This article outlines the documents required for organizations registered in Canada to complete business verification.

Verification, commonly referred to as KYC or "Know Your Customer," is a regulatory requirement for offering financial services to businesses and individuals. The process involves collecting, reviewing, and maintaining information about the entities and individuals using our services.

The verification process is divided into two primary components: Business Verification (Verifying the nature and ownership of the business) and Individual Verification.

Topics covered here, include:

1. Verifying the nature of your business
2. Verifying ownership
3. Verifying individuals
4. Additional requirements
5. Document requirements

Verifying the Nature of your Business

The Nature of business must be verified to ensure it aligns with regulatory requirements, accurately reflects its stated operations, and complies with industry and legal standards. Evidence of business activities may include:

• Website

If your company does not have a working website, please provide one of the Contracts Business agreements below:

• Contracts
• Business agreements

Or, a combination of the following:

• Company profile or presentation / company brochures or marketing material / detailed business plan
• Invoice (document must be issued within 1 year, and must clearly showcase business operations)

Prohibited Business Categories

If your company’s industry falls under any one of the listed categories, the application may be either rejected, or additional documents may be requested.

Prohibited and Restricted Business Categories

Verifying Ownership

Nium prioritizes obtaining documents from reliable and independent sources, such as public registries, to streamline and simplify the onboarding process. Customers are only asked to submit documents themselves when these sources do not provide the necessary information, ensuring efficiency while upholding regulatory compliance.

Documents that may be required for different company types:

See requirements for documents here

For Multi-layer ownership structure companies, see section Multi-layer ownership structure

Verifying Individuals

Identification and verification

Depending on the company type, the individuals below must be identified and verified:

See requirements for documents here

Additional requirements

1. Letter of Authorization
2. Good Standing certificate
3. Multi-layer ownership structure
4. Ultimate Beneficial Owner declaration
5. Controlling Person declaration
6. Source of Funds / Source of Wealth

Letter of Authorization

Download Letter of Authorization here

Authorization for Non - Directors or Non-UBOs

If the on boarding application is being prepared or submitted by individuals who are not directors, officers or Ultimate Beneficial Owners (UBOs), a Letter of Authorization is required. This form authorizes these individuals to act on behalf of the company. Below are the requirements based on the company type:

Certified documents

Under some conditions, Nium may request to provide the below certified documents:

1. List of Directors
2. List of Shareholders
3. Organizational Chart

Requirements for the documents are as follows:

1. These documents may be certified (signed) by a key verified person. However, in certain circumstances, you may be required to provide documents that have been issued or certified by a registered accountant, lawyer, or notary. This person must be registered with a regulated professional body (e.g. Chartered Professional Accountants of Canada; The Federation of Law Societies of Canada)
2. The certifier must state their:
   
   • Full name
   • Title
   • Date of signing
   • Professional identifier code (e.g., CPA code, Law Society License number)
   • Include sentence:
     “I here by certify that the company structure chart is true, correct and accurate” or wording which is equivalent.

Good Standing status confirmation

Good Standing status confirmation (Certificate of existence) may be requested if company status cannot be verified using reliable and independent sources.

Example of Good Standing status confirmation (Certificate of existence)

Multi-layer ownership structure

A multi-layer ownership structure exists when a company is owned indirectly through one or more intermediate entities, rather than being directly owned by individuals or a single organization.

To determine if your company has a multi-layer ownership structure, please refer to the below questions:

1. Is your company owned by another entity (e.g., a company, trust, or partnership) rather than directly by individuals?
   If yes, there is at least one layer of ownership.
2. Does that owning entity itself have owners who are other entities?
   If yes, this adds another layer to the structure.
3. Can the ultimate beneficial owners (the individuals who control or benefit from the company) only be identified by tracing ownership through multiple entities?
   If yes, your company has a multi-layer ownership structure.

In simpler terms, if you must navigate through several entities to find the ultimate owners or decision - makers, your company likely has a multi-layer ownership structure.

Providing documents for multi-layer ownership structure

Providing documents for multiple layers of ownership ensures transparency and helps verify the identities of all individuals who ultimately control the company. Nium may request to submit the documents for all layers of the company ownership.

If the holding companies are incorporated in Canada, the same requirements will apply as listed in section Verify ownership.

For non-Canadian incorporated entities, required documents may include:

1. Business registration document / Certificate of Incorporation.
2. Register list of Directors and Register list of shareholders (can be same document as number 1 if it holds the same information).

See requirements for documents here

Ultimate Beneficial Owner declaration

Depending on the company structure, Ultimate Beneficial Owner declaration may be requested, but is not applicable to all on boarding cases.

When Nium cannot identify an individual holding 25% of ownership shares, directly or indirectly, UBO declaration will be requested.

Download Ultimate Beneficial Owner declaration here

Declaration must be signed by company Director/UBO/Controlling person, and that individual must be listed in company’s ownership documents.

Controlling Person Declaration

Depending on the company structure, Controlling Person declaration may be requested, but is not applicab le to all on b oarding cases.

When there is no single individual holding 25% of ownership shares, directly or indirectly, Controlling Person declaration will be requested, and that individual must be listed in company’s ownership documents.

Download Controlling Person Declaration here

Declarations must be signed by a company Director/UBO/Controlling person, and that individual must be listed in company’s ownership documents.

Source of Funds / Source of Wealth

Depending on the company overall evaluation, Nium may request for Source of Funds or Source of Wealth documents. This is not applicable to all onboarding cases.

Source of Wealth – origin and means of wealth, reflecting the overall accumulated net worth of entity/individual, used to estab lish and operate a company. A written explanation, accompanied by supporting documentation, must b e collected to confirm the legitimacy of the customer’s wealth for conducting business.

Source of Funds - the origin of funds that an individual or company uses to finance its operations.

Examples of supporting documentation for Source of Wealth / Source of Funds:

• Personal or joint savings, collected in form of bank statements
• Employment income, including salaries, b onuses, and pension
• Loan agreements
• Contract agreements
• Sale of assets (real estate, shares)
• Inheritances, including family wealth transfer
• Compensation from legal settlements
• Profits from legitimate business activities or investments
• Ownership of businesses or investments, including returns
• Other documents, related to customer’s funds or wealth

Document Requirements

Identity and Address verification

Nium will attempt to verify the individuals using reliable and independent sources. In cases where verification is incomplete, b elow documents would be required:

Government-Issued Photo Identification Requirements

Accepted documents are:

• Passport
• National ID card (both sides)
• Driver’s license (both sides)

The document used for identity verification must meet the following criteria:

1. Validity & Authenticity
   The document must be valid, authentic, and current.
   It must have a valid expiry date (if applicable).
2. Quality of the Document
   A copy of a copy is not acceptable; the image must be taken directly from the original document.
   Black-and-white images are not acceptable; the document must be in color.
   Paper-based (“paper”) IDs are not acceptable (e.g., temporary, interim, or printed versions).
   All information must be clearly legible.
3. Internal Consistency
   All details presented on the document must be consistent throughout (e.g., name spelling, dates).
4. Required Information
   The identification document must clearly display:
   Full legal name
   Date of birth
   Type of document being presented (e.g., driver’s license, passport)
   Unique identification number
   Province/state/territory or country of issue
   
   
5. Use Restrictions
   The same document cannot b e used for both Proof of Identity and Proof of Address

Examples of identity documents

Passport

National ID card

Driver’s License

Proof of Address

• Utility bill (gas, electric, telephone, cable)
• Credit card bill
• Bank or brokerage account statement
• Government issued letter
• Driver’s license/Passport/National ID card (if address is listed)

1. Document must be dated within 60 days (not applicable to Driver’s license/ Passport/National ID card)
2. Registered Agent address is not accepted
3. Cropped documents are not accepted
4. Invoices are not accepted
5. PO BOX and CMRA addresses are not accepted
6. The same document cannot be used for Proof of Identity and Proof of Address

Examples of address documents

Utility bill

Bank statement

Ownership document requirements

Ownership document requirements for Canadian entities:

Acceptable documents include, but are not limited to:

• Articles of Incorporation
• Certificate of Incorporation
• Annual Returns (if signed by an audit firm)

Document must include:

• Business name
• Business registration number
• Confirm the legal incorporation status (federal or provincial incorporation)
• List of company Directors
• List of company Shareholders, and their holding percentages
• Document must be issued within 6 months, or be the most recent version of that document
• Document must be dated
• Document must be signed by company Director/UBO/Controlling Person

Certificate of Partnership / Partnership Agreement. Document must include:

• Business name
• Business registration number
• List of all Partners
• Document must be issued within 6 months, or be the most recent version of that document
• Document must be dated
• Document must be drafted and signed by Partners of the company
• Document must be accurate and up-to-date
• Document must be issued upon company establishment

Sole Proprietor Annual Tax return

Alternative documents:

• Business license, showing both business and owners name
• Filing Receipt, or other proof of filing if receipt is not available

Document must include:

• Business name
• Business registration number
• Name of the Sole Proprietor
• Document must be issued within 1 year
• Document must be dated

Ownership document requirements for non-Canadian incorporated entities:

Business registration document / Certificate of Incorporation. Document must include:

• Business name
• Business registration number
• Issuing authority
• Registration date
• Company address
• Issuing country

Register list of Directors and Register list of shareholders. Document must include:

• Business name
• Business registration number
• List of company Directors
• List of company Shareholders, and their holding percentages
• Document must be issued within 6 months
• Document must be dated
• Document must be signed by company Director/UBO

Glossary