How to verify business in China?
One of the most normal fears when starting to do business in China is that of the security of the operation or the reliability of the Chinese counterpart.
In our countries, we know how to investigate a possible partner, client or supplier, but in a country so different and from which they tell us such strange things, we never know what to expect.
Unfortunately, the Chinese government authorities do not have a database of formal companies and a report of fake companies doing business with China on file.
One of the safest options to verify business in China is to take a business trip to China and personally verify the company with which you want to establish a business relationship. But for a small company that does not have the resources available to visit China, it will be impossible to contact the supposed supplier in person to do business. For this, we recommend hiring KRT Inspect Service. They offer a complete China business background check report.
The basic legal check on the company:
The first thing is to ask about the company’s business license. With it, we know the real name, the legally responsible person, the share capital, and corporate purpose.
Sometimes, due to the type of company, certain permits or licenses are necessary. So, you have to ask for certificates of special registers or licenses related to the treasury, customs, currency exchange, etc.
If we are talking about a merger or acquisition, we will have to know what assets the Chinese side has: real estate, land use rights, buildings, and personal property.
Quality certifications of the Chinese company, if we need them. ISO seems to be very easy to come by and they don’t always demonstrate product quality. But if you have the processes, foreign customers, and certain standards, that company already knows what it’s doing. There are many of these. Verification with the certifying body for sure that also leaves us a little more relaxed.
Checking the products:
We may also need to control certain aspects of the manufacture and characteristics of the products to see if they interest us or not. As well as to know the product responsibility of the Chinese company.
Checking supply capacity:
In case of looking for a supplier over time, we need to make sure that the Chinese company has a sustained production capacity and the quality we ask for (high or low).
What is the role of the KRT Inspect service?
To avoid this problem and before you trust a supplier, KRT Inspect has the express verification service, a service focused on inspecting the legitimacy of the Chinese factory of your choice.
This service inquires, about the place of establishment of the company, its registration capital, its main executives, export markets, and its operating manuals.
KRT Inspect also has a Factory Audit service, a complimentary service to Express Verification, but which provides in-depth information on the existence of the factory.
This service includes a face-to-face visit to the factory where its processes, installations, machinery, and legal documentation are investigated. Get in touch with KRT Inspect today and make sure to verify business in China before further deal with any of the Chinese companies.