Get China Credit TwitterGet China Credit FacebookGet China Credit LinkedinGet China Credit
Get China Credit
Safer, Better Business in China
Opinions, knowledge and resources from Get China Credit's expert contributors
How to verify whether it is a Hong Kong company or a mainland China company?

How to verify whether it is a Hong Kong company or a mainland China company?

by · 7/31/2020, 1:43:55 AM

Whether it is a Hong Kong company in China or a company in mainland China is actually difficult to verify, because they are a country and many people do not know when they are doing business. It is very common for Hong Kong companies to register companies in the Mainland, and vice versa, especially in Shenzhen.

The company registration in Hong Kong, China is different from that in Mainland China. Many people who do business with Chinese companies may not realize this. Although Hong Kong and Mainland China are one country, they are very independent politically and economically. The Chinese central government has adopted the policy of "one country, two systems" on the Hong Kong issue. The business registration systems of Hong Kong companies and Mainland China companies are completely different. In fact, they are just like the registration systems of different countries.

Registered in Hong Kong by the Companies Registry, and issued a Hong Kong company registration certificate. Mainland China registration is issued by AIC and China Business License. Some people may be surprised that the mainland registration system is actually more stringent and difficult than Hong Kong. Hong Kong’s business environment is generally more open, and Hong Kong is a more mature capitalist economy.

Companies registered in Hong Kong are easier to register than companies registered in the Mainland, and require less initial capital. A Hong Kong company can be registered in English alone, but requires a Chinese name, but this does not mean that it is easy to verify the official registration record of a Chinese company.

The second problem is that it is common for Hong Kong companies to register branches in the mainland, and vice versa.

The parent company is located in one place and operates there, but it also operates a company registered in another place. Of course, there may be various situations, some of which are legal and some are illegal:

A company has a headquarters or office in Hong Kong, but a mainland company is operating manufacturing business in Hong Kong, a mainland company has registered a financial office in Hong Kong, and a scammer from the mainland has registered a Hong Kong company to reduce tracking (because Hong Kong Registered companies are easier to register). Mainland supplier companies can be more easily set up in Hong Kong and then used to receive payments and deliver orders to factories registered in the Mainland.

Generally, these double registrations occur in Shenzhen or Guangdong because they are close to Hong Kong. Setting up a company in Hong Kong is too easy. It only takes 2.5 days and only three procedures are required. In contrast, it takes 30 days to establish a company in Shanghai, the financial center of China, and it will be a more difficult process in many parts of China.

Get China Credit TwitterGet China Credit FacebookGet China Credit LinkedinGet China Credit
Wholly foreign-owned Chinese company registration
Wholly foreign-owned Chinese company registration
by · 10/10/2020, 7:53:43 AM
A wholly foreign-owned Chinese company refers to an enterprise established by foreign investors in accordance with relevant Chinese laws with all their capital established in China. It is a Chinese legal person, excluding branches of foreign companies and other economic organizations in China. Foreign-funded enterprises are also called foreign-funded enterprises. Specific forms include foreign-invested joint ventures and foreign-invested enterprises. Its investors can be foreign companies, other economic organizations and individuals.
Continue Reading >
5 ways to check Chinese certificates
5 ways to check Chinese certificates
by · 9/17/2020, 8:12:12 AM
Some Chinese companies generally use forged certificates, which has seriously damaged the reputation of most formal companies. This article introduces 5 tips to check whether the Chinese certificate is legal, so you can avoid those fraudulent companies.
Continue Reading >
What information can the China Annual Report provide?
What information can the China Annual Report provide?
by · 9/15/2020, 8:31:35 AM
This paper studies the information on China's annual declaration form publicly obtained by the Chinese government. Companies registered in mainland China must submit annual tax returns to the State Administration of Taxation (SAT) to report on the financial and current status of the business. For most companies, this information must be submitted by a registered Chinese tax accountant who has audited the company's account.
Continue Reading >
Sign up for our newsletter
Sign up to get the latest on sales, new releases and more…
Our Locations
HongKong Head Office The Hongkong Club buiding, 3A Chater Rd, Central , Hongkong
Mining Equipment
drip coffee bag packing machine
china pajamas
induction cooker
High frequency hardening machine
Cosmetic Ingredients
China Mini Excavator
China Company Verification Services
© 2020 Get China Credit, Inc. All Right Reserved.