The Importance of the Chinese Registration Number

By | May 4, 2016
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Probably the most reliable method of checking a Chinese business is through using the registration number. But the question that remains is “Why the registration number?”. This number, as we have discussed before, appears on the business license, and with our services you are able to double check this information. Sometimes, the registration number is called a “business license number”. Today we will discuss what exactly the registration number is and how you can use it in  your search for a suitable business partner. Today we’ll be talking about three main topics:

  1. Why is the registration number so important?
  2. Why should I cross reference registration numbers?
  3. What Should I look out for?

Why is the registration number so important?

 The importance of the registration number is based on the fact that this number is specific to each company in China; one business, one registration number. As we have mentioned before, all businesses in China are required to be registered, if they aren’t, they are simply illegally operating. If a Chinese businesses makes it through the process of becoming legitimate, they will obtain certain documents from the local government as proof of their legitimacy.  When registering, all businesses will receive a “business license”, on this business license there is a long number at the top right next to Chinese characters that should look like this: “注册号”.

Navigating Chinese Business Registration Materials

Navigating Chinese Business Registration Materials

Why should I cross reference registration numbers?

When planning for business in China, the best way to verify potential business partners is through asking for relevant documentation proving legitimacy. The fact of the matter is, to many of us overseas, this type of documentation is very foreign. Many businesses resort to very expensive ways to verify companies; expensive business trips, experienced lawyers, etc. The problem is that most people and companies do not have a fast, reliable, or inexpensive method to verify businesses in China. In comes CNBizCheck. At CNBizCheck, our number one priority is helping small and large entities do business with legitimate companies in China. One of the best ways to use our website and services is through input of a company’s registration number.

 

What should I look out for?

 When cross-referencing the registration number, there are a few things to look out for. The first and most obvious is that when the registration number you input is not in our system, it is very likely that the company is either using a fake or expired number. Some less obvious things are checking the names, addresses, and business scope of the company associated with that registration number. This type of information is hard to come by through basic search engine checks. Luckily, CNBizCheck provides a wide range of reports which could help you fight against fraud. In this case of a simple registration number verification, we recommend our “Basic” report. If information from a document you received from your potential business partner does not match with data from our website, it would be very prudent to communicate the discrepancies with them before moving on with your partnership.

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The three main takeaways:

  1. One registration number, one business.
  2. CNBizCheck offers third party business reporting to help people and businesses like you find reliable businesses partners in China.
  3. Names addresses, people, and business scope should be the same in all documentation.

 

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