You can do a basic risk assessment of the business entity or people involved with it from your background checks, by asking some of the following questions:
What is the role of the person who has contacted you?
If you notice that the person who has contacted you seems to be in charge of the business entity but is not listed in the business profile of the entity, you should first check his actual role in the entity.
What is the involvement of the person who is contacting you in other business entities?
If you notice from the People/ Business Profiles that this person is involved in other business entities that have failed, you may wish to find out more about him before dealing with him further
What is the company’s paid-up share capital compared with the amount of investment that you wish to put in the company?
If the paid-up share capital of a company is very small compared to your potential investment, you may wish to consider how much capital the company has to pay its creditors if it shuts down subsequently. You should also consider how much capital the existing shareholders are actually willing to invest in it, and how much risk they are willing to accept for their investment.