Taking on a new international client without due diligence is one of the most common sources of non-payment for Indian service businesses. This guide covers how to vet international clients before committing resources.
Why International Client Due Diligence Is Harder
With an Indian client, you can check GST registration, company registration on MCA, and get references locally. With an international client:
- Company registrations are in foreign databases you may not know
- References can be fabricated
- Jurisdiction for disputes is overseas
- Payment reversal after delivery is harder to prevent than domestic A 10-minute due diligence check before starting work is worth thousands of rupees of protection.
Step 1: Verify the Company Exists
US companies:
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Search the state's business registry (Delaware: corp.delaware.gov, California: bizfileonline.sos.ca.gov, etc.)
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LinkedIn company page (check employee count, founding year, activity)
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Better Business Bureau (bbb.org) for complaints
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Crunchbase (for startups) — funding history, investors UK companies:
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Companies House (find-and-update.company-information.service.gov.uk) — free, official. Shows incorporation date, directors, filed accounts
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A UK company not on Companies House doesn't legally exist EU companies:
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Country-specific registries. Germany: handelsregister.de, France: infogreffe.fr, Netherlands: kvk.nl (KVK number)
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EU VAT number verification: ec.europa.eu/taxation_customs/vies UAE companies:
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Dubai: DED (Department of Economy and Tourism) business register
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DIFC/ADGM registered entities: check their respective registrar websites
Step 2: Verify Their Online Presence
Website check:
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Does the website look active and legitimate?
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Check WHOIS (whois.domaintools.com) for domain registration date. A company claiming to be 5 years old with a domain registered 3 months ago: red flag.
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Google the company name + "review" or "complaint" or "scam" LinkedIn:
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Company page: how many employees? Is it consistent with their claimed size?
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Your point of contact: real LinkedIn profile with work history? Mutual connections?
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New LinkedIn profile with few connections and no work history: proceed carefully
Step 3: Check Payment Capacity Signals
For US companies:
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Crunchbase: funded? By whom? Last funding round?
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Clutch.co: do they appear as a buyer of services? Any reviews from Indian agencies? For startups specifically:
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Pre-revenue startup requesting 3-month commitment with backend payment: highest risk category
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Ask: "What stage are you at? Pre-revenue, seed-funded, or revenue-generating?"
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A pre-revenue startup with a $10K/month retainer budget but no funding evidence: high non-payment risk
Step 4: Get References
For engagements above $5,000: ask for two references from current or recent vendors.
"As part of our onboarding process for new partnerships, we request two vendor references. Could you share contact details for two businesses you've worked with recently?"
Actually call or email the references. Ask specifically: "Were payments made on time?" and "Would you work with them again?"
A client who hesitates at references for a large engagement: proceed very carefully.
Step 5: Start Small
For clients who pass basic checks but where you have no track record:
- Propose a smaller first engagement (1-2 week project, $500-$1,500)
- Full payment upfront or 50% upfront
- Deliver successfully, collect payment
- Scale the relationship from a position of established trust
Red Flags to Never Ignore
- Can't verify company exists in any official register
- Offers above-market rates for simple work (often bait for later non-payment)
- Refuses 50% upfront for first engagement
- Point of contact has no verifiable online presence
- Urgent start required before any agreement is signed
- Asks for work to be delivered before invoice is raised
- Pays a small first invoice quickly, then delays on large second invoice
FAQ
How do I verify a US client company? Check the state business registry for their incorporation state. LinkedIn company page. Crunchbase if startup. BBB for complaints. A legitimate US company can be verified in under 5 minutes.
How do I verify a UK company? Companies House (company-information.service.gov.uk) — free, official. Search by company name or number. Filed accounts, directors, and incorporation date all visible.
What is the single most important due diligence step? Require 50% upfront from all new international clients. No verification method is foolproof. Upfront payment ensures you're covered even if due diligence misses something.