Just like in other countries, investors in the Philippines can fall into fraud traps. Fraudulent activities can come from dishonest companies, individuals, or organizations who may attract investors through false promises, misleading information, or other means.
Many clients come to us because they have encountered fraud issues during their investment process. As a legal service provider, we aim to help everyone prevent such situations. Here are some scenarios in which investors may fall into fraud traps in the Philippines:
1. False Projects
2. Non-compliant Companies
3. High Return Promises
4. False Sales
To avoid falling into fraud traps, foreign investors in the Philippines should conduct due diligence:
· Company Background:
This includes basic company information, registration documents, and change records. It also involves any relevant information on legal violations or penalties imposed by departments such as commerce, taxation, law enforcement, customs, environmental protection, banking, and quality supervision. Compliance with local laws can reduce potential legal risks in the future and ensure the legality and security of your investment.
· Legal Compliance:
Understand the legal requirements and foreign investment restrictions related to your investment or business activities. Check if the target company is legally registered. Confirm whether the industry it belongs to requires specific licenses or qualifications and verify if it possesses the necessary qualifications.
Review the target company's documents and reports, including articles of incorporation, financial statements, board meeting records, etc., to ensure its legal operations and compliance.
· Evaluate the Company's Value:
The process of conducting a comprehensive assessment of the target company, including its financial condition, management team, business model, and asset-liability situation.
· Avoid Fraud and Traps:
Investigate legal disputes and violations related to the target company to understand its business reputation and credibility. This will help uncover potential fraudulent activities or pitfalls.
In Summary
Conducting thorough background checks and due diligence is crucial for foreigners looking to invest in Philippine companies. This not only ensures legal compliance but also minimizes investment risks, increases the likelihood of investment success, and protects the interests of investors. Before investing, be sure to dedicate sufficient time and resources to comprehensive research so that you can make informed decisions.
Feilong Legal provides comprehensive due diligence services to ensure the legality and compliance of your investments. We verify the legitimacy of the target company and review contracts and agreements. Our professional team investigates the target company's history, tax requirements, and intellectual property to safeguard your interests. Feilong Legal, your reliable choice!