The five names on a China order
A business licence is a passport, not a boarding pass. It proves a company exists. It does not prove this is the company you are dealing with.
Why the company that quotes you may not be the company that gets your money
One China order can involve five different company names: the company that quoted you, the company named on the invoice, the company that owns the bank account you're asked to pay, the company registered with Chinese customs to export the goods, and the factory that actually makes them.
In a simple deal, all five are the same company. In a normal trading-company deal, they are not — and that is not fraud. A trader may quote you, invoice you, receive your money, handle the export paperwork, and buy from a factory you never speak to. For small volumes that can be a sensible arrangement.
The risk is narrower. If the invoice, the bank account and the customs record point at different companies, you can end up with a contract against one company and your money inside another. If the goods never arrive, that is a much harder problem to fix.
A business licence check will not show you this. It confirms that a company exists. It does not confirm that this is the company you are actually dealing with. So before you pay a deposit, put the five names side by side and ask which ones differ — and why.
The five names, and where each one comes from
Every name below is taken verbatim from a document you already have. Nothing is translated, corrected or tidied up.
| # | Role on the order | Where the name comes from | What it tells you |
|---|---|---|---|
| 1 | Who quoted you | Email signature, WhatsApp profile, business card | Usually a person, often with no company named. You may be talking to someone who cannot bind the company. |
| 2 | The company on the invoice | The proforma invoice header | The legal entity you are contracting with. This is your baseline. |
| 3 | The bank account holder | The payment block on the invoice | Who actually receives the money. The most expensive gap if it differs. |
| 4 | The customs-registered exporter | Customs registration record; the name on the export declaration | Who is registered to export. If it differs, your goods may leave under someone else's name. |
| 5 | The actual factory | Factory gate plate, business licence address, on-site visit | Who physically makes the goods. If it differs, you are buying from a trader. |
Note on #4. A Chinese exporter registers with customs (报关单位备案). The old “foreign trade operator registration” was removed from the law on 30 December 2022. Anyone still asking you to check an “export licence” for ordinary goods is working from an outdated checklist — including some of the big inspection companies.
If the names do not match, what each gap means
None of these gaps is automatically fraud. Each one costs you something different, though — and only one of them is hard to fix after the fact.
| The gap | What it usually means | What it can cost you |
|---|---|---|
| #2 ≠ #3 Invoice company ≠ bank account holder |
Payment is going to a different legal person. Common with a trading company collecting for its factory, a Hong Kong entity, or a personal account. | The highest-risk gap. If the account holder is not your contracting party, you have no contractual claim on that money. |
| #2 ≠ #4 Invoice company is not the customs exporter |
The entity invoicing you may not be the entity on the export record. Goods may leave under another company's name. | Customs and import documents name a third party — harder to claim, harder to prove origin. |
| #2 ≠ #5 Invoice company ≠ actual factory |
You are buying from a trading company. That is legal and often sensible for small volumes. | Typically a 10–25% margin, and no direct recourse against the factory if quality fails. |
| #1 has no company | Could be an agent, a freelancer, or a factory employee on a personal phone. | You may be negotiating with someone who cannot bind the company to anything. |
| Licence address ≠ plant address | Either a multi-site operation (normal) or a registered / serviced address (a flag). | If it is a serviced office, ask which plant actually runs your SKUs. |
What a licence check does — and does not — prove
It does prove
- That the company legally exists
- Its registered Chinese name and unified social credit code
- Its registered address and business scope
- Whether that registration is still active
It does not prove
- That the company you pay is the company you signed with
- That the account you are wiring to belongs to them
- That they make the goods rather than buy them
- Anything at all about quality, timing or solvency
Three things you can do before you pay
- Put the five names side by side. Take the invoice, the bank details and the licence, and write the five names out in one place. Most gaps become visible on sight.
- Ask which name differs, and why. A written explanation on the invoice or contract is worth having. A verbal one is not.
- Match the licence address to the plant address. Trading companies list offices; factories list production sites.
Send me two names — the first check is free
Send the company name on your invoice and the name on the bank account. I will tell you whether they are the same legal entity, and what it means if they are not. No paid work starts until you decide you want it.