Companies are registered with the relevant local authority and will have a unique registration reference number. If you want to check the details of a company, it is not difficult to find out if they are legally registered. You can obtain this information from their website or by making an inquiry as a potential investor in the business. You can also request a copy of their certificate of incorporation. This document shows that the company has been incorporated and what type of company it is. There might be some other useful information listed, such as when and where the company was created. But if you want to check whether someone is legally registered, you need to ask directly if the company is registered or not! Here’s how.
How To Check If A Company Is Legally Registered
- Companies are registered with the relevant local authority and will have a unique registration reference number. If you want to check the details of a company, it is not difficult to find out if they are legally registered.
- You can obtain this information from their website or by making an inquiry as a potential investor in the business.
- You can also request a copy of their certificate of incorporation. This document shows that the company has been incorporated and what type of company it is. There might be some other useful information listed, such as when and where the company was created.
- To check if a company is registered, you can either visit their website or contact them directly to request this information. You should also be able to find this information on their certificate of incorporation.
- If you cannot find this document, you can contact the relevant authority in the country where the company is registered.
Check If A Company Is Legally Registered
Know the Reputable Company
It is important to know if a company or organization has been legally registered. If they have, you will be able to find out what kind of entity it is. This can be found on the business registration certificate which should be available to view on their webpage. This will allow you to know whether or not they are registered as sole traders, partnerships, companies limited by shares, companies limited by guarantee, or any other type of entity. You may come across many businesses that offer similar services and products to one another. It is important for you to know the details about a business before you sign any document or agreement with them. As mentioned earlier, knowing whether or not a company has legal registration may sound like something that doesn’t really matter in your day-to-day life as an average person.
Avoid Scammers
If you know that a company is legally registered, you can be assured that the business is legitimate and won’t try to scam you. If the company has not been registered, it may not have the proper legal backing and protections that are necessary for running a business like yours.
Check for Debt and Litigation
Checking whether or not a company has legal registration will allow you to find out if they are in debt. You can check with the local Registry of Companies and search for any previous litigation filed against them. This information is available to the public on the internet. If you find that there is litigation, then it may be worth your while to take extra caution when entering into an agreement with them. If you’re looking for a reputable business, such as a law firm or a construction company, it would be best to do some research before hiring anyone. Find out if they are legally registered and what kind of entity it is.
Check for Guarantee and Bailout Protection
The first reason why it is important to know if a company is legally registered is that you may want to ensure that the company has bail-out protection. When you sign any agreement with an organization, make sure you confirm whether or not they are legally registered. If they are, this means that they will have their own bail-out protection in place and will not go bankrupt should things go disastrously wrong. Another reason why knowing whether or not a company is legally registered can be beneficial is because some companies may offer guarantees on certain services they provide. If a company provides a guarantee on their service, then this means that you are protected by law.
Check Online If A Company Is Legally Registered
Look at the Company Website
You can check to see if a company is legally registered by looking at the company website. Look for a ‘Proudly Australian Owned’ or ‘Australian Owned and Operated’ claim.
Check the Company Employees
If you want to check if a company is legally registered, the easiest way to do so is by asking the employees themselves. It’s a simple question to ask; just make sure you are talking with someone who is employed by the company, and not an external recruiter or consultant. The best way for them to answer your question will be to provide you with their full contact details including their phone number, email address, and physical address. If they give any of these details, it will help you determine whether or not the company is legally registered.
Check the Company Location
A company’s registered location can often be found on the company’s website. If this information is not available, you should be able to find it by doing a bit of research. Use the company’s name and country to conduct a search on Google Maps. You will often find their registered address on the map listing. You can also search for their address in your local council’s business register, or contact them via phone and ask them where they are based. If there is no address listed and the business is not clear about its location, it could be that they are operating illegally and have not registered with their local council.
Check Company Email Address
If you receive an email from a company and you have any doubts about whether they’re registered, it may be worth checking their email address. If the company is operating above board, it should have a legitimate email address. You can check this by looking at the email header to see where the email originated from. If it’s coming from a legitimate domain extension like @gmail.com or @yahoo.com, then that is often a good sign that the company is legally registered and might be operating legitimately. However, if it comes from an obscure domain extension like @abcd1234567890 or no domain at all then this is less likely to be the case.
Check for Record of Employment (ROE)
The first place to start is with a company’s Record of Employment (ROE). An ROE is documentation that proves a company is operating legally and paying its employees correctly. You can ask for one from an employer you speak to, or if they refuse, you can contact your local council to request an ROE. An ROE shows whether the company has complied with minimum wage requirements and what hours they have paid their employees. If they haven’t complied with employment law, it will be evident in an ROE.
What Happens If A Company Is Not Registered?
Sole Proprietorship
vs. Partnership vs. Company, A sole proprietorship is a business structure in which the owner and the business are legally one and the same person. This means that profits made by the business belong to the owner, as does any liability incurred by the unregistered business. If a sole proprietor wants to limit their liability, they can choose to establish a limited partnership or a private company limited by shares (Ltd). A partnership is an agreement between two or more people who agree to share both responsibilities and profits for a certain period of time.
Partnership
In a partnership, all partners are liable for debts incurred by the business. As such, without registration, an individual partner could be sued and held liable for any debts incurred by the company. For example, if Company A trades with Company B and Company A later becomes insolvent and goes into liquidation, Company B could sue the partner of Company A for the amount owed to them.
Company with no members or managers
In the event of a company with no members or managers, the liquidator would be able to take control of the assets and debts of the company. This means that in the event of a bankruptcy, for example, any assets held by an unregistered company would be available for distribution by the liquidator. This could mean that a person who has been providing goods or services to an unregistered company, may not be entitled to claim any portion of those goods or services from an insolvent liquidation. In addition to being personally liable for debts incurred by unregistered companies, partners can also incur penalties. These penalties are typically imposed as a result of negligence or failure to register as a company before incurring debts.
Limited Liability Partnership (LLP)
A limited Liability Partnership is a business structure that is not as well known as a private company limited by shares (Ltd). The Limited Liability Partnership is an alternative to the Limited Company where all members are joint partners. Unlike the Limited Company, the liability of all partners is restricted to the capital they have contributed to the partnership and their share of profits. Limited liability partnerships are a popular option for many businesses as they offer greater flexibility than the more traditional limited company structure; however, they can be complex and require careful consideration.
Company registration penalties
If a company is not registered and has over $5,000 in annual revenue, the owners may be hit with significant fines. A sole proprietor or partner can face fines of up to $10,000 if they have not registered their entity. The penalty might be even worse for corporations that fail to register. Failure to register as a corporation could result in criminal sanctions and penalties of up to $50,000 or two years imprisonment. Corporations are required to register with the federal government before operating in Canada. If a corporation fails to do this, it will be considered an “offender” and will be fined up to $25,000 per day until they are registered.
Conclusion
These days, it is easy to check if a company is legally registered. You can do this in a variety of ways, including searching the official website of the relevant local authority for a registration number or proof of licensing. You can also check the newspaper for evidence of a company advertising their services. If you find a registration number or evidence of licensing, it means that the company is legally registered.
