What is KYB (Know Your Business)?
Know Your Business (KYB) is the process of verifying that a company you are about to deal with is genuine, lawfully registered, and controlled by identifiable people. It is the corporate counterpart of KYC, which verifies individuals.
At a glance
What it is used for
KYB is both a regulatory requirement for financial institutions and simple commercial self-defence for traders. Before releasing cargo, sending funds or sharing a supply chain, you need to know that the counterparty exists and who stands behind it.
Key points
- Confirms legal name, registration number, registered address and current standing from the official company registry.
- Identifies directors and ultimate beneficial owners, and verifies their identity documents.
- Screens the company, its owners and directors against sanctions and watchlists.
- Checks that the person signing has authority to bind the company.
What to watch for
- A registration certificate proves a company was formed, not that it trades or is solvent — check current status, not just existence.
- Ownership can be layered deliberately across jurisdictions. Follow the chain to natural persons rather than stopping at a holding company.
- Verification is a snapshot. Ownership, sanctions status and standing all change, so re-check for long-running relationships.
Frequently asked questions
What is the difference between KYC and KYB?
KYC verifies an individual. KYB verifies a legal entity — its registration, ownership structure and the people who ultimately control it.
What documents are needed for KYB?
Typically a certificate of incorporation, registry extract, ownership or shareholding structure, director identification, proof of address and evidence of signing authority.
How long does KYB take?
From minutes where registries are digital and open, to weeks where ownership runs through several jurisdictions or documents need notarisation.
Related terms
Lodfy verifies every company on the platform — registration, ownership and sanctions screening — before they can trade.