Most problems with a new supplier in India can be spotted before any money moves. These are the checks we recommend to every importer. The first five can be done online, in an afternoon.
1. Confirm the company exists in the MCA register
Private and public limited companies and LLPs are registered with India's Ministry of Corporate Affairs. On the MCA portal (mca.gov.in) you can search by company name or CIN and see the status, date of incorporation, registered address and directors. Check that the status is “Active” and that the name matches the proforma invoice exactly. Sole proprietorships and partnerships are not in this register — for them, the GST check matters even more.
2. Check the GST registration
Registered businesses have a 15-character GSTIN. Enter it in “Search Taxpayer” on the GST portal (gst.gov.in) to see the legal name, trade name, status, principal place of business and return-filing history. A cancelled GSTIN, a different legal name or an address in a different state from the “factory” are red flags.
3. Verify the Import Export Code (IEC)
An Indian business exporting goods generally needs an IEC issued by the Directorate General of Foreign Trade. Ask for the number and verify it on the DGFT website (dgft.gov.in).
4. Match the bank account to the legal entity
The beneficiary on the bank account should be the same legal entity as on the contract and invoice. Be very careful if bank details arrive in a separate email or “change” during the order — confirm them by phone, using a number you already know. This is one of the most common payment frauds in international trade.
5. Verify certificates at the source
ISO and product certificates can be checked with the certification body that issued them; many publish online registers. A PDF on its own proves little.
6. Ask for references and export history
Ask for two or three current customers, ideally in Europe, and actually contact them. Export documents from earlier shipments, with sensitive details removed, also show whether the company really exports.
7. Find out if it is a manufacturer or a trader
Many “factories” found on B2B platforms are trading companies. That is not necessarily a problem, but it changes pricing, quality control and who is responsible when something goes wrong. The fastest way to know is to see the production floor.
8. Visit the factory — or send someone
Registers and documents confirm that a company exists. Only a visit confirms that production, machinery and people are real and match the scale you need. A video call helps, but it can be staged.
9. Start small and protect the payment
For a first order, consider a smaller trial quantity, a pre-shipment inspection and payment terms that do not put the full amount at risk up front — for example a partial advance or a letter of credit.
How Valeris can help
Our team in Maharashtra runs these checks for you — including the factory visit — and gives you a written report with our findings and recommendation.
See our supplier verification service
This guide is general information, not legal or financial advice.