A factory audit is one of the highest-ROI activities a buyer can undertake before placing a significant production order. A half-day audit can surface problems that would otherwise cost you an entire production run.

This checklist covers four audit domains: legal and commercial verification, production capability, quality management systems, and social/environmental compliance.

Domain 1: Legal & Commercial Verification

  1. Business license on display — Valid, current, matching the factory name on your contract
  2. Unified Social Credit Code — 18 characters, verifiable at gsxt.gov.cn
  3. Business scope includes manufacturing — Not limited to "trading" or "consulting"
  4. Export license — Required for most product categories; confirm they have it
  5. Bank account in company name — Payments to personal accounts are a major red flag
  6. Legal representative identity — Person signing contracts should match registration
  7. Company age — New registrations (under 2 years) warrant extra scrutiny

Domain 2: Production Capability

  1. Facility size matches claimed capacity — Walk the floor; does the space match their stated output?
  2. Equipment ownership vs. rental — Do they own their key machinery or subcontract?
  3. Workforce headcount — Count production workers on the floor, not just the claimed number
  4. Subcontracting disclosure — What percentage of production, if any, is outsourced?
  5. Sample production capability — Can they run small sample batches in-house?
  6. Raw material inventory — On-site stock of key materials indicates genuine operations
  7. Machinery maintenance records — Regular maintenance logs suggest operational discipline
Common Red FlagA "factory" with a pristine showroom but minimal production equipment is likely a trading company. Ask to see the production floor before the showroom.

Domain 3: Quality Management Systems

  1. Incoming material inspection — How do they verify raw material quality on receipt?
  2. In-process quality checks — What checkpoints exist during production?
  3. Final inspection protocol — Is there a documented outgoing inspection process?
  4. Non-conformance handling — How are defects identified and resolved?
  5. Quality records retention — Can they provide inspection records from previous production runs?
  6. Calibration records — Measuring instruments should be calibrated and logged
  7. ISO 9001 certification — Valid certificate from an accredited certifying body

Domain 4: Social & Environmental Compliance

  1. Worker contracts on file — Chinese labour law requires written employment contracts
  2. Working hours compliance — Maximum 8 hours/day, 40 hours/week standard; overtime rules apply
  3. Minimum wage compliance — Each GBA city has a published minimum wage; confirm adherence
  4. Safety equipment provision — PPE, fire extinguishers, emergency exits clearly marked
  5. Environmental permits — Required for factories with chemical, paint or finishing processes
  6. Waste disposal records — Proper waste handling documentation for applicable product types

Conducting the Audit Remotely

If you can't attend in person, consider hiring a third-party audit firm (Bureau Veritas, SGS, Intertek, or local alternatives). A standard factory audit costs $300–600 and produces a detailed written report. For your first significant order with a new supplier, this is essential spend.

ChinaMakersHub conducts facility visits for all listed factories as part of our verification process. Buyers engaging manufacturers through our platform receive access to our internal audit documentation.

ChinaMakersHub connects global buyers with verified manufacturers across China's Greater Bay Area. Submit an inquiry to get introduced to vetted factories in your category.