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Identify the contracting parties before signing a contract in China

Time:2014-03-13 Hit:1043


Identify the contracting parties before signing a contract in China
To conduct a proper due diligence on a prospective business partner in order to know exactly the people they are dealing with is extremely important.
  The minimum investment shall be conducted is over the business license, either provided by the business partner or search by attorneys with the competent registration authority, the license shall be reviewed to confirm its legal status as well as its official name, legal address and its legal representative, registered capital, business scope. Now days such basic information can be fund through the web site State Administration for Industry and Commerce (SAIC) of provincial level whether the Chinese company is located.
  If we go to the administration bureau of the industry and commerce where such Chinese company is registered we may find more information including its original and current shareholders, the Articles of the Association (AOA) and its amendments, names list of the shareholders, annual inspection reports,. etc. 
  In Shanghai, its easy to find a law firm or lawyer to do the due diligence job, they usually produce a due diligence report as a result of the check list of materials as follows:
If the contract is signed and executed by the employee of the Chinese company or any other representatives rather than the legal representative registered in the license paper, it shall be ascertain whether the representative has proper authorization to sign the agreement on the Chinese party’s behalf. 
 



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