Why verification of counterparties is a must-have?

Counterparty verification is something that every business that thinks about its security should do. If you do not check the reliability of the counterparty, you run the risk of getting into such situations:

• The company with which you planned to cooperate does not exist.
• How could this happen? The novice entrepreneur with whom you were going to conclude an agreement did not complete his business activities. He ordered a website from the developers, made a seal, sent you a price list, but forgot to register as a sole proprietor or LLC. Cooperation with such a counterparty is highly likely to be regarded by the tax authorities as fraud (on your part), and this is a criminal offence.
• Your business partner is in liquidation proceedings or has already been declared bankrupt. In case of non-payment by the counterparty, you may not have the opportunity to return your day. Even if you queue up at the register of creditors, until the turn comes to you — assets and funds may no longer remain.
• Your counterparty has a large debt to the tax authorities. In this case, most often he will not have enough money to settle with you.
• One-day company. Recently created, the statutory fund is 100 UAH — here you should think very carefully before starting cooperation with such a counterparty, but it is better to immediately start looking for another business of the Partner.
• The counterparty appears in criminal proceedings (various fictitious schemes, fraud, etc.). Etc.)

Is there a register of questionable counterparties?

There is an official register of questionable counterparties, so for search, you need to use official registers that are publicly available.

Checking the reliability of the counterparty. Which registries should be used?

Contragent and YouControl are services that use data from dozens of different registries and provide a complete picture of the counterparty. Services are paid.

As for free sites, let’s start our list with the site of the State. register of legal entities, sole proprietorship and public organizations.

Here you can find out basic information about the owners, founders, authorized capital, types of activities, see when the company was registered, see if it is in the process of liquidation … Updating in this register takes place with a delay of several days.

Another effective tool for checking a counterparty is the taxpayer’s electronic account.

On this site you can find out: when the taxpayer became registered with the tax, whether he is a single taxpayer, which group is located, which KVED (кведы) he has , does he have the necessary licenses, is the entrepreneur a (НДС) payer, etc.

To obtain information, it is enough to know the full name or name of the counterparty, as well as the EDRPOU code.
Next in our ranking is the tax site, where you can find out about the presence, absence of tax debt. The check is usually carried out according to the EDRPOU code.

The Unified State Register of Court Decisions – will give you information if your potential counterparty is involved in cases of fraud or other crimes.
If you are participating as a Customer or Supplier in public procurement on Prozorro, the Clarity Project service may come in handy.

And the last of the main ways is to google the company and its key persons. There can be many reviews in search engines that will help you better understand the current situation of your potential business partner.

Again, there is no such service as a register of questionable counterparties – there are different services and sites that can give you all the key information about the counterparty.

Checking the reliability of counterparties. Who to contact?

In order to verify the counterparty, it is better to contact the experienced lawyers of the law firm “Kapustin & Partners”.

The security of your business is our priority.

Contact – 066 062 00 69.