1.1 Introduction

Page Completion Estimate = 5 Minutes

When performing third party due diligence in mainland China, the single most important document to request from potential customers or suppliers is a scanned color copy of the business license, with an imprint of the company chop affixed to it. The business license forms the starting point of the investigation and when provided, it should be assessed carefully. 

In this unit the characteristics of the business license are discussed in detail as well as the most common related scams, which include but are not limited to selected adjustments to contents, falsified business licenses and business licenses issued in which the issuing party assumes the identity of another company.

Upon completion of this unit you will have developed a deeper understanding of:

  • The function, characteristics and importance of the business license.
  • How to verify the content of the business license.
  • How to identify common scams related to the business license.