How to Read and Verify a Chinese Business License

Most importers don’t lose money because they picked the wrong product.
They lose money because they trusted the wrong identity.

If you want a serious first-layer verification in China, one document should come early—before deposits, before contracts, before “urgent payment” messages:

the Chinese business license (营业执照).

This guide is written for importers in Central America and LATAM who need a practical way to read, interpret, and validate supplier identity.

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1) What a Chinese Business License (营业执照) really is

A business license is a government-issued registration document that typically shows:

• the company’s legal identity (name + ID code)
• entity type and registered address
• legal representative
• business scope (what the company is registered to do)
• basic registration status information (via public records)

It doesn’t guarantee the supplier is “good”—but it helps you catch inconsistencies that are common in fraud and high-risk setups.

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2) The key fields (what they mean for buyers)

Here’s a buyer-focused reading map.

Chinese field	Meaning	Why you care
统一社会信用代码 (USCC)	18-character unique company ID	Best way to search official registries accurately
名称	Legal company name (usually in Chinese)	Must match contracts and bank beneficiary
类型	Entity type	Helps you understand structure (factory/trader/WFOE, etc.)
法定代表人	Legal representative	Useful for contract consistency and due diligence
注册资本	Registered capital	Not cash-on-hand, but indicates structure/scale signals
成立日期	Establishment date	Helps assess how new the entity is
住所 / 地址	Registered address	Coherence check with operations and region
经营范围	Business scope	Should be broadly consistent with what they sell
登记机关	Registration authority	Shows jurisdiction (city/province)

Practical rule: If the supplier refuses to provide a clear license copy or won’t share the legal Chinese name, treat it as a risk escalation.

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3) Common red flags before you pay

Most serious issues appear as mismatches, not as one isolated clue.

Pause and verify if you see:

• Bank beneficiary name doesn’t match the license legal name
• Supplier asks you to pay a “different company” without strong documentation
• Business scope looks unrelated to the product category
• Registry status shows revoked/cancelled
• Supplier resists second-channel confirmation when bank details change

Verification is not mistrust—it’s basic trade hygiene.

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4) How to verify through GSXT / NECIPS (step by step)

The most referenced public registry is GSXT, often called NECIPS (National Enterprise Credit Information Publicity System).

Access (may require CAPTCHA):

GSXT / NECIPS (China Company Registry)

Practical workflow

1. Ask your supplier for:

   • a clear color scan of the license
   • the legal Chinese name (copyable text)
   • the USCC (18 characters)

2. Search using the USCC (preferred)

   • It reduces confusion with similar names.

3. Validate:

   • exact legal name match
   • active vs revoked/cancelled status
   • address + registration authority
   • entity type
   • business scope consistency

4. Save evidence:

   • screenshot/PDF for your internal KYC file.

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5) Connect the license to payments (where most losses happen)

A “real” license doesn’t protect you if you pay the wrong beneficiary.

Before wiring:

• ensure the bank beneficiary matches the legal name
• treat mismatches as high risk until fully explained
• confirm any bank changes via a second channel (call/video)

This prevents the most common fraud pattern: “bank detail change” through impersonation.

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6) Entity types in China (what it means for importers)

Most sourcing scenarios fall into:

• Manufacturers: stronger production control, usually better unit economics
• Trading companies: speed + broader catalogs, but require tighter traceability controls
• WFOEs / foreign-invested entities: different structure, often more formal processes

The point is not to “avoid traders,” but to understand the role and manage risks through audits, inspections, and structured contracts.

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Final takeaway: trust with a method

A Chinese business license becomes powerful when you use it inside a standard checklist:

• clear stamped license copy
• legal Chinese name + USCC
• registry validation
• consistency across contracts + bank beneficiary
• second-channel confirmation for sensitive changes

That’s how professional import operations reduce risk—without slowing down growth.

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