A new contract with an unfamiliar company is always a risk. The good news: most of the basic checks can be done in minutes from public data.
1. Make sure the company is active
Start by checking the Register of Legal Entities to see whether the company is active. The status of companies in liquidation, bankruptcy or de-registered is often overlooked, although it matters most.
2. Compare the identifiers
The name, company code and address in the contract must match the register. If your partner gives a different code, or omits a VAT code while claiming to be a VAT payer, ask for an explanation.
3. Check who can represent the company
The contract should be signed by the manager or an authorised person. See who is listed as manager and ask for a power of attorney if someone else is signing.
4. Assess size and finances
Headcount, average salary, turnover and net profit help you judge whether the partner can deliver. A company with a single employee and multi-million contracts deserves extra questions. Look at debts and tax payments too.
5. Tie it to facts outside the register
The website, contacts, reviews and description of activities should match what the register says. A very young company claiming ten years of experience, or a website with no contact details, is a signal to pause.
Red flags
- manager, registered office and name all changed recently
- the registered activity does not match what the company offers
- the partner asks for a prepayment but will not provide identifiers
- very small indicators compared with the value of the contract
This is not a full legal or financial audit, but it filters out most obvious risks. You can review the indicators quickly in the company filter and automate the process through the API.