What is a China Business License?
Like most other countries, China requires all companies doing business within its borders to register and declare their operating status. To register, companies must apply to the government to obtain a license, this license is renewed annually to ensure the continuation of good business. When planning business in China or searching for partners in China, the Chinese Business License should be a tool to ensure successful cooperation.
Why is having a Chinese Business License so important?
As stated above, the Chinese Business License is necessary for all Chinese businesses to obtain, or else risk fines or be shut down. A business in China which is withholding of its business license or claims that businesses do not need this type of documentation in China is a sign of bad business practices. There have been many incidents in the past throughout China where illegally operating businesses try to dupe international companies into signing million dollar contracts only to find that the said company does not exist. Check out this (http://www.chinalawblog.com/2016/02/three-keys-to-spotting-a-fraudulent-chinese-company.html) article by Chinalawblog.com, which gives insight into the word of fraudulent business deals.
The Business License Itself
The modern business license, started November 2014, contains a QR code and is standardized for all types of businesses. As shown in the picture below, the title should read “营业执照”. Underneath the title should be the registration number “注册号”. The body of the license should have: The name, type of company, address, legal representative, registered capital, and date established. In the previous versions of the business license, different categories of licenses were given to different types of businesses, as we can see in the image provided, all types of businesses now have a uniform license. The license should also have red stamp, and a QR code at the bottom, where anyone can use a mobile device to scan to view more information about the enterprise in question.
Deciphering the Chinese Business License
The license contains a lot of information, all being very important. There are also no English versions of the license. Luckily, our services here at CNBizCheck help you to decipher the license as well as other pertinent information with our own in-house prepared reports. All of our reports come from Chinese government databases and are translated into English or any other language necessary for our clients. We have a wide range of different types of reports based on client needs which cut the cost of ordering business licenses yourself or ordering through another third party source. From basic verification services to full historical reports, CNBizCheck provides information instantaneously, no waiting over a week for a simple verification. Before any major business deal in China, consult CNBizCheck.com, you’ll be happy you did.