How to Verify Indian Suppliers Before Placing an Order

Verification is the cheapest insurance in international trade. A few hours of checks prevents the two most common losses: paying a company that cannot deliver, and paying a company that never existed. Step 1 — Verify the legal entity Ask for GSTIN, IEC, PAN and the Certificate of Incorporation. Check the GSTIN on the official GST portal; it returns the registered legal name, state, registration date and current status. Confirm three things match across every document and every quotation: legal name, address, and the bank account holder name. A mismatch between the company name and the bank account name is the single clearest fraud indicator in Indian trade. Step 2 — Verify export capability An IEC alone only means the company can export; it does not mean it has. Ask for two recent shipping bills or bills of lading, with prices redacted if they prefer. Ask which ports they load from and which markets they already serve. Real exporters answer instantly and specifically. Step 3 — Verify production capacity Ask for monthly capacity, number of production lines or machines, workforce size, and current order book. Compare that with your order. If your order is more than roughly 30% of their stated monthly capacity, expect delays. Request a live video walkthrough of the factory — not a recorded video — and ask them to show the machine nameplates. Step 4 — Verify quality systems Ask which certifications they hold (ISO 9001, GOTS, OEKO-TEX, BRC, FSSAI, CE, as relevant) and ask for the certificate PDFs. Certificates carry a number and an issuing body; check the number on the issuer''s website. Expired certificates are extremely common. Step 5 — Order a paid sample Pay by bank transfer to the company account, not to an individual. This validates the banking channel as well as the product. Keep a retained sample and reference it in your purchase order. Step 6 — Structure payment to protect yourself Use 30% advance and 70% against a scanned bill of lading, or an LC at sight for larger values. Avoid 100% advance. Avoid personal accounts. Avoid third-country accounts that do not match the exporter''s location — this is a frequent hallmark of hijacked email threads. Step 7 — Guard against email interception Payment-diversion fraud, where an attacker monitors the email thread and sends revised bank details at the last moment, is now more common than outright fake suppliers. Confirm bank details by phone with a number you sourced independently, and treat any mid-transaction change of account details as fraudulent until proven otherwise. Step 8 — Consider a third-party audit For orders above roughly 25,000 dollars, a factory audit and pre-shipment inspection are worth the cost. Today Adviser''s verified badge already covers GST, IEC and export-document checks, and our audit service adds an on-site visit with a dated photo report before you release payment.