Verifying your business in Canada.

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.

Table of contents

Topics covered here include:

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

1. 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 your 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 one year and must clearly show 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

2. Verifying the company and 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:

All submitted documents must meet the following criteria:

• Issued within the last six months (or the most recent official version).
• Must be dated and signed by an authorized individual (Director, UBO, or Partner).
• Must be accurate, up-to-date, and clearly legible.
• If not in English or French, a certified translation must accompany the original.

See requirements for documents here

Foreign entities (non-Canadian)

If the entity is incorporated outside of Canada, provide:

• Business Registration/Certificate of Incorporation. Must include Business Name, Registration Number, Issuing Authority, Registration Date, Address, and Country.
• Register of Directors & Shareholders. Must include names, percentages, and be signed by a Director/UBO.

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. 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:

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

See requirements for documents here

3. Verifying individuals.

Identification and verification

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

See requirements for documents here

4. Additional requirements

1. Letter of Authorization.
2. Good Standing certificate.
3. Ultimate Beneficial Owner declaration.
4. Controlling Person declaration.
5. Source of Funds / Source of Wealth.

Letter of Authorization

Authorization for Non-Directors of Non-UBOs

If the onboarding application is being prepared or submitted by individuals who are not Directors 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:

Download Letter of Authorization here

Certified documents

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

• List of directors.
• List of shareholders.
• 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 this 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)

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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.

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

Download Ultimate Beneficial Owner declaration here

Controlling Person Declaration

Depending on the company structure, Controlling Person declaration may be requested, but is not applicable to all onboarding 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.

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

Download Controlling Person Declaration here

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 Funds:

• The origin of funds that an individual or company uses to finance its operations.

Source of Wealth:

• The origin and means of wealth, reflecting the overall accumulated net worth of entity/individual, used to establish 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.

Examples of supporting documentation for Source of Funds:

• Personal or joint savings, collected in form of bank statements.
• Loan agreements.
• Contract agreements.
• Sale of assets (real estate, shares).
• Compensation from legal settlements.
• Employment income, including salaries, bonuses, and pensions.

Examples of supporting documentation for Source of Wealth:

• Personal or joint savings, collected in the form of bank statements.
• Audited financial statements.
• Inheritances, including family wealth transfer.
• Profits from legitimate business activities or investments.
• Ownership of businesses or investments, including returns.
• Employment income, including salaries, bonuses, and pensions.

5. Document requirements.

Identity and address verification

Nium will attempt to verify the individuals using reliable and independent sources.

In cases where verification is incomplete, the below documents would be required.

Government-issued photo identification requirements

Accepted documents are:

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

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

• Validity and authenticity.‍
  
  • The document must be valid, authentic, and current.
    
    • It must have a valid expiry date (if applicable).
• 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.
• Internal consistency.‍
  
  • All details presented on the document must be consistent throughout (e.g., name spelling, dates).
• Required, clearly displayed information.
  
  • 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.‍
• Use restrictions.‍
  
  • The same document cannot be used for both Proof of Identity and Proof of Address.

Examples of identity documents

Passport

National ID card

Driver’s license

Proof of address.

1. Bank statement.
2. Utility bill (gas, water, electricity, waste management).
3. Tax returns.
4. Government-issued letter.
5. Driver's licence (if already used as Proof of Identity, cannot be used as Proof of Address).

Proof of address validity requirements.

• Document must be dated within 90 days (not applicable to Driver’s licence).
• Document must be full, clearly visible, and cannot have any redactions or alterations.
• Registered agents, PO Box, and CMRA addresses are not accepted.

Examples of address documents

Utility bill

Bank statement

Glossary.