A KYB (Know Your Business) check verifies that a company is real, who owns and controls it, and whether it carries sanctions, political exposure or reputational risk. It is the business counterpart of KYC. It applies when a bank opens an account for your company, and when you onboard suppliers, partners or business customers of your own. This guide covers what the check includes, which registers to use in Lithuania and the EU, where checks fail, and how to keep the process fast.

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TL;DR

KYB verifies a legal entity: its identity, its ultimate beneficial owners (UBOs), its risk profile and its status over time. KYC focuses on individuals.
In Lithuania, companies must keep beneficial owner data current in JANGIS. An official extract is available from the Centre of Registers, from 1.50 EUR for a self-service search.
A VAT or EORI validation confirms trade status. It does not replace the AML/CFT checks that regulated firms must run.
KYB is a lifecycle process, not a one-off. Ownership and directors change, so monitoring and dated records matter.
Prepare your own ownership documents before you apply for a business account. This is the fastest way to shorten onboarding.

What a KYB check actually covers
Lithuanian and EU registers you can use
A step-by-step KYB process
Where KYB checks go wrong
The regulatory direction in the EU
KYB when you onboard business clients
Preparing your company for a bank’s KYB review
Our perspective: verification should be clear, risk-based and documented
Opening a business account with Demivolt
FAQ
Sources

What a KYB check actually covers

KYB is a structured verification process for legal entities. According to ScreenVeritAI’s overview, its components are:

Entity identity verification. Registered name, registration number, legal form, address, status and legal existence.
UBO identification. The natural persons who ultimately own or control the entity, however many layers sit between them and the company.
Risk assessment. Screening for sanctions, politically exposed persons (PEPs) and negative media.
Continuous monitoring. Re-checking as the company’s data changes.

The difference from KYC is scope. KYC asks whether this person is who they say they are. KYB asks whether this company is legitimate, and then asks the same question of the people behind it. A KYB check therefore ends in several KYC checks.

Why the company name alone tells you nothing

The most common mistake is stopping at the company name and registry entry. A registered, active company can still sit under a sanctioned owner. Sanctioned individuals often hide behind complex shell companies, nominal directors or offshore entities, and professional due diligence has to trace the ownership chain to the people at the top. A clean entity record is where the check starts.

Lithuanian and EU registers you can use

A good KYB file combines official sources. Each answers a different question.

Question	Source	What it tells you
Does the company legally exist and what is its status?	Lithuanian Register of Legal Entities and the Centre of Registers	Name, code, legal form, status, registered office
Who are the beneficial owners?	JANGIS, a subsystem of JADIS	Declared natural persons who ultimately own or control the entity
Is the VAT number valid for cross-border trade?	VIES	Whether the VAT number is active in the EU
Can the company move goods across customs borders?	EORI validation	Customs trade registration
Who is behind a cross-border group?	LEI records, where available	A global identifier that helps link entities across jurisdictions

JANGIS and the beneficial owner extract

Under Lithuanian rules, legal entities must register and keep up to date information on their beneficial owners in JANGIS, the beneficial owner subsystem of JADIS. The data is submitted electronically through the Centre of Registers self-service portal, as explained by the law firm Fondia.

Entitled parties can order an official JANGIS extract from the Centre of Registers. The fee is 1.50 EUR for a self-service search and 2.93 EUR for a requested extract. Check the page for current rates before you budget for bulk checks.

The 25% rule and the senior management fallback

The general test for a beneficial owner is ownership above 25%. Lithuania adds a safeguard. If no such person exists or cannot be identified, the JANGIS user guide says senior management, such as the CEO or board members, must be declared as beneficial owners by default. The guide notes that its description covers the functionality implemented in the subsystem, so confirm the full rules with the Centre of Registers or a lawyer for complex structures.

This matters in practice. A JANGIS entry that lists a CEO tells you that no individual could be shown to hold more than 25%. It does not tell you the company is transparent. Ask follow-up questions.

VAT and EORI validation

For B2B trade within the EU, real-time validation of VAT and EORI numbers against official registers confirms legal existence and trading rights. VIESAC states that this covers up to 95% of operational supplier verification needs for commercial KYB. The same source is clear on the limit: mandatory AML/CFT checks for regulated firms remain separate. Treat VAT and EORI validation as a fast first screen for a supplier, not as proof of a clean ownership structure.

The same logic applies to any counterparty abroad. Checking the official register before you sign is standard practice, whether you hire through an intermediary or trade directly. For a worked example of validating a legal employer against registration details, see a six-check approach to confirming a legal employer, which is written for South Africa but shows the habit of verifying registration before you rely on a counterparty.

A step-by-step KYB process

Whether you run checks on your customers or prepare to be checked, the sequence is the same.

Collect the basics. Legal name, registration number, legal form, registered address, country of incorporation, and the nature of the business.
Verify against official registers. Compare what the company declares with the Register of Legal Entities, and VIES or EORI where trade is cross-border.
Map ownership to the people. Follow every corporate shareholder until you reach natural persons. Compare the result with JANGIS or the equivalent foreign register.
Verify the people. Identify the UBOs, directors and authorized signatories as individuals, as in a standard KYC check.
Screen. Check each entity and person for sanctions, PEP status and negative media.
Assess risk. Consider the country, industry, ownership complexity and expected transaction flows. Decide whether to approve, request more information, or decline.
Record it with a date. Save the evidence as it stood on the day you decided.
Monitor. Re-check on a schedule and when a trigger occurs, such as a change of director or owner.

Keep a point-in-time record

Regulators and auditors increasingly favor dated digital dossiers. Practitioners quoted by ScreenVeritAI point to a timestamped report that shows what the UBO structure was on a specific date. Live databases change, so they cannot prove what you knew when you approved a client. Export a PDF or snapshot at the moment of decision.

Where KYB checks go wrong

Data fragmentation. Jurisdictions use different formats, languages and UBO thresholds. Some define an owner at more than 25%, others at 10%. LEI System’s guide cites this as a main obstacle and points to standardized identifiers such as the LEI. If your counterparty has an LEI, use it to link records.

One-time checks. Experts stress that corporate ownership, directorships and legal status change. A check that was accurate at signing can be wrong a year later.

Treating registry data as final. A register shows what was declared. It does not show what was verified in your context. Cross-check declared owners against the documents the company gives you.

Mixing up commercial and regulatory checks. A VAT validation is useful for a purchase order. It does not satisfy the obligations of a regulated firm. If you are an obliged entity, you need a documented AML risk process.

The regulatory direction in the EU

The EU is tightening and harmonizing anti-money laundering rules. Regulation (EU) 2024/1624 aims to clamp down on money laundering and terrorist financing, and the EUR-Lex summary is titled as applying from 2027. If you are an obliged entity, read the regulation text and your supervisory authority’s guidance to see how its customer due diligence provisions affect you. For most SMEs the practical effect is the same: expect more questions about ownership and control, and expect them to be asked consistently across member states.

KYB when you onboard business clients

If you sell to other companies, the same checks shape your onboarding. Compliance specialists describe onboarding as a confirmation process, not a persuasion phase. The firms that do it well give customers visibility into each verification step, which supports retention.

Practical points for your own client onboarding:

Ask for ownership information at the start. Late requests create delays and frustration.
Use a risk-based approach. A Lithuanian company with a single director-owner needs less work than a multi-layer holding structure with offshore shareholders.
Show status. Tell the customer what has been received, what is under review, and what is missing.
Define who decides. Name the person who can approve, escalate or reject.
Plan the refresh cycle. Decide up front when you will re-verify.

Preparing your company for a bank’s KYB review

When you apply for a business account, the provider runs a KYB check on you. A well-prepared file shortens the process. Gather these before you start:

Registration details and a current extract from the Register of Legal Entities (or the foreign equivalent).
A clear ownership chart down to natural persons, with percentages.
Identity documents for UBOs, directors and signatories.
A plain description of your business, customers, countries of operation and expected payment flows.
Evidence of your beneficial owner entry in JANGIS if you are a Lithuanian entity. Make sure it matches your chart.

Inconsistencies cause the most friction. If JANGIS shows one owner and your documents show another, resolve it before applying.

Our perspective: verification should be clear, risk-based and documented

We are a regulated European fintech platform, and KYB is the first thing a new business client meets. Our view is simple: verification is the foundation of a banking relationship, not an obstacle to it.

We design onboarding to be fast, secure and transparent, with risk-based checks that meet EU regulatory standards. Funds are held in segregated accounts, which is why we ask the questions we ask. Companies that arrive with a clear ownership chart, matching registry data and a plain description of their payment flows tend to move through verification with less back and forth. That is a pattern we expect from any compliant provider, and it is why we encourage preparation over improvisation.

We also think the check should not end at approval. Business structures change, so access control, role-based permissions and account structure should reflect who is authorized today. For cross-border companies, a multi-account setup with defined user roles makes governance easier to demonstrate to auditors and partners.

— dd

Opening a business account with Demivolt

If you are preparing KYB documents because you need a regulated account, our business accounts give your company a dedicated IBAN, multi-account structures and role-based user management. You can also issue virtual and physical cards through our card programmes, and handle SEPA and SWIFT through our payments service.

Published fees are straightforward:

Item	Fee
Account opening	0
Account verification	0
Dedicated Client Manager	0
Monthly maintenance	0 per month
Account closure	0
Internal transfers between Demivolt accounts	0
SEPA In	0 €
SEPA Out	0.40 € per transfer
SWIFT In	25.00 €
SWIFT Out	30.00 €

You can estimate outgoing transfer costs with the SEPA fee calculator. Advisors who guide clients through onboarding can look at our reseller program. To start, visit demivolt.com and contact us.

FAQ

What is the difference between KYB and KYC?

KYC verifies individuals. KYB verifies legal entities: their identity, their ultimate beneficial owners, and their risk exposure. In practice a KYB check includes KYC checks on the owners, directors and signatories behind the company.

Is a VAT or EORI check enough for KYB?

No. It confirms that a company is registered for VAT or customs trade and is useful as a fast screen for suppliers. Mandatory AML/CFT checks for regulated firms remain separate, and ownership still needs to be traced to natural persons.

How do I find a Lithuanian company’s beneficial owners?

Official data is held in JANGIS, part of JADIS. Entitled users can order an extract from the Centre of Registers, with fees starting at 1.50 EUR for a self-service search. Compare the extract with the documents the company provides, since a declared owner list is not the same as a verified one.

How often should a KYB check be repeated?

There is no single interval that fits every company. Experts describe KYB as an ongoing lifecycle process, so re-check on a risk-based schedule and whenever ownership, directors or legal status change. If you are an obliged entity, follow your supervisory authority’s guidance.

What should I prepare before a bank runs a KYB check on my company?

Prepare a current registry extract, an ownership chart to natural persons, identity documents for owners and directors, and a description of your business and expected payment flows. Make sure your JANGIS entry matches your documents.

Sources

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