Why China business license is important?

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By John Wick

You may probably want to do business in China. If so, then you need to follow the stringent rules and regulations that govern the land. You are to follow the procedures properly and correctly to ensure you launch a business here. But you may not know them as a foreigner. In such a case, you are to seek the assistance of industry professionals. Consult them to get a valid China business license to start your business here.

Need for a valid business license in China

The truth is that more than half of the entrepreneurs fail to acquire a valid license to carry out their business in China. Rather, the majority are not even aware of what business license means and its importance in this country. Corresponding through email, having a website and business cards will not help much to provide validity of the foreigner doing business in China. This is because such aspects do not signify or show the authenticity of the entrepreneur. However, it is achievable by having a valid business license procured from the concerned authorities.

Importance of business license in China

China company registration and license in this country act as the company’s identity certificate as it is issued by the concerned local Admin. of Industrial & Commerce, management & corporate registration authority in China (AIC). In some jurisdictions, it acts like an incorporation certificate.

In China, Business License offers basic crucial information about the entity. It includes the entity’s domicile, name, and registration name. Also is included the legal representative’s name (the person representing the entity who is authorized by the board to sign contracts on the company’s behalf). Also is taken into consideration entity type (limited liability co. or another type), registered capital, incorporation date, business scope (business type permitted to be launched like consultancy, trading), etc.

Therefore, merely looking at the business license, it is possible to state if the company is incorporated legally or not. Moreover, the business license provides valuable information like existence of the company, does it face any proceedings or dispute or experiencing abnormal situations. Searching the free government or paid database will help pull up such vital information. You can take the assistance of the professionals at to provide a valid license to launch in China.

People when dealing with business in this country will require an exchange of valid licenses. At least a duplicate copy should be shown to prove their business is valid. This way, they get to know each other’s identity, thereby going ahead with the deal or canceling it.

In case, the Chinese entity fails to present the business license, then it is probably a fraud and is better ignored. If the information provided by the Chinese entity fails to match up with what is mentioned in the license, then they are likely to be a fraud.

But foreigners not aware of the Chinese business practices and laws of the state will find it tough to do business in China without professional China WFOE assistance. Seeking their assistance will make your job seem easy, quick, and hassle-free.