All registered Chinese companies have a unique number called the Unified Social Credit Code (统一社会信用代码, tǒngyī shèhuì xìnyòng dàimǎ). This is an 18-digit alphanumeric code. It is important to know the business registration number for several reasons when you are dealing with Chinese companies.
What is the Business registration number used in China
The code is designed to be used in various aspects of business operations, such as tax registration, customs declarations, and social insurance registration. It is also used to track the creditworthiness and compliance of companies operating in China.
The 18-digit Unified Social Credit Code is structured as follows:
- The first digit represents the registering authority (1 for the State Administration for Market Regulation and 9 for others).
- The second digit indicates the administrative division code corresponding to the province, municipality, or autonomous region where the company is registered.
- The next six digits signify the organization's code as assigned by the registering authority.
- The following nine digits represent the organization's unique identifier within the jurisdiction.
- The final digit is a check code used to verify the accuracy of the other 17 digits.
By implementing the Unified Social Credit Code, the Chinese government aims to create a transparent business environment, facilitate regulatory oversight, and reduce fraud and corruption.
Why it is important to know the business registration number
1. Legal compliance
The business registration number is the company's unique identifier in the Chinese business registry. It ensures that the company is legally registered and compliant with local regulations and laws.
2. Verification
Checking the business registration number helps verify a Chinese company's authenticity and legitimacy. It allows you to confirm that the company exists, operates legally, and is not a shell or fraudulent entity.
It is many different ways to translate a Chinese name into English, and an English name does not have any legal strength in the court in China. Thus, it is the Chinese name of the company and the business number that is the crucial thing.
3. Background research
The registration number enables you to access the company's public records, which can provide valuable information about its background, including its ownership structure, financial status, and legal history. This information can help you assess the company's reliability and creditworthiness.
4. Contract enforcement
In case of any legal disputes or issues, having the company's registration number can be crucial for enforcing contracts and protecting your rights in the Chinese legal system. It helps authorities and legal representatives locate and identify the company accurately. Therefore, it is crucial to the registration number of the Chinese company you plan to cooperate with in all contracts you use.
When you have the Chinese company's registration number, you can compare it with the registration number on their business certificate, official seal, and other documents they share.
Conclusion
In conclusion, the Unified Social Credit Code is essential to China's business landscape, serving as a unique 18-digit identifier for companies and organizations. Its introduction has streamlined business registration processes, improved regulatory efficiency, and promoted information sharing. The code plays a crucial role in legal compliance, verification, background research, and contract enforcement, ensuring transparency and legitimacy in dealings with Chinese companies. By understanding the importance of the Unified Social Credit Code and using it effectively, businesses can navigate the Chinese market with confidence and security.
Contact usif you need help with background investigation of Chinese companies, protecting patents, trademarks, verification of contracts to the law in China, or help with other legal challenges that you have in China.
If you require our assistance or have further questions about our services, please do not hesitate to contact our Customer Relationship Manager, Jan Erik Christensen, atjanerik@ncbhub.com. We look forward to hearing from you and helping your business succeed in China.
