Market entry often fails because the foreign company verifies the opportunity but not the local counterparty. A professional-looking website, a business card or a referral is not enough to establish that a partner has the legal authority, operational capacity or financial reliability to perform.
1. Confirm the legal identity first
Start with the exact registered name, legal form, RCCM details, tax identification, address and authorized representatives. A trading name can differ from the registered company, so contracts should identify the correct legal entity.
2. Identify who owns and controls the company
Beneficial ownership matters when evaluating conflicts of interest, sanctions exposure, related parties or the authority of the people negotiating with you. Togo has formal beneficial-ownership reporting rules, and serious due diligence should distinguish shareholders, managers and ultimate controllers.
3. Verify the physical operation
For suppliers and distributors, verify that the office, warehouse, factory or operating site exists and corresponds to the activity presented. A site visit can reveal capacity constraints that are invisible in registration documents.
4. Check licences and sector authorizations
A legally registered company may still lack the approval required for a regulated activity. Import-export, customs, agricultural trading and other sectors can require separate licences or campaign-specific approvals.
For trade activities, see Import-Export Company in Togo and the cashew export guide.
5. Review commercial evidence
Ask for evidence of completed transactions, references, major customers or suppliers where appropriate. The objective is not to collect documents for their own sake; it is to test whether the counterparty has performed work similar to what you are asking it to do.
6. Validate bank and payment information independently
Payment fraud often begins with a last-minute change of bank details. Bank-account information should be validated through a known contact and compared with the company’s legal identity before funds are transferred.
7. Assess reputation carefully
Online searches, local references, industry contacts and regulatory enquiries can identify disputes or inconsistencies. Negative information should be investigated rather than automatically treated as proof of wrongdoing.
8. Document the decision
A due-diligence report should separate verified facts, documents received, unresolved questions, risks and recommendations. Management can then decide whether to proceed, add contractual protections, reduce exposure or stop the transaction.
9. Match the depth of diligence to the risk
A low-value supplier does not require the same review as a distributor receiving inventory on credit, an acquisition target, a joint-venture partner or a counterparty handling regulated goods. The diligence scope should reflect financial exposure and reputational risk.
How TCG can support foreign companies
TCG’s due diligence service in Togo can coordinate corporate checks, document review, local verification and structured reporting. For broader entry decisions, see Market Entry Support in Togo and Corporate Representation.
Contact TCG if you need a verification scope tailored to a partner, supplier or investment project.
Frequently asked questions
What is the minimum due diligence for a supplier?
At a minimum, verify the legal identity, authorized representative, address, bank information, relevant licences and evidence that the supplier can perform the proposed work.
When is a site visit useful?
Whenever operational capacity matters: warehousing, production, inventory, staffing or physical infrastructure. A site visit can confirm facts that documents cannot.
Should online reputation be treated as proof?
No. Online information is a lead for further verification. Material allegations should be corroborated before a commercial decision is made.
What should a due-diligence report contain?
Verified facts, documents reviewed, unresolved points, risk observations and practical recommendations so management can make a documented decision.