How to Quickly Determine If a Company Holds a Financial License?

The Importance of Verifying Financial Licenses in Today’s Economic Environment

In today’s economic environment, the importance of financial licenses has become increasingly evident. Whether for individual investors, business partners, or entrepreneurs, verifying whether a company holds a valid financial license has become an essential step-especially when engaging in financial services or products. This verification is not only critical for fund security but also directly affects the compliance of business operations.

1. Understand the Basic Types of Financial Licenses

First, it is important to understand what a financial license entails. In China, financial licenses are mainly issued by regulatory authorities such as the People's Bank of China PBOC, the China Banking and Insurance Regulatory Commission CBIRC, and the China Securities Regulatory Commission CSRC. These licenses cover various sectors, including banking, securities, insurance, funds, payment services, and trusts. Different financial services require different licensing requirements. For example, companies engaged in internet payments must hold a Payment Business License, while those offering asset management services must obtain relevant permits from the CSRC.

Before conducting verification, determine the type of license the company should possess based on its core business. If a company claims to offer loan services but lacks a microfinance or consumer finance license approved by the CBIRC, it poses a significant risk.

2. Conduct Preliminary Screening via the National Enterprise Credit Information Publicity System

One of the most authoritative and convenient methods is to use the National Enterprise Credit Information Publicity System http//www.gsxt.gov.cn, an enterprise credit information platform hosted by the State Administration for Market Regulation.

By entering the full legal name of the company, users can access its business registration details, scope of operations, shareholder structure, and more. Pay particular attention to the scope of business and registration status. Legitimate financial institutions usually have clearly defined business activities in line with their licenses. You can also review historical changes to detect any recent additions of financial-related activities aimed at misleading the public.

3. Check Regulatory Authority Websites for Licensed Entities

For certain industries, such as private equity funds, payment companies, and leasing firms, you can directly visit the official websites of relevant regulatory authorities to check licensed entities.

The PBOC website provides access to third-party payment licenses under the Administrative Measures for Non-financial Institution Payment Services.

The Asset Management Association of China AMAC offers a database of registered private fund managers.

The CBIRC website lists approved microfinance companies and consumer finance firms.

These databases are typically updated regularly and offer accurate, reliable data-making them crucial for verifying financial qualifications.

4. Use Third-Party Commercial Platforms for Preliminary Assessment

In addition to official channels, there are several third-party platforms such as Tianyancha , Qixinbao , and others that compile extensive public data. These platforms provide quick access to a company’s legal risks, operational anomalies, litigation history, intellectual property, and financing records.

Some platforms now offer one-click identification features for financial licenses. By simply entering the company name, users can see whether the firm holds a financial license, along with key details such as the issuing authority and license validity period. While these platforms cannot fully replace official verification, they serve as highly effective tools for initial screening.

5. Monitor News and Watch Out for Misleading Claims

In recent years, with the rapid development of fintech, many unlicensed companies have used buzzwords like blockchain, digital currency, and high-yield investment to conduct illegal fundraising, causing significant losses to investors.

For example, in early 2025, several online lending platforms were investigated for suspected illegal deposit-taking. A common trait among them was the absence of proper financial licenses despite offering credit services. In March of this year, a financial services division of a well-known e-commerce platform was suspended for alleged illegal lending practices after it was found that the company lacked formal approval from local financial regulators.

These incidents remind us that even large, well-known companies should not be trusted solely based on their self-proclaimed compliance. It is advisable to regularly follow reputable financial media and regulatory announcements to stay informed about blacklisted or penalized companies and avoid potential risks.

6. Combine On-site Investigation with Professional Consultation

If there are doubts about a company’s legitimacy, deeper verification methods can be employed. For instance, visiting the company’s registered address to confirm the existence of its office space, or hiring legal or accounting firms to perform due diligence.

Especially in cases involving significant investments or strategic partnerships, professional due diligence reports can uncover hidden issues such as related-party transactions, whether registered capital has been fully paid, or the existence of hidden debts. While these factors do not directly reflect licensing status, they help provide a comprehensive understanding of the company’s actual strength and compliance level.

Conclusion

Verifying whether a company holds a financial license is not a complicated process. With the right tools and channels, even ordinary individuals can perform effective checks. From basic information searches to professional due diligence, each step plays a crucial role. In this age of information overload, maintaining rationality and vigilance is key to avoiding financial fraud and ensuring safe, stable investments and partnerships.