting a litigation check should always be a high priority component for building a complete profile and evaluation of a Chinese company. The information from NECIPS and the Enforcement Website also works as useful references to dig deeper by adding relevant information disclosed by other government agencies and the media.
Friday, September 21, 2018
Verification of China Custom Registration and Foreign Trade Operator Record
Here I will show you how to verify that a Chinese company is registered with China Customs and Ministry of Commerce (MOFCOM) and why that is important.
Companies that are either exporting or importing from China should always make sure the Chinese buyer or seller has the necessary registrations for international trade. Why is this important? If you are an importer then you want to make sure that Chinese company who is is consignee on the shipping papers actually has permission to export before you wire a down payment. If you are exporting to a Chinese company you want to make sure the Chinese buyer has the necessary permits to receive and clear the goods in China before you ship off your goods against a 30% down payment. (if you request 100% payment before shipping then no need to worry)
Chinese companies that are involved in export/import activities must acquire two important certificates. The first certificate is the China Customs Registration Certificate (中华人民共和国海关报关单位注册登记证书) issued by China Customs and the second certificate is Foreign Trade Operator Record (对外贸易经营者备案登记表) issued by Ministry of Commerce (MOFCOM). Beside these two certificates, a Chinese import/export company also need to acquire an import/export permit that depends on the goods that must be declared. However, a Chinese company need to have the China Customs and Foreign Trade Operator certificates before they can apply for an import/export license.
Earlier this year I worked on a case where a client wanted to check Youlian Industry and Trading Company, a supplier of ethonal fireplaces on Alibaba. (www.yl-life.com or https://yjyl.en.alibaba.com). The agreement said that the client would purchase products from Youlian Industry and Trading Company but the consignor would be the trading company EOS Home Décor Co., Ltd. The client decided to conduct a background investigation of both companies before taking a final decision. Verifying registration with China Customs and MOFCOM was one of the cornerstones. Here is how I did it.
First step was to look at the business registration information which is necessary to have in order to apply for Customs Registration Certificate and Foreign Trade Operator Record. See more information about how to check a business license here
- Business license: 91440106304640568F (Unified Social Credit Number)
- Company Name: (CN) 广州伊欧斯精品家居有限公司 aka EOS Home Décor Co., Ltd
- Legal Form: Limited Liability Company (Sole proprietorship)
- Legal Representative: Guan Rui Ye (关锐烨)
- Registered Capital: CNY 500,000
- Establishment: 8th of October 2014
- Operation Term: N/A
- Validity: From 8th of October 2014
- Registrar: Administration of Industry and Commerce Guangzhou, Tianhe District
- Last Inspection: 17th of May 2016
- Status: Active
- Registered Address: Yueken Road, No 94, 2nd Floor, Tianhe District Guangzhou
- Business scope:
Wholesale of home decoration items, lamps, interior decoration items, ceramics, glassware, daily utensils, groceries, resin and resin products, household appliances, metal hardware, kitchen equipment and kitchenware, hardware products, furniture. Import and Export (Except for franchised control products). Retail sales of lamps, ceramics, glassware, glassware, kitchenware, groceries, resin and resin products, hardware and furniture.
2nd step was to confirm if the company is registered with China Customs. Companies that are registered with China Customs can be found on the platform Credit Publicity Platform of Import and Export Business of Customs of the People's Republic of China. http://credit.customs.gov.cn
Any user can search on a company by entering the company name (in Chinese), the organization code or the unified social credit number (on the business license). The platform also host a database for 3 categories of companies:
- List of companies with a good reputation
- List of discredited companies
- List of companies with abnormal behavior
The search on the platform successful identified EOS Home Décor Co., Ltd. Here is the information that was retrieved:
- Business license: 91440106304640568F (Unified Social Credit Number)
- China Customs Code: 4401963DYE
- Registration date: 22nd of September 2015
- Organization Code: 304640568
- Company name: 广州伊欧斯精品家居有限公司
- Registrar: Guangzhou Customs
- Address: Yueken Road, No 94, 2nd Floor, Tianhe District Guangzhou
- Administration District: Guangzhou Tianhe District
- Type of Economic Zone: Normal
- Business: Consignor and consignee of export and import goods
- Special Trade Zone: No
- Industry classification: Wholesale
- Expiry: 31st of July 2068
- Cross Border Ecommerce: N/A
- Status: Normal
- Annual Report: Done
- Abnormal credit records: None
Information from China Customs did not trigger any questions. The information corresponds to business registration information and there are no negative remarks about the company.
Next step was to confirm that the company is registered as foreign trade operator with MOFCOM on the website http://iecms.mofcom.gov.cn
There are 3 search options which are:
- Foreign Trade Operator Record Code (13 digits)
- Chinese company name
- Unified Social Credit Code (from business license)
The search shows that EOS Home Décor Co., Ltd is registered as a Foreign Trade Operator and here is the registration data from the database:
- Import Export Enterprise Code: 4401304640568
- Unified Social Credit Number: 91440106304640568F Number)
- Chinese Name: 广州伊欧斯精品家居有限公司
- English Name: Guangzhou Eos Home Decor CO.,Ltd
- Registration Place: Guangzhou
- Legal form: Privately Owned Limited Liability
- Legal Representative: Guan Rui Ye (关锐烨)
- Registered Capital: CNY 500,000
- Last filing date: 2017-03-03
- First filing date: 2015-09-21
- EOS has a valid registration with China Customs and MOFCOM
- Registration information is consistent with registry information from NECIPS.
- Registration since 2015 and No abnormal records.
Of course, a Chinese company can choose to import or export through an appointed import/export agent with the necessary qualifications and permits. This is often an option for smaller companies that don't have resources to handle all the paper works related to export/import. In that case it is highly recommendable to figure out more about the trading company and make sure that consignee/consignor information is consistent with information on the invoice and the necessary shipping papers/documentation for custom clearance.
Saturday, September 15, 2018
How to read and verify a Chinese business license
How to read and verify a Chinese business license
Here is (hopefully) a useful guide for how to read and verify a Chinese business license all by yourself or with help from somebody who knows Chinese. I will use a real case to explain the structure of a Chinese business license, how to read and understand and where and how to search for information that verifies the business license.
Why is it necessary?
I cannot repeat enough how important it is to request a business license copy from any Chinese company that you consider to start a business relationship with and simply walk away from companies that say no.
The business license is issued by the local branch of State Administration for Industry and Commerce (AIC) and is an important certificate that documents a Chinese company has been incorporated and is a legal entity registered with the authorities. In a perfect world, the business license should assure that a Chinese company is legit and safe to conduct business with. However, it does not require much imagination how a shady (monkey) business easily can falsify a digital copy with some free photo editing software.
Examples of common forgeries are:
- Use a company name that is not registered in China
- Change establishment date to hide that the company was recently established.
- Change the name of legal representative
- Increase the amount of registered capital to appear financially stronger
- Increase the term of operation or expiry date
- Make changes to the business scope
The very first survey component was verification of the business license and to confirm that Zhejiang Zhantu Engineering Consulting Co., Ltd was legit and in operation. Here is a digital image of the business license. Explanation and translation are below the image.
- Social Credit Unit Code: 913307277045660299. (Note: Before 2016, a Chinese company should register for a separate tax license and organization code certificate. In order to streamline the business registration process and reduce the amount of paperwork, tax number, organization code and business registration number were merged into the social credit unit code.)
- Chinese company name: Zhejiang Zhantu Engineering Consulting Co., Ltd ( Note: A company in China is always registered with a Chinese name using Chinese characters. Foreign companies also have to adopt a Chinese name when they incorporate a company in China)
- Legal entity: Limited Liability (Note: examples of other legal entities are wholly foreign-owned enterprise, join-venture, joint-stock company, sole proprietorship etc)
- Registered address: Zhejiang Province, Panan County, Anwen Town, Huayue No 211, 12th Floor
- Legal representative: Zhou Xiao Yuan (In privately owned Chinese companies, the legal representative is often the company owner or majority shareholder)
- Registered capital: CNY 5 million
- Incorporation date: 21st of April 2000
- Operation term: 21st of April 2000 - 20th of April 2030
- Registered business scope: Cost consulting for engineering construction projects, engineering consulting service, engineering bidding agent service, financial cost forecast for construction and engineering projects, audit and assessment, price evaluation, engineering and construction project evaluation and assessment (See the qualification certificate for details regarding business operation, if the business involves special approvals or licenses, a valid license should be obtained) (For projects that need other approvals, the company should apply to relevant departments before engaging in relevant activities)
- Registration place: Panan County Administration for Market Regulation
The business license of Zhejiang Zhantu Engineering Consulting Co., Ltd is an image of the Original Business License which comes in the size of a piece of A3 paper. Some companies will send a Business License Copy which you can identify by the two characters (副本） in brackets. The copy version has the size of a piece of A4 paper and therefore more convenient to scan, copy and carry around. The information on the copy version is precisely the same as the original and the copy version has to a wide extent the same authority a the original. For example, showing the business license copy is widely accepted when you sign a lease contract, apply for foreign staff visa etc.
How to verify the information
Now it is time to show how to verify that the business license of Zhejiang Zhantu Engineering Consulting Co., Ltd is genuine and the information is accurate.
All information about registered companies in China is found in the public available database National Enterprise Credit Information Publicity System (NECIPS)
In NECIPS, everybody can search for a company by the Chinese company name or by entering the social credit unit code number. When you start a search, the system will ask you to identify the sequence of 3 to 5 Chinese letters. The word puzzle could be a Chinese saying, a title or anything else that makes sense. This is how it looks when you select the wrong sequence.
This is what the search result looks like. If you search with 2 or 3 characters, the search will most likely generate a much longer list of companies.
Clicking on the search result gives access to registration information on the company so you can make a comparison with the business license info. Here is what the NECIPS registry tells about Zhejiang Zhantu Engineering Consulting Co., Ltd:
- Social Credit Code
- Company name
- Legal entity
- Legal Representative
- Registered capital
- Incorporation Date
- Start of operation
- End of operation
- Registration Bureau
- Inspection Date: 11th of April 2018 - Not displayed on the business license
- Operation status - In operation - Not displayed on the business license
- Address
- Business scope: Registered business scope: Cost consulting for engineering construction projects, engineering consulting service, engineering bidding agent service, financial cost forecast for construction and engineering projects, audit and assessment, price evaluation, engineering and construction project evaluation and assessment, government procurement agency (See the qualification certificate for details regarding business operation, if the business involves special approvals or licenses, a valid license should be obtained) (For projects that need other approvals, the company should apply to relevant departments before engaging in relevant activities)
The company data in the NECIPS registry corresponds to the information on the business license and there is are no indications that the business license is questionable. The only minor difference is in the business scope where government procurement agency has been added. Government procurement agency is not found on the on the business license that we saw.
There are two records in the registry which are not shown on the business license. The first record is information about inspection date (10). This refers to the last time the company was subject to inspection and verification by the AIC. The next record which is not on the business license is operation status (11). This record shows that a company is active. Other examples of operation status could be, deregistered, license has been revoked, subject to investigations etc.
The NECIPS database contains more insight about a company which is not found on the business license but can be useful knowledge to have. Example are:
- Information about shareholders and ownership
- Paid-in capital situation
- Management
- Registration changes
- Penalties
- Remarks by the authorities
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