In today’s global supply chain, trusting a supplier without verification is a risk that can translate into delays, quality failures, legal exposure, and costly recalls. For brands working with Chinese manufacturers—whether you’re sourcing textiles, garments, electronics, or consumer goods—the reliability of a supplier begins with a verifiable business license. A business license is more than a piece of paper; it is a legal grant of the right to operate, a public record of the company’s approved name, registered address, legal representative, registered capital, and the scope of business. For OEM and ODM garment partners like Newasia Garment, verified licenses ensure you are engaging with a legitimate entity that can legally manufacture and export products under the correct regulatory framework. This guide explains why license verification matters, where to verify, how to verify, and practical steps you can apply in your supplier due diligence workflow.
Why verifying a business license matters in China
China maintains a robust framework of corporate credit and registration information. The business license and the associated Unified Social Credit Code (USCC) or its newer format are public records that enable buyers to confirm the authenticity and legitimacy of a supplier. Verifying licenses helps you:
- Confirm the legal name, registered address, and scope of business to ensure product categories align with contractual obligations.
- Verify the company’s status (active, revoked, or temporarily suspended) so you are not negotiating with a non-existent or non-operational entity.
- Assess compliance risk by cross-checking the license against government records and tax registrations.
- Reduce counterfeit or unauthorized manufacturing relationships, which can lead to IP infringement or product liability issues.
- Facilitate due diligence during supplier onboarding, audits, and compliance reviews with a clear, auditable trail.
Key concepts you need to know before verification
Understanding the core terms makes the verification process faster and more accurate:
- (Business License): The official certificate that authorizes a company to operate in a specific business scope. It lists the company’s legal name, registered capital, registered address, and business scope.
- (Unified Social Credit Code, USCC): An 18-character alphanumeric code that uniquely identifies a business entity. It acts as a single identifier across government agencies, including taxation and customs. In many contexts, this is the key data point for verification.
- Legal representative or principal: The person legally responsible for the company’s decisions, often required for due diligence and contract sign-off.
- Registered address and business scope: The official location of the business and the types of activities the company is authorized to conduct. This matters for border controls, export licenses, and compliance checks.
- Status: Indicates whether the business is active, closed, or under administrative penalties. A license marked “invalid” or “terminated” is a red flag.
The most authoritative sources for verification are government-operated platforms and official registries. While third-party databases can help you gather information quickly, you should always cross-verify with official sources to avoid relying on outdated or incorrect data.
- National Enterprise Credit Information Publicity System () – the primary official source for enterprise credit information. This system provides the company’s legal name, USCC, registered address, registration date, status, and changes over time. You can search by company name or USCC to pull up the official record. Access: http://www.gsxt.gov.cn
- Provincial Administration for Market Regulation (AMR) / Industry and Commerce Bureaus – Local equivalents that publish provincial-level data. In many cases, you’ll be redirected to the national system, but provincial pages provide context like local registration details and enforcement actions.
- State Administration for Market Regulation (SAMR) – The national regulator responsible for market regulation, antitrust enforcement, and business licensing policies. Their notices and updates help interpret changes in licensing rules and credit information.
- Tax authorities and Public Tax Registration Records – Cross-check the company’s tax registration status for consistency with the business license and to identify fiscal red flags that might indicate underreported activity or non-compliance.
- Official license copies and digital verification – Some companies include QR codes or digital seals on the license copy that can be scanned to verify authenticity against official records maintained by the regulator.
How to verify: a practical, step-by-step process
Use the following structured checklist to verify a supplier’s license efficiently, whether you’re evaluating a garment OEM like Newasia Garment or any other manufacturing partner:
1) Gather the official license and identifiers
Request a clear, up-to-date copy of the business license in the original Chinese, plus an English translation if possible. Key identifiers to capture include:
- Official company name as written in Chinese
- 18-character unified social credit code (USCC)
- Registered address (province, city, district)
- Legal representative or senior executive
- Registered capital and paid-in capital (if disclosed)
- Business scope (the activities the company is legally authorized to perform)
- License issuance date and valid period / expiration date
2) Cross-check with the National Enterprise Credit Information Publicity System
Use the USCC or the company name to search the official system. Verify that the license details (name, address, and scope) match what you were provided. Pay attention to:
- Consistency of the company name in Chinese and English (if an English alias exists)
- Licensed business scope includes garment manufacturing, textile production, export activities, or related services as applicable
- License status should be active or current; note any amendments, changes, or penalties
- Any historical changes in registration that could indicate a shift in business focus or ownership
3) Validate the USCC against other records
Use the USCC as a cross-reference across government and tax records. A mismatch between the USCC and the license details can signal counterfeit documents or entity confusion (for example, two entities with similar names in the same region).
4) Verify the license’s authenticity through license copying and seals
Inspect the license copy for authentic security features (embossing marks, watermark, official seals, and the font used). Some licenses display a QR code that, when scanned, should point to the official record. If a scanned QR link leads to a corporate registry page with matching details, that is a strong sign of authenticity.
5) Confirm the registered address and company registration period
Compare the registered address with the supplier’s facilities. If the address is far from the claimed production site or if there is a discrepancy in the province or city, request clarification. Also, check the license validity period and expiration date to ensure the license is not expired or revoked.
6) Assess business scope alignment with procurement needs
Ensure the business scope explicitly includes your product category. For garment manufacturers, this might include local production, textile weaving/printing, garment assembly, finishing, and export services. If the license lists a broader or different scope, obtain written confirmation that the company is authorized to perform your specific manufacturing tasks.
7) Validate status and compliance signals
Check for any adverse regulatory actions, penalties, or warnings associated with the entity. Recent regulatory actions could affect the supplier’s ability to fulfill orders or export products. The official system may show changes that require follow-up due diligence or a recent audit.
8) Confirm supplementary registrations and licenses
Some manufacturing entities hold ancillary registrations (industry-specific permits, environmental compliance records, export licenses, or tax registrations). Verify any such licenses in parallel if your contract requires compliance with environmental, labor, or export standards.
9) Engage with the supplier’s governance documents
Ask for corporate governance details such as the company’s articles of association, board chair, and management structure. While these are not always public, responses indicating strong governance reduce risk. If the supplier is transparent and responsive about corporate structure, it’s usually a positive signal.
10) Document and archive the verification trail
Keep copies of all verification steps, including screenshots from the official government portals, scanned license copies, and any correspondence. A well-documented due diligence trail supports risk management and can be required during audits, finance approvals, or regulatory inquiries.
Red flags that warrant deeper scrutiny
- License mismatch: Differences between the license copy and the public registry (name, address, or scope do not align).
- Expired licenses: A license that has passed its expiration date or shows no renewal history.
- Inconsistent USCC or multiple registrations: If the same company name maps to different USCCs across documents or there are multiple entities with similar names in the same region.
- Un verifiable QR codes or non-functional links: QR codes that do not point to official government pages or that hyperlink to non-official domains.
- Suspicious business scope: A license that covers unrelated or overly narrow activities for your intended production.
- Reluctance to share records: Hesitation or delays in providing authentic license copies, or refusal to connect with official channels.
Practical tips for OEM garment suppliers in China
For garment manufacturers like Newasia Garment or similar OEM/ODM players, a verification-first approach creates trust with global brands and reduces onboarding risk. Consider these garment-specific tips:
- Ask for the license copy that explicitly lists garment manufacturing, textile production, and export services if you intend to ship products internationally. The license should cover export activities or at least not restrict them where a company is authorized to export textiles and garments.
- Inspect the production facility address in the license against your planned factory visit or audit schedule. Inconsistent addresses should trigger a verification step with the regulator.
- Verify environmental and labor compliance records where applicable. Some brands require evidence of compliance with environmental guidelines, labor standards, and IP protection policies from suppliers.
- Include a clause in contracts that requires continued validity of the license for production, with a process to verify license status at contract renewal or prior to large shipments.
- Leverage a combination of official verification and supplier audits. A license confirms legality, while on-site audits confirm capability and quality systems (e.g., ISO 9001, social compliance audits).
Digital tools and methods to streamline verification
In practice, you’ll use a mix of official portals and trusted third-party data providers to accelerate due diligence without compromising accuracy. Consider the following approaches:
- Official portals as the primary source of truth. Always cross-check third-party summaries against the official registry.
- Third-party business data services for quick screening, but treat them as leads rather than final authority. Use them to identify discrepancies that require deeper official verification.
- Digital copies of licenses with verifiable metadata (license number, issue date, expiration date) that align with the official portal records.
- Periodic refresh of supplier data, particularly for long-term partnerships or high-value production lines, to catch changes in ownership, license status, or business scope.
Case example: Newasia Garment as an OEM/ODM partner in garment manufacturing
Newasia Garment, established in 1986 and headquartered in China, has a long-standing history as an OEM/ODM garment solutions provider. With expertise spanning denim fabric, jeans, casual pants, jackets, and down coats, the company serves global casualwear brands and supports both production scale and design-driven prototyping. When evaluating a supplier like Newasia for a new program, a rigorous license verification process ensures:
- The supplier holds an active business license with the appropriate scope for garment production and export services.
- The legal name and registered address match the facilities where production will occur, minimizing supply chain confusion.
- There is alignment between the registered capital and the supplier’s scale of operations, supporting production capacity claims.
- There are no adverse regulatory flags within the public enterprise credit information records that might impact delivery timelines or product compliance.
For buyers, combining Newasia’s documented credentials with ongoing audits, sampling, and quality checks provides a robust approach to risk management and supply chain resilience. The blend of a long history in the garment sector with transparent license verification builds confidence in the supplier’s ability to meet design specifications, comply with regulatory requirements, and deliver products on schedule.
Global trade considerations: regulatory compliance beyond licenses
Verifying a business license is a foundational step, but global customers should extend due diligence to broader regulatory and compliance areas. Consider the following:
- IP protection: Confirm whether the supplier respects your designs, trademarks, and patents; discuss non-disclosure agreements and IP assignment as part of the contract.
- Export controls and sanctions: Check for any sanctions or trade restrictions that could affect business with the supplier or product lines.
- Quality management: Require certifications such as ISO 9001 or IATF 16949 where applicable to your product category, and plan for regular quality audits.
- Labor and environmental standards: Ensure compliance with local labor laws, worker safety regulations, and environmental guidelines, especially in fashion and textiles supply chains.
- Product safety and labeling: Verify that product labeling, country of origin declarations, and compliance with importer country rules are in place.
Putting it into practice: a supplier onboarding workflow
Use a repeatable process to onboard suppliers with confidence. Here is a practical workflow you can adopt:
- Request official license documents and the USCC from the supplier during initial outreach.
- Verify license details on the National Enterprise Credit Information Publicity System and capture a screenshot or export the data.
- Cross-check the license with the supplier’s stated address, business scope, and export capabilities.
- Request a recent license copy with a visible expiration date and any relevant amendments.
- Scan any QR codes on the license and verify them against official portals.
- Conduct a remote or on-site audit to confirm manufacturing capabilities and compliance with quality standards.
- Document the verification results in a supplier dossier, and set up periodic re-verification intervals (e.g., annually or when there are material changes).
Conclusion is not the final word: keep the verification momentum
In a market as dynamic as China’s manufacturing sector, verification is an ongoing discipline rather than a one-off task. A verified business license provides the backbone for risk management, supplier trust, and regulatory compliance, but it should be complemented by ongoing audits, quality inspections, and continuous monitoring of regulatory changes. By integrating official license verification into your supplier onboarding, you anchor your procurement decisions in verifiable data, reducing uncertainty and strengthening your ability to scale dependable program across borders.
Key takeaways for buyers and brand partners
- Always start with the official license and USCC. Treat these as primary identifiers that anchor your verification work.
- Cross-check against the National Enterprise Credit Information Publicity System and provincial regulators to confirm status and history.
- Inspect license authenticity, including seals, signatures, and any digital verification features like QR codes.
- Validate that the business scope covers your product category and export activities; address discrepancies promptly.
- Maintain a well-documented verification trail and integrate it with your supplier onboarding and audit programs.
- Use a combination of official verification and on-site due diligence to build a robust risk management framework for your supply chain.
