What is a Chinese business license?

A Chinese business license (营业执照) is the official registration certificate issued by the State Administration for Market Regulation. It proves a company is legally registered in China. It contains: company name, unified social credit code, legal representative, registered capital, date of establishment, business scope, and registered address.

How do I verify a Chinese business license?

Enter the company name or unified social credit code on the National Enterprise Credit Information System (gsxt.gov.cn). This government database is free and shows the official registration record, including any penalties, abnormal operations, or revoked status.

What is the unified social credit code?

The unified social credit code (统一社会信用代码) is an 18-character alphanumeric code unique to every registered Chinese entity. It is the most reliable identifier for a company — like a Social Security number for a business. Use it for all database searches and contract references.

Can a Chinese business license be faked?

Yes. Fake business licenses are a known fraud tactic. Fraudsters create convincing-looking documents with false company names, registration numbers, and official stamps. The only reliable verification is searching the official GSXT database — never rely on a PDF or photo of the license alone.

Does registered capital mean the company has that much money?

No. Since 2014, China has used a subscribed capital system. Companies declare registered capital but are not required to pay it in immediately. A company with 10 million yuan registered capital may have contributed zero. Check the 'paid-in capital' field in the company's annual report on GSXT.

What does the business scope tell me?

The business scope defines what activities the company is legally permitted to conduct. If a supplier's business scope does not include 'manufacturing' or 'production' but they claim to be a factory, that is a serious red flag. Similarly, if they are selling products outside their registered scope, they may be operating illegally.

How do I check if a business license is still valid?

Search the company on GSXT. The system shows the current status: '正常' (normal/active), '吊销' (revoked), or '注销' (dissolved). A supplier with a revoked or dissolved license cannot legally operate. Also check for '列入经营异常名录' (abnormal operations list) which indicates filing violations.

What information on a business license can I trust?

The unified social credit code, company name, and date of establishment are reliable when verified on GSXT. Registered capital is a declared figure — not actual funds. The registered address may be a virtual address. The legal representative may be a nominee. Always cross-reference with other verification methods.

How to Read a Chinese Business License: Foreign Buyer's Guide (2026)

A Chinese business license proves registration — not legitimacy, not financial health, not production capacity. Yet most foreign buyers treat a PDF of the license as sufficient due diligence. This guide explains exactly what each field on a Chinese business license means, which information you can trust, which you must verify, and how to spot a fake license before it costs you money.

📖 Definition: Chinese Business License (营业执照)

The official registration certificate issued by the State Administration for Market Regulation (SAMR) to every legally registered company in China. It contains the company's name, unique 18-digit unified social credit code, legal representative, registered capital, date of establishment, business scope, registered address, and validity period. It is not a certification of capability, quality, or financial health.

What a Business License Tells You — and What It Does Not

✅ Confirms — The company is legally registered in China
✅ Provides — The unified social credit code (essential for all further checks)
❌ Does NOT confirm — Financial health, production capacity, or business reputation
❌ Does NOT confirm — That the registered address is the actual operating location
❌ Does NOT confirm — That the company has paid in its registered capital
❌ Does NOT confirm — That the legal representative is the actual owner

Field-by-Field Guide to the Chinese Business License

Field (Chinese)	English Meaning	What to Verify	Common Trap
统一社会信用代码	Unified Social Credit Code (USCC)	Check on GSXT — the 18-digit code is unique and tracks everything	Fake codes use wrong checksum digits — verifiable through GSXT
公司名称	Company Name	Must match the name on invoices and contracts exactly	Fraudsters use similar-sounding names to impersonate real companies
法定代表人	Legal Representative	Cross-check if this person appears as legal rep for multiple companies	Nominee representatives are common — actual owner may be hidden
注册资本	Registered Capital	Check paid-in capital in annual report (NOT the registered amount)	Declared capital = subscribed, not paid. A 10M company may have 0 paid
成立日期	Date of Establishment	Compare against claimed years of experience	A 6-month-old company claiming 15 years experience = immediate red flag
经营范围	Business Scope	Must include the actual business activity being conducted	If scope says "trading" but they claim "manufacturing" — illegal
住所 (注册地址)	Registered Address	Cross-check with actual operating location	Virtual addresses are legal but used by 76% of fraud companies
营业期限	Validity Period	Check if still valid — expired licenses mean the company cannot operate	Some fraudsters use expired licenses assuming buyers will not check

"A supplier sent us a business license showing 50 million yuan registered capital. The client was impressed. We checked GSXT — paid-in capital was 0 yuan, the company was 4 months old, and the registered address was a shared office space rented by the hour." — Shendu Security case file, 2025

How to Verify a Business License in 3 Steps

Step 1: Search GSXT

Go to gsxt.gov.cn and enter the company name or unified social credit code. The system returns the official record — not just what the supplier chose to show you. Compare every field against the license document you received.

Step 2: Check Company Status

The GSXT record shows the company's current status. The key terms to look for:

正常 (Normal) — Company is active and compliant
列入经营异常名录 (Abnormal Operations) — Failed to file annual report or changed address without notification. Not necessarily fraud, but requires explanation
吊销 (Revoked) — License has been revoked. Company cannot legally operate
注销 (Dissolved) — Company has been closed. Any business conducted under this license is illegal

Step 3: Compare Against What You Were Told

Cross-reference the GSXT record against the supplier's claims:

Does the registered capital match what they told you?
Does the date of establishment match their claimed experience?
Does the business scope include the products they are selling?
Does the registered address match where they claim to operate?

⚠️ If you are reading this, you are already ahead of most buyers

Most fraud victims never check the business license against GSXT. The supplier sends a PDF, the buyer files it, and the money is wired. A 3-minute GSXT search can prevent losses of tens of thousands of dollars. Based on our case data, 94% of fraud cases could have been prevented by verifying the license on GSXT before payment.

5 Red Flags in a Chinese Business License

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Red Flag 1

The license is a photo or PDF — you cannot verify it online

Reality: Every Chinese business license is publicly verifiable on GSXT. If the supplier tells you their license "cannot be found online," they are either lying or the license is fake. Walk away.

🚩

Red Flag 2

The business scope does not include your product category

Reality: A company selling products outside its registered business scope is operating illegally. If you buy from them, you have no legal protection if something goes wrong.

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Red Flag 3

The company was registered recently but claims long experience

Reality: Check the date of establishment. A company registered 6 months ago claiming "20 years of export experience" is either lying or has rebranded after a previous fraud.

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Red Flag 4

The business license name does not match the invoice or contract name

Reality: The company name on the license, invoice, contract, and bank account must all match exactly. Any discrepancy is a deliberate redirection tactic.

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Red Flag 5

The license shows "revoked" or "abnormal operations" status

Reality: A revoked license means the company cannot legally operate. Abnormal operations mean they failed to file reports — a common indicator of inactive or shell companies.

🔗 Part of Our Supplier Verification Series

This guide is a companion to: How to Verify a Chinese Supplier Before Payment — the complete pillar guide covering bank account checks, payment structures, L/C, and contract safeguards.

Frequently Asked Questions

Can I download a Chinese business license from GSXT?

GSXT displays the registration record but does not offer a downloadable license PDF. The supplier should provide their own copy. Cross-reference every field against the GSXT display to confirm authenticity.

Do all Chinese companies have a business license?

Every legally registered company in China has one. If a supplier cannot produce a business license, they are either operating illegally or are not a registered company. Do not transact with them.

What if the GSXT search returns no results?

Possible reasons: the company name was entered incorrectly, the company uses a different Chinese name, the license has been revoked, or the license is fake. Contact the supplier for clarification and consider this a significant red flag.

How often should I check a supplier's business license?

Before every major order. Company status can change — licenses get revoked, companies are blacklisted, and legal representatives change. A license that was valid six months ago may not be valid today.

Is a business license enough to verify a supplier?

No. A business license only confirms registration. You still need to verify: litigation history, enforcement records, physical address, production capacity, bank account ownership, and beneficial ownership. See our full background check guide for the complete process.

About the Author

方

Fang Zhijian (方志坚)

Founder & Lead Investigator — Shendu Security (Guangzhou) Business Consulting Co., Ltd.

With over 20 years of experience, Fang has verified thousands of Chinese business licenses as part of cross-border investigations for clients from 46 countries. His firm has identified hundreds of fake or altered licenses through GSXT verification and on-site inspection.

Final Verdict: A License Is a Starting Point, Not a Verification

A Chinese business license tells you a company exists. It does not tell you if they are trustworthy, capable, or solvent. Always verify the license on GSXT. Cross-reference every field. And never send payment based on a PDF alone.

Verify every license on GSXT — 3 minutes can save thousands of dollars
Check company status — revoked or abnormal = do not transact
Cross-reference business scope — if it does not include your product, walk away
Verify the registered address — address mismatch is the top fraud indicator
A business license is step one of seven — complete the full verification before paying

Shendu Security (Guangzhou) Business Consulting Co., Ltd. — 20+ years of supplier verification in China.

Phone / WeChat: 182-0202-2525

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