How to check if a company is legit?

Making sure that a company is legitimate and can offer quality services or products before entering into any transactions with them is essential. Unfortunately, there are many fraudulent companies out there making it difficult to tell which ones are legit. It's important to do some research and find out as much information as possible about a business before investing in them. In this article, we'll provide some tips on how to check if a company is legit so you can make an informed decision.

Check with Companies House

Companies House is an official government registry of companies in the UK. If a company has registered itself there, then it will have filed details such as its address, activities, directors and shareholders - all of which can show whether or not it’s a legitimate business. You can search for any company on Companies House's website and view this information for free.

Ask for references

If a company is legitimate and has satisfied customers, then they should be able to provide you with references. Ask them to give you contact information for previous clients so that you can check their experience with the business.

Utilise online opinions

Checking online reviews and testimonials can help you determine whether or not a company is legit. Look at both the positive and negative reviews to get an overall impression of what others have experienced with the company. It may be the case that positive reviews are written by fake or paid individuals, so always check the company using different sources.

Check for accreditations

Legitimate businesses will often have a range of industry-specific accreditations, such as Investors in People or ISO certifications, which indicate that they adhere to certain standards in terms of quality and customer service. Make sure to check for these before doing business with anyone.

Check if you can find the company on Google

See what information pops up for you when you type a company into Google. Can you easily find the information you need, the location, the phone number, can you find it on a map? Compare this with the information you were able to obtain from Companies House.

Check their website

Simply having a website is not enough these days to consider a company to be operating legally. Check exactly:

- what first impression you get?

- whether the company inspires you with confidence?

- whether you can easily find the answers to all your questions on the website?

- whether there is a privacy policy with all the necessary information?

- whether there are shop rules with all the details about deliveries, complaints and returns?

- what language it is written in?

- whether there are company details, Companies House registration number, address?

- whether it is easy to contact them?

If you have any doubts - probably not everything is ok.

Check if the company has social media

Social media is a very good source of information. Check if the company publishes regularly, if it has reviews, if it responds to comments, if it shows the behind-the-scenes of the company, the office, the employees.

Check FCA register

The Financial Conduct Authority (FCA) is the trusted governing body for financial service providers across the UK. Its mission includes protecting consumers, securing market stability and encouraging competition amongst firms to ensure that customers always receive fair service.

The FCA register can be searched either by individual's name or firm name, allowing you to find out whether they are authorised and what type of business activities they are allowed to undertake. The register also shows when the firm was authorised, as well as other important information such as how long it has been operating for and which regulator oversees it.

Check Experian Business Credit Report

Are you unsure of a business's solvency or their ability to pay your fees? Then it may be time to invest in an Experian Business Credit Report. As one of the top credit check services, they offer 30 days free so that you can research any major contracts and agreements beforehand and avoid potential issues down the line. With Experian, rest assured knowing that you have all the information needed for financial success!

Pay attention to detail

- Often, when an email arrives with an advertisement for a brand we are familiar with, we click on the product or purchase link without thinking. This is one of the most common techniques used by fraudsters when they prey on our trust in a brand. The problem only arises when you click on the link. You will be redirected to a page that looks similar to the original one, but will differ by a small detail in the name - for example, instead of adidas, it will be adidos. At first glance you might not even notice it - and that's their point!

- The same can happen when carving out a business on the internet. If we are sure what we want, we click on the first page that appears at the top. This could very well be a scam site - always double-check.

- You already know that you should always check the URL, and it is also important whether the website is secure, i.e. whether it has an SSL certificate. On the left-hand side bar, there should be a padlock, then the connection is secure.

- If you want to know other scammers' techniques, check out our articles (The Most Common Sales Scams, How to identify a scammer?, How to spot social media scams, Investment Scams Fraud - how can you protect yourself?)

Trust your intuition

By following these steps, you should be able to determine whether or not a company is legit in the UK, and protect yourself from any potential financial risks or losses.

If, despite all this information, you still cannot confirm the company's credibility online, there is a good chance that you are dealing with a fraudster. Sometimes it's not worth taking the plunge and it's better to let it go and use another opportunity or the services of another company. As the saying goes - better be safe than sorry - and indeed it is.

If you think you could have been scammed, it is important to report fraud to your local police or Action Fraud by calling them on 0300 123 2040.