In this era, where business dealings are settled online there is a high chance of getting conned by fraudulent companies. Some Chinese companies are notorious for their fraudulent practices. They provide false details to the clients and lure them to enter into the business. It is always advisable to get a verification done before proceeding. There are a number of sites which offer Chinese company verification online.
The verification report consists a lot of information about the company, which will help the client to take an informed decision. The various details that will be given in the verification are
- The basic information about the company like it’s name, date of establishment and the scope of business which will help you to know the whether the company is a manufacturing unit, a trading company or a marketing firm. The scope of business also lets you know about the products or services the company deals in. It will also give details about the position of the company in the local market.
- The shareholder and investment information about the capital of the company, the technological investments and the share holding pattern. It helps to know who is the promoter of the company and the names of major stake holders of the company.
- Judicial information giving details about any court cases, court notices, judicial action and court decisions pending against the company or the promoters.
- The risk information of the company like the taxation information, mortgages if any, equity pledged, abnormal operations and administrative penalties.
- Annual report information which studies the annual reports of the company like the profit and loss statement and the balance sheet.
- Intellectual property information with details about the trademarks, brands, patents and websites owned by the company. It is very important to know these details because some companies may offer to sell you products which they do not have any rights upon which might lead to judicial troubles later.
The Chinese companies’ verification online sites get this information from various trusted sources in the country and all the information is fairly authentic. All this information is translated into English for the client to understand easily. The client can then examine all the details properly and take an informed decision. This reduces the chances of falling prey to fraudulent companies.
Verification is an important step that should not be missed before dealing with Chinese companies. It is better to spend a small amount for verification than being conned and landing in financial and legal troubles.