Get China Credit TwitterGet China Credit FacebookGet China Credit LinkedinGet China Credit
Get China Credit
Safer, Better Business in China
Opinions, knowledge and resources from Get China Credit's expert contributors

How to know the registered capital of Chinese companies

by master · 6/10/2020, 10:44:09 AM

One of the basic checks you can make on a Chinese company is to find out how much its registered capital is. Registered businesses in China must have a large amount of allocated capital in order to ensure that the company has sufficient capital and can operate in the manner described.

If you are considering doing business with Chinese companies such as manufacturers, it may be helpful to check the registered capital. However, you should be aware that the company may have grown considerably since it was registered. Since then, companies with a registered capital of 100000 yuan may become bigger. In other words, it seems that a small amount of registered capital is not necessarily a bad or suspicious thing.

You have to combine it with other information to make it interesting. For example, if the company seems to have little registered capital when it was founded, but claims to have a large number of employees and assets (such as large factories), you may find it strange.

So, how do you know the registered capital and other registration details of Chinese companies? You need to check its business license and compare it with the registration record.

Check the business license of the company

A Chinese business license will list the date of incorporation of the registered capital and other official information about the company. Please feel free to request a copy of the business license of the Chinese manufacturer.

When doing business with Chinese companies, this is a completely legal and universal requirement. If your manufacturer is not willing to show his business license, use other excuses instead of showing them, or try to claim that it is unnecessary, you should be more suspicious. A legitimate company should have no reason not to show you a copy of its business license.

After you get a copy of your business license, you may find that you have a headache when explaining it! Of course, all official documents in China are written in Chinese, so you may not understand the business license in China immediately.

The part describing the registered capital is as follows:

View company's public records

In addition to obtaining a copy of the company's business license, it is best to check their own registration records for comparison. The registration record will display the same information, and is generally accessible online if you know where to find it. You must find the AIC (Administration for Industry and Commerce) in the region where the company is located, and then search the AIC database for the company's public registration records. There are some problems in doing so:

l The whole interface and record are all in Chinese, of course. You may find it difficult to read them.

l The settings and quality of different AIC websites in different regions of China are very different.

l The public registration record may not be the latest version.

l If the company loses its business license or fails to renew it, the public registration record may not be deleted.

The last two are very important. In most cases, public registration records are up-to-date and have no problems. The problem is, it's not guaranteed. To ensure 100% security, you need to check your paper records (see below). After obtaining the information from the registration record, the information on the business license can be confirmed. If there is a difference between the copy of your business license and the information in the registration record, you may think it is suspicious. If so, we recommend that you ask the manufacturer questions.

Check the company's paper records

As we mentioned above, the public registration records provided online are really up-to-date, without any problems, but AIC can never guarantee this. They use their own systems to update public records in their own time. But what they have to do is make sure that the actual paper records in their office are up-to-date and accurate. To master this, we need to hire Chinese lawyers to ask for paper records in AIC office. Please note that only qualified Chinese lawyers (not foreign lawyers) can make this request, so if you need paper registration records, you must employ a lawyer's services.

Get China Credit TwitterGet China Credit FacebookGet China Credit LinkedinGet China Credit
How to purchase in China and verify Chinese manufacturers?
How to purchase in China and verify Chinese manufacturers?
by · 10/15/2020, 8:54:30 AM
This article will tell you how to verify the products purchased by Chinese manufacturers in China and confirm that what they tell you is true and reliable. Even if it is a one-time order, take some time to check whether the potential supplier is legitimate. You don't want to be a victim of this scam, do you?
Continue Reading >
You should request 7 documents from the Chinese supplier
You should request 7 documents from the Chinese supplier
by · 10/13/2020, 7:06:58 AM
Chinese companies generally display dozens of certificates in exhibition halls or on websites, but many of them are irrelevant. In this article, we will focus on the seven most important Chinese supplier documents that you should pay attention to.
Continue Reading >
How can I find a suitable Chinese supplier?
How can I find a suitable Chinese supplier?
by · 9/25/2020, 8:23:20 AM
How to find suitable Chinese suppliers? This process contains many steps, one of which is usually to audit production equipment, but what is the audit method? Some buyers visit the factory in person, while others delegate the work to a third-party company.
Continue Reading >
Sign up for our newsletter
Sign up to get the latest on sales, new releases and more…
Our Locations
HongKong Head Office The Hongkong Club buiding, 3A Chater Rd, Central , Hongkong
Mining Equipment
drip coffee bag packing machine
china pajamas
induction cooker
High frequency hardening machine
Cosmetic Ingredients
China Mini Excavator
China Company Verification Services
© 2020 Get China Credit, Inc. All Right Reserved.