New Delhi (India), June 6: In recent times, you might have seen headlines of ‘GST scams' or ‘business scams' that are surging in today's time. Many countries, like Australia, the U.S.A, etc, have already issued legal statements to inform businesses of several kinds of scams occurring. The problem? Many scams are targeted at new or existing registered businesses because of the available information on the Ministry of Corporate Affairs (MCA). When registering the company, MCA puts the information which is visible to the public.
However, due to a lack of knowledge, many scammers disguise themselves either as a government agent or registrar to gain benefits. CompRegi, who has been dealing in business registration for years, sheds light on recent scams going around. CompRegi is a business consultancy and registration company who have helped companies stay out of scams and now shares valuable tips to identify and avoid them.
There are many ways in which scams take place. What must be considered is that as the world is growing, the digital landscape gives space to carry out scams effortlessly. However, the Value Payable Post (VPP) scam stands out to deceive people. After registration, the Ministry of Corporate Affairs (MCA) provides certificates, books or documents to registered companies. Scammers send out packages to the registered address and impersonate it as a MCA parcel asking for money.
The reason for its occurrence is because of the visibility of the Director Identification Number (DIN). While applying to get DIN, MCA sends an online mail for its confirmation and verification. There is no way where MCA to send parcels to registered businesses. However, due to unawareness, many have fallen into this trap. The best way to stay out of them is either to decline the parcel or never pay a penny as a charge.
What needs to be noted is that while registering, a company has to pay a lump sum fee for convenience. But this doesn't need to be paid via third-party services that impersonate themselves as government agents. To tackle it, the company needs to verify the business registration service company provider directly by contacting the government or checking the website.
Fraudalents have made a way ahead by stealing pockets doing it. More evolved way came when ACCA revealed fraud done through letters. Many people claim to be government agents and send mail to the companies for renewal, update or to activate features that need some convenience charge. This needs to be emphasised again that the government doesn't include third-party services for any of the registration processes. MCA services clearly state the processing fee and procedures along with the fees calculator.
Another way to pay heed and identify fraud is through inspecting the domain name. To cite an example, the original site is compregi.in It's possible that fraudsters dupe by sending a message with the identity of compregi.com. So, keep an eye out and see if the emails received are coming through the company through which registration was established. Keep the expiration date handy to know the renewal due date, as it is easy to trick when not paid attention.
Another way physical scam take place is by fraudsters disguising themselves as investigators and officers from inspection. It must be clear in mind that the Central Government is free to appoint an investigator or officer for the functionality of the company. The process must not be questioned unless it takes place legally. However, to verify the scam, ensure not to pay any inspection fee upon request. MCA Investigation under the Company Act, point ten states, “The expenses of investigation should be borne by the Central Government where such investigation has been ordered on its own. It should, however, be recovered from the applicant if the investigation has been ordered on the request of an applicant.”
Therefore, no inspection fee demand must be fulfilled if it's not requested by the company. If any fine or penalty is demanded, cross-check it with the fee structure of the MCA or fill out an enquiry form regarding it. CompRegi believes not to be trapped in tactics of urgency, impersonation, misleading links or attachment scams. A verified and credible service provider is needed for business registration to not fall into such traps and to get proper guidance on it.