A deposit to a Mainland supplier should go to the company you checked.
Seven checks, in order, for a buyer about to pay a Mainland supplier for the first time, and the answers that mean you should ask for more.
By Matthew Lee
Seven checks, in order, before the first deposit leaves your account.
A first order from a Mainland supplier usually starts with a deposit. Once it is sent, it is hard to recover. Each check below uses a public record, and each one takes the answer from the step before.
1. The exact Chinese name and code
A Mainland company's only registered name is in Chinese characters. English names are not registered. Ask for the business licence and take two items from it: the full Chinese name and the 18-character Unified Social Credit Code (what the code means). Every later check runs on those two.
Our business licence checklist lists what to read on the licence itself.
2. Registry status
Look the code up on the National Enterprise Credit Information Publicity System (gsxt.gov.cn) and confirm the company is still in existence. A deregistered company has been terminated. A company whose business licence was revoked must apply for deregistration. Our article on Mainland company status explains each status and what it allows.
3. Business scope against the goods
Business scope is a registration item under Article 32 of the Company Law and is printed on the licence. Read it against what you are buying.
A scope that lists only sales or wholesale (销售, 批发) describes a trading company. A manufacturer's scope usually includes production or manufacturing (生产, 制造). A trading company can be a legitimate supplier. You should know which one you are paying.
4. The legal representative and the shareholders
Note the legal representative and the registered shareholders. The legal representative's acts in the company's name bind the company, so the person signing your contract should be that person or someone the company has authorised. The company chop on the contract should carry the exact registered Chinese name.
Our article on the legal representative explains the role and why a change matters.
5. Court and regulator records
Search the company, and its legal representative, on the China Enforcement Information Disclosure Network (zxgk.court.gov.cn). A judgment debtor record, a dishonest judgment debtor listing or a consumption restriction order each mean something different; our article on dishonest judgment debtors and consumption restrictions sets them out.
Then check the publicity system record for the abnormal operations list and the serious illegality list. A company listed as unreachable at its registered address deserves a direct question about where it operates. Both lists are explained in our article on abnormal operations and serious illegality.
6. The payee account
The account on the invoice should be held by the same entity, in the same registered Chinese name. Treat these as stop signs until explained:
- A different name: a payee that is a related company, an individual or a Hong Kong entity.
- A changed account: new bank details sent by email after the order is agreed.
- A different place: an account outside the Mainland for a Mainland supplier.
Confirm any change of bank details by calling a number you already hold, not one given in the email.
7. When to ask for more
Some answers call for a second round:
- A trading company with no factory: ask for the name of the factory that makes the goods, and check that company too.
- A recent change of name or legal representative: ask why and when it was registered. A change not yet registered cannot be relied on against a counterparty acting in good faith, under Article 34 of the Company Law.
- A large order: look beyond the registered shareholders to the beneficial owners.
The sequence on one page
| Check | Where | Ask for more when |
|---|---|---|
| Name and code | Business licence | Only an English name is offered |
| Status | gsxt.gov.cn | It is not in existence |
| Business scope | Licence and register | It does not cover the goods |
| People | Register | The signatory is someone else, or recently changed |
| Court records | zxgk.court.gov.cn | Any enforcement record |
| Regulator records | gsxt.gov.cn | Abnormal operations or serious illegality listing |
| Payee account | Invoice and bank | The holder's name differs |
How Fill Easy fits in
Send the Chinese name or code to agent@fill-easy.com and we return a Mainland China company search sourced from the State Administration for Market Regulation, in English with the Chinese kept. Corporate bank account verification checks a Mainland company's account through UnionPay, through the API. For larger suppliers, the catalogue adds full KYB reports, UBO tracing, credit reports and background and watchlist checks, all through China Cross-Border Data. Procurement teams can see how this runs in supply chain and procurement.
Who on your team confirms the payee account before a first deposit goes to a new Mainland supplier?