Corporate & Commercial
Before you wire funds to a Chinese counterparty, our Shanghai lawyers verify who you are really dealing with — reported in plain English and coordinated through our London office for UK and international clients.
Chinese companies are registered under their Chinese names only; the English name on a website, invoice or proforma has no legal status. Genuine registration details — including the 18-character Unified Social Credit Code — are published on the National Enterprise Credit Information Publicity System, but the records are in Chinese and are routinely misread or misrepresented. Before wiring funds to a counterparty you have never met, it is worth confirming that the entity actually exists and matches the party named in your contract.
Registry confirmation is only the starting point. We check registered against paid-up capital, shareholder and legal representative details, business scope, and whether the company appears in litigation records on China Judgments Online, on the enforcement information publicity platform, or on the dishonest judgment debtor list. We also review how the contract will be executed: in Chinese practice the company chop, not a signature, is usually what binds the company, so chop and signing authority deserve particular attention.
The right depth of enquiry is case by case. A pre-payment supplier check is quick and inexpensive; an investment, acquisition or joint venture calls for full legal due diligence covering assets, intellectual property, regulatory position under the Foreign Investment Law (2020) and material contracts. Our Shanghai lawyers conduct the searches at source in Chinese; our London office reports in plain English, partner-reviewed, and we normally respond to enquiries within one business day.
We verify the counterparty's business licence and Unified Social Credit Code against the National Enterprise Credit Information Publicity System, confirming legal name, registration status, business scope and registered address — and that they match the entity you are contracting with.
Registered capital in China is subscribed, not necessarily paid. We distinguish registered from paid-up capital, identify the shareholders and legal representative, and flag recent changes in ownership or control that may signal risk.
We search China Judgments Online, the enforcement information publicity platform and the dishonest judgment debtor list, together with administrative penalty and abnormal operation records, to build a picture of how the company behaves when disputes arise.
In Chinese practice the company chop usually binds the company. We advise on which chop should be used, who holds signing authority, and how to execute your contract to support its enforceability against the Chinese party.
We cross-check bank account names against registered entities, test claimed certifications and export credentials, and assess classic warning signs — newly formed shells, mismatched names, pricing well below market — before you commit funds.
For investments, acquisitions and joint ventures we conduct full legal due diligence: corporate structure, title to assets, trademarks and other IP under China's first-to-file system, material contracts, employment and regulatory compliance under the Foreign Investment Law (2020).
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Send us the counterparty's Chinese name or Unified Social Credit Code together with the contract or quotation. We reply within one business day with a fixed scope and fee for the checks your situation requires.
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Our Shanghai lawyers search the official Chinese-language registries and databases directly — company registration, litigation, enforcement and credit records — rather than relying on second-hand data aggregators.
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We compare what the records show against what the counterparty has told you, assess discrepancies and warning signs, and form a view on the risks of proceeding. Every report is partner-reviewed.
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You receive a plain-English report with practical recommendations — payment structure, contract execution, security for performance — and, where a transaction warrants it, a proposal for full legal due diligence.
Every lawfully registered Chinese company appears on the National Enterprise Credit Information Publicity System, searchable by its Chinese name or 18-character Unified Social Credit Code. Companies are registered in Chinese only, so an English trading name cannot be verified directly; the key step is matching the Chinese-language record to the entity named in your contract and to the bank account you are asked to pay. We carry out and interpret these searches at source.
The Unified Social Credit Code is an 18-character identifier assigned to every registered entity in mainland China, serving much the same function as a UK company number. It appears on the company's business licence and in the public registry. Asking a counterparty for its code and a copy of its business licence, then verifying both against the official record, is a fast and effective first legitimacy check.
No — registered capital in China is subscribed capital, and a large figure does not mean the money has actually been paid in. Since the amended PRC Company Law took effect on 1 July 2024, shareholders must generally pay up subscribed capital within five years, but many existing companies still show substantial unpaid amounts. Paid-up capital, enforcement records and litigation history give a far better picture, assessed case by case.
In Chinese practice a contract is normally executed by affixing the company's registered chop, and a properly applied chop will generally bind the company even without the legal representative's signature. Conversely, a contract signed by an individual without the chop or clear authority may be open to challenge. We verify who the legal representative is, advise which chop should be used, and recommend execution formalities designed to protect your position.
The clearest red flags are a payment account that does not match the registered company name, a business scope that does not cover the goods offered, a recently incorporated company with minimal paid-up capital, and pricing well below market. Impersonation of genuine manufacturers is also common: the real company exists, but the person you are dealing with does not act for it. Each sign warrants checking before any funds are sent.
Act immediately: notify your bank and request a recall, report the matter to the police in your jurisdiction and consider a criminal complaint in China, and take Chinese law advice on civil recovery. Prospects depend on how quickly funds can be traced and are assessed case by case; the general PRC limitation period is three years (Civil Code, article 188). Where English proceedings follow, we also act as Chinese law expert witnesses.
Describe the background and what you want to achieve. We will assess the position under Chinese law and reply within one business day.
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