Urgent: Thunderstorm, 11000 Chinese companies registered in the UK are facing major cleanups or involving cross-border seller accounts!

The British media 'Sunday Post' found astonishing facts through research:

Chinese people have registered an astonishing 761 companies in just one year in a rudimentary apartment above a delivery shop in the UK;

They are suspected of using the 'soft touch' system to register over 11000 new companies in the UK, which allows anyone to register companies without requiring proof of identity;

They register an average of 30 new companies in the UK every day, with most companies concentrated in 18 locations, such as abandoned shops and houses on suburban streets;

They only need less than 15 minutes to register a new company, only £ 12, and do not require proof of address, passport, or driver's license.

They are suspected of using regulatory loopholes in the UK to engage in money laundering activities.

After this incident is exposed, the UK government is likely to take action to closely monitor these companies. At the same time, it is possible to modify the current regulatory system and increase the crackdown on violations.

The 11000 registered companies may also face major cleanups. These shell companies are likely to be used in three situations:

Firstly, it is used for registering local stores in cross-border e-commerce. The new VAT policy in Europe has led some speculative sellers to find ways to evade taxes. By registering a local shell company, evading taxes, abandoning it, and then registering under a different name, tax regulation can be avoided.

Secondly, it is used to open a Tik Tok store. Since last year, Tik Tok has officially opened a small store business in the UK, and these shell companies may also be used to open stores.

Thirdly, it is used to engage in money laundering activities. Once a UK company is registered, fraudsters can use it to open an online banking account and use this account to transfer money. By the time the UK regulatory agency Companies House discovered that money laundering activities had ended, the company had already been abandoned by them.

Provide a few pictures for everyone to gain a more intuitive understanding of the facts.

Figure 1: Apartment above a delivery shop, used by Chinese people to register 761 companies.

Figure 2: The South Bank Tower in London has over 1500 registered businesses in one of its apartments.

Figure 3: An empty room on the roadside, with over 2000 registered businesses.

Figure 4: Her name is Karen Weeks, and it wasn't until she suddenly received a letter from an accounting firm that she realized that her house had already been used to register a new company.

We strongly urge that cross-border e-commerce sellers must operate in compliance with regulations. The Zebao 50 million tax case, the US 15000 trademark case, the German tax case of a well-known overseas warehouse in the industry, the Amazon large-scale account closure case, the independent website infringement case, the PayPal freezing fund case, the Shopify large-scale account closure case, and the Facebook mass closure of Chinese advertising accounts case all strongly warn cross-border e-commerce practitioners that compliance is the key to living a long and comfortable life.