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Fraud in business

Such a phenomenon in business as “fraud” (which does not always mean a crime under Article 190 of the Criminal Code, hereinafter – the Criminal Code), sooner or later faced by all businesses, regardless of the scale of the business and the duration of its conduct .

“Fraud” in this article refers to the concealment by a potential counterparty of its financial problems, problems with assets and loans, law enforcement and regulatory authorities, concealment of its real market position, physical inability to perform the contract and many other factors, the disclosure of which would lead to refusal agreement.

Practical recommendations for avoiding risk situations:

1. Before concluding an agreement with a new business partner, it must be checked in the Unified State Register of Legal Entities, Individuals – Entrepreneurs and Public Associations.
2. Before signing the contract, we recommend using the data of the State Register of Real Property Rights, checking the presence of a potential counterparty of real estate, as well as arrests and mortgages of such property.
3. Do not neglect the data posted on the official website of the SFS. Thanks to it, you can track the availability of a VAT payer’s certificate, as well as the cancellation of such a certificate and the presence of tax arrears.
4. If the counterparty is a legal entity, its founding documents should be examined.
5. Special attention should be paid to the signing of the contract by the counterparty using a facsimile. It should be noted that the use of facsimiles will be lawful only in the case of such agreement between the parties.

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