Our world is filled with scammers, thieves, and people doing illegal things.
When doing business or starting one, you need all the information you can get to verify it.
If you are thinking of doing business in China or Japan, it’s wise to do your research to protect yourself.
How do you verify a business with a China company check?
What are the methods of Japan company check?
China
There are around 50 million private companies in China, with over 15 million registered online.
A business in China is required to have a business license through the local administration of Industry and Commerce (AIC).
There is more research that needs to be done than just looking at the business license.
Scammers will forge a business license to do business illegally.
A few common forgeries include:
- Using an unregistered business name
- Forging the date to hide actual recent startup or expired license
- Falsifying amount of capital registered to claim a better financial status
- And claiming they are in a certain business category, like manufacturing
This is why every license is registered online through the national database. The national database is only available in Chinese, so translation will be needed.
Registration of a business can be a bit more complicated than other countries, due to the country’s size and number of businesses. Rules of required or released company information may differ per AIC branch.
Japan
Japan is a highly populated and busy country. There are over 5.2 million business entities registered with the Japanese Chamber of Commerce.
Readers beware, there are several bits of information that is only given in Japanese — you will need to translate.
You will run into terms like KK or GK corporations.
Kabushiki Kaisha or Kabushiki Gaisha (KK), is translated as a joint stock company, Co., or Ltd. — corporation or incorporated. These are for-profit companies.
Godo Gaisha (GK) is a limited liability company (LLC.), a GK cannot be publicly traded in Japan. They are smaller, and have less setup costs or requirements than a KK.
If you wish to do business in Japan, an online search can grant you a treasure trove of information about a registered business in Japan.
When opening a business in Japan, you will need to follow a few rules and submit certain information.
These rules include having at least one Japanese resident running the business and having a physical address in Japan.
How they compare
Both countries require a business to register their:
- Name
- Fiscal figures
- Shareholders’ names
- Directors’ names
- Industry
- And physical address
China, being a bigger country with more businesses, has a more complex business registration system and at times less information available or required.
Both countries have names of businesses that are only available in either English or their respective countries’ language.
Protecting Yourself and Your Business
When you do business with any company, it is a good idea to research the company to ensure it is a legitimate.
Always do a company check to determine who is running the business, how long they have been in operation, their size, fiscal information, and industry.
Check their webpage thoroughly and verify all information that you can.
Look at reviews for the company.
Go through and read all of their policies, terms, and conditions.
Find the companies’ registration number, and check it with the proper sites. You can also try to call the company on their landline to ask for the registration number.
Ask for references or testimonials from previous clients.
Verify that they have a valid business license, where it applies.
If you can, go to the company’s physical address.
When doing business, it’s wise to do as much research as possible to protect yourself from scammers, money launderers, and others doing illegal business.
A China company check will help you determine if the business you are looking at is legitimate.
If you want to do business in Japan, always do a Japan company check.
A company check can be done in many ways, but it is wise to have an understanding of the language used in the companies’ country.
Google or other translators are a good thing to keep handy. There are also sites that will do all the research for you, with translation.
