How to Check a Thai Company is Legitimate

March 11, 2020 - Reading time: 9 minutes
Updated: October 13, 2024

We’ve encountered numerous instances where individuals set up websites falsely claiming to operate legitimate businesses from Thailand. They often present themselves as exporters of in-demand products, such as tyres, vehicle parts, electronics, food, textiles, clothing, or other perishable goods. After receiving partial payment for a shipment, these unscrupulous individuals vanish with your money. In some cases, they may even invent additional reasons to request more funds before ultimately disappearing.

In such cases, there is often very little we can do to assist. When a scam artist commits fraud and vanishes, their objective is to make it impossible for anyone to trace them. If they have provided minimal or fabricated information prior to the transaction, which is common, they significantly increase their chances of never being found. The use of 'mule bank accounts' to receive proceeds is also common.

This type of fraud occurs regularly, and in many cases, the fraudsters claim to be based in Thailand, though they may be operating from a different country entirely.

Once funds are sent to Thailand via bank transfer, recovering them in the event of an issue is extremely difficult, if not impossible. For this reason, it is crucial to verify that you are dealing with a legitimate company before making any payments. Basic checks can protect your money and help you avoid becoming a victim of fraud.

How to Check if a Company in Thailand is Legit for Free

When you're considering doing business with a Thai company, it's essential to verify their legitimacy before proceeding. While we offer professional services for in-depth checks, here are a few basic, free steps you can take on your own:

1. Check Client Testimonials and Reviews: Search for customer reviews or testimonials. Websites like TrustPilot or Google Reviews can give you an indication of whether the company has a history of good business practices. Be cautious of fake reviews, which are often overly positive and lack detail.
2. Request Official Documentation: Ask the company for official documents such as a business licence, company profile, or proforma invoice. However, bear in mind that some of the critical data in Thailand is not publicly available online. Cross-referencing these documents yourself may be difficult, and scammers often fabricate documents professionally. We can assist in verifying the authenticity of these documents to ensure you are not being misled.
3. Compare Information: Ensure that the details provided by the company (such as their name, address, phone numbers and e-mail addresses) are consistent across all communications and invoices. Discrepancies can be a red flag. Still, many scammers are skilled at providing convincing information. If in doubt, our team can pull up verified company registration data as part of our basic due diligence service for 4,500 THB, including details such as registered capital, directors’ names, balance sheets, and registered industry.
4. Conduct a Site Visit: The best way to ensure a company is legitimate is to conduct a physical site visit. This allows you to verify that the business exists in the location it claims and to inspect the facilities and products. It can also allow us to verify that our client has been corresponding with a salesperson from that location. We can perform site visits anywhere in Thailand, ensuring that you’re dealing with a real company, not just a P.O. box, virtual office or fraudulent/nonexistent location.

How to Check if a Thai Company is Legit: Professional Services

While these free steps can help identify obvious red flags, scammers often go to great lengths to appear legitimate. Here’s how our services can provide further assurance:

1. Company Registration Check (4,500 THB): Our basic due diligence service provides a detailed verification of the company’s registration details. We check their official name, registered capital, directors’ names, balance sheets (profit/turnover), registered address, industry, and directors’ nationalities.
2. Site Visits for Extra Security: If you're transferring a substantial amount of money or placing a large order, a site visit is the best way to confirm the legitimacy of the company. We physically visit the location, inspect the facilities, and ensure the products you’re purchasing exist. This on-the-ground verification offers peace of mind before any large transaction.
3. Background Checks: In addition to checking the company’s details, we can also conduct in-depth background checks on individuals associated with the business. This allows you to assess their credibility and history.

Are the documents you have received genuine? Let us help you verify.

How much do you charge?

Our fee for performing basic due diligence on a company starts at 4,500 THB (approximately 100 US dollars). This includes a comprehensive check of the company’s registration data and financial details. If you’re transferring a significant amount of money, we recommend conducting a site visit to ensure the company and their products are genuine. The cost of a site visit depends on the location of the company; contact us with their full address for a free, no-obligation quote.

How to Spot a Scam

Over the years, we have seen many different scams involving people posing as legitimate companies in Thailand. While spotting these scams is easier for us due to our experience, it can be difficult for others. Fraudsters often make their websites and documents look professional, which is why so many people fall victim.

How can you spot a scammer? A good first step is determining whether you are dealing with a registered company or a private individual claiming to be a business. Ask for the company’s registration number and let us handle the verification process. Physically checking the company’s premises and confirming they have stock is also crucial. A site visit ensures you're dealing with a real business, not just a shell company.

Another key check is to obtain a postal address and phone number and verify these details with us. Matching the information against the company’s registration data can help reveal any inconsistencies.

Avoiding Fraud Online

Over the past 12 months, 74% of the business transactions we investigated presented a high risk of fraud. Many clients would have lost significant sums had we not conducted checks for them. If you are ordering goods from Thailand, we can confirm for a small fee that you’re dealing with a legitimate, registered company before you make any payments.

Fraudsters can operate in any niche, offering products that are currently in demand. For example, during the Covid-19 pandemic, we saw a rise in fraudulent websites selling medical equipment like face masks and latex gloves. In the past, we’ve uncovered scams involving everything from car tyres to toothbrushes.

Scammers profit by collecting part-payments for goods before disappearing. Repeating this scam on a regular basis allows them to make vast amounts of money. Our goal is to protect our clients from falling victim to such frauds by providing detailed due diligence services, including site visits and background checks.

Getting Professional Help

We offer a fast, cost-effective service for checking the legitimacy of Thai companies. Clients from around the world rely on our expertise. Since recovering money from fraudsters is often difficult, conducting due diligence before any business transaction is the best way to protect yourself.

Our due diligence service often saves our clients far more than it costs them, and we have collectively saved them substantial amounts that would otherwise have been lost to fraudsters. By carrying out basic and advanced checks, we help ensure your business dealings are secure.

If someone provides you with false information—such as a fake address—detecting this can be difficult if you are based outside Thailand. We often conduct site visits to verify addresses and ensure that businesses are genuine. We can confirm if a company has an active factory with employees or if it operates from a P.O. box.

The best method to verify a supplier’s legitimacy depends on the specific circumstances of your case. Feel free to get in touch with us, and we’ll find the most cost-effective solution for your needs. We provide free quotes for all our services.

Our detectives cover all areas of Thailand through our strategically placed regional divisions. If you need assistance, please contact us here.