Supplier Due Diligence

China Business License Verification: What Importers Need to Know

Every legitimate company operating in China holds a business licence (营业执照) issued by the State Administration for Market Regulation (SAMR). This single document tells you who you are actually dealing with — their legal name, registration status, permitted activities, and the person authorised to sign on their behalf. Yet most importers never verify one. This guide explains how to read each field, what forgeries look like, and how to confirm a licence against the official register before placing any order.

Published February 21, 2026

What is a Chinese business licence?

The 营业执照 (yíngyè zhízhào) is China's equivalent of a certificate of incorporation and trading licence combined. It is issued by the local branch of SAMR when a company is registered and must be renewed or updated whenever key details change — name, legal representative, address, registered capital, or business scope.

Since 2015, China replaced the three-in-one system (separate business registration, organisation code, and tax registration certificates) with a single integrated licence bearing the 18-digit Unified Social Credit Code (USCC). Every entity registered after 2015 — and all older companies that completed re-registration — now uses this single document. If a supplier presents you with three separate certificates instead, that is outdated documentation and should prompt additional verification.

Physically, the modern business licence is an A4 document bearing the company's official red seal, the SAMR emblem, and a QR code that links to the company's public filing record. Copies circulated to foreign buyers are typically scanned PDFs or photos of the original.

Every field explained

Here is what each section of the business licence means and why it matters for due diligence:

企业名称 — Company Name

The full, official registered name in Chinese characters. This is the legal entity you are contracting with. English trade names, website names, and Alibaba store names do not replace this. Always confirm that the name on correspondence matches the registration exactly.

统一社会信用代码 (USCC) — Unified Social Credit Code

An 18-character alphanumeric identifier assigned to every registered entity in China. The first character indicates the registration authority (1 = domestic enterprise), characters 2–8 encode the administrative division and registration body, characters 9–17 encode the company-specific sequence, and character 18 is a checksum digit. A valid USCC can be mathematically verified before even querying any database.

类型 — Company Type

Indicates the legal structure: 有限责任公司 (LLC), 股份有限公司 (joint-stock company), 个体工商户 (sole trader), 合伙企业 (partnership), etc. This matters for your legal exposure — only the registered entity type can sign binding commercial contracts and hold export licences.

住所 — Registered Address

The official address filed with the market regulator. It should correspond to a real commercial or industrial premises. A residential apartment or shared-desk co-working address is a risk signal, especially for a company claiming to manufacture goods.

法定代表人 — Legal Representative

The individual with statutory authority to bind the company. Contracts should be signed by this person or by someone with a written power of attorney (授权委托书) from them. If the person you are negotiating with is not the legal representative, ask for the authorisation document.

注册资本 — Registered Capital

The subscribed capital of the company, stated in RMB. Since China's 2014 company law reform, registered capital is subscribed rather than paid-in, so a high number does not guarantee that cash is in the bank. However, a newly registered company with ¥10,000 in capital claiming to fulfill million-dollar orders warrants scrutiny.

成立日期 — Establishment Date

When the company was formed. A supplier claiming 15 years of export experience but incorporated last year is misrepresenting itself. Cross-reference this with operational claims in marketing materials.

营业期限 — Business Term

The licence validity period. Most LLCs register for a long-term or indefinite period; older companies may have fixed-term licences. If the licence has already expired, the company is not legally permitted to trade.

经营范围 — Business Scope

The authorised activities the company may legally conduct. This is critical. A company whose scope lists only "consulting" or "import/export trading" is not permitted to manufacture goods. A factory whose scope does not include your product category cannot legally produce it for export. Mismatches between claimed activities and the business scope are one of the most common red flags.

How to verify a Chinese business licence

Holding a copy of the licence is not the same as verifying it. The verification process has three layers:

Layer 1: Mathematical checksum on the USCC

The 18th character of the USCC is a check digit calculated from the first 17 characters using a weighted modulo algorithm. Any valid USCC can be verified mathematically without an internet connection. If the last digit does not match the calculation, the code is invalid — either a typo or a deliberate fabrication. QINCheck performs this check automatically on every report.

Layer 2: Cross-reference with SAMR records

The National Enterprise Credit Information Publicity System (国家企业信用信息公示系统) publishes basic registration data for every company in China. You can query a company by name or USCC and compare the results with the supplied licence. Key things to cross-check:

Company name in Chinese matches exactly
Legal representative matches
Registered address matches
Business scope matches (do not rely on the supplier's translation)
Registration status is "正常" (normal/active), not 注销 (cancelled) or 吊销 (revoked)
Company is not on the Abnormal Operations List (经营异常名录)

Layer 3: Operational verification

Registration data confirms the company legally exists. It does not confirm it is actively operating. Operational verification includes:

Annual report filings (active companies must submit these; missing reports trigger abnormal status)
Address verification — does the registered address correspond to a real facility of the type claimed?
Export licence confirmation — does the company hold the relevant customs and export qualifications for your product?
Litigation and enforcement history — outstanding judgments or court orders are public record

Common forgery tactics to watch for

Fraudulent suppliers invest significant effort in making fake business licences look convincing. These are the most frequently encountered techniques:

Photoshopped USCC or company name

A legitimate-looking document with edited text. The fonts, character spacing, or seal placement may look slightly off. More importantly, the USCC will either fail checksum validation or will not match the company name when queried in official records.

Borrowed identity

The supplier presents a genuine business licence belonging to a real, verified company — but the account they ask you to pay belongs to a different entity. They are using a reputable company's identity to build trust without authorisation.

Expired licence presented as current

An old, formerly valid licence is presented as if it is still current. Check the business term end date carefully. Annual compliance filings are also visible in SAMR records.

Scope manipulation

The displayed business scope is fabricated or translated liberally to suggest the company is permitted to do more than it actually is. Always read the original Chinese text of the scope, not just a supplier-provided translation.

Wrong seal (公章)

Chinese companies use official company seals (chops) to authenticate documents. A forged or mismatched seal on a business licence copy is a serious warning sign. The seal should contain the company's full legal name in Chinese.

Why business scope is your most important check

Of all the fields on a Chinese business licence, the business scope (经营范围) receives the least attention from foreign buyers — and causes the most problems. Chinese law is explicit: a company may only engage in activities listed within its approved scope. A company that manufactures goods not listed in its scope is operating outside its legal authorisation.

This creates two practical risks:

Product liability: If a company illegally manufactures goods outside its scope and those goods cause harm, the company has reduced legal standing, and your recourse is complicated.
Export blockage: Chinese customs authorities may refuse to clear goods produced by a company without the appropriate scope and export qualifications. Your shipment could be held at port or rejected.

When reviewing the business scope, read the original Chinese, not a translation the supplier provides. Common misrepresentations include translating 销售 (sales/trading) as "manufacturing" or omitting scope limitations that exist in the original.

Trading company scope vs. factory scope

This distinction matters enormously for quality control and liability:

A factory will list manufacturing (生产、制造) activities specifically. It is the origin of the goods.
A trading company will list wholesale (批发), retail (零售), or import/export (进出口) activities. It buys from factories and resells.
Many suppliers are hybrids — they own a small facility but source most production externally.

Neither structure is inherently bad, but you need to know which you are dealing with. For a full comparison, see our guide on trading companies vs. factories in China.

Step-by-step: verifying a business licence before your order

Request the business licence copy in the initial quote stage. A legitimate supplier will send it without friction. Hesitation or excuses at this early stage are a yellow flag.
Record the USCC from the licence. This 18-digit code is your primary identifier. Keep a copy independent of the supplier's communications.
Validate the USCC checksum. Confirm the 18th character is mathematically correct. If it fails, the code has been altered.
Run a QINCheck report on the USCC. This pulls the live SAMR record and surfaces the company's legal name, registration status, legal representative, establishment date, registered capital, address, and business scope — directly from the official register, not from supplier-provided documents.
Compare the report to the supplied licence field-by-field. Any discrepancy — in name, address, legal rep, or scope — should be investigated before proceeding.
Read the business scope for your product category. Confirm the company is legally authorised to manufacture or trade the goods you intend to purchase.
Check the status fields. Confirm normal status, no abnormal operations listing, and no enforcement actions against the legal representative.
Verify the bank account beneficiary name. When payment instructions arrive, the beneficiary name must match the registered legal name exactly. A mismatch is a stop signal — do not proceed until it is resolved in writing.
Save the report. Retain the QINCheck report with your order documentation. It provides timestamped evidence that you performed due diligence at the time of the transaction.

Business licence vs. other Chinese company documents

Suppliers often share multiple documents. Understanding what each one is — and what it does not prove — prevents misinterpretation:

Business licence (营业执照)

The primary registration document. Proves the company is legally registered. Does not confirm financial health, actual operations, or export capability.

Export customs registration certificate (对外贸易经营者备案登记表)

Required for companies that export directly. Trading companies will have this; factories that export through traders may not. Relevant for customs clearance and liability.

ISO / product certifications

Independently issued quality certifications. Verify the certificate number directly with the issuing body — certificates are among the most commonly forged documents in China trade.

Bank account opening proof

Shows the company holds a specific bank account. Cross-reference the account holder name with the business licence legal name to guard against payment misdirection.

Verify any Chinese business licence in seconds

QINCheck pulls live data from China's official SAMR register. Enter a company name or USCC and get a full verification report: registration status, business scope, legal representative, address, annual report compliance, litigation history, and enforcement flags — all from the source, in English.

Stop relying on documents a supplier hands you. Verify independently, document your diligence, and protect your business before the money moves.