In the article, we will consider how to check the counterparty for reliability. Firms can look quite well outwardly, having a beautiful office and a polite sales department, and huge debts along with permanent courts can be covered inside, and the director may even be on the run.
Why check counterparties?
What does the provision on checking counterparties for reliability tell us? Unscrupulous enterprises are very good at falsifying their reputation. In no case can you be trusted with advertising on the Internet, and besides, with generous discounts or expensive suits. That is why it is imperative to check contractors for documentation.
You can not cooperate with ephemeral
The counterparty may turn out to be just such a company, which was created a week ago specifically in order to take an advance from the customer and disappear forever. In this case, you can only lose money, but this is also unpleasant.
It may turn out that the company does not exist at all. There is a website, there is a name and an account for money transfers, but there is no legal entity, and, directly, various deceivers are hiding behind the organization.
Scam calculation
The counterparty can carry out financial crimes, for example, engage in cash out or gain illegal credit debts. In such a situation, law enforcement agencies will check not only counterparties, but also its partners.
Tax Issues
In the event that this body considers that the company has not sufficiently verified the integrity of its potential counterparty, then the benefit may be denied. That is, the organization will not be able to pay less taxes or apply a reduced rate. Now we will find out which papers should be studied first of all.
How to check the counterparty for reliability?
In order to minimize tax risk, before the conclusion of a transaction, taxpayers are advised to request documentation confirming the legal capacity of the audited counterparties and the ability to fulfill all obligations undertaken. Companies are advised to request the following securities to check counterparties for reliability:
- The requirement of the charter of the organization.
- The presence of a certificate of information on the organization in the IP, EGRIP, USRLE.
- Certificate of registration of the enterprise or individual entrepreneur with the tax authority.
- Extract from the register on the organization.
- The average number of employees.
- Providing tax and accounting reporting.
- Availability of a license, if the activity is subject to it.
- Information about vehicles when they conclude a contract for the supply or transportation.
- Information about construction equipment when the company carries out contract work.
The list of documents for checking the counterparty’s reliability is usually standard. All submitted documentation must be properly certified, that is, by signature and seal. A document confirming the appointment of a manager is required. In this case, we are talking about the decision of the general meeting and the order of appointment.
The main technique: what is it?
The methodology for checking counterparties for reliability involves studying the basic data of the organization with which the company intends to conclude an agreement.For this, a free extract is taken from the USRLE, in which they look at the general data: the date of registration along with the address, registered capital, telephones, names of managers and founders, types of activities of the organization. Statements are publicly available on the tax website, the counterparty can be checked by the PSRN, TIN, or by name.
We need to verify that all this coincides with expectations, and at the same time with common sense. It will be very strange if the company enters into an agreement for the supply of fittings with a company engaged in children's parties.
An alarming sign is a large number of different types of company activities: from the sale of food to oil refining. This may be a symptom of a slop organization that is used to pump money. And the lack of the required type of activity for the transaction, according to the tax office, is one of the signs of a one-day company.
Counterparty address verification
It is best to request an organization card and check the counterparty for reliability. You need to find out if the address is mass. This term refers to the location of a significant number of companies that simply buy it to register on the Internet. On it can be located thousands of different companies.
This may mean that the counterparty is not located at the declared place. Therefore, it will be extremely difficult to find in the event of any conflict. A mass address acquired for registration cannot in itself indicate a counterparty is unreliable. But in the overall picture of the audit, I must be alert.
A sample order on the verification of counterparties for reliability is presented below.
Check if the director of the company has been disqualified
It is worth looking for the head of the counterparty in the list of disqualified persons. And also it is necessary to clarify information about those who refused through the court to lead this partner. Disqualified directors are not allowed to manage the company or enter into contracts. They generally can not do anything on behalf of the organization, if only by concluded power of attorney. For initiative such an individual faces administrative responsibility. Still how to check the counterparty for reliability?
Clarify what business is conducted - small or medium
It is necessary to break through the registry to which type the counterparty belongs. This will demonstrate the level of turnover of the company with the number of employees in the organization. Small companies can have up to one hundred employees, and medium-sized companies can have from 101 to 250 people according to official figures. One-day firms or fraudulent organizations will not employ so many people.
Find out if the counterparty is bankrupt
The federal registry can clarify information about this. In the event that bankruptcy proceedings were launched against the counterparty and its activity was suspended, then it cannot conclude any transactions at all. It is impossible to cooperate with such a company at all.
In the event that bankruptcy has just begun, then you should wait a bit, since such a financial situation may well stabilize. When a future partner independently files for bankruptcy, then most likely he is simply cunning, and he has no money, and it’s best not to get involved with it. Now consider the issue of cooperation with foreign opponents.
How to check foreign counterparty for reliability?
When the regulatory body finds out that the Russian company is inexperienced or intentionally begins to cooperate with a dubious domestic enterprise, the first is accused of tax evasion and it is checked by tax inspectors.
If she is suspected of partnering with an unreliable foreign counterparty, then the Federal Tax Service along with the customs service, foreign exchange and export control authorities will be involved in the study of her work. In this regard, you should learn about how you can check a foreign legal entity before planning a joint activity.
Why do I need to check a foreign counterparty?
It does not matter whether the enterprise conducts foreign trade activities or whether it operates exclusively within its own country. The fact is that checking the legal and financial status of counterparties is considered necessary. The purpose of this study is an attempt to protect oneself from financial risk, assess the possible benefits of cooperation and avoid problems in the future.
Without requesting documentation from the counterparty, the company runs the risk of being deceived - it may have all kinds of collection with debts, and their presence threatens to disrupt the period of receipt of money under the contract.
Or you can conclude a contract with a person who does not have the right to do this, and is not an official representative of the enterprise, then the paper will be declared invalid. In the event that it suddenly becomes clear that some activity of the company is contrary to the requirements of Russian law, it will be declared inoperative, and this means that all agreements concluded are canceled without compensation. Any problems lead the company to financial loss.
In the event that the Russian state structures, which are responsible for foreign trade activities, suddenly notice that the organization has connected itself with a dubious foreign enterprise, then all of its applications will be rejected. Moreover, certain authorities may undertake a comprehensive audit.
Who will oversee?
First of all, these are the following services:
- Tax inspection. Tax benefits will be denied.
- Currency and export control authorities. Employees of state structures will be directed by management to conduct field audits of the financial business of the company.
- Customs Service. Cargo sent by agreement with dubious companies will be delayed at the border.
- Banking institution.
That suspicious transactions are being prepared, bank employees will be notified of currency and export controls. An audit of a foreign organization and a request for the documents required for its implementation are required in the first place so as not to arouse any suspicion of a criminal conspiracy or imprudence in the tax service for tax evasion. Even the arbitral tribunal introduced such a notion as “due diligence in the choice of counterparty”. Neglect of inspection procedures may result in tax liability. We examined how to check the counterparty for reliability.