International Trade

This article was originated from www.Chinawhy.net 

Visit local Administration for Industry and Commerce(AIC) website


The most secured way to verify a China-based company is to visit the local administration of industry and commerce, check the company registration information of said company from local AIC with the information listed on their business license to see if they are the same.

You can find the following company information at local AIC: date of incorporation, address, legal representative, registered capital, contact information, business scope, business type, business term, annual inspection performance, etc.

China why offers inspection service in China(including local AIC visiting) for paid customers, However, we are happy to share some open company verification resources( regarding AIC visiting) with customers who are doing very small business and can't afford to pay for a proper company verification.

In a long run, China will build up a comprehensive company registration information inquiry system, but for now, we don't have a nationwide level official website offers such data inquiry service.

Some local AIC have set up website for users to check the basic information of a company found within their administrative area, I have checked whether these website are authentic by testing to check some local companies which I knew are legit, However, for many AIC website which offer online company information inquiry service, the results are not correct due to they haven't built up an complete online database of company registration information they possessed.

The following website of local AIC offers authentic company information inquiry function:
Shenzhen Administration for Industry and Commerce

Xiamen Administration for Industry and Commerce

When you click into the website, you need to either input Company registration No. or Chinese company name, let me give you an example on how to check a Shenzhen-based company by using the website of Shenzhen Administration for Industry and Commerce.

I know "深圳市XX实业有限公司"  is real and legit, so when I open www.szcredit.com.cn, I input the company name in "名称关键字或注册号或机构代码" this field, then click "查询", you will get here: http://www.szcredit.com.cn/SZCredit/Query/frmQueryList.aspx?MC=[深圳市洪迪实业有限公司]&Type=0

You will find that this company is a Hongkong-funded enterprise and has one subsidiary company, you can also see the legal representative of this company, but if you want to inquiry more detailed information of this company, you will be charged. So in conclusion:
1)most AIC don't offer online company information inquiry service
2)among those AIC websites that offer online inquiry, many are not authentic due to database incompleteness.
3)Among the few AIC website that offer online inquiry function and have a complete database for accurate company information inquiry, most are paid, only a few are free. We are going to share with our fellow users if we found other free open resources for company verification.

How to verify Hongkong Offshore Company

A late happy Chinese new year to all regular and new visiters of chinawhy.net, wish you a happy and prosperous new year ahead. I went back to South China to celebrate the lunar new year with my parents, brother and nephew during the long vocation. Family reunion, delicious South China food, splendid firework on new year’s eve, New year holiday is always too short…

I guess many of you have come across Hongkong-based companies that have address and contact info in mainland China only(mostly in Shenzhen or somewhere else in Guangdong Province), they are Hongkong-base offshore company.

The reason for people in southern China to set up companies in Hongkong mainly are: 1) Hongkong is tax heaven so many companies set up companies in Hongkong to avoid tax; 2) Hongkong have loose company registration regulation compared with mainland China so it is easy for many individual to set up a shell company there. The cost for setting up an offshore company in Hongkong is around RMB10000.

The danger for dealing with an offshore/shell company in Hongkong is that they don’t have a physical presence there in Hongkong, in that case, if any dispute arises from the transaction, you will have nobody/entity to make remedy against in Hongkong, meanwhile you are also not protected in mainland China as you are dealing with a company in Hongkong.

So how can I tell if a hongkong-based company is an offshore company or a real Hongkong company? Here are some clues:

1)call their telephone number in Hongkong to see if anyone answer it(be awared that the phone might be transferred to some place in China by virtual office service provider in Hongkong);

2)visit their address in Hongkong if you can, that is always the best way to tell the shell company, make sure you visit them secretly as virtual office service provider also provide temporary office for those shell company.

3)Mostly they have a company account(which is positive as I mentioned in other company verification articles), but they open account in small foreign bank. State-run banks like Bank of China, Commercial and Industrial Bank of China, China Construction Bank, Agricultural Bank of China are very strict in opening company account. In mainland China, a company account in state-run banks are way safer if you are going to pursue your rights in mainland China.

4) check the company name with The Cyber Search Centre of the Integrated Companies Registry Information System at http://www.icris.cr.gov.hk/csci/,

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