| We would like to share with other UK startup | | | | 16. Carry out company and the directors credit check |
| businesses and existing businesses, which are starting | | | | by a credit reference agency |
| up to trade in volume consumer electronics market. | | | | 17. Check each directors details with the electoral roll |
| The minimum due-diligence check (in our opinion) that | | | | 18. Get a signed supplier declaration before each and |
| should be carried out on your potential suppliers and in | | | | every payment is made to a supplier. The supplier |
| some circumstances your potential customers, hence, | | | | declaration should at minimum state: |
| going a long way to prevent fraud against your | | | | 19. - We have and will continue to comply with the |
| company and the HMRC Inland Revenue. | | | | provisions of the Finance Act 2003 enacted as section |
| | | | 77A of the Value Added Tax Act 1994 (the "Act"). |
| 1. Mutually sign a confidential agreement between | | | | This is entirely without prejudice to the Federation of |
| yourselves and your suppliers/customers before giving | | | | Technological Industries' contention that there is no |
| any confidential information. | | | | authority under European Community Law to enact |
| 2. Ask all potential customers and suppliers to forward | | | | these provisions. We have and will continue to comply |
| a : | | | | with the domestic tax requirements of the country |
| 3. - Copy of an official notarized VAT Registration | | | | countries in which we operate. |
| Certificate (VAT 4 or EU equivalent), | | | | · We will undertake reasonable commercial |
| 4. - Companies House Certificate of Incorporation and | | | | checks to: (a) consider the legitimacy of customers |
| a company letterhead. | | | | and suppliers; (b) ensure the commercial viability of the |
| 5. - Letter of introduction and a company utility bill or | | | | transaction; and (c) ensure the goods will be as |
| bank statement no more than 90 days old. | | | | described by our supplier (d) carry out extensive due |
| 6. - Notarized photocopy of their representatives (if | | | | diligence on their suppliers. |
| possible directors) passport/driver license. | | | | · That we are not aware of and have no |
| 7. Get your customers to open a trade account with | | | | reasonable grounds to suspect that some or all of the |
| yourselves, providing at least two commercial | | | | VAT payable in respect of the supply to us, or by us, |
| references and one third party reference (Accountant | | | | of telephones (and related parts and accessories) or |
| Bank Manager) | | | | computers (and related parts, accessories and |
| 8. Send your customer Terms and Conditions of trade | | | | software), has or will go unpaid. |
| 9. Get Terms and Conditions from your suppliers | | | | · That we have paid fair market value for all such |
| 10. Ask supplier and customers for copies of current | | | | goods purchased by us and have re-sold all such |
| invoices of similar orders | | | | goods at fair market value in the open market. |
| 11. Verify all company details with HMRC Inland | | | | · We visit our supplier's premises to confirm that |
| Revenue. | | | | the business exists and has the ability to support the |
| 12. Get references from all specified referees. | | | | level of business offered. |
| 13. Visit suppliers site and verify its existence and if | | | | 15. Make sure that all invoices and purchase orders |
| possible the goods existence | | | | clearly show your and your business customers VAT |
| 14. If goods are held by a freight forwarder, then visit | | | | number. |
| them to verify the goods existence | | | | 16. Most of all remember to stay on top of all your |
| 15. Keep a record of all your visits and if possible get a | | | | paper work especially import/export and business |
| photo of the supplier facilities and goods. | | | | correspondent documents. |