Key takeaways
- Start with free public records: MCA status, GST filing, IEC and filed accounts (about ₹100).
- Check money, tax, people and premises — not just paperwork.
- Red flags: revenue gaps, payment to other entities, refusal to allow a visit.
1. Identity (free, public)
- MCA master data: legal name, CIN, status, incorporation date, registered office, directors.
- GST registration active and returns filed; import–export code if they trade internationally.
- The bank account you’ll pay is in the same legal name.
- How-to: verify an Indian company.
2. Money
- Three years of filed financial statements (about ₹100 on MCA): revenue, margins, debt, receivables.
- Charges on assets — who has lent against what.
- Do the GST returns support the revenue in the accounts?
- Customer concentration and related-party transactions.
3. Tax and regulatory
- Open income-tax demands and TDS defaults; GST notices.
- For companies with foreign investors: FC-GPR / FC-TRS filed, pricing supported by valuations.
- Sector licences, factory and environmental registrations, PF and ESI for staff.
4. People
- Promoters’ and directors’ other companies — especially struck-off or defaulting ones.
- Public litigation, regulatory orders and adverse media.
- For anti-bribery compliance: government officials among owners or agents, and how commissions are paid.
5. On the ground
- Visit the premises: signage, activity, machinery, stock, staff numbers.
- Meet management; ask for references from existing foreign partners.
Red flags
- Claimed turnover far above filed revenue.
- Payment requested to a different entity or a personal account.
- Reluctance to share audited accounts or allow a visit.
- Recent changes of name, directors or registered office without explanation.
- Promoters linked to several struck-off companies.
Want it done for you, in English, with a site visit? Due diligence on an Indian business partner. Investing or acquiring? Investor due-diligence checklist.
Sources
Frequently asked questions
What should I check before partnering with an Indian company?
Its legal status and registrations (MCA, GST, IEC), filed financial statements, charges on assets, tax demands, regulatory compliance, the promoters' other companies and records, and the premises — and that the bank account matches the legal entity.
How much does it cost to check an Indian company's financials?
Filed financial statements can be viewed on the MCA portal for about ₹100 per company; a professional review adds analysis, tax and regulatory checks and a site visit.
What are common red flags with Indian distributors or suppliers?
Turnover claims far above filed revenue, cancelled GST, payment requests to another entity, refusal to share audited accounts or allow a visit, and promoters linked to struck-off companies.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.