Summary
According to JustMoney, there are three ways to check a South African company is legitimate: research it online, verify it with the CIPC, and meet the business in person or by video call. Online checks should confirm an https site and reviews on Google, TrustPilot or Hello Peter. A CIPC search confirms the company is listed as "In Business" and its directors are still active.
Like any consumer, you want to find a company that best suits your needs, whether you’re renovating your house or looking for the nearest handyman.
However, with scams increasing at an alarming rate in South Africa, it’s important to check the legitimacy of every new supplier you plan to use.
Steps to take to ensure a company is legitimate
What steps should be taken?
Shaun Viljoen, senior business analyst at SearchWorks, says, “Beyond the obvious manual searches – i.e., checking a company’s address on Google Maps, confirming a website exists, and calling the listed telephone numbers – there are a number of in-depth searches that can be conducted to verify that a local company is legitimate.”
Here are three important checks that can be undertaken with relative ease:
1. Conduct online research
When shopping on an unfamiliar website, inspect the URL. If it begins with “https” instead of “http”, you’ll know the site is secure. Also be sure to check the company’s social media presence and be on the lookout for customer reviews on Facebook, Google, Trust Pilot, and Hello Peter. These should give you some idea of the credibility of the company in question.
Apply for a personal loan today with a reputable company. Click here to get started.
2. Conduct verifications of the company and its directors via the Companies and Intellectual Property Commission (CIPC).
According to Viljoen, it is vital to:
Ensure the company exists and the status on the system is “In Business”
Ensure all participating directors are indeed active and have not resigned or are not deceased
Confirm the company’s physical address
3. Vet the company via a face-to-face meeting:
Whether by Skype, Microsoft Teams, or Zoom. Visits to the site of the company are also an excellent way of ensuring validity.
Keeping an eye on your credit score prevents fraudulent activity. Subscribe to CreditSav today.