Identifying Fake Chinese Companies

Tips for you to verify Chinese companies

Posted by on Jun 19, 2015 in Identifying Fake Chinese Companies, Sourcing Goods And Suppliers In China, Tips for you to verify Chinese companies | Comments Off on Tips for you to verify Chinese companies

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When going into business especially with any company, it is very important that you check and confirm the credibility of the company or otherwise you might end up doing business with a scammer in which case you will most likely end up disappointed.

Here are some tips that will help you verify the credibility of Chinese companies:

  1. Does the company have a registered corporate number?

In China, once a company has been evaluated and confirmed to be legitimate by the government, the company is then registered and issued with a unique corporate registration number which uniquely identifies the business. It is therefore important that when you are verifying a company, ask for the corporate registration number confirm with the Chinese Local bureau of industry and commerce that the number is in fact valid. That way, you can keep safe from scammers who might use invalid corporate numbers.

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  1. Does the company have a website?

All legitimate companies have fully functioning and legitimate websites. Some scam companies may however try to trick you that their website is under construction or they are still in the process of setting up one. Do not fall for this trick. Unless they have a credible website, there is a very high probability that they are scammers.

  1. Ensure the company has a bank account.

Legitimate companies have business bank accounts. That means that any payments that you are supposed to make should strictly be made through the business accounts. Therefore, if you find a company that wants you to make payments through personal bank accounts, you might want to re-check the credibility of that Chinese company. In essence, the rule is simple: no personal bank accounts!

  1. Verify the company-contact information and address provided

Most Chinese companies will provide you with their contact information once you show interest in their services and/or products. It is important for you to verify that the contact information is actually true and working. These may include e-mails, telephone number, location address and so forth. Ensure that the contacts are fully functioning and that the stated location of the company’s location is true.

--File--Visitors look at a stand of ZTE during a fair in Beijing, China, 30 September 2011. Low-priced smartphones from companies like Huawei Technologies Co. and ZTE Corp. are finally starting to become more common in China, a shift that will unlock a new market for traditionally expensive smartphones and boost competition for foreign devices like Apple Inc.s iPhone. Huawei and ZTE have released a number of smartphones priced at around 1,000 yuan ($157). Their low pricing is helping them carve out a chunk of the market that is largely beyond the reach of vendors like Apple, Taiwans HTC Corp. and Samsung.(Imaginechina via AP Images)

  1. General company information

Perhaps, the best and the most overlooked way of verifying the company is doing a personal background check of the company. In the internet age, this has been simplified. Look up the company on the internet, check its history and its review from past clients and its credibility. This information is essential and it will greatly help you in filtering off the scammers.

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