What’s the best way to cripple an economy?
Hit it in the pocket, and mess with the financial system.
As one of the top six economies in the world, it is vital that those in and doing business with those in India do their part to prevent financial crime.
Read on to learn how to do your due diligence by doing an India company check and following India KYC guidelines.
Checking the Company
As previously stated, nearly every country has some form of laws regarding registration of a business in order for it to legally operate.
Registering for a business license is often different from country to country, city to city, and often region to region.
In most cases, the business license and registration information is posted in public places — allowing anyone to verify if a business and the people in it are legitimate.
For instance, in India companies register with the MCA (Ministry of Corporate Affairs) for a CIN (Corporate Identification Number).
The MCA is also in charge of monitoring the company to ensure they stay within the law.
When you do a company check for a business located in India you simply input the company’s name and CIN into the MCA online portal.
To get to the area where you enter the information, you will have to click on the MCA Services menu, then find the Master Data menu and go into the sub-menu entitled View Company or LLP Master Data.
Once you enter the name and CIN, you will be provided with all the information you need to verify that the person and company you are talking to or dealing with are legitimate.
KYC
Another thing that you can do to protect yourself and the economy is to follow KYC (Know Your Customer) guidelines — especially if you plan to make a substantial deal with an entity or person in India or allow them to open an account in your business.
KYC guidelines are mandatory for those in the banking or financial institution field — including those providing loans, savings accounts, or other financial services.
Why it helps
Know Your Customer guidelines include gathering documents like personal identification and other information to determine that the person or entity is who they claim to be and are not committing or at risk of committing a financial crime.
Verifying that a company, entity, or person allows you to do your part in preventing financial crimes, including scams.
These crimes can destroy not only your financial health, but also the strength and health of the economy locally as well as throughout the world.
In order to protect ourselves and the economy, it is vital that we all do our due diligence.
This means verifying that the people we do business and make deals with legitimate people who have the right intentions.
As one of the top six countries with the biggest economies, it is extremely important to do an India company check and follow India KYC guidelines with each person you deal with.