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Knowledge and insights on company search and due diligence in China


When seeing these red flags during a company background check, you should consider not partnering with that supplier

When seeing these red flags during a company background check, you should consider not partnering with that supplier

Due diligence | 2023-06-04

As a service provider in company search services in China, our clients frequently ask us the following questions"I want to know whether the business of this company in China is legitimate?","Is this company listed in any blacklist?", and"Just need to know if it is safe to do business with this company."When answering the above questions, we always emphasize the importance of conducting a thorough company background check before engaging in business to determine whether it is safe to trade with that company.An in-depth background check can revea ......

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How to check if a company in China is real? (Part 2: background check)

How to check if a company in China is real? (Part 2: background check)

Company search and compliance | 2023-05-22

We do company searches and background checks every day for our clients. According to our experience, at most times, a simple Google search can reveal potential abnormal risk signals in a company's operation.Here are some examples of how background checks can help know a company. #1 - Multiple websites used for the same company and productsWe found that the target company ("Company A") has at least six domain variations, and on the respective websites, the company names are the same, and the contents are alike. Worse, we noted that the registrat ......

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Caution! This company might use a fake business license

Caution! This company might use a fake business license

Due diligence | 2023-05-20

Recently, our analysts assisted one of our clients in performing a background check on an electronics wholesale e-commerce site. The observations suggest the company operating this site might use a fake business license. Worse, its business license was already revoked in May 2022.The company shows its business certificate, tax registration certificate, and importer and exporter certificate on its website (https://saleholy.net/about). It discloses that the company's English name is Saleholy Electronics Technology International Trade Co., Ltd., a ......

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How to check if a company in China is real? (Part 1: Registration check)

How to check if a company in China is real? (Part 1: Registration check)

Company search and compliance | 2023-05-20

REAL – this word has different layers of meanings. A company could be a truly registered entity but conduct fake business or exaggerate its operational strength. So, the basic level of checking a company is to verify its registration information. Further check procedures may primarily focus on a company’s business and operation authenticity.Checking a company’s registration in China is not difficult. Anyone can search the information from the National Enterprise Credit Information Publicity System by searching the company names or social ......

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A real and fresh case about why only checking business registration information is insufficient to avoid scams

A real and fresh case about why only checking business registration information is insufficient to avoid scams

Due diligence | 2023-04-11

In our last post, we explained why verifying a business license is not enough to avoid scams. Today our analysts noticed a real case in the news about the risk of fake business registration information.According to some domestic media in China, a few days ago, a private company named Guoheng Foundation Holding Group Co., Ltd. (hereafter “Guoheng Foundation”) updated its registration records to change its sole shareholder from a private company to several large enterprises owned by central governments and state-owned funds, such as State Pow ......

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Why verifying the business license is not enough to avoid supplier scams?

Why verifying the business license is not enough to avoid supplier scams?

Due diligence | 2023-04-09

When doing business with suppliers, it's vital to ensure they are legitimate and trustworthy. One way to do this is to verify their business license. A registered Chinese supplier must have a company registration number (the social credit code). Using the social credit code to check the business license is easy and necessary.However, relying solely on this verification method may be insufficient to avoid supplier scams. In this article, we will explore why verifying the business license is not enough and what other factors to consider when eval ......

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Six tips for avoiding supplier scams when importing from China

Six tips for avoiding supplier scams when importing from China

Company search and compliance | 2023-03-19

Importing products from China can be a lucrative business, but it also comes with its own set of risks. One of the most significant risks is falling victim to supplier scams. These scams can cost you a lot of money and cause considerable stress. Here are some tips on how to avoid supplier scams when importing from China.1. Research the supplier thoroughly. Before doing business with a supplier in China, it is essential to research them thoroughly. Look for reviews and feedback from other customers who have previously worked with the suppli ......

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Caution! Companies using this image as their branding pictures might be exaggerating business capabilities

Caution! Companies using this image as their branding pictures might be exaggerating business capabilities

Due diligence | 2023-03-12

In our recent work assisting one of our clients in performing a public domain search on a potential supplier, the Knowaco team noted that the target company was using a falsified branding image on its websites. The questionable picture shows the target company's office building and front door. We further found various companies also use photos with the same building and front door but only change the company logo and name in the image.The actual company having this building and the front door is 3M Material Technology (Suzhou) Co., Ltd., which ......

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Selected cases of companies with severe law violations in the Yangtze River Delta region in 2022

Selected cases of companies with severe law violations in the Yangtze River Delta region in 2022

Company law of China | 2023-03-04

In February 2023, the State Administration for Market Regulation authorities in the Yangtze River Delta region released the cases of severe law violations and untrustworthiness cases in 2022. Our editor selected three typical ones from the announcement as follows.1. Shanghai Jinrui Food Co., Ltd. (上海金瑞食品有限公司)On November 25, 2021, the Hongkou District Market Supervision Bureau conducted an on-site inspection of Shanghai Jinrui Food Co., Ltd. and found that the company produced salted pork leg meat without permission in a resi ......

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How to seach Chinese companies on Knowaco.com: a step-by-step guide

How to seach Chinese companies on Knowaco.com: a step-by-step guide

Use knowaco.com | 2023-02-12

Knowaco.com provides an automated tool called "Instant Company Search" for users who want to search the company registry information and the information in the public domain, such as court records, administrative orders, and law violation records.Conducting a company search is easy on our site:1. Input a keyword in the Instant Company Search search engine (the "Search Engine") and click the "Get the report" button.Here are some tips on the keywords:Use short names, such as the brand name, business name, company name abbreviations, website, etc. ......

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