KYC and KYB explained: Document checklists for Hong Kong eCommerce

Key takeaways

• Understanding KYC and KYB helps Hong Kong online merchants navigate statutory compliance when setting up payment gateways and business accounts.

• Preparing corporate filings, proof of address, and UBO details helps prevent pending account status and onboarding delays.

• Airwallex supports a streamlined online onboarding experience, helping Hong Kong businesses submit their company information and supporting documents through a digital application process.

For a Hong Kong eCommerce business, KYC and KYB are often one of the first checks required when setting up a payment gateway or business account. This guide explains what the process involves, which documents to prepare, and how to avoid common delays. It also outlines how the modern fintech platform Airwallex approaches onboarding from day zero.

What are KYC and KYB, and why are they required?

Before a payment provider can activate your account, it needs to confirm who you are, how your business is structured, and who controls it. These checks apply to payment gateways and multi-currency business accounts. They also support wider efforts to keep digital commerce secure and compliant.

What are KYC and KYB, and how are they different?

In Hong Kong, KYC and KYB checks draw on standards and guidance from the Hong Kong Monetary Authority and other authorities, including the Inland Revenue Department and Companies Registry. Take Airwallex as an example, the distinctions between them are clear:

• KYC (Know Your Customer) may involve verifying the individuals connected to a business, such as directors, UBOs, shareholders, and authorised account users, as well as understanding the purpose and nature of the business relationship.

• KYB (Know Your Business) is an additional business verification process used for payment acceptance, including Checkout. It provides deeper checks on the legal entity, ownership structure, business model, website, operations, and other information relevant to payment acceptance.

Businesses applying for an Airwallex Business Account generally complete KYC during onboarding. If they also apply for Payments, they may need to complete KYB after KYC.

Why do business accounts require KYC, and why do payment gateways require KYB?

Payment providers need to understand the merchants using their networks. By verifying directors and controlling shareholders before processing customer payments, it helps providers manage credit risk, chargeback exposure, and financial crime risk. If a business profile is not verified, the provider may delay card processing or the approval of business accounts. 

Furthermore, KYC and KYB are not only administrative steps. It helps payment providers identify fraudulent buyers, fake websites, and unauthorised card usage. A clear, compliant account structure also gives acquiring banks and payment networks more confidence in the merchant. Providers may continue screening account activity against risk databases after onboarding. This can flag unusual transactions for review.

Hong Kong eCommerce KYC and KYB document checklist by business structure

KYC and KYB documents generally cover two parts of onboarding: KYC documents that verify the individuals connected to the business, and KYB documents that verify the business itself. The exact requirements depend on your business structure, product, business activity, and risk assessment.

The checklists below use Airwallex as an example. They are not a universal list for every provider. Business-specific questionnaires or other supporting information may also be required.

1. Sole proprietorship

For this example, prepare the following core documents for a sole proprietorship:

• Business Registration

• Government-issued photo ID for the authorised person

• Government-issued photo ID for the UBO

• An authorisation letter signed by a director, if the applicant is not a director or UBO

Accepted photo ID may include a passport, national ID, or driving licence where applicable. If the holder of a Hong Kong Identity Card is a non-permanent resident, a passport should be provided instead.

2. Limited company

For this example, prepare the following core documents for a limited company:

• Certificate of Incorporation

• Business Registration

• Government-issued photo ID for the authorised person

• Government-issued photo ID for the UBO

• An authorisation letter signed by a director, if the applicant is not a director or UBO

An ownership structure chart may be required when the company’s ownership cannot be fully identified through reliable sources. The chart should include the UBO’s full legal name and ownership or voting-right percentage, the registration country and ownership percentage of each intermediary entity, and the key controller’s information where there is no individual UBO. It should be signed and dated by a director, issued within the past 12 months, and submitted without alterations.

3. Partnership

For this example, prepare the following core documents for a partnership:

• Business Registration

• Partnership disclosure and declaration form

• A copy of the partnership agreement showing each partner’s capital contribution percentage

• Government-issued photo ID for the authorised person

• Government-issued photo ID for the UBO

For KYB, additional business information or supporting evidence may be requested, depending on the business activity and risk assessment. Examples include a description of products or services, estimated monthly revenue or transaction volume, operating countries, sales channels, and evidence of commercial activity.

Verifying Ultimate Beneficial Owners and directors across complex ownership structures

Financial providers must identify the people who ultimately own or control a company. An Ultimate Beneficial Owner, or UBO, is generally an individual who owns or controls more than 25% of a company’s shares or voting rights, subject to the applicable requirements.

A simple structure may be easy to document. For a multi-tiered structure, you may need an organisational ownership chart signed by a company director. Each UBO and active director may also need to provide a government-issued photo ID and proof of residential address.

Make sure the ownership chart, UBO declaration, and Companies Registry records tell the same story. The Companies Registry also requires companies to ascertain and maintain up-to-date beneficial ownership information through a Significant Controllers Register. Clear records reduce the risk of further review.

Navigating address proofs and virtual office verification standards

Address verification is another core part of KYC. Providers may need to confirm both the company’s registered address and the residential addresses of directors or UBOs. They may also ask for evidence that the business operates where it says it does.

Acceptable corporate and residential address proof documents in Hong Kong

An address document should show the full name, address, and issue date. In many cases, it should have been issued within the last three months. The provider may apply its own document rules, so check the application instructions before uploading anything.

• Utility bills, including electricity, gas, and water statements

• Statements from licensed financial institutions or insurance providers

• Government correspondence from agencies such as the Inland Revenue Department

• Tenancy agreements registered with the Stamp Office

Upload clear, unedited scans. Make sure the full document is visible and the text is easy to read.

Addressing virtual office addresses: Requirements and compliance checks

A virtual office or corporate secretarial address may be used for statutory registration. It can still prompt additional questions during financial verification. The provider needs to understand where the business actually operates and fulfils orders.

If you use a virtual office, prepare supporting evidence such as supplier contracts, warehouse leases, or utility bills for fulfilment centres. This operational context helps distinguish a legitimate online business from an address used only for registration.

Preparing your website to pass payment gateway verification

Your website is part of the application. Payment providers review it to understand what you sell, how customers buy from you, and whether essential information is available before checkout.

Essential website legal pages: Terms of service, privacy, and refund policies

Place the key policies where customers can find them easily, usually in the website footer. Clear policies set expectations and give payment providers information about how you handle sales and customer data.

• Terms and Conditions governing website usage and product sales

• Privacy Policy outlining customer data collection and handling

• Refund and Return Policy stating exact return windows, costs, and criteria

• Shipping and Delivery Policy specifying timeframes and supported regions

Keep the wording consistent with your actual business practices. A policy that promises something your website cannot deliver may create more questions during review.

Ensuring functional checkout flows and clear product listings

Review teams look for a live website that matches the business model in the application. Draft pages, broken links, or missing products can delay approval. Show clear product descriptions, prices in supported currencies, contact details, and a working checkout flow. Product specifications should be easy to understand. Pricing should be visible before a customer reaches the payment page.

A complete website gives the reviewer enough context to assess the application without repeated manual requests.

Providing proof of operational history and commercial activity

A new website may not have a long trading history. If that applies to you, use other records to show how the business operates and how it can fulfil customer orders.

• Recent processing statements from previous payment gateways

• Supplier invoices, purchase orders, or manufacturing contracts

• Bank statements showing business income or inventory purchases

• Active supply chain agreements demonstrating product delivery capacity

These records help the provider assess expected processing volumes and financial exposure.

Overcoming common onboarding delays and rejected verification applications

Many delays come from small inconsistencies rather than complex problems. A quick document and website review before submission can catch most of them.

Resolving pending KYC or KYB status caused by missing or illegible documents

An application may pause when an upload is blurry, cropped, expired, or difficult to read. Review systems generally need a complete scan with all four corners visible. Check each file for glare, reflections, watermarks, and missing pages. Also confirm that your Business Registration Certificate is current. Clear files reduce the need for follow-up messages.

Correcting ownership declaration discrepancies during shareholder verification

Your UBO declaration should match the latest Companies Registry records. Differences in names, ownership percentages, or corporate entities can trigger another review. If the shareholding structure changed recently, include the relevant filings with your application. Consistent information across the ownership chart, statutory records, and submitted forms makes the review easier to complete.

How Airwallex streamlines KYC and KYB verification for Hong Kong eCommerce

Whether you are applying for an Airwallex Business Account or setting up an Airwallex payment gateway, KYC and KYB are part of the onboarding process. Our Business Account lets Hong Kong businesses apply online, and settle like-for-like in 20+ currencies to avoid forceful conversions. Our payment gateway enables eCommerce businesses to collect payments in 130+ currencies through 160+ payment methods.

Airwallex provides a digital onboarding experience for Hong Kong businesses applying for a Business Account or payment gateway. Applicants can submit their company information and supporting documents online, while the required checks help verify the business, its ownership structure, and the individuals connected to it.

Create an Airwallex account for free and start your application online.

Frequently asked questions

What do KYC and KYB mean?

KYC means Know Your Customer, while KYB means Know Your Business. Together, they are the processes financial institutions use to verify a business’s identity, legal structure, beneficial ownership, and business activities before providing account or payment services.

What is an Ultimate Beneficial Owner, and how do I verify one?

An Ultimate Beneficial Owner is an individual who directly or indirectly owns or controls more than 25% of a company’s shares or voting rights, subject to applicable requirements. Verification generally requires a valid government photo ID, proof of residential address, and an official corporate ownership structure chart.

Why is my payment gateway onboarding stuck in pending status?

Common causes include unreadable document uploads, mismatched ownership details, expired registration certificates, and an incomplete website. Check that your website includes Terms and Conditions, a Privacy Policy, and a Refund and Return Policy, then confirm that your corporate and ownership information matches the submitted documents.

Sources:

Information was sourced as of September 2026 for reference purposes. For the latest details, please visit each provider’s official website.

• https://www.hkma.gov.hk/eng/key-functions/banking/anti-money-laundering-and-counter-financing-of-terrorism/

• https://www.ird.gov.hk/eng/tax/bre.htm

• https://www.cr.gov.hk/en/home/index.htm

Disclaimer: This article was prepared in September 2026 based on voluntary online research and publicly available information. We have not personally tested every tool or provider mentioned. This article is for educational purposes only, and readers should independently evaluate each service provider based on their specific business requirements. Content is updated every six months. To request an update, please contact us at [email protected].