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There are many Asian suppliers who are able to efficiently and professionally fulfil your orders, but there’s also a risk that the new supplier who ‘sounds perfect’ is actually lying in wait to scam your business out of money, intellectual property, or both.
So, how can importers be sure that their new supplier is the real deal before placing their first order and wiring a deposit? By performing a quick and effective supplier legal records check to confirm their legitimacy.

sofeast supplier legal documents check

Why perform an LRC?
You’re quickly able to eliminate potential suppliers that are not legitimate or have the wrong profile.
Here are examples of red flags the check will turn up that benefit you by allowing you to avoid the wrong supplier:

  • They pretend to be a manufacturer, but that’s clearly incorrect
  • They don’t even have a real company, or their address is not correct
  • They might register the trademarks of their customers in their own name
  • They look like a shell company (empty, with no real activity)

What is a supplier legal records check?
Our experts check existing local-language legal documents about the supplier for accuracy (without them knowing about this). We gather information online to research basic and important information.

Can this check be performed on companies outside of China?
Yes, we can check suppliers’ companies in China, Hong Kong, Taiwan, Vietnam, Thailand, and other SE Asian countries, too.
Each country has different types of documentation up to a point, however, the overall information that we provide for your assurance remains the same.

When to perform this check?
You should perform this check as soon as you have sourced the supplier and are assessing whether they’re a suitable manufacturing partner. For maximum peace-of-mind, perform it before placing orders, wiring payments, or giving the supplier access to any of your intellectual property.

What information does Sofeast need to start this check?
We just need the company name and address in Chinese (or the local language of your supplier) and a little context about your needs, such as your product type, important requirements, intended order quantity, and so on.

What is in a legal records check report?
We include the photo of the official business registration certificate, as well as some useful comments about it (in English). Here are a couple of examples about Chinese companies (note that we also perform this service in other countries, but not all the same information can be gathered).

In this case, the company is clearly a trading company, not a manufacturer.

And, in this case, the company might display unscrupulous behavior (they were sentenced for improper management of dangerous materials, they have registered some intellectual property that may belong to their customers). If they don’t have good explanations, it is better to avoid them.

This is reported back to you in a detailed PDF document which gives you advance warning about any issues which may affect your decision to work with them.

How much does the legal records check on a company cost and when are the results available?
This check is just 99 USD per company and the results are back to you in 2 working days.

Ready to get started with your supplier legal records check?

Click here to book your check

I have completed my supplier legal records check. What else can I do to assure safe purchasing?
We advise also doing a certificate & report verification where we will take your supplier’s certificates and testing reports (for example, certificates that products conform to various safety standards required by your countries like a CE certificate or NIOSH certification) and check their legitimacy with the issuing bodies. This gives you extra assurance that their products will be high-quality, safe, and ready for export.

If the supplier’s paperwork is in order, the next step is to audit their factory. By doing so, our technicians check the factory’s processes and infrastructure on-site and assure that they are a capable production partner.

Learn more about supplier legal records checks and due diligence

You may also find these solutions and resources helpful:

Solutions

  • Supplier Background Check [Sofeast solution] – More in-depth than the supplier legal records check for even more security, involves physical investigation of the supplier, takes 5 working days.
  • New Factory Identification [Sofeast solution] – Our supply chain management experts source the best possible export-ready supplier for your requirements.

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