Is this company real? Checks before signing

1. The identifier is valid

Ask the company for its number and check that it is well formed: 9 digits for a SIREN, 14 for a SIRET, 10 for a Belgian enterprise number, CHE followed by 9 digits for a Swiss UID. A typing mistake is the first cause of a number that cannot be found. The formats are detailed in What is a SIREN number and how to find it and How to check a French SIRET number.

A well-formed identifier does not prove existence: an invented number can pass this step, which explains the following checks.

Also note where the number comes from. A number read on a document the company has just handed you is worth more than one found on an old quote, and a number supplied by a third party, such as an intermediary, deserves an extra check. If the company gives you several numbers, check them all: they must designate the same company.

2. The company is active

The company must exist on record and not be closed. A closed company can have a perfectly valid number: it is the most common trap, along with former establishments. Look at the status and, if it is closed, the closing date. The definitions are in Struck-off, closed or dormant French company.

3. The name and the address match

Compare the company's name and address with those in your contract, your purchase order or the invoice received. A valid number that belongs to another company can turn up, by mistake or on purpose: a contact gives the real number of a reputable company, but a different name or different bank details. A different name or an address that has nothing to do with the head office calls for an explanation before going further. Beware that legitimate differences exist: trading name or brand, recent move, domiciliation address.

4. The VAT number is registered

For a sale to a company in another country, or a reverse-charge transaction, the customer's VAT number must be valid and belong to the right company. See French VAT number: format and how to check it. Even in a purely domestic setting, a VAT number that does not match the announced SIREN is a sign of error or confusion.

This check has a limit: a company may not be subject to VAT, for example because it carries on an exempt activity or falls under a franchise scheme. The absence of a number is then not suspicious in itself; it is a wrong or deactivated number that should raise an alert.

5. No signal of difficulty is under way

An active company can be in insolvency proceedings, dissolution or liquidation. These signals can be read in the company's published situation and its latest legal notices. They do not tell you whether the company will pay, but they suggest stepping up your precautions: deposit, payment on delivery, credit limit. How to check if a French company is in liquidation covers this point in detail.

6. It does not appear on a sanctions list

Some companies appear on international or national sanctions lists. Matching the company's name and registration number against these lists gives a first indication: an exact match on the number, a possible match on the name, or none. This matching is indicative: the absence of a result is not a guarantee, and it covers companies only, never natural persons.

With Companies: the checklist in one call

The optional blocks of the GET /v2/companies/{id} record gather the checks in a single response:

curl "https://companies.jsonpage.com/v2/companies/FR-652014051?include=address,vat,signals,sanctions" \
  -H "X-API-Key: $COMPANIES_API_KEY"

You get the status and closing date, the name, the address, the VAT number and its status, the list of current signals and the result of the matching against sanctions lists (no_match, possible_match or match). To also check the identifier as your customer gave it to you, GET /v2/validate details each test. To follow your customers over time, monitoring sends an alert at every change.

Keep reading

• VATFrench VAT number: format and how to check itThe French, Belgian and Swiss formats, the mentions on the invoice and the check before invoicing.
• SIRETHow to check a French SIRET numberThe 14-digit format, spotting typing mistakes and the difference between a valid SIRET and an active establishment.
• STATUSStruck-off, closed or dormant French company: how to tellStruck off, closed, dormant: the definitions, why to check before invoicing and how to be alerted to a change.