What Is Business License Verification?
Business license verification is the process of checking a Chinese supplier's 营业执照 (business license) against the official government registry at gsxt.gov.cn (National Enterprise Credit Information Publicity System, run by the State Administration for Market Regulation, SAMR). The license image the supplier sends you is just a piece of paper — it can be Photoshopped, borrowed from another company, or revoked since issuance. The gsxt.gov.cn record is the live truth: current registration status, abnormal-operations flags, administrative penalties, and annual report filings. This is the single cheapest, highest-leverage due-diligence step before any deposit; pair it with a factory audit and the 50/50 deposit rule for full protection.
The 9 Business License Fields to Check
A Chinese 营业执照 has a fixed set of fields. Below are the 9 you must verify, what to look for, and the red flag in each.
| # | Field (CN / EN) | What to Check | Red Flag |
|---|---|---|---|
| 1 | 统一社会信用代码 (Unified Social Credit Code) | 18-character alphanumeric; first digit = registration authority; search it on gsxt.gov.cn | Doesn't resolve on gsxt.gov.cn, or resolves to a different company name |
| 2 | 注册资本 (Registered Capital) | Real amount & paid-in status; compare to your order size — a $5k order from a ¥10,000-capital "factory" is a red flag | Registered capital under ¥500,000 for a manufacturer, or 实缴 far below 认缴 |
| 3 | 经营范围 (Business Scope) | List must explicitly cover manufacturing of your product category, not just "trade/consulting" | Scope is "domestic trade" only, or omits your product class (e.g. no "manufacture of plastics" for a plastics supplier) |
| 4 | 成立日期 (Establishment Date) | Older than 2 years is safer; under 1 year is higher risk for a large order | Company registered in the last 3-6 months while claiming "10 years experience" |
| 5 | 法定代表人 (Legal Representative) | Name must match the person signing your contract; check they're not on court-dishonesty lists (失信被执行人) | Legal rep is a paid straw-man; many quick-registered shells use proxies |
| 6 | 登记状态 (Registration Status) | Must be 存续/在营 (active). Walk away if 吊销 (revoked), 注销 (cancelled), or 迁出 (moved out) | Any status other than 存续/在营 — even a 吊销 from 5 years ago means the company cannot legally trade |
| 7 | 年度报告 (Annual Report Filings) | Filed for each year since establishment on gsxt.gov.cn; missing years = neglect or fraud | No annual report filed for the last 1-2 years |
| 8 | 行政处罚 (Administrative Penalties) | Clean record preferred; minor consumer-protection fines are common, repeated quality/IP penalties are not | Multiple penalties for false advertising, product quality, or trademark infringement |
| 9 | 经营异常名录 (Abnormal Operations List) | Must NOT be on this list — being listed means SAMR flagged the company for false address, hidden annual report, or false disclosure | Currently on 经营异常名录 — strong "do not pay" signal |
Fields 1, 6, and 9 are the dealbreakers — if any fails, do not wire money. The rest adjust your risk and negotiation leverage.
How to Verify a License on gsxt.gov.cn (Step by Step)
- Get the license image + unified social credit code. Ask the supplier to send a clear photo or scan of the 营业执照 (both sides if folded). If they refuse or send a blurry image, treat it as a red flag — see China sourcing scams.
- Go to gsxt.gov.cn. The site is in Chinese; use Chrome's auto-translate. Enter the company's full Chinese name OR the 18-character 统一社会信用代码 in the search box.
- Match the company name exactly. The gsxt.gov.cn result page shows the registered name — it must match the license image character-for-character, including 注册地 (registered address).
- Check 登记状态. Look for "存续" or "在营" (active). If it says 吊销 (revoked), 注销 (cancelled), or 停业 (suspended), the company cannot legally operate.
- Check 经营异常名录. Click into the company's detail page; the "经营异常" tab shows whether they're listed. A current listing is a hard stop.
- Verify the bank account beneficiary. Cross-check that the bank account the supplier asks you to wire to has a beneficiary name matching the licensed company name — the core defense in fake-invoice fraud.
Worked Example: Catching a Fake Yiwu "Supplier"
A buyer finds a Yiwu "manufacturer" of silicone kitchen tools offering 5,000 custom spatulas at $0.85/pc — 40% below market. The "factory" sends a license image showing:
- Company name: 义乌市XX硅胶制品有限公司 (Yiwu XX Silicone Products Co., Ltd.)
- 统一社会信用代码: 91330782MA2XXXXXX9X
- 注册资本: ¥500,000
- 经营范围: "塑料制品、五金的销售" (sale of plastics & hardware — note: "sale", not "manufacture")
- 登记状态 on the image: 存续
gsxt.gov.cn lookup reveals four hard red flags:
- 登记状态 actually shows 吊销, 未注销 (revoked, not yet cancelled) — business license revoked 14 months ago for a false annual report. The image sent to the buyer was an old scan from before revocation.
- 经营异常名录: 列入 (listed) — flagged twice for "通过登记的住所无法联系" (unreachable at registered address).
- 经营范围 on the official record is "销售" (sales) only — the company is a trading company, not a manufacturer. It has no production facility and will outsource to whoever is cheapest.
- The bank account beneficiary name is 张XX个人 (a personal name), not the licensed company.
Had the buyer wired the 50% deposit of $2,125, recovery would be near-zero. Correct action: decline, find a factory-audited supplier whose gsxt.gov.cn record shows 存续 + 经营范围 covers 制造 (manufacturing) + bank account in the company name, then apply the 50/50 deposit rule.
License Verification Checklist
| Check | Source | Pass Criteria |
|---|---|---|
| License image received | Supplier | Clear, both sides, all 9 fields readable |
| gsxt.gov.cn record exists | gsxt.gov.cn | Search by 统一社会信用代码 returns the company |
| Company name matches | gsxt.gov.cn vs license | Character-for-character match |
| 登记状态 active | gsxt.gov.cn | 存续 or 在营 |
| Not on 经营异常名录 | gsxt.gov.cn | Not listed |
| 经营范围 covers your product | gsxt.gov.cn | Includes 制造 (manufacturing) of your category |
| Annual reports filed | gsxt.gov.cn | Filed every year since establishment |
| Bank beneficiary matches company | Supplier PI + bank | Account name = licensed company name |
| Factory address verifiable | Factory audit / site visit | Address exists, line is producing your product |
| Legal rep not on dishonesty list | China Court 执行信息公开网 | Not a 失信被执行人 |
Red Flags That Should Stop Payment
- License image looks Photoshopped — fonts inconsistent, seals misaligned, or the 统一社会信用代码 area is blurred. Demand a fresh phone-camera scan of the physical original.
- gsxt.gov.cn shows 吊销 or 注销 — the company is no longer legally entitled to trade; the "license" is stale.
- On the 经营异常名录 — SAMR flagged them for false address, hidden reports, or false disclosure.
- 注册资本 under ¥500,000 while quoting a $50,000 order — shells are often registered at the minimum ¥100k-¥500k to limit liability.
- 经营范围 says 销售/trade, not 制造 — a trading company masquerading as a factory; expect markup and zero production control.
- Bank account in a personal name — the #1 fake-invoice signature in fake-invoice scams.
- Company registered in the last 3-6 months but claiming "10+ years experience" — a freshly-registered shell.
How Yeatru Verifies Suppliers
Yeatru Sourcing runs gsxt.gov.cn verification on every new factory before any quotation or sample order. Our standard flow:
- License image + 统一社会信用代码 collected, then cross-checked on gsxt.gov.cn within 24 hours.
- 9-field verification report — including 经营范围 must cover the buyer's product and 经营异常名录 must be clear.
- Bank-account beneficiary check: account name must match the licensed company exactly, or the order is paused.
- Optional on-site factory audit for orders above $20,000 or regulated categories.
- Verification report archived and shared with the buyer before the deposit is wired.
Frequently Asked Questions
1. What is the unified social credit code (统一社会信用代码)?
It's an 18-character alphanumeric ID assigned to every registered Chinese company by SAMR. The first digit identifies the registering authority, the next 8 the region/organization, then a 9-digit body and a check digit. Search it on gsxt.gov.cn to pull the live company record — it's the Chinese equivalent of a tax ID plus a company registry number.
2. Is gsxt.gov.cn free to use?
Yes — gsxt.gov.cn is free and publicly accessible at no charge, run by the State Administration for Market Regulation (SAMR). No account is required to search company records or view registration status, annual reports, abnormal-operations listings, and administrative penalties.
3. What if the license image is blurry or won't download?
Treat it as a red flag. Ask for a fresh phone-camera scan of the physical license (both sides, all corners visible). If the supplier refuses or keeps sending a low-res image, they may be hiding a revoked/edited license. Verify the 统一社会信用代码 directly on gsxt.gov.cn regardless of the image — the official record is the truth, the image is just a copy.
4. Can a trading company pretend to be a factory?
Yes — and it's extremely common. Check the 经营范围 on gsxt.gov.cn: if it says "销售" (sales) or "贸易" (trade) but not "制造" or "生产" (manufacturing/production) of your product category, the company is a trading company, not a manufacturer. They'll outsource to whichever back-alley workshop is cheapest, with no production control. A factory audit confirms whether the address is actually a working line.
5. What does 经营异常名录 (abnormal operations list) mean?
It's a public list SAMR maintains for companies flagged for: (a) being unreachable at their registered address, (b) failing to file annual reports on time, or (c) disclosing false information. A company on this list is restricted from large-scale contracts, bank loans, and government procurement. If your supplier is currently listed, do not wire a deposit — it's a strong fraud-adjacent signal.
6. How often should I re-verify a supplier?
Re-verify at least once every 12 months for repeat suppliers, and immediately before any new large order. License status can flip to 吊销 or 经营异常 between orders, and bank accounts can change. For long-term partners, re-running the gsxt.gov.cn check takes 5 minutes and catches revocations before you wire the next deposit.
Conclusion
Verifying a Chinese supplier's business license on gsxt.gov.cn is free, takes under 10 minutes, and stops most pre-payment scams before they start. The 9 fields — especially 统一社会信用代码, 登记状态, and 经营异常名录 — are the difference between paying a real factory and wiring money to a revoked shell. Pair the license check with a bank-account beneficiary match, a 经营范围 that covers manufacturing of your product, and an on-site factory audit for larger orders, and you've closed the door on the most common China sourcing fraud. Get a free supplier-license verification from Yeatru — we'll run the gsxt.gov.cn lookup, deliver a 9-field report, and confirm the bank account before any deposit leaves your hands.
