The Business Ownership Document Verification check helps verify the authenticity of business ownership documents and validates the ownership structure of a business. This guide explains how to run the check, what data to provide, and how to interpret the results.

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Check ID

kyb.business_ownership_verification_tool

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Overview

The check analyzes various aspects of business ownership documents:

  • Document authenticity and validity
  • Business owner verification
  • Ownership share validation
  • Document type verification
  • Total ownership verification

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How the Check Works

  1. Document Analysis

    • Extracts key information from business ownership documents
    • Validates document structure and format
    • Verifies document authenticity
    • Identifies business owners and their ownership shares

  2. Information Verification

    • Cross-references extracted data with self-attested information
    • Validates business owner names match
    • Confirms ownership shares
    • Verifies total ownership percentage

  3. Ownership Validation

    • Verifies all significant owners (≥25%) are disclosed
    • Validates ownership shares add up to expected total
    • Checks for missing or undocumented owners
    • Ensures ownership information is complete and accurate

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Document Requirements

The following information must be present in the business ownership documents for it to be considered valid:

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Cap Table or Share Register

  • Names of all shareholders/owners
  • Number of shares or ownership percentage for each owner
  • Total number of shares or ownership percentages must sum to 100%
  • Date of ownership information

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Operating Agreement

  • Names of all members/owners
  • Ownership percentages or shares for each member
  • Roles and responsibilities of members
  • Date of agreement

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Share Certificates

  • Name of shareholder
  • Number of shares owned
  • Class of shares
  • Date of issuance
  • Company name and registration details

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Partnership Agreement

  • Names of all partners
  • Partnership type (general, limited, etc.)
  • Ownership percentages or profit-sharing ratios
  • Date of agreement

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Articles of Organization (if sole proprietorship)

  • Name of sole owner
  • Business name
  • Date of organization
  • Confirmation of 100% ownership

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Check Configuration

The check can be configured with the following parameters:

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min_ownership_threshold
integer
default:
"25"

Minimum percentage of ownership to be considered significant. Owners with ownership percentage at or above this threshold must be included in self-attested data.

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total_ownership_threshold
integer
default:
"100"

Total percentage of ownership that must be accounted for in the documentation. The check will fail if the total documented ownership is less than this threshold.

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check_self_attested_ownership
boolean
default:
"true"

Whether to verify that self-attested ownership shares match the documented shares. If true, the check will fail if self-attested ownership data is missing.

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enable_visual_verification
boolean
default:
"true"

Whether to enable visual verification of documents.

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enable_fraud_check
boolean
default:
"true"

Whether to enable document fraud detection.

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include_incorporation_documents
boolean
default:
"false"

Whether to include incorporation documents in the ownership verification process.

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Example Configuration

{
  "min_ownership_threshold": 25,
  "total_ownership_threshold": 100,
  "check_self_attested_ownership": true,
  "enable_visual_verification": true,
  "enable_fraud_check": true,
  "include_incorporation_documents": false
}

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Running the Check

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API Endpoint

POST https://api.parcha.ai/runCheck

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Example Request

curl -X POST 'https://api.parcha.ai/runCheck' \
-H 'Authorization: Bearer YOUR_API_KEY' \
-H 'Content-Type: application/json' \
-d '{
  "agent_key": "public-bdd",
  "check_id": "kyb.business_ownership_verification_tool",
  "payload": {
    "id": "ownership-check-001",
    "self_attested_data": {
      "business_name": "Acme Corp, Inc.",
      "business_ownership_documents": [
        {
          "url": "https://storage.googleapis.com/parcha-ai-public-assets/acme_cap_table.pdf",
          "file_name": "acme_cap_table.pdf",
          "source_type": "file_url"
        }
      ]
    },
    "associated_individuals": [
      {
        "id": "owner-001",
        "self_attested_data": {
          "first_name": "John",
          "last_name": "Smith",
          "title": "CEO",
          "is_business_owner": true,
          "business_ownership_percentage": 60
        }
      },
      {
        "id": "owner-002",
        "self_attested_data": {
          "first_name": "Jane",
          "last_name": "Doe",
          "title": "CTO",
          "is_business_owner": true,
          "business_ownership_percentage": 30
        }
      }
    ],
    "associated_entities": [
      {
        "id": "entity-001",
        "self_attested_data": {
          "business_name": "Venture Capital LLC",
          "business_ownership_percentage": 10,
          "is_trust": false
        }
      }
    ]
  },
  "check_args": {
    "min_ownership_threshold": 25,
    "total_ownership_threshold": 100,
    "check_self_attested_ownership": true,
    "enable_visual_verification": true,
    "enable_fraud_check": true,
    "include_incorporation_documents": false
  },
  "webhook_url": "https://your-webhook.com/check-updates"
}'

​
Example Response

{
  "id": "check-12345-abcde",
  "status": "PENDING",
  "created_at": "2024-03-15T15:30:00Z",
  "updated_at": "2024-03-15T15:30:00Z",
  "agent_id": "public-bdd",
  "input_payload": {
    "agent_key": "public-bdd",
    "check_id": "kyb.business_ownership_verification_tool",
    "payload": {
      "id": "ownership-check-001",
      "self_attested_data": {
        "business_name": "Acme Corp, Inc.",
        "business_ownership_documents": [
          {
            "url": "https://storage.googleapis.com/parcha-ai-public-assets/acme_cap_table.pdf",
            "file_name": "acme_cap_table.pdf",
            "source_type": "file_url"
          }
        ]
      },
      "associated_individuals": [
        {
          "id": "owner-001",
          "self_attested_data": {
            "first_name": "John",
            "last_name": "Smith",
            "title": "CEO",
            "is_business_owner": true,
            "business_ownership_percentage": 60
          }
        },
        {
          "id": "owner-002",
          "self_attested_data": {
            "first_name": "Jane",
            "last_name": "Doe",
            "title": "CTO",
            "is_business_owner": true,
            "business_ownership_percentage": 30
          }
        }
      ],
      "associated_entities": [
        {
          "id": "entity-001",
          "self_attested_data": {
            "business_name": "Venture Capital LLC",
            "business_ownership_percentage": 10,
            "is_trust": false
          }
        }
      ]
    },
    "check_args": {
      "min_ownership_threshold": 25,
      "total_ownership_threshold": 100,
      "check_self_attested_ownership": true,
      "enable_visual_verification": true,
      "enable_fraud_check": true,
      "include_incorporation_documents": false
    },
    "webhook_url": "https://your-webhook.com/check-updates"
  }
}

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Check Results

The check returns a detailed analysis of the business ownership documents and verification results. For full details of the response structure, see the Business Ownership Document Verification Result documentation.

Industry activity checkIncorporation Document Verification