Before you work with a supplier, hire a contractor or make a big purchase, it’s important to understand your business well. In Australia, checking if a business is registered is necessary for due diligence, not only for peace of mind. The process is often called KYB business verification (Know Your Business).
In this post, we’ll explain how to check if a business is legitimate in Australia, the tools you can use and the reasons why checking a company is important for everyone.
Why It Is Important to Verify a Business
Always check the legitimacy of the other person before you sign any professional or financial agreement. Verifying a company is important because it:
- Keep fraud and scams from happening
- Confirm that the company is legally registered and in a good position.
- Check who is responsible for the business.
- Follow the rules set by regulators (especially if your business is in B2B or finance)
It’s not enough to just make sure the business exists. It also gives you knowledge of its legal system, registration information and any concerns that may come up.
What Does KYB (Know Your Business) Mean in Australia?
KYB business verification is about checking if a business is real and who is behind it. Just like KYC, KYB is necessary for banking, fintech, legal services and procurement industries.
- The main parts of KYB in Australia are:
- Checking the ABN (Australian Business Number)
- Looking up the ACN (Australian Company Number) for companies
- Checking business registration and current status through government websites
- Checking the directors, who owns the company and how it is currently operating
- Checking if the firm has been disqualified or deregistered
How to Find Out If a Business Is Legitimate in Australia
Use these easy steps to verify if a business is officially registered in Australia:
Go to the ABN Lookup Tool.
The ABN Lookup is the official website for finding Australian businesses using their name or ABN. It provides:
Business name
ABN and whether the business is active or inactive
The type of entity is important (e.g., sole trader, partnership, company).
The GST registration status is.
Exchanging trading names or names that are linked to one another
Use the ASIC Registers to search.
A company or registered body will have an ACN if it is a business. ASIC’s register is available for you to search and find information on.
- Name of the company and its ACN
- The date a vehicle was registered and whether it is currently registered
- The names of the directors and officeholders are available.
- Official addresses and locations of companies
It is especially helpful when you need to check a company’s identity as a corporate entity.
Try using a Third-Party Know Your Business (KYB) platform.
Many commercial providers give KYB business verification services by collecting data from ASIC, ABN Lookup, credit bureaus and similar sources. Such platforms are widely employed by financial institutions and big companies to automate compliance and due diligence tasks.
Common features are:
- Notifications about changes in the company’s status as they occur
- Data on who really controls companies
- The identification of risks and compliance flags
- Verification of businesses worldwide
Some of the top KYB providers are Equifax, Illion and Encompass.
Examine the Business’s Website and Find the Company’s Contact Information
While it isn’t official, reviewing a business’s online presence can help you confirm it is real.
Is the ABN or ACN listed on the website?
Can you find and confirm the company’s contact information?
Is the business regularly represented on LinkedIn, Google or industry directories?
Check that the information matches what is reported by the government.
How to Tell if a Business Is Not Legitimate
If you are worried about checking a business’s legitimacy in Australia, look for these warning signs:
- The ABN or ACN is not active or does not exist.
- Business is not included in ABN Lookup or ASIC.
- The company uses a PO box instead of having an actual office.
- Lack of information about who to contact
- Any reports or comments suggesting that the company is a scam
- It’s important to verify everything before you sign any documents or pay for anything.
Ways to Continue KYB Compliance
If you regularly connect with new clients, suppliers or partners, it makes sense to build a KYB process. Here’s how:
Checks can be automated with the help of commercial verification tools.
- Frequently check your business relationships.
- Keep a digital copy of any ABN/ACN checks you perform.
- Make sure your team is trained in how to avoid fraud and verify companies.
- As a result, you are both following the rules and lowering the risks for your organization.
Final Thoughts
You can now easily check if a business is registered in Australia by using public sites like ABN Lookup and ASIC. However, if you want to learn more, especially in high-risk or compliance industries, it’s best to use formal KYB business verification.
When you get to know your business partners, you are better able to protect yourself, your belongings and your reputation. No matter if you’re a sole trader, an investor or a corporate buyer, verifying companies is now essential in the marketplace.
