China is a business hub and companies around the World import products from China. Because of the advanced technologies and human resources, China is able to supply goods at relatively low prices and attracts buyers from far away locations. But there are several cases related to complaints about the fake companies who use to trick the buyers living in different companies.So, before starting any business relations with a China based company, it is better to check the credibility or legitimacy of the company.Following are some of the aspects which can be used as a benchmark in identifying whether the company with whom you are planing to start trade relations is authentic or not:
Check the Website: Go through the company’s website and dig out as much information about the company as you can. View the company profile, client list, trading areas and years of working. These information will give you an idea about the companies credibility.
Contact Details : Check the address, contact number, fax number and other contact details. If the contact details are wrong, it is an alarming sign. If a supplier is using a personal email address in the place of company’s email address, it can be a fraud.
Company Bank Account : Only the government registered companies can have a company bank account in China. If companies are providing personal account details for payment, beware of them.
Unique Registration Number: Every registered company have a unique registration number in China. Always ask of the registration number. As there are chances that fake companies can provide invalid registration number, so always cross check the number. You can check the registration number of any company in China on the following link:
Audit Report : You can refer the audit report of the company. This will provide you with facts related to the trading capacity of the company. You can order the audit report of any company in China from the link below:
The audit report will provide the following info:
- Supplier Details
- Executive Summary
- Supplier Profile
- Organization Chart
- Basic Quality Systems
- Informational Photos
Letter of Credit(L/C) : Ask the supplier to provide the L/C issued by the bank. If the supplier is ready to accept the L/C as the payment term, he is an authentic supplier.
Search B2B Portals: Search several B2B portals and find out if the company is a long-term member with B2B portals. If the company, with which you are planning to deal, is an old and paid member in some of the b2b portals, there is a greater probability that the company is authentic.
Credit Reports : You can order the credit report of the company to get all the information about that company. For ordering a credit report click on the link below:
Googling : The best and easy thing to do is to search the company name on Google. You will get information about the company along with any complain or customers’ reviews available on internet . If you had found no information or defaming reviews about a company, don’t think of doing any business with that company.
Terms and Conditions : Every company have some terms and conditions of working. If the company had not given any terms and conditions before the deal, it can be a false company.
Unbelievable Prices : If a supplier is offering a product or service at throw-away prices, it is bad sign. It is better to give a thought on why any supplier will offer incredibility low prices.
Keep your eyes and mind open while planing to start trade relations with the companies located in China. Make correct decision by thinking about the above mention aspects. Secure yourself from getting tricked by doing a little bit of research and wise thinking.