What is KYC?
KYC (Know Your Customer) is the identity-verification process that registered agents, banks, and regulators run on a company's directors, shareholders, and UBOs before providing services. For company formation it typically means certified passport copies, proof of address, and source-of-funds documentation for each key person.
KYC in the incorporation process
KYC is usually the critical path in any formation timeline. A standard BVI company incorporates in 2–3 business days - but only after KYC clears. Prepare documents before you start: valid passport (6+ months validity), proof of address under 3 months old, and a short professional background or CV for each director and UBO. High-risk industries add a source-of-funds narrative: where the initial capital comes from and how it was earned. Incomplete KYC is the number one cause of formation delays.
Who must certify your documents (and how)
Most agents require certified copies - a lawyer, notary, or accountant attests the copy matches the original. Some jurisdictions accept digital verification (liveness check plus document scan); others still demand wet-ink notarisation and, for cross-border use, an apostille. Ask your agent which standard applies before couriering documents: re-certification is the second most common delay after missing documents.
Ongoing KYC after formation
KYC is not one-off. Agents refresh files every 1–3 years, banks re-verify on unusual transactions, and any change of director or shareholder triggers new checks. Keeping a current KYC pack (certified ID, fresh proof of address, org chart for layered structures) shortens every future onboarding - new bank accounts, payment processors, exchange listings.
Frequently asked questions
How long does KYC take for company formation?
With complete documents, 1–3 business days at most agents. Missing certifications, expired proofs of address, or unexplained source of funds can stretch it to weeks. Prepare the full pack before starting onboarding.
Who has to pass KYC when incorporating?
Every director, every shareholder above the disclosure threshold (usually 10–25%), and every UBO. For corporate shareholders, the entities themselves plus the natural persons behind them.
Ready to put this into practice?
OnScale handles the full setup - formation, KYC, and documents - with one fixed price and one point of contact.