Tips on China company verification Part 4

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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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Comments

12 Responses to " Tips on China company verification Part 4 "

  1. pareena v-kadel on  FEB   27th , 2013 10:51 AM

    hi,

    pls can you check whether this company is fake or real .
    HEBEI RUIXI ANTIMONY CHEMICALS CO.,LTD
    TEL: +86-311-67900798
    ADD: Nanxiao Street, Qiaoxi District, Shijiazhuang City,Hebei
    Province. China

    there are 2 website ...all so confusing
    www.ruixi-antimony.com
    www.ruixipaper.com

    Thank you very much.
    best rgds, pareena

  2. Barry O'connor on  AUG   12th , 2012 9:3 AM

    For one month ago, i deal with a very legitimate company that sell electronic product, but i feel their marketing want to trick me , she said her company can't send the goods FOB so she told me to search forwarder in china and she said that the company only can deliver the goods in my forwarder address in china only, and she gave me very high price and not negotiable, warranty time count since date of making product not from date of purchase order, and she only deal with PI not sales contract.

  3. Hassan Sohail on  APR   27th , 2012 4:5 AM

    This company is selling me polyester yarn can your verify if this is a true company or a scam company?

    They say they are offical representative of the factory

    Heibei Xiusina Textile co LTD . I am confused.

    hebei province JinZhoucity development zone


    please email on striker_hassan@hotmail.com

    CHINA HOSNA GROUP CO .,LIMITED

    NO.15 Guang'an street, Qiaodong District, shijiazhuang, china.

    Regards,
    Hassan
    TEL: 86-0311-67663738
    FAX: 86-0311-67663126
    SKYPE: andy-fan500
    MSN: fanlipeng@live.cn
    WEB: www.xiusina.com

  4. lvspix on  APR   24th , 2012 2:16 AM

    I need to see if a Chinese company is legal, as their prices are extremely low.
    Company name: sweethome electronics
    Website: http://www.sweethome-electronics.com/
    Sales person 'Jing Zhu' zhu.jing78@yahoo.cn
    Trading as: XINHE TESHNICAL.CO.,LIMITED
    LOCATION: ADD: Futian District, Shenzhen City, Guangdong Province, China
    FLAT/RM 1701(390) 17/F
    HENAN BUILDING
    90 JAFFE ROAD WANCHAI
    HK
    Certificate number: 587924750000711-9
    Beneficiary name ; xinhe technical co, limited
    Account number 098-361884-838
    Beneficiary bank name: HSBC Hong Kong
    Bank address: queen’s road central hong kong
    Bank code: 004
    Swift address HSBCHKHHHKH


  5. momi on  MAR   28th , 2012 5:35 AM

    Hi Good day, I need this company details to be verified for me please: Their website is http://www.szhasai.com .all details are shown in contact us page.I want to do business with this company .but i am not sure that it is Real company or scam..please verify me thanks alot.

  6. Kumru kimya on  MAR   24th , 2012 3:10 AM

    can we please verify or send a price enquiry for verification of following company.

    www.hbycchem.com

  7. dheeraj sharma on  OCT   17th , 2011 6:45 AM

    Please verify this company in shenzhen,china. I want to purchase goods from this company.

    New One Trading Company Limited
    Business Manager: Erika Liu
    Email: newone.coltd@gmail.com
    MSN: newone.coltd@hotmail.com
    Skype: Erika-NewOne
    Yahoo Messenger: newone.coltd@yahoo.cn
    TEL: 86 755 33674913
    MOB: 86 13172448913
    Website: http://newonecoltd.com
    Office Address: Room 9C, Wealth Building, NO.88 of Fuhua Third Road, Futian District, Shenzhen


  8. Zaafarull on  MAY   30rd , 2011 21:42 PM

    See if you help us with this company

    money paid not much small no good send as promised

    Shanghai Delux Cosmetic Packaging Co.,LTD.
    Address: No.258, Nan Huan Road,SongJiang District,Shanghai China

    Postcode: 201612

    Tel: 0086-21-51078026 Fax: 0086-21-60853398

    Website: http://www.cosmeticspack.com

    E-Mail: sales@cosmeticspack.com

    MSN: cosmeticpack@hotmail.com

  9. Vasti on  JUN   18th , 2010 21:43 PM

    Hi Good day,

    I need this company details to be verified for me please:

    Their website is http://www.ezs-fashion.net.cn/aboutus.html if i conclude this business i will have to send alot of money to them and i need to be 101% sure i cant afford to lose money, i want to make money. thankyou

  10. SALMAN on  JUN   15th , 2010 1:4 AM

    MY NAME IS SALMAN

  11. SALMAN on  JUN   15th , 2010 0:51 AM

    ON LINE TRANSFER OF MONEY

  12. Ken Hornbuckle on  NOV   21th , 2009 10:16 AM

    I wanted to see if there is a way to see if this company is fraudulent or in good standing. I can't afford the $250 for you to go there but if you have a cheaper way to then I would be happy to do that? I have a picture of there business license but it's in Chinese, so that doesn't help me.

    Thank YOu,
    Ken
    Gain Trust 2020 all one word build 3,lijiang Street, ,xianwen City, wennab, China, 86-0594-6660299

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