How do I check whether an overseas supplier is legitimate?
Updated: 2026-10-14
Short answer
Verify the supplier's legal registration, physical address, ownership, business history, production capabilities, customer references, and bank details before placing an order. Use independent sources rather than relying solely on documents supplied by the company. For a large purchase, combine these checks with a factory audit, product sample, independent inspection, and a payment method appropriate to the transaction's risk.
Verify the Company's Legal Identity
Ask for the supplier's full registered company name, registration number, business address, website, and names of its authorized representatives. Check the company in the relevant official business registry and confirm that its registered activity is consistent with the products it offers. Where appropriate, identify the beneficial owners and directors. A registration record shows that a business exists, but it does not automatically prove that the company is financially reliable or capable of fulfilling your order.
Check Business History and Production Capability
Review the supplier's history, manufacturing or export experience, product range, quality-control processes, certifications, and ability to produce the required quantity. Ask for trade references and verify them independently. For a factory order, request a live video walkthrough or arrange an independent site inspection. Obtain and assess a sample before approving bulk production when practical, and check whether the supplier is the actual manufacturer or a trading company.
Verify Payment Details Independently
Confirm that the bank account beneficiary name is consistent with the contracting business or that any legitimate third-party arrangement is properly documented and verified. If the supplier changes its bank details, call a previously verified contact using a telephone number obtained independently. Do not rely on the contact details in the email announcing the change. Unexpected requests for personal accounts, unrelated third-party payments, unusual currencies, or urgent transfers deserve additional investigation.
Review Documents and Warning Signs
Check that business licenses, certificates, test reports, references, and company documents are genuine and relate to the supplier and product involved. Be cautious if a supplier refuses reasonable checks, provides inconsistent addresses or company names, offers a price far below comparable quotations without a credible explanation, or pressures you to pay immediately. A polished website, a social media profile, or a copy of a certificate alone is not proof of legitimacy.
Use a Risk-Based Verification Process
Match the depth of your checks to the order value, product risk, destination, and supplier history. For a new or high-value relationship, consider credit checks, sanctions screening, contract review, independent quality inspections, and staged payments or a suitable letter of credit. Keep copies of the checks and supporting records. The U.S. International Trade Administration explains foreign company checks at https://www.trade.gov/company-and-partner-risk.