On this page
Supplier verification in China means confirming that the company you pay is real, registered and the same company that signs your contract. Three checks do most of the work. Check the business license, the company chop and the name on the bank account. If all three match, you are dealing with one legal entity.
This guide explains how supplier verification in China works, starting with the business license and the official register. It covers what the chop and bank details should show, how to tell a trading company from a factory, and when a site visit is worth the cost.
Why Supplier Verification in China Matters
Most payment problems start with a mismatch. The quote comes from one company. The contract is stamped by another. The bank account belongs to a third. Each gap makes it harder to enforce the contract or recover money.
Slow replies and frequently changing details are warning signs too. Our article on why suppliers go quiet covers the common causes.
Check 1: The Business License
Every company registered in mainland China holds a business license. Ask for a clear scan of the current version. Then read these fields:
- Company name in Chinese. This is the legal name. The English name on a website is often not registered, so use the Chinese name for every check.
- Unified social credit code. An 18-character code that identifies the entity. The format comes from a national plan the State Council approved in 2015.
- Legal representative. The person who acts for the company in law.
- Registered capital. The capital the shareholders have subscribed. It is not a measure of cash in the bank. Under China’s revised Company Law, in force since July 1, 2024, limited liability company shareholders must pay subscribed capital within five years of incorporation. A State Council decree gave companies set up before that date until June 30, 2027, to adjust their payment schedules. Check the paid-in amount on the official register.
- Business scope. The activities the company is registered to carry out.
- Date of establishment and registered address.
Business scope tells you a lot. A company registered only for trading or import and export is probably not the factory. That is not a problem in itself. You just need to know who makes your product.
Check the Register, Not the Scan
A scan can be edited, so supplier verification in China should always use the official register. Check the details on the National Enterprise Credit Information Publicity System at www.gsxt.gov.cn. People’s Daily describes it as an official, authoritative and free query platform. It brings together company registration, filing, licensing and penalty records.
Search by the Chinese name or the credit code. Then confirm that:
- The name, code, legal representative and address match the scan.
- The company is active, not revoked or deregistered.
- No penalty or abnormal operation entries raise concerns.
- The business scope covers the work you are buying.
The site is in Chinese. A Chinese-speaking colleague can run the search quickly.
Check 2: The Company Chop
The chop is the second part of supplier verification in China. Chinese companies usually execute contracts with a chop. This is a red stamp carrying the full Chinese company name. The name on the chop must match the name on the license exactly.
A chop in a different name binds a different company.
Seals are made by seal engraving companies. After making a company seal, the engraver files its details, including an impression, with the public security authorities. So a genuine chop has an official record if it is ever disputed.
Ask for the contract to carry the company chop or contract chop. Ask for a signature from the legal representative or an authorized person as well.
Check 3: The Bank Account Name
The bank account is where supplier verification in China protects your money. Pay only into a corporate account held in the exact name on the license and contract. Ask for bank details on company letterhead, stamped with the chop. Be wary of:
- A personal account belonging to a sales manager or owner.
- An offshore account under a different company name.
- A late email saying the bank details have changed.
Some suppliers receive payment through an affiliated export company. If so, name that company in the contract. Confirm any change of bank details by phone with a contact you already know. Never rely on email alone.
Trading Company or Factory?
Four signals usually show which one you are dealing with.
| Signal | Factory | Trading company |
|---|---|---|
| Business scope | Lists production or processing | Lists trading, import and export |
| Address | Industrial area that matches the plant | Office building |
| Site visit | Production lines you can walk | Showroom or samples only |
| Cost questions | Explains material and process costs | Often refers questions to “the factory” |
Supplier verification in China should also establish who makes your goods. Trading companies can add value through consolidation and supplier management. The risk is a hidden factory you have never checked. Ask them to name the factory and share its license too.
Site Visits and Audits
Paperwork is only one part of supplier verification in China. Documents confirm that a company exists. They do not show what it can make. A site visit or factory audit looks at capacity, equipment, quality systems and working conditions. Visit before the first large order, or when a supplier moves production to a new site.
Our guide to manufacturing cities by product shows where different industries cluster.
Verification also supports your contracts. An NNN agreement only helps if the correct legal entity signs it. If a dispute does arise, our article on legal issues in China explains the options.
A Supplier Verification in China Checklist
- Get the Chinese legal name and the unified social credit code.
- Search the official register and save a dated screenshot.
- Compare the names on the license, contract chop and bank account.
- Confirm who actually makes the product.
- Visit or audit the site before the first large order.
- Confirm any change of bank details by phone.
Final Thoughts
Supplier verification in China takes little time compared with the cost of paying the wrong company. Match the name across the license, chop and bank account. Check it on the official register. Visit before increasing production.
Our product sourcing service checks a supplier’s license, registered scope, chop and bank account name before you place an order.
Enjoying this guide?
Practical manufacturing guidance for product brands. Factory selection, costs, quality and protecting your designs.
