One unfortunate side of the business world is dealing with scams. There are always companies who seem good on paper but are operated by fraudsters only interested in making a quick buck. For entrepreneurs dependent on new partners, vendors, or suppliers, this is a risk they have to take. However, there are ways to mitigate these threats by checking the reliability of their potential clients or partners.
How to get information on a Singaporean company?
There are many ways to find information about a company registered in Singapore. If you have the time, then an extensive search on social media and online forums could give you a broader idea of the company’s reputation, but for time-strapped business owners, ACRA’s Singapore BizFile website is an excellent place to start. Here you will be able to verify the status and legal standing of a business quite easily.
Company Status – Live means the company is functional
Address details – ideally, this should be a proper address and not a mailbox. If it does turn out to be a mailbox, then you can ask for the mailbox provider’s contact to investigate further.
Industry – this should be similar to what the company advertises. If they have several different types of services listed, then it could be cause for concern.
Annual General Meeting – private companies don’t have to hold an AGM, but if there is an AGM date listed, then that would be a positive mark in the company’s favour.
Annual Returns – this is another statutory compliance for all companies which must submit the correct documentation within 30 days of holding an AGM.
Financial Statements – regular submission of financial statements is another favourable point.
Is it important to verify a company?
Well, yes. An underperforming or fraudulent partner will most certainly affect your business – either in terms of monetary loss or reputational damage. Not only will the time spent digging up this information will save you much more effort and money down the line, but it will also help you approach your new partnerships with confidence.
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