A Chinese business licence (营业执照) tells you who the supplier legally is: its registered name, its 18-character unified social credit code, its entity type, legal representative, registered capital, date of establishment, business term, address and permitted business scope. Read each field, then confirm the same details on the official national enterprise credit system, because a licence image can be edited.
What the licence is
The business licence is issued by the local market regulation bureau when a company or other business is registered. It comes in an original (正本) for display and one or more duplicates (副本). The layout is standard across mainland China: a national emblem at the top, the title 营业执照, the credit code and a QR code near the top, and the main fields in the body. The registration authority's seal and issue date appear at the bottom right.
Suppliers usually send a photo or scan. Ask for a clear, complete image with all corners visible. A cropped image, a heavily watermarked copy or one with parts covered is a reason to ask again.
Field-by-field guide
| Chinese field | English meaning | What to check |
|---|---|---|
| 统一社会信用代码 | Unified social credit code | 18 characters, digits and capital letters, no I, O, S, V or Z. Search it on the official system. |
| 名称 | Registered name | Must match the contract, proforma invoice and bank account holder exactly, character for character. |
| 类型 | Entity type | Shows the legal form, for example limited liability company or sole proprietorship. |
| 法定代表人 | Legal representative | The person legally authorised to act for the company. Note the name. |
| 经营者 | Operator | Appears instead of legal representative on an individual business licence. |
| 注册资本 | Registered capital | Usually shown in RMB. This is often subscribed capital, not money in the bank. |
| 成立日期 | Date of establishment | Compare with the "years in business" the supplier claims. |
| 营业期限 | Business term | A date range or 长期 (long-term, no fixed end date). Check the term has not expired. |
| 经营范围 | Business scope | Must cover your product. Look for 生产 or 制造 (production) if the supplier says it is a factory. |
| 住所 / 经营场所 | Domicile / place of business | Registered address. Compare with the factory address you were given. |
| 登记机关 | Registration authority | The bureau that registered the company, with its seal. Should fit the address. |
| 发证日期 or date under the seal | Issue date | A recent date usually means a change was registered. Ask what changed. |
| 二维码 | QR code | Scanning it should lead to the record on the official system, not to a private website. |
Reading the entity type
The entity type tells you what kind of business you are signing with.
- 有限责任公司 – limited liability company, the most common form for manufacturers and traders.
- 股份有限公司 – company limited by shares, used by larger companies, including listed ones.
- 有限责任公司（外商投资） or similar wording – a company with foreign investment.
- 分公司 – a branch. A branch is not a separate legal person; contracts may be signed with the parent company instead.
- 个体工商户 – individual business. Common for small shops and workshops, unusual for a supplier of engineered equipment.
For an order of high-voltage switchgear or moulded case circuit breakers, you would normally expect a limited company with a production scope, not an individual business or a branch.
Reading registered capital
Registered capital is the amount shareholders have committed. It may be subscribed (认缴) rather than paid-in (实缴), so a large figure is not proof of financial strength. Use it as a plausibility check: a very small registered capital set against a large engineered order, with no other trading evidence, is worth a question. Annual reports on the official system may show paid-in capital.
Reading business scope
The business scope is often long, listing many activities separated by semicolons. Read all of it.
- Production wording: 生产, 制造, 加工.
- Sales and trade wording: 销售, 批发, 贸易, 进出口.
- Items marked as needing approval (许可项目 or 依法须经批准的项目) can only be carried out once the relevant permit is obtained.
A power cables supplier that claims to manufacture should show cable production in its scope. If the scope lists only sales, it is a trading company, which is legal but changes who you are really buying from.
How to confirm a licence is genuine
- Search the credit code on the National Enterprise Credit Information Publicity System (国家企业信用信息公示系统).
- Compare every field on the licence with the official record.
- Check the status shows 存续 or 在营, not 注销 (deregistered) or 吊销 (revoked).
- Check for listings for abnormal operation (经营异常) and administrative penalties.
- Make sure the name on the official record is the one on your contract and on the bank account.
If the licence and the official record disagree, the official record is correct and the licence image is outdated or altered.
Common problems seen in licences sent by suppliers
- The image shows an older licence with separate registration, tax and organisation numbers. Ask for the current licence.
- The English name on the website has no clear link to the Chinese registered name.
- The licence belongs to a sister company, export agent or parent group, not the seller in the contract.
- The scope says sales only, while the supplier claims to manufacture.
- The business term has an end date that has passed.
What else to check with a Chinese supplier
The licence proves legal existence and permitted activities. It says nothing about product quality. For electrical equipment, also ask for type-test reports for the exact model and rating, issued by an independent laboratory; the standards claimed, such as IEC 62271-200 for MV switchgear or IEC 60947-2 for LV circuit breakers; ISO 9001 and, where required, CCC, CE or CB scheme certificates, checking the holder name on each; and evidence that the supplier is a factory rather than a trader. China Factory Rank scores each listed company on data completeness, including whether its registered entity has been identified; it is not a quality rating. Read how the score works and use the ranked lists on category pages such as switchgear to build a shortlist.
Frequently asked questions
Does the business licence have an English version?
No. The licence is issued only in Chinese. Any English version is an unofficial translation made by the company, so always work from the Chinese original and the official record.
What does 长期 mean in the business term field?
It means the company's operating term has no fixed end date. This is common and is not a concern.
Can a branch office sign a supply contract?
A branch can operate under its own licence, but it is not an independent legal person, and liability rests with the parent company. For large orders, check the parent's licence and consider contracting with the parent directly.
Is a scanned licence enough for due diligence?
No. A scan is a starting point. Always confirm the details on the official national enterprise credit system before paying.