5 Ways to Check if a Company Is Legal or Not

If you’re thinking of doing business with a company, it’s essential to check if the company is legal and legitimate. Unfortunately, fraud companies exist in every industry, and fraudsters can be very convincing when they try to lure unsuspecting victims into their schemes. It’s important to protect yourself before engaging with a new business by confirming the company’s status. Here we will let you know about 3 steps to find out whether a company is legal or not.

Scams are a sad reality in our society. While it is easier than ever to make purchases using only one click on a computer, there’s also an increased risk that your personal information could be misused by unscrupulous businesses. A firm may appear genuine but in fact, turn out to be a scam. There are some things you can do to prevent yourself from giving sensitive, confidential data to undeserving fraud artists; fortunately, they’re not difficult at all!

Here are a few ways you can check if a company is legal or not:

1) Check Company Registrations: Many countries have official registries where companies must register themselves in order to do business. You should check your country’s registry for any records of the company, including its address and contact details. This information can help you confirm that the organization is a legitimate business.

2) Check the company reviews: Many fraudulent companies leave unhappy customers behind, so it’s important to read reviews and testimonials from past customers before doing any business with them. Checking out the company’s social media profiles can also be helpful, as people may share their experiences there as well.

3) Contact Regulatory Bodies: If you’re unsure about a company’s legitimacy, you should contact national or local regulatory bodies for advice and confirm if the organization is operating legally. You can find information about these entities on government websites like www.gov.uk or www.usa.gov

By taking these steps, you can protect yourself from fraudsters and make sure that your business is engaging with legitimate companies. Don’t forget to beware of fraud!

Also Read: Top platforms to Join in 2022 for more savings

4) Check the Financial Records: If a company seems too good to be true, fraudsters may be manipulating its financial records. It’s important to check the company’s financial statements and compare them to industry standards before investing any money or resources into the business. Consulting a professional accountant can help you identify any discrepancies or fraud indicators.

5) Ask Around: A great way to verify a company’s legitimacy is by asking around. Talk to people who have worked with the company before and find out about their experiences with it. You can also connect with other professionals in your industry and ask for recommendations on reliable companies they’ve worked with.

These are just a few ways to check if a company is legal or not. By doing your due diligence and taking the time to verify a business’s legitimacy, you can protect yourself from fraudsters and ensure that you are doing business with reputable companies.

A case Study

Here is a case study on a company that may be a legal company but may not be a good company for its customers as they don’t provide promised services to its customers.

Country Holidays Inn and Suites:

Here is a story by one of CHIS’s customers.


1. They were invited by one of the CHIS field agents we met at MGF mall on 24th July 2022. By ~6:30 PM they received a call from CHIS that they are invited to a session that will be for around 30 mins and is for limited people only & they were supposed to provide some free gift vouchers including 2N-3D holidays for one of the 7-8 destinations in India. + Couple Movie voucher+ Beauty parlor voucher. 
A screenshot of the invitation is attached.
Invited By: Nisha Mehra (A coupon was provided by a random agent at MGF mall, Gurgaon)
Hotel Name: Courtyard by Marriot, Sec 27, Gurgaon

2. As they attended their session at Marriot hotel Sec29, It was for around 1 hour and they told them about their plan for holidays where they can choose hotels anywhere in the world for 7 days per year and it will be completely free of cost+ up to 30% discount on flights+ 25% off on meals as well. Plus they offered a complementary Maldives 3N-4D trip within 6 months, An extra 7 days international/domestic trip & 1d stay at Four Points by Sheraton, New Delhi on his birthday which was on 27th July 2022. They paid a total of Rs1,90,000 and also they have to pay around Rs10000 every year as an Annual maintenance charge.

3. First hotel we booked in Shima on 30th Nov 2022- 2Dec 2022 for 2 days
    Hotel Name: Kamna Hill Resorts, Shimla

4. They stayed at the hotel for 2 days and at the time of checkout, the Hotel staff asked for payment from them as they told them that they were trying to contact CHIS for the last 2 days for payment but CHIS was not responding to the phone calls and emails. Finally, the CHIS agent asked the hotel staff to collect money from Guests. So they paid Rs6400 at the hotel as the hotel booking amount.
After that, they called CHIS and sent an email regarding this issue, and asked for a hotel payment refund. 

5. It has been more than 60 days, with over 40 calls, 60 emails, a refund timeline of 24 to 48 hours always, and rude behavior by CHIS agents, They have not received the refund till now. They now have decided to terminate their membership with CHIS and demand a full membership refund of Rs 1,90,000+10000(AMC)+6400(hotel booking amount) as they violated the contract terms by not paying the Hotel booking amount and even no refund that they paid.

6. As they violated the agreement terms, they also told them that there is no benefit of up to 30% off on flights, or 25% off meals, and they will not extend the Maldives trip timeline in our membership as we planned to utilize it on the 19th of January 2023 (they have sent emails as well regarding Maldives trip) but due to this trust issue with CHIS, they had to drop it and asked them to extend it. 

So, Just due to trust issues and bad behavior of the support team, People can consider it as a fraud as well.

Few FAQs

How do you prove a company is legal?

A Certificate of Incorporation is the legitimate document that indicates the company formation is valid or brings the company into existence

What are the 3 types of companies?

3 common types of companies—sole proprietorship, partnership, and corporation

How do you check if a company is legally registered in the US?

According to the Securities and Exchange Commission, the SEC has a business registration lookup of its own, specifically focused on foreign and domestic public companies that have filed to do business in the USA. The search engine is called EDGAR.

Where can I check if a company is registered?

Checkout here

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