Company Incorporation VPP Scam

Entrepreneurs get their company registered and start a new business with all hope, looking forward to acquiring their first client. However, even before they can open a bank account, there are chances they could fall prey of a VPP Scam scheme. This article is aimed at helping Entrepreneurs not fall prey to the Company Incorporation VPP Scam and creating awareness.

Company Incorporation VPP Scam

During incorporation of a private limited company or registration of an LLP, details relating to the promoters of the company or Limited Liability Partnership (LLP) are made public information by the Ministry of Corporate Affairs(MCA). Scammers obtain this information from the MCA and use it to scam the promoters of a Private Limited Company or LLP.

What is VPP Post?

Value Payable System or VPP Post is a service from IndiaPost designed to collect payment from the receiver of the package for articles sent to them in the post. Items such as registered parcels, registered letters, registered book packets and newspapers can be sent through VPP Post with a mandate to collect payment on delivery. It is up to the receiver of the package to accept or reject the package.

VPP Post on obtaining DIN or DPIN

On filing the application of Director Identification Number (DIN) with the MCA, the current address of the DIN applicant is visible to the MCA. Using this information, scammers send a VPP Post most often containing a printed copy of the DIN Letter or other junk books or reading materials - requesting money.

It is important that the Entrepreneur / DIN Applicant rejects this VPP Post. DIN is provided in the form of a letter generated online and can be downloaded for free from the MCA website. Therefore, there is no necessity to pay for the items sent through VPP Post after obtaining DIN.

VPP Post on Company Incorporation

On incorporation of a private limited company or LLP, the information pertaining to the business is made publicly accessible in the MCA Website. Using this information, many Banks approach the promoters of business for opening a business account. At the same time, scammers also use this information to send a VPP Post containing books or periodicals that are requested by the promoters of the business.

The VPP Post sent after incorporation contains only a few books of very low value that are not required at any point for managing the business. Hence, it is important that the Entrepreneur or those residing at the registered office of the Company reject this VPP Post.

VPP Post Scam

Things to Remember

Those involved in the incorporation of a private limited company or LLP must always remember that the MCA nor any other Governmental Agency never sends any information through VPP Post. Therefore, it is important for anyone starting or managing a company to accept only those VPP that they have ordered. Never accept any VPP Post that you did not request.

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Frequently Asked Questions

Common questions about Company Incorporation VPP Scam Awareness in India.

A VPP (Value Payable Post) Scam involves scammers sending unsolicited packages through India Post's VPP service, demanding payment on delivery. The packages typically contain low-value items like books or printed materials that the recipient did not order, making it a scam.

Entrepreneurs who have recently incorporated a private limited company or LLP (Limited Liability Partnership) are at risk because their details, including addresses, become public information on the Ministry of Corporate Affairs (MCA) website. Scammers exploit this information to target new businesses with VPP Scams.

Scammers obtain the information, such as addresses and contact details, from the MCA website, where the details of promoters of newly incorporated companies and LLPs are made public.

No, it is not mandatory to accept or pay for VPP packages that you did not order or request. As the recipient, you have the option to reject the package and avoid falling victim to the scam.

While banks may send legitimate communication regarding opening a business account, entrepreneurs should be cautious of unsolicited VPP packages claiming to contain essential materials for running the business, as these are often scams.

A genuine VPP package will be for an item or service that the entrepreneur has explicitly ordered or requested. If the package is unsolicited or contains low-value materials that are not required for the business, it is likely a scam.

If an entrepreneur receives an unsolicited VPP package, they should reject it and refuse to pay. It is advisable not to accept or pay for any VPP packages that were not explicitly ordered or requested.

While there may not be direct legal consequences for falling victim to a VPP Scam, it can result in financial losses and potential misuse of personal or business information by scammers.

Entrepreneurs can protect themselves by being vigilant and rejecting any unsolicited VPP packages. Additionally, they should be cautious about sharing personal or business information online or with unknown parties.

If an entrepreneur falls victim to a VPP Scam, they can report the incident to the local police authorities or consumer protection agencies. Reporting such scams can help create awareness and prevent others from becoming victims.