How to check the reliability of a foreign partner before registering a business

Nikita Veremeev

27.08.2025 | 6 min read

Updated: 27.08.2025

According to PwC, more than 60% of corporate fraud cases in international transactions are related to insufficient due diligence of foreign counterparties and ineffective Due Diligence. In the context of globalization, when registering a business abroad becomes a strategic tool for growth and diversification, ignoring a comprehensive check of a foreign partner can lead to legal disputes, account blocking, sanctions risks, and even asset losses. Imagine: you invest in a new market, and after a few months, you face transaction blocking due to hidden beneficiaries or sanctions restrictions.

Why do even experienced entrepreneurs and financial directors make mistakes at this stage? Often, due to underestimating the complexity of compliance, the specifics of regional registries, AML (Anti-Money Laundering) and KYC procedures, as well as the lack of a transparent risk management system. How to avoid these pitfalls? How to ensure legal business support and minimize reputational and financial risks while entering foreign markets?

In this article, I, Nikita Veremeyev, share a practical guide based on the experience of COREDO in company registration, obtaining financial licenses and deal support in the EU, Asia, and the CIS. Here you will find not only a strategy but also step-by-step tools for checking a foreign partner – from basic checks to an in-depth assessment of corporate structure and financial stability. Read the article to the end to get a systematic approach and avoid critical errors at the stage of international expansion.

Foreign Counterparty Check

Illustration for the section 'Foreign Counterparty Check' in the article 'How to Check the Reliability of a Foreign Partner Before Registering a Business'

Checking a foreign partner is not a formality, but a multi-level process that protects the business from corporate fraud, sanctions risks, and ineffective partnerships. COREDO’s practice confirms: comprehensive verification of a foreign counterparty reduces the likelihood of legal disputes, ensures transaction transparency, and lays the foundation for long-term cooperation.

Collecting Information about the Company for Analysis

The first step is gathering and verifying basic information through international company registries (Company Registry), electronic catalogs (Europages, Open Ownership), and chambers of commerce. At this stage, it is important to obtain:

Certificate of Incorporation, Extract from Company Registry;
Articles of Association;
Information about directors, shareholders, registration address, and actual location.

The solution developed at COREDO involves the use of both official state registries and open public sources of information for preliminary data verification. It is important to request a notarized translation if the documents are in an irrelevant language.

Beneficiaries and Company Structure Check

The next step is analyzing the corporate structure of a foreign company and identifying the ultimate beneficial owners (Ultimate Beneficial Owners, UBO). This is critical for compliance with international AML standards and preventing risks associated with hidden owners or offshore structures.

The COREDO team has implemented projects where Orbis, Dun & Bradstreet, Open Ownership databases, and local court databases are used to verify the company’s beneficiaries. Special attention is given to:

Transparency of the corporate structure;
Verifying for nominee directors and shareholders;
Verification of company representatives’ authority.

For complex cases, for example, when working with Asian or offshore jurisdictions – we recommend using international databases and specialized services to identify hidden beneficiaries and track ownership structure changes.

How to Assess a Company’s Financial Stability

Partner’s financial stability: a key factor in long-term relations. Our experience at COREDO has shown that analyzing the financial statements of a foreign partner from open sources, the company’s credit history, and business activity data allows potential risks to be identified even before signing a contract.

Practical tools:

Request audited financial statements for the last 2-3 years;
Check credit rating through Dun & Bradstreet, Orbis;
Analyze transactional activity and payment discipline;
Assess business reputation through reviews and ratings in international databases.

Particular attention is paid to transactional monitoring and financial compliance analysis: this helps to identify anomalies related to money laundering or corporate fraud.

For a comprehensive picture of reliability, it is also important to check court disputes and current debt obligations.

Checking Court Disputes and Debts

Legal checks of foreign companies and analysis of litigation history are mandatory steps for assessing reputational risk and the legal cleanliness of a transaction. COREDO’s solutions include:

Monitoring court databases by the place of company registration;
Checking for debts and fines;
Analysis of anti-corruption audits and media mentions;
Assessing business reputation through international databases and public sources.

In one of COREDO’s cases for a client from the EU, a hidden legal dispute was uncovered, which could have led to asset blocking after the deal’s conclusion. Regular monitoring of legal and arbitration decisions is a mandatory part of the comprehensive check of a foreign counterparty.

Checking for Sanctions and Restrictions

Checking a foreign company for sanctions and restrictions: a key element of AML support and financial compliance. International sanctions lists (OFAC, EU Sanctions, UN Sanctions) and local databases are used.

COREDO’s practice confirms: to minimize risks, it is important not only to check the company but also all its beneficiaries and affiliated persons for inclusion in sanctions lists. Moreover, it is necessary to ensure that all licenses and permits are in place, especially when it comes to financial, crypto, or payment services.

Foreign Company Verification: Europe, Asia, Africa

Illustration for the section 'Foreign Company Verification: Europe, Asia, Africa' in the article 'How to Check the Reliability of a Foreign Partner Before Registering a Business'
Regional specifics require adapting approaches to counterpart verification. The solution developed by COREDO considers the peculiarities of the legal environment, registry availability, and transparency level in Europe, Asia, and Africa.

Company Verification in Europe

Europe has a developed Company Registry system and unified KYC and AML standards, enshrined in EU directives. For verifying a counterparty in Europe, the following are used:

Official registries (e.g., Czech Commercial Register, UK Companies House, Estonian e-Business Register);
European databases (Orbis, Open Ownership, Europages);
License and permit verification services.

Best KYC practices in the EU include mandatory beneficiary identification, corporate structure verification, and monitoring for AML directive compliance. In one of COREDO’s cases for a client from the Czech Republic, a discrepancy between the declared structure and actual beneficiaries was discovered, thereby avoiding reputational and financial losses.

Company Verification in Asia

Verifying a partner in Asia requires accounting for regional features of corporate law and specifics of local registries. In Asian countries (Singapore, Hong Kong, UAE), closed corporate structures are often used, and access to beneficiary information may be restricted.

COREDO’s team has implemented projects where comprehensive verification of a foreign counterparty in Asian countries applied:

Local Company Registry and specialized databases;
Verification of licenses and permits through official regulators (e.g., Monetary Authority of Singapore);
Analysis of corporate structure and identification of hidden beneficiaries using international services.

Special attention is paid to checking the legal cleanliness of transactions and analyzing risks associated with regional compliance features.

Company Check in Africa

Checking a company in Africa is associated with limited accessibility of public registries and a high proportion of offshore jurisdictions. The COREDO solution includes:

Using African registries and local chambers of commerce;
Checking business activity and tax discipline through open sources and international databases;
Risk analysis of offshore structures and compliance features.

An essential element is checking the legal cleanliness of the transaction and analyzing the presence of debts, which is especially important for markets with low transparency levels. Such a comprehensive strategy provides a reliable basis for the subsequent choice of tools for verifying foreign counterparties.

Foreign Counterparty Verification Tools

Illustration for the section 'Foreign Counterparty Verification Tools' in the article 'How to Check the Reliability of a Foreign Partner Before Registering a Business'
Effective verification of a foreign partner is impossible without the use of modern tools and services, ensuring access to up-to-date information and international compliance standards.

What are International Databases?

For comprehensive verification, international company registries (Open Ownership, Orbis, Europages), electronic company catalogs, and public information sources are used. These tools allow you to:

Check registration and status of the company;
Assess the transparency of the corporate structure;
Get information about beneficiaries and business activities.

In COREDO’s practice, Open Ownership and Orbis services are especially in demand for verifying corporate connections and history of ownership structure changes.

Website Check Services: Paid and Free

For checking court disputes, financial stability, and credit history, both paid and free services are used:

Service	Type	Capabilities
Dun & Bradstreet	Paid	Credit reports, financial history
Orbis	Paid	Corporate structure, beneficiaries
Open Ownership	Free	Connections and beneficiaries
Court databases	Free	Court disputes, arbitration decisions
Europages	Free	Basic company information

COREDO’s solution involves integrating multiple sources to obtain an objective picture and minimize verification errors.

Documents for Verification

To comprehensively verify a foreign company, it is necessary to request:

Certificate of Incorporation, Extract from Registry;
Articles of Association;
List of directors and shareholders;
Documents confirming representatives’ authority;
Financial statements for the last years;
Licenses and permits;
Certificates of no debts and legal disputes.

If necessary, notarized translation of documents and legalization for use in another jurisdiction.

AML and Legal Support in International Business Registration

Illustration for the section 'AML and Legal Support in International Business Registration' in the article 'How to Check the Reliability of a Foreign Partner Before Registering a Business'

AML (Anti-Money Laundering) services and legal business support are essential elements in international business registration and choice of a foreign partner. COREDO’s practice shows that integrating an internal control system and transactional monitoring allows not only to meet international AML standards but also to minimize financial and reputational risks.

AML Requirements: How to Comply?

To comply with international AML standards it is necessary to:

Implement an internal control system and regular transaction monitoring;
Conduct beneficiary identification and verification (KYC);
Check the company and affiliated individuals against international sanctions lists (OFAC, EU Sanctions);
Conduct regular anti-corruption audits and analyze funding sources.

COREDO’s solution includes the development of individual AML policies and client support at all verification stages.

Risk Verification in Business Processes

Integrating foreign counterpart verification into the company’s risk management strategy allows:

Increase partnership’s information security;
Minimize reputational and financial losses;
Ensure long-term business sustainability.

In COREDO’s practice, risk management strategies include anti-corruption audit, regular monitoring of business activity, and evaluating corporate structure transparency.

Mistakes in Foreign Partner Verification

Illustration for the section 'Mistakes in Foreign Partner Verification' in the article 'How to Check the Reliability of a Foreign Partner Before Registering a Business'
Common mistakes in checking a foreign partner:

Focusing only on official documents without analyzing court disputes and reputation;
Ignoring the verification of beneficiaries and corporate structure;
Insufficient attention to AML requirements and sanctions restrictions;
Lack of regular monitoring and information updates.

COREDO’s practice shows: to identify corporate fraud and minimize reputational risk, a comprehensive approach is needed, including multi-level verification and integration of results into the risk management system.

How to Check a Foreign Partner for Business

Checking a foreign partner for business: a critically significant stage before concluding a deal, as the risks of working with foreign companies are significantly higher than with domestic ones. To protect yourself and ensure the counterparty’s reliability, it is important to systematically go through the entire checklist for checking a foreign partner for business.

Foreign Partner Verification – Checklist

Verification Stage	Tools/Documents	COREDO Recommendations
Collection of Basic Information	Company Registry, Europages, registry extract	Request a notarized translation
Corporate Structure Verification	Orbis, Open Ownership, Articles of Association	Analyze change history
Beneficiary Identification	Dun & Bradstreet, Open Ownership	Check for nominee owners
Financial Stability Assessment	Financial statements, credit reports	Request audited reports
Check for Legal Disputes and Debts	Court databases, no debt certificates	Monitor regularly
Sanctions and Restrictions Check	OFAC, EU Sanctions, local sanctions lists	Check all affiliated individuals
Licenses and Permits Verification	Official regulators, licenses	Verify authenticity
Business Reputation Analysis	International databases, reviews, ratings	Use several sources
Representatives’ Authority Check	Articles of Association, powers of attorney	Cross-check with registries
AML Support	Implement internal control system, KYC	Regularly update procedures

Choosing Services and Documents

Use a combination of international and local registries for maximum information completeness.
Request originals and notarized copies of documents.
Implement regular monitoring of corporate structure and sanctions list changes.
Ensure verification integration into business processes through automation and staff training.

Foreign Partner Verification, FAQ

How to verify the authority of representatives of a foreign company?
Request Articles of Association and powers of attorney, and check information in Company Registry and Open Ownership.

What documents to request from a foreign company for reliability verification?
Registry extract, Articles of Association, list of directors and shareholders, financial statements, licenses, certificates of no debts and legal disputes.

How to verify the registration address and actual location?
Cross-check data from official registries with the actual office information, use electronic company catalogs and public sources.

What services to use for checking beneficiaries of a foreign company?
Orbis, Open Ownership, Dun & Bradstreet, local Company Registry.

How to check if a foreign company is under sanctions?
Use international sanctions lists (OFAC, EU Sanctions), and also local databases.

To move to the next section:
Let’s move on to the stages of comprehensive verification for international business registration.

Comprehensive Verification for International Business Registration

Comprehensive verification of a foreign partner is not just a stage of international business registration, but a strategic tool for risk minimization, transparency increase, and ensuring long-term company stability. COREDO’s experience proves that only the integration of multi-level verification, AML support, and legal business support allows avoiding critical errors, ensuring high ROI, and laying the foundation for successful international expansion. Amid growing compliance and information security requirements, a systematic approach to checking foreign counterparties becomes a key element of a company’s strategic security.