A Guide to Corporate Verification

What is a Company Registry?

A company registry is an official government-maintained database containing information on registered legal entities within a jurisdiction. Most countries have only one official corporate registry; however, some have multiple registers either segregated by region or by type of registered entity. Corporate registries maintain a record of key information on an entity such as a company's legal name, registration number, incorporation date, registered address, status, etc. For KYC and due diligence purposes, company registries are the official primary source for independently verifying the existence and registered information of a corporate entity.

How to Search Company Registries

When conducting due diligence or KYC checks, it is important to begin with the company's full legal name, registration number (if known), and the official registration authority in which the entity is incorporated. A search can then be conducted within the records of the official government register. Whilst there is open access to some registers, others require a user account or search fees. Company Documents Ltd have been experts in corporate investigations for over 25 years and can assist in completing a search in over 200 company registries.

Types of Company Documents

Company document filings vary drastically across jurisdictions based on the legal system of the domicile country as well as privacy laws and the extent to which filing requirements are enforced. In some cases, there is full public disclosure of all corporate filings and in other instances only the basic registration information is recorded at the official authority, and additional compliance information is held by an authorised registration agent.

In some countries a company is incorporated by the founding documents, such as Memorandum and Articles of Incorporation and every subsequent amendment is filed as a discrete separate document. In other countries a company is registered by a public deed and any changes are subsequently registered by addendum.

Limitations of Company Registry Information

Whilst company registries are the primary source for verifying the existence and registered details of a company, there are limitations to their coverage in terms of KYC and AML checks. The information available from a company registry varies significantly between jurisdictions. Some registries provide comprehensive public access to corporate records, including director and shareholder registers, financial statements and beneficial ownership information, whilst others disclose only basic registration details.

Registry information is dependent upon the relevant filing requirements of the domicile. Any amendments to company information are subject to local filing procedures and processing times. In certain countries, corporate information may be maintained by licensed registration agents, with only limited data recorded in the public register. In addition, registries rely on information submitted by the company or its authorised representatives and do not independently verify all filings.

In many instances, company registry searches should form part of a wider due diligence process and, where necessary, be supplemented with additional independent sources. Company Documents Limited also provides Enhanced Due Diligence investigations across the globe to cover additional resources such as court records, regulatory databases, sanctions checks, PEP screening and adverse media searches.

Red Flags Identified Through Registry Searches

A company registry search can often identify potential red flags presenting an increased level of risk that may warrant further investigation as part of a KYC review. In the presence of such indicators, it may be advisable to conduct additional due diligence to verify key information.

Common red flags may include shell companies with limited operating history, overdue statutory filings, regulatory penalties, significant charges or mortgage filings, frequent changes to directors or registered addresses, and adverse company status.

Status terminology varies across jurisdictions, common classifications include Active, In Good Standing, Inactive, Dissolved, and In Liquidation. Whilst Active status indicates that an entity is current and registered, it does not necessarily confirm that the company is operational and compliant with all regulatory requirements or In Good Standing. A Dissolved or Struck Off company can have been either voluntarily removed from the register or subject to compulsory removal for non-compliance with statutory obligations such as payment of annual fees or submitting filings.

Common Mistakes to Avoid

Common errors include searching only by a partial company name, a trade name, or searching against a translation or transliteration of the company name. Frequently, the same or similar names can be registered in multiple registries across the world, so it is important to know in which registry a subject company is domiciled. Additional mistakes include relying solely on third-party databases without checking official sources. Thorough verification is essential to support an effective KYC and due diligence process.