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Full KYB Compliance Guide

Understanding KYB Documents: A Guide for SPs, LLCs, and NGOs

Nabillah N. avatar
Written by Nabillah N.
Updated yesterday

KYB ensures that companies can safely operate, send and receive payments, and comply with international regulatory standards.

Below is a comprehensive guide to the typical KYB documents required for various types of entities, along with explanations of why each document is needed.


1. Sole Proprietor (SP)

A Sole Proprietor is a business owned and operated by a single individual. Verification focuses on confirming the identity of the owner and the legitimacy of the business.

Required Documents:

Document

Purpose / Explanation

Illustration / Tip

Government Issued Identification (Passport/Driver's Licence)

Confirms the identity of the business owner.

Clear, valid ID with photo, date of birth, and signature.

Proof of Address

Confirms the residential or business address of the owner.

Utility bills, tenancy agreements, or official letters dated within 3 months.

Business/Trading License

Validates that the business is legally registered and allowed to operate.

Issued by local authorities, municipality, or regulatory agency.

Tip: Ensure scanned documents are clear, unaltered, and show all edges and stamps.


2. Limited Liability Company (LLC)

An LLC is a company structure where ownership is shared among shareholders, and personal liability is limited. Verification here is more extensive to confirm ownership, directors, and corporate governance.Know Your Business (KYB) is a critical compliance process that allows financial institutions to verify the legal existence, ownership, and legitimacy of businesses.

Required Documents:

Document

Purpose / Explanation

Illustration / Tip

Board Resolution

Authorises key decisions, including opening accounts with Eversend.

Signed by directors on company letterhead, dated.

Certificate of Incorporation

Confirms legal registration of the company.

Official document issued by the Company Registry.

Company Constitution / Articles of Association

Defines governance, shareholder rights, and rules for operations.

Certified copy from the Registrar or Company Secretary.

Proof of Registered Address / Business Address

Confirms official location of the company.

Utility bill, lease, or official correspondence, within the last 3 months.

Certified Documents Indicating Ownership & Ownership Structure

Shows who owns the company and shareholding percentages.

Ownership declaration or share certificates.

Register of Directors

Lists all current directors with full details.

Certified document from the Company Registry.

Director’s Identification Documents

Verifies identity of all company directors.

Passport or Driver’s Licence.

Proof of Address for Directors

Confirms residential address of directors.

Recent utility bill, bank statement, or tenancy agreement.

Register of Ultimate Beneficial Owners (UBOs)

Identifies individuals who ultimately control the company.

Certified register or official declaration.

Tip: For LLCs operating across multiple countries, ensure that all documents are certified and translated if necessary.


3. Non-Governmental Organisation (NGO)

NGOs are non-profit entities often involved in humanitarian, environmental, or social initiatives. Verification ensures legitimacy, compliance with tax laws, and proper governance.

Required Documents:

Document

Purpose / Explanation

Illustration / Tip

Memorandum & Articles of Incorporation

Establishes legal existence and governing rules.

Certified copy from the relevant government authority.

Internal Revenue Service (IRS) Approvals

Confirms tax-exempt status or compliance with tax regulations.

IRS or local tax authority approval letters.

NGO Services Profile

Describes activities, beneficiaries, and scope of work.

Organization overview with objectives and programs.

Board Resolution to Open Account with Eversend

Official authorisation for account opening.

Signed by authorized board members.

Proof of Address

Confirms the registered office of the NGO.

Utility bill, lease agreement, or rental document not older than 3 months.

Tip: NGOs should ensure all documents are recent, certified, and consistent with official records.


Why KYB Matters

  1. Legal Compliance: Helps meet local and international regulatory requirements.

  2. Fraud Prevention: Protects your business from fraudulent transactions.

  3. Financial Integrity: Ensures transparency in ownership and control.

  4. Business Credibility: Verified businesses gain trust with financial institutions, partners, and clients.


Illustrative Summary

Entity Type

Key Documents

Purpose

SP

ID, Proof of Address, Business License

Verify identity and business legitimacy

LLC

Board Resolution, Certificate of Incorporation, Constitution, Registers of Directors & UBOs, ID, Proof of Address

Confirm corporate governance, ownership, and director verification

NGO

Memorandum & Articles, IRS Approvals, Services Profile, Board Resolution, Proof of Address

Validate legal existence, tax compliance, and organisational legitimacy


Pro Tips for Smooth KYB Submission:

  • Always submit certified copies where possible.

  • Ensure documents are current (no older than 3 months for addresses).

  • Translate documents if issued in a foreign language.

  • Maintain consistency across all records — names, addresses, and registration numbers must match.

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