Verifying a Chinese Supplier Before the First Payment

08.10.2026·6 min read·Delivery Pro China

How to check a Chinese company by its 18-digit registration number, business licence and payment details before transferring funds. Practical guide on dpc.pro.

TL;DR: Verifying a Chinese company before payment comes down to four steps: obtain the business licence, find the company by its 18-digit registration number in the public registry, confirm the legal name matches the payment recipient, and identify whether the supplier is a manufacturer or a trading company. All of this uses open sources and takes little time.

What the verification actually confirms - and what it does not

Verifying a Chinese company answers one specific question: does the legal entity conducting negotiations with you actually exist, and is it the same entity you are about to pay? Almost all data on Chinese companies is publicly available, so the process requires no special tools or significant cost.

What it does not confirm is product quality, realistic lead times, or the good faith of a specific sales manager. Those require a separate layer of control.

The verification should be completed before you agree on the transfer amount. If you discover a mismatch after sending money, you will need to restructure the entire transaction, not just update bank details.

The depth of verification should match the order size. For a trial shipment, registration data is often sufficient. For ongoing production orders, you need the licence, direct communication, and ideally a factory visit. For formal customs import, you will also need exporter details and shipping documents.

How the 18-digit registration number works

Every registered Chinese company has a unified code - 18 characters made up of digits and Latin letters. This is the primary identifier. Latin transliterations of company names can look similar and change over time; the registration number does not.

The structure of the code:

• Position 1: the authority that registered the company.
• Position 2: the type of organisation.
• Positions 3-8: the administrative region code, indicating the city and district.
• Positions 9-17: the organisation-specific code.
• Position 18: a check digit that distinguishes a genuine number from a typo.

You can search by this number in China's National Enterprise Credit Information Publicity System, as well as in commercial databases such as Qichacha, Tianyancha, and Aiqicha. Data is in Chinese, but browser translation is sufficient for the core checks.

If the number returns no results, do not proceed. Either the number is wrong or the company does not exist.

A search will typically return: the legal name in Chinese, company status, registration date, registered capital, legal representative, registered address, scope of business, and history of changes. Many databases also show litigation records and regulatory violations.

What to check in the business licence

The business licence is the primary corporate document in China. A scan or photo is provided on request by any legitimate supplier without hesitation. A refusal to provide it is itself a signal.

Key fields to review:

• Legal name in Chinese - this must appear in the contract and payment details.
• 18-digit registration number - cross-reference with the public registry.
• Company type: limited liability company, sole proprietorship, or branch.
• Registered address - compare with the factory or warehouse address the manager has given you.
• Legal representative - must match the signatory on the contract or power of attorney.
• Scope of business: a manufacturer will list production or processing; a trading company will list sales and foreign trade.
• Seal of the registering authority and licence validity period.

Also check the history of changes in the registry. Frequent changes of company name and legal representative within a short period warrant questions. Confirm there is no record of suspended operations or a revoked licence.

One important detail: export rights do not automatically follow from the business licence. Some factories operate only for the domestic market and export through an agent. This is a normal arrangement, but it must be discussed before payment - it is often the source of requests to pay a different company's account.

Why the legal name must match the payment recipient

This is the simplest and most effective check. Take the legal name from the business licence and compare it with the beneficiary name on the invoice and bank details.

If they do not match, treat it as a substantive issue, not a clerical error. The discrepancy may mean an agent is collecting payment into their own account, the supplier is routing funds through an affiliated entity without disclosure, or you are dealing with an intermediary unconnected to the production.

All three scenarios require clarification before any transfer is made.

How company verification fits alongside product inspection

Verifying the legal entity and inspecting the goods are separate procedures. The first confirms that your counterparty exists. The second confirms that a specific shipment matches the order.

Product inspection takes place at the warehouse before dispatch: specification compliance, completeness, and packaging are checked. This step is especially relevant when working with multiple suppliers and consolidating shipments before departure.

For a first order with a new supplier, starting with a trial shipment is a practical approach. It limits financial exposure to a level where a problem can be corrected without serious impact on cash flow.

FAQ

Can I verify a Chinese company for free? Yes. China's National Enterprise Credit Information Publicity System is publicly accessible. Commercial databases such as Qichacha and Tianyancha provide basic data at no cost; paid features are needed for deeper reports.

What if the supplier refuses to send the business licence? A refusal is a red flag. The business licence is a public document, and there is no legitimate reason to withhold it. In this situation, pause the transaction until the supplier provides an explanation.

Does 'active' status in the registry mean the supplier is reliable? No. Active status only confirms that the company is registered and not suspended. It says nothing about product quality, delivery timelines, or conduct in a specific transaction. That requires separate due diligence - product inspection and batch verification before shipment.

Do I need to re-verify the same supplier for every order? A full check is essential for the first order. For ongoing suppliers, it is sufficient to periodically confirm that the company status has not changed and that payment details remain the same. If bank details change without explanation, run a fresh verification before transferring funds.

Information current as of 2025. Registration procedures and data availability in China may change; always verify company status immediately before making a payment.

Sourcing from multiple factories? See how to consolidate shipments into one delivery.